Transurban profits rise as motorists grapple with toll increases outpacing inflation
Profits at highway group Transurban quintupled with results revealed after drivers were slapped with toll increases above the latest inflation rate.
The company’s annual profit for 2022-23 soared 429.9% to $92 million, five times higher than the $16 million profit from 2021-22 when lockdowns saw fewer people drive .
Transurban, which has highways in Sydney, Melbourne and Brisbane, saw its toll revenue jump 21.8% to $2.831 billion.
In its earnings presentation, Transurban boasted that high inflation in fiscal year 2023 would continue to help them in fiscal year 2024.
“Some other benefits of FY23 inflation will continue to impact FY24 revenue and will worsen over time,” he said.
While inflation has moderated from high levels, the lag in the release of official data means motorists continue to face steeper price increases in subsequent months.
On July 1, motorists in Sydney saw their tolls rise by more than the June quarter inflation rate of 0.8% over three months.
On the M7 motorway west of the city, tolls rose 13 cents to $9.51, an increase of 1.4%.
Profits at the Transurban motorway group quintupled with the results revealed after drivers were slapped with toll increases above the latest rate of inflation (pictured is an E Tag reader in Melbourne)
In its earnings presentation, Transurban boasted that high inflation in fiscal year 2023 would continue to help them in fiscal year 2024.
It was a similar story with the North Connex where there was a 12 cent toll increase to $9.35.
While the quarterly and annual pace of inflation moderated in June, the July 1 toll increases did not reflect this, as the Australian Bureau of Statistics only released inflation data for the quarter of June than July 26.
Some toll increases are tied to inflation, but other factors are taken into account through contracts signed with various state governments, with some increases occurring annually and others quarterly.
NSW Roads Minister John Graham admitted in late June that upcoming toll increases for July 1 were tough, following a review of tolls by the former head of the Australian Competition and consumption, Allan Fels.
“This latest toll price hike comes at a time when the cost of living continues to bite families and individuals in NSW hard,” he said.
Transurban’s results presentation acknowledged tolls were adding to the cost of living crisis, referring to the New South Wales government’s review.
“The review identified congestion, travel time savings, cost of living impacts and inconsistencies in different tolling arrangements as areas for consideration,” he said.
The company’s annual profit for 2022-23 soared to $92m, five times higher than the $16m profit from 2021-22 (pictured is a traffic jam at the entrance to Sydney’s eastern distributor , owned by Transurban)
