DCHL delivers third consecutive increase in profit

Dunedin City Holdings Limited (DCHL) has reported a net profit after tax of $19.4 million for the year ended 30 June 2025, marking the Group’s third consecutive increase in annual profit.

DCHL Chairman Tim Loan says the result is $7.5 million ahead of budget and $6.6 million higher than last year, reflecting strong performances from key subsidiaries and careful management across the group.

“This is another positive result for DCHL, demonstrating both the resilience of our investments and the important contribution they make to the Dunedin community. The financial returns we deliver help mitigate pressure on rates today, but we need to balance this with reinvesting to protect the value of our companies for future generations and ensure that our electricity distribution network meets future demand.”

In line with its Statement of Intent, DCHL distributed $16.9 million to its shareholder, Dunedin City Council (DCC), through a combination of dividends and interest on its shareholder advance.

2024-2025 highlights:

• $19.4 million net profit after tax, a 51% increase from FY24
• Distributed $16.9 million to Dunedin City Council
• Invested $92.8 million in infrastructure and other assets
• International services returned to Dunedin Airport
• Dunedin Railways re-opened the Taieri Gorge line to Pukerangi

Group company highlights

Aurora Energy, the group’s largest company, delivered a net profit of $24.3 million, slightly ahead of target. The result was driven by strong new customer connections in Central Otago and Queenstown Lakes, as well as lower financing costs. The company also invested over $90 million in network capital expenditure, ensuring ongoing resilience and enabling future electrification.

City Forests recorded a $9.7 million profit, higher than budget, supported by positive year-end revaluations of forestry and land. Despite weak log export markets, the company paid $13.1 million in dividends to DCHL. Delta recorded a $2.1 million profit, slightly up on the prior year, but short of budget, in a tough operating environment.

Dunedin Airport welcomed the return of direct international flights, with Jetstar’s Gold Coast service launching successfully in June. Despite softer domestic demand, the airport posted a net profit of $4.6 million and progressed key infrastructure projects.

Dunedin Railways passenger numbers increased to 31,824, and they marked a significant milestone with the reopening of the Taieri Gorge line to Pukerangi in October 2024. Forsyth Barr Stadium and other venues hosted a wide range of events, including another All Blacks test, which generated $13.7 million of direct spend for the city.

Balancing commercial and community objectives

Mr Loan acknowledged the ongoing challenge of balancing commercial returns with community outcomes.

“DCHL holds investments not only to generate profits, but also to deliver benefits to the people of Dunedin. Our portfolio includes companies focused on investment returns, and others that benefit the community and the local economy. Together, they create value well beyond the financial bottom line.”

He added that reinvestment remains critical.

“It’s important to remember that accounting profits don’t always equate to cash available for distribution. For example, Aurora Energy is reinvesting earnings into essential infrastructure. This ensures long-term resilience and helps meet the growing demands of electrification across our region.”

Looking ahead

DCHL continues to drive performance across the Group and is working closely with DCC on its long- term investment framework.

“We are committed to ensuring the city receives the best possible outcomes from its assets. That means delivering sustainable financial returns, supporting the region’s strategic growth and resilience, and playing our part to make Dunedin one of the world’s great small cities” Mr Loan said.

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