TORONTO – Toll highway owner 407 International Inc. has boosted its dividend by 75 per cent after higher tolls raised fourth-quarter profits by more than 30 per cent.
The operator of the 108-km road north of Toronto said it earned $51.3 million for the three months ended Dec. 31, compared to $39.3 million a year earlier.
Revenues grew 9.2 per cent to $204.5 million as the average revenue per trip increased to $6.97 from $6.40 a year earlier. The total number of trips was flat at 29.4 million in the quarter and 114.8 million for the year.
For the full year, the company says it earned $248.7 million, up from $174.4 million in 2012.
Revenues were $801.2 million, compared with $734 million a year earlier.
The company said it will pay a 22.6 cents per share dividend, up from 12.9 cents in 2012. That will translate into increased proceeds for SNC-Lavalin (TSX:SNC) which owns 16.77 per cent of the toll road, Canada Pension Plan Investment Board (40 per cent) and Ferrovial subsidiary Cintra Infraestructuras (43.23 per cent).