Photo: RNZ / Nate McKinnon
Diversified infrastructure investor Infratil's first half net profit has more than doubled, reflecting a big boost from its near 100 percent ownership of mobile telco One NZ.
The company's result included a large $1.06 billion revaluation of Infratil's initial 49.95 percent stake in One NZ, following the acquisition of a further 49.95 percent stake in June this year, taking its stake to 99.9 percent.
Key numbers for the six months ended September compared with a year ago:
- Net profit $1.21b vs $557.3m
- Revenue $1.46m vs $951.0m
- Underlying profit $400m vs $275.6m
- Interim dividend 7 cents a share vs 6.75cps
Infratil chief executive Jason Boyes said that the strong performance reflected a four-month contribution from its increased ownership of One NZ, with group underlying profit up 45 percent.
He said the significant 54 percent increase in revenue gave it confidence to lift and narrow its full year underlying profit outlook to between $820 million-$850m, from an earlier guidance of between $800m - $840m.
In addition to One NZ, the company's key operating businesses included CDC Data Centres, Manawa Energy, Longroad Energy, RHCNZ Medical Imaging, Qscan Group and Wellington Airport.
"CDC is experiencing an unprecedented surge in demand for cloud and generative AI workloads, from both new and existing customers," Boyes said.
"This demand has seen CDC embark on an accelerated development plan, bringing forward 223 megawatts of development across Canberra, Sydney, Melbourne, and Auckland."
Boyes said the company invested more than $2.7b over the past six months, including $1.8b to buy the other half of its One NZ stake.
The remaining capital was invested in Infratil's existing digital and renewable businesses, with global demand for digital infrastructure experiencing an unprecedented surge driven by developments in AI.
Boyes said Infratil's balance sheet remained strong with a debt gearing of 19.7 percent as of 30 September, compared with 9.8 percent at 31 March.
"As we head into a period which is likely to be dominated by a continuation of the macro-economic uncertainty that we are currently experiencing, we are excited about the level of opportunity for continued investment across our existing portfolio," he said.
"These opportunities are likely to continue to exceed our available capital, allowing us to continue to prioritise the highest value opportunities for shareholders."
Separately, Boyes said it was too soon to say whether Infratil would increase its 66 percent stake in Wellington Airport, as the Wellington City Council begins to consult with the public over the possible sale of its stake in the city's airport.
