Airports Company SA profit falls on weak economy, costs

Bloomberg

Airports Company South Africa’s full-year profit fell 59 percent to $15.4 million as a weak economy and cost pressures constrained revenue growth. The company, which manages South Africa’s major airports, reported a 4.6 percent decline in earnings before interest, tax, depreciation and amortisation to 2.8 billion rand, despite a 5.6 percent increase in revenue to 7.1 billion rand, Acting CEO Bongiwe Mbomvu said.
The weak economy affected passenger numbers and the viability of some local airlines,
impacting revenue from commercial activities, CEO said. Profits were impacted by new accounting standards which resulted in a higher provision for impaired debts and changes in the property evaluation model.