Reporting Season

Transurban lifts final dividend by 21% as fourth quarter traffic tops pre-pandemic levels

Thu 18 Aug 22, 10:47am (AEDT)
Toll road with vehicles and signs
Source: iStock

Key Points

  • Transurban fourth quarter traffic volumes hit a new all-time high
  • Transurban expects to an FY23 distribution of 53 cents per share, up 30% compared to FY22
  • Morgans was expecting an FY23 dividend of 59.5 cents

Transurban (ASX: TCL) hiked its final dividend by 21% to 26 cents as fourth quarter traffic exceeded pre-pandemic levels to reach a new all-time high.

“While traffic numbers were broadly flat year-on-year from COVID-19-related disruptions and severe rainfall events in Queensland and NSW, it was encouraging to see fourth quarter traffic reaching a new high and exceeding pre-pandemic levels," commented CEO Scott Charlton.

Results at a glance:

Full year



% change

Revenue ($m)




Expenses ($m)




Profit after tax ($m)




Cash ($m)




Final dividend (cps)




Full year dividend (cps)




Source: Transurban | Table: Market Index

Recovery play with inflation protection

"Inflation-linked toll escalations and the Group’s hedging profile is expected to provide a net benefit over the near term in an inflationary environment," noted the Transurban earnings presentation.

"The March and June 2022 quarter CPI is expected to be embedded into the base toll prices for assets with CPI linked escalation over the course of FY23."

"The combination of inbuilt inflation protection and a balance sheet structured on conservative views around interest rates means we are well positioned for growth throughout the cycle," said Charlton.

The recovery of Group traffic was supported by an improvement in airport and CBD activity, as well as pent-up demand for leisure travel and the commissioning of new assets.

Traffic performance to-date in FY23 has continued to grind higher towards record territory.

Transurban average daily traffic table
Source: Transurban

FY23 dividends well-below expectations

Transurban expects its FY23 distribution to be 53 cents per share, representing approximately 30% growth on FY22.

Still, the guidance was well-below broker expectations, with Morgans expecting an FY23 dividend of 59.5 cents.

Also weighing on shares were higher cost considerations for FY23, predominately due to:

  • Corporate and operational cost inflation

  • Volume related costs expected to grow in-line with traffic recovery

  • Development projects which are expensed in the early stages

Transurban share price chart
Transurban share price chart (Source: TradingView)


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Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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