Strong traffic growth across all markets has resulted in a 10 per cent increase in Transurban’s free cash flow in the first half of FY25, however litigation costs in relation to fees payable to ConnectEast have not been included in the company’s summary of its financial highlights.
In December 2024 the Supreme Court of Victoria found Transurban required to pay compensation of $10 million per year for each year since 2019, however Transurban is considering all legal avenues including an appeal.
The increase in traffic growth has led the toll road provider to register a proportional toll revenue of $1.872 billion and a proportional operating EBITDA of $1.452 billion.
Despite this, Transurban registered a net loss of $15 million over the H1 FY25, with $241 million of net finance costs and $109 million of loss from equity accounted investments eating into the $230 million 1H FY24 profit.
Overall group traffic grew to exceed an average of 2.5 million trips per day.
CEO Michelle Jablko says the growth of traffic across all its markets bodes well for a strong finish to FY25.
“We’ve achieved strong momentum in the first half of 2025,” she says. “Traffic is up across all markets and costs have been well managed, driving a 10 per cent increase in free cash for the half.
“In addition to operating performance, Transurban remains focused on strengthening government partnerships, investment in customer value and laying the foundations for long-term growth.”
Jablko also says discussions with the NSW government are ongoing regarding the states’ attempts at toll reform.
“The NSW government has stated the importance of respecting the value of existing contracts and revenue, while finding solutions that seek to protect toll road investors from losses and delivering meaningful reform that helps customers and communities in practical ways.
“WestConnex, for example, is saving customers approximately 40 minutes on a trip from Parramatta to the airport in the morning peak, while the associated fuel saving are reducing the effective cost per trip by around 30 per cent.”
Heavy vehicle traffic also significantly increased across Transurban’s Australian markets, with the biggest increases to heavy and light vehicle traffic seen in Brisbane.
Sydney’s heavy vehicle traffic role 1.7 per cent, while Melbourne’s grew 0.8 per cent.
Brisbane experienced a 3.8 per cent increase to heavy vehicle traffic and a 1.4 per cent increase to light vehicle traffic.
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