By Gaelle Sheehan
(Reuters) -French infrastructure group Vinci on Wednesday reported a stronger-than-expected rise in full-year operating income and revenue for 2023 but was cautious about the pace of revenue growth in 2024.
It expects total revenue to rise next year but growth is likely to be more limited than in 2023. Its earnings should keep growing in 2024, the company said.
"Vinci starts 2024 with confidence, despite the uncertain geopolitical and macroeconomic context", it said.
The group, which operates highways and airports like London's Gatwick, said its forecasts for 2024 did not take into account the negative impact of a new tax on long-distance transport infrastructure being introduced by the French government, estimated at 280 million euros.
The French 2024 budget included a tax on the transport sector which would apply to both the Vinci-owned Lyon–Saint-Exupéry Airport and the group's subsidiaries operating French motorways via state concessions. France aims to raise an estimated 600 million euros ($645.60 million) annually.
Vinci had previously said the new tax would represent a 260 million-euro surcharge based on its 2022 figures.
The group still sees its 2024 net income to be close to 2023 levels, which amounted to 4.70 billion euros, up 10%.
"VINCI’s overall performance was of a very high quality in 2023. Revenue and earnings grew strongly and reached new all-time highs," CEO Xavier Huillard said in a statement.
Airport traffic continued to recover and "moved back at the end of the year slightly above pre-pandemic levels overall", Huillard added.
Vinci's property development business reported a 30% drop in reservations, with the company citing difficulties in the French residential property sector.
Earnings before interest and tax (EBIT) from ordinary activities were 8.36 billion euros for the twelve months to end-December, up 22% from 6.82 billion euros in the previous year.
Analysts polled by Visible Alpha had forecast an EBIT of 8.13 billion euros.
Revenue in 2023 was 68.84 billion euros, up 12%, versus a consensus of 67.76 billion euros.
The company will pay a 3.45 euro dividend per share on April 25, after a first interim dividend of 1.05 euro in November 2023.
($1 = 0.9293 euros)