Atlas Arteria: Solid Recovery Continues, in Line with Expectations

Narrow-moat-rated Atlas Arteria finished 2023 relatively strongly, with December quarter toll revenue increasing 6% on average compared with the previous corresponding period on a like-for-like basis. For the full year 2023, proportionate toll revenue increased 7% on 3% growth in traffic and solid toll increases. The result was close to our expectations, though France was a little better and the U.S. a little weaker than we expected. We adjust our 2023 earnings forecasts marginally but leave longer-term forecasts largely unchanged.