TORONTO – Toll highway operator 407 International Inc. says its second-quarter net income fell 40 per cent, even though revenues continued to grow.
The company, which operates the Highway 407 electronic toll road that crosses the Greater Toronto Area, says net income fell to $45.4 million in the three-month period ended June 30. That compared with net income of $75.7 million a year earlier.
Revenues shot up to $228.5 million from $205.2 million as the total number of trips climbed to 30,472 in the quarter from 29,615 in the compared year-earlier period. The average revenue per trip rose to $7.49 from $6.92 year over year.
Operating expenses increased to $33.3 million from $26.7 million a year earlier while interest and “other” expenses grew to $117.1 million from $59.8 million, the company reported Thursday.
407 International Inc. is jointly owned by Cintra Infraestructuras S.A., a wholly owned subsidiary of Spain’s Ferrovial S.A., with a 43.23 per cent interest, and subsidiaries of the Canada Pension Plan Investment Board, 40 per cent, and by Montreal-based engineering giant SNC-Lavalin (TSX:SNC) with a 16.77 per cent holding.