Atlas Arteria Reports 2.9% Traffic Increase and 6.9% Revenue Rise in Q4

Robust Q4 Performance Across Global Toll Roads

Atlas Arteria (ASX:ALX) has delivered a solid finish to 2024 with a 2.9% increase in weighted average traffic and a 6.9% rise in toll revenue for the fourth quarter compared to the same period last year. This growth was primarily driven by strong light vehicle traffic at the APRR motorway network in France and toll hikes at the Chicago Skyway in the United States.

The company’s portfolio, spanning France, Germany, and the US, showed resilience despite some headwinds such as roadworks and adverse weather conditions. For the full year, traffic edged up 0.6%, while toll revenue grew a healthy 4.9%, reflecting the combined effect of volume growth and strategic toll price adjustments.

France: APRR and A79 Lead Traffic Gains

In France, APRR’s light vehicle traffic increased by 2.5% in Q4, supporting a 6.2% rise in toll revenue, bolstered by toll increases implemented early in 2024. Despite a slow start to the year due to farmers’ strikes and road blockades, traffic recovered strongly in the second half, aided by high employment levels and stable household incomes.

The A79 motorway, which reopened after upgrades in late 2022, saw traffic surge 9.6% in Q4 and 8.1% for the year, with toll revenue up 12%. This indicates growing demand and successful integration of the upgraded route into the network.

US Toll Roads: Chicago Skyway and Dulles Greenway Dynamics

Chicago Skyway experienced a modest 1.7% traffic increase in Q4, driven by light vehicles despite a decline in heavy vehicle traffic. Toll revenue rose 8.5%, reflecting a 7.5% toll increase at the start of the year. However, full-year traffic declined 2.8%, impacted by roadworks on connecting routes, extreme winter weather, and weaker leisure travel during summer.

Meanwhile, the Dulles Greenway posted a robust 9.2% traffic increase in Q4 and 5.9% for the year, supported by growing congestion on free alternative routes. Toll revenue rose 8.9% in Q4, benefiting from higher-priced peak period traffic.

Germany’s Warnow Tunnel Sees Strong Uptick

The Warnow Tunnel in Germany recorded a notable 13.5% traffic increase and a 20.7% rise in toll revenue in Q4, driven by roadworks on competing routes that enhanced the tunnel’s travel time advantage. For the year, traffic grew 5.6% and revenue increased 14.2%, supported by toll hikes implemented in late 2023.

Outlook and Strategic Considerations

Atlas Arteria’s diversified portfolio has demonstrated the benefits of geographic and asset mix, balancing growth in European light vehicle traffic with US toll increases. The company’s ability to implement toll rises while maintaining traffic volumes will be critical as it navigates economic uncertainties and external factors such as weather and infrastructure works.

Investors will be watching how upcoming toll adjustments, including the 5.6% increase at Chicago Skyway effective January 2025, influence traffic patterns and revenue momentum in the coming quarters.