Atlas Arteria, a global toll road operator, reported a mixed performance for the first half of 2024 across its varied portfolio, with modest traffic growth offset by new tax impacts and a leadership change.
The ASX-listed company reported a 16.3% drop in interim net profit to $114.2 million despite higher group toll revenues as costs rose, and it continued to take losses on its Chicago Skyway toll road.
The company pointed to the imposition of the new French long-distance transportation infrastructure tax as a significant reason for the decline in net profit.
Atlas Arteria reported a revenue increase of 9.6% from ordinary activities, reaching $69.6 million.
The inclusion of higher tolls and operational improvements were primary drivers of the revenue increase.
However, the introduction of France's new long-distance transport infrastructure tax weighed on EBITDA, reducing it by 1.6% during the period.
Atlas Arteria confirmed guidance for a 2024 distribution of 40 cents per share, supported by growing free cash flows.
"Our ability to maintain our distribution guidance reaffirms the robustness of our assets and cash flow generation," said Tess Palmer, director of investor relations.
The net tangible asset value per security slightly dipped from $2.99 in 2023 to $2.76 in 2024.
In a significant leadership update, Hugh Wehby has been appointed as the incoming CEO, starting in late 2024.
Wehby will transition into the role alongside the current CEO Graeme Bevans.
Wehby's extensive experience in the global infrastructure market, most recently with Transurban, positions him to steer Atlas Arteria forward.