Atlas Arteria (ASX:ALX) reported solid financial results for Q3 2024, with toll revenue increasing by 5.0% compared to the prior year. This growth was supported by a 0.6% rise in weighted average traffic across the company's portfolio. The robust traffic performance was attributed in part to the Paris Summer Olympics, which boosted traffic in August, particularly across the APRR network in France.
The company's major highlight for the quarter was the signing of the concession agreement for the A412 motorway in France. The consortium led by Eiffage and APRR secured a 55-year concession for the new 16.5km motorway, which is expected to reduce congestion and improve travel times for commuters traveling to and from Geneva. The project, estimated to cost between €400 million and €500 million, is set to strengthen Atlas Arteria’s portfolio.
Performance across Atlas Arteria’s global operations was varied. The A79 motorway in France saw traffic increase by 5.7%, contributing to an 8.4% rise in toll revenue. In Germany, the Warnow Tunnel reported a 7.4% increase in traffic and a significant 16.4% growth in revenue. However, in the US, Chicago Skyway traffic dropped by 6.4%, though toll revenue still rose by 1.9%, supported by previous toll hikes.
Graeme Bevans, CEO of Atlas Arteria, said, "The A412 project marks another step in our long-term strategy of delivering value for both commuters and shareholders, while also expanding our presence in Europe."
