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What’s happening with the Sydney Airport (ASX:SYD) share price?

According to the federal government, overseas travel is on the cards once vaccination rates reach 80%. This will be a key catalyst for Sydney Airport and its share price.
The post What’s happening with the Sydney Airport (ASX:SYD) share price? appeared first on The Motley Fool Australia. –

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price has seen renewed interest this past week.

Shares in the airport have been trending higher in the past 7 days, nudging 52-week highs.

Let’s take a look at why investors have been bidding up the Sydney Airport share price.

Sydney Airport shares maintain takeover momentum

Despite widespread lockdowns and border closures, shares in Sydney Airport have soared in 2021.

The company has managed to maintain the momentum following a $22.6 billion buyout offer in July.

A consortium of infrastructure investors – IFM Investors, Global Infrastructure Management, and QSuper – launched the takeover offer, valuing Sydney Airport at $8.25 per share.

The offer saw shares in Sydney Airport storm more than 34% on the day.

Fast forward to September and the Sydney Airport share price has managed to hold onto much of its gains.

Shares in the infrastructure giant were recently buoyed after the company released its half-year report.

How did Sydney Airport perform in the last 6 months?

The effects of the COVID-19 pandemic were reflected in Sydney Airport’s half-year report for FY21.

For the 6 months ending 30 June 2021, the airport noted a 36.4% decline in overall passenger numbers.

Highlights from Sydney Airport’s half-year report include:

Net loss after tax benefit of $97.4 million. This is up 81.7% on the loss in the prior corresponding period’s (pcp).
Revenue down 31.3% on the pcp to $351 million

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $210.8 million – a 29.8% loss on the pcp
A negative cash flow of $565.5 million for the 6 months

Outlook for Sydney Airport shares

Sydney Airport is Australia’s largest international gateway, generating revenue through various operations.

Since the start of the year, shares in Sydney Airport have soared more than 25%.

In comparison, the broader S&P/ASX200 Index (ASX: XJO) has only managed to gain around 13% in 2021.

Following the takeover offer, Sydney Airport’s management noted the predatory nature of the bid and noted sunnier days ahead for the infrastructure giant.

One of the key catalysts for the Sydney Airport share price will be vaccination rates in Australia.

According to the federal government’s National Plan, overseas travel is on the cards once 80% of the population is vaccinated.  

At the time of writing, shares in Sydney Airport are trading lower for the day at around $7.87.

The post What’s happening with the Sydney Airport (ASX:SYD) share price? appeared first on The Motley Fool Australia.

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More reading

ASX 200 Weekly Wrap: A mixed bag of earnings dominates ASX

Why the Sydney Airport (ASX:SYD) share price has beaten the ASX 200 in the last year
If you invested $1,000 in Sydney Airport (ASX:SYD) shares a decade ago, here’s what it would be worth now
What Sydney Airport’s results could mean for Flight Centre (ASX:FLT) shares
What could Sydney Airport’s results mean for Webjet (ASX:WEB) shares?

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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