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Highlights
- Toll revenue increased by 10% YoY in 1HFY24 and by 5% YoY in 3QFY24
- The company expands with a new 16.5-km motorway concession in France
- Diamond Infraco 1 Pty. Ltd. raised its voting power in ALX to 29.88% from 27.15%
Atlas Arteria Limited (ASX:ALX) is an international owner, operator and developer of toll roads and manages a portfolio of five toll roads in the United States, Germany and France.
In the first half of the financial year 2024 (1HFY24), toll revenue of ALX increased by 10% YoY to AUD 69.2 million, driven by an increase in CPI-linked toll and capital management initiatives aimed at improving free cash flow.
Meanwhile, the period saw 16% YoY drop in net profit after tax to AUD 114.2 million, due to the Chicago Skyway loss, lower APRR profits and higher costs.
In the third quarter of FY24 (3QFY24), the company recorded 5% YoY increase in toll revenue and weighted average traffic grew by 0.6% YoY. The revenue growth was supported by traffic performance at APRR, higher tolls across most businesses and boosted by the Paris Summer Olympics.
Moreover, the company inked a concession contract to operate a new 16.5km motorway in France.
Increase in substantial holding
Diamond Infraco 1 Pty. Ltd. and its related organisations increased their voting power in ALX to 29.88% from 27.15%, as of 15 November 2024.
Outlook
The company has reaffirmed its distribution guidance for FY24 to 40 cents per security and anticipates a reduction in cash usage for funding distributions, decreasing to 4-5cps, down from previous forecast of 7-8cps. Additionally, the company anticipates meeting its 2025 emissions reduction target, targeting a 25% decrease in scope 1 and 2 emissions from a 2019 baseline.
The focus is on introducing capital management initiatives to optimise free cash flow, support long-term growth objectives and improve efficiency.
Share Performance of ALX
ALX shares closed 1.04% lower at AUD 4.76 apiece on 21 November 2024. Over the past year, ALX’s share price has dropped by 18.21% and in the last three months, it has declined by almost 7.57%.
ALX's 52-week high is AUD 6.07, recorded on 20 November 2023, while 52-week low is AUD 4.625, recorded on 20 September 2024.
ALX Daily Technical Chart, Source: REFINITIV
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, and currency, is 21 November 2024. The reference data in this report has been partly sourced from REFINITIV.
Disclaimer
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