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Dunedin City Holdings Limited’s latest financial results highlight a $32.5 million cash injection from stadium events along with a strong rebound in passenger numbers at Dunedin airport, and a multimillion-dollar dividend for the Dunedin City Council.

The company’s results for the 2023 financial year show a group profit of $3.3 million for the 2023 financial year.

Dunedin City Holdings Limited (DCHL) Chairman Keith Cooper noted “that’s a solid result in what continues to be a challenging economic climate for our companies.

“Obviously we’re still seeing inflationary pressures at home, and a slowing Chinese economy contributing to increased volatility in key Asian export log markets, not to mention the tail end of COVID-19’s impact, so these are pleasing performances by most of our companies.”

Among the results, Dunedin Venues’ focus on building Southern pride and prosperity attracted more big events – from the All Blacks v Ireland test match to the Red Hot Chili Peppers with Post Malone, Rod Stewart and Six60 concerts – to Dunedin’s Forsyth barr stadium.

That, in turn, attracted 47,500 visitors from across New Zealand and overseas to Dunedin, together contributing $32.5 million of direct additional spend to Dunedin.

Cooper advised Dunedin Venues, which runs the stadium, recorded a small profit for the year and delivered on its purpose and added “given the disruption to major events caused by Covid-19, and the time it takes to rebuild from that, it’s a good result for our city.”

Dunedin International Airport (DIAL) also had a strong year, with over 920,000 passengers welcomed throughout the year – 86% of the company’s pre-Covid peak.

The company recorded a surplus of $4.3 million, well ahead of projections, Cooper says.

“That’s a strong result and one that will provide the company with a solid foundation to invest in further growth and development.”

DCHL also paid a dividend and interest payments totalling $11.4 million to the Dunedin City Council, representing a good result for ratepayers with Cooper noting “we are working hard not just to lift the performance of our companies, but to ensure they’re performing for all our residents.”

Elsewhere, major trading companies Aurora Energy, City Forests and Delta all recorded profits, while Dunedin Stadium Properties Limited and Dunedin Railways recorded losses.

Group debt increased over the year as forecast, reflecting increased capital expenditure by Aurora in its network and by the DCC.

Aurora’s result included substantial capital investment of $99.3 million on new network assets in Dunedin, Central Otago, Wānaka and Queenstown Lakes during the year, up from $83 million the previous year.

The company’s after-tax profit of $11.1 million was also better than expected and an improvement on the previous year.

City Forests’ after-tax profit of $5.5 million reflected market conditions overseas, while Delta’s profit was $2.6 million.

Dunedin City Holding Company reports

Image. Dunedin's Forsyth Barr Six60 concerts 

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