Infratil Stock (IFT - NZX) Company Review & Outlook - June 2020

Auckland Property & NZX Stock Market Tips with MaximSherstobitov.NZ

Infratil owns renewable energy, transport, data and connectivity, and social infrastructure businesses in growth sectors.

Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

As outlined in the Infratil FY2020 full year results announcement on 29 May 2020, given ongoing uncertainty over the duration and impact of the COVID-19 pandemic, Infratil will not be providing FY2021 Group earnings or dividend guidance at this stage.

This talk reviews Infratil with Tim Brown who is currently Chairman of partly owned Wellington Airport. You will learn how Infratil portfolio companies are navigating the challenges that come with COVID-19.

PERFORMANCE:

- Net surplus for the year from continuing operations of $508.8 million, compared to $64.4 million in the prior year

- 13.5% growth in underlying EBITDAF reflected changes in the portfolio and a growing contribution from data and communications infrastructure;

- Acquisition of 49.9% of Vodafone New Zealand completed on 31 July 2019 for $1.03 billion

- Divestments and tightening of the portfolio are now substantially complete

COVID-19’s IMPACT:

- Vodafone’s roaming revenue has been adversely impacted, and these effects will likely continue while COVID-19 related travel restrictions remain in place

- Infratil expects a slowdown in tax equity markets and corporate Power Purchase Agreements in FY2021 to impact the rate of new development at Longroad Energy

- Trustpower’s performance is likely to be impacted by a slowdown in demand for power and potential for lower average wholesale prices in FY2021 as well as the potential for lower cash collections from retail customers

- Wellington Airport’s performance is likely to be severely impacted by ongoing COVID-19 related travel restrictions and reduced passenger volumes

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