ASX and NZX-listed investor Infratil expects dividend payments to grow as cash earnings from CDC Data Centres and Vodafone NZ rise and contributions arrive from new investments.
In whole or in part Infratil owns renewable energy, digital infrastructure, airport and social infrastructure businesses in growth sectors across Australia, New Zealand, the United States and Europe.
That portfolio includes Vodafone NZ, bought in partnership in mid-2019, and CDC Data Centres, which is well established in Australia and is now building two data centres in New Zealand.
Infratil reported $1.24 billion in revenue for the year ended 31 March, up from $1.19 billion in 2020 and a net loss after tax of $16 million, down from a prior year net profit of $241.2 million.
However, proportionate EBITDAF from continuing operations of $398.8 million for the year was up from $370.2 million in the comparative period.
Infratil's half share of Vodafone NZ contributed $223.5 million of that and its 48 per cent shareholding in CDC Data Centres $75.8 million, up 25 per cent year over year.
Overall guidance for 2022 is for proportionate EBITDAF to increase to between $470 million and $520 million.
The impact of COVID-19, particularly for Wellington Airport and Vodafone New Zealand, was offset by cost control and the continued demand for high-quality data centre facilities, which drove CDC Data Centres' 25 per cent earnings growth.
"CDC Data Centres seems likely to be able to fund organic growth from its own financial resources, although support is always available for step-change expansions," Infratil CEO Jason Boyes said.
"As data centre utilisation increases, CDC’s risk declines and its access to bank funding increases."
It was also anticipated that Vodafone NZ would have the financial capability to meet its investment goals in 2022.
Infratil said its net loss was driven by unrealised energy derivative losses at Trustpower and increased management incentive fees, which were based on valuation increases that are not recognised for accounting purposes.
Infratil and its portfolio businesses undertook capital expenditure and investment of $1.24 billion, including $250 million in digital infrastructure and technology.
The final dividend for 2021 to be paid on 22 June to shareholders as of 9 June will be 11.5 cent per share cash plus 3.5 cents per share of imputation credits.
This lifted the total annual cash payment to 17.75 cents per share from 17.25 cents in 2020.