Highway 407 drives big profits
Toll highway operator 407 International is reporting a 128 per cent increase in profit for the fourth quarter as it recorded higher average revenue per trip compared with the same period last year.
The company says net income was $39.3 million for the quarter compared with $17.2 million in the year earlier period. Revenues were $187.2 million, up from $172.8 million in the fourth quarter of 2011.
The company, which owns the private 407 Highway connecting several cities in the Greater Toronto Area, saw a slight decline of
the total number of trips taken during this period from 29,211 from 29,317 in the fourth-quarter of 2011.
However, average revenue per trip was $6.40 during the quarter, up from $5.89 year over year.
Operating expenses for the quarter were $32.5 million, down from $34.6 million year over year. Interest and other expenses were also down, coming in at $84.7 million for the quarter compared to $102.6 million in the year earlier period.
For the full year, income was $174.4 million on revenue of $734 million compared to net income of $128.3 million on revenue of $675 million in 2011.
The company is owned by Cintras Infraestructuras S.A., a subsidiary of Ferrovial S.A, and partially owned by subsidiaries of the Canadian Pension Plan Investment Board and Montreal-based engineering giant SNC-Lavalin.
(The Canadian Press)