The majority of airports in the Fraport Group achieved passenger
growth in the first three months of 2017. On the back of that growth,
the Group’s home-base Frankfurt Airport (FRA) generated higher
revenue from airport charges. FRA’s retail business also benefited
from passenger growth, with a corresponding positive impact on net
retail revenue per passenger. Outside Frankfurt, Fraport’s Group
airports in Lima (Peru), Ljubljana (Slovenia), St. Petersburg
(Russia), Varna (Bulgaria), and Xi’an (China) reported robust
passenger growth. Antalya Airport (Turkey) continued to register
declining passenger traffic, due primarily due to the late Easter,
which fell in April this year instead of March last year.
Reflecting this positive trend, Group revenue increased by 3.5
percent to EUR592.6 million in the first quarter of 2017. In
contrast, the Group’s operating result or EBITDA (earnings before
interest, tax, depreciation and amortization) decreased by 5.7
percent to EUR137.3 million, due to higher personnel expenses and
cost of materials, as well as one-off effects. These included, in
particular, the creation of provisions for a personnel-restructuring
program at FRA, and expenses for staff hired for the new Fraport
Greece subsidiary.
Contrary to the operating result, the financial result improved from
-EUR42.5 million to -EUR29.2 million. This was primarily due to
improved results at Group companies that are accounted for using the
equity method – including, in particular, the Antalya subsidiary –
and the “other financial result”, which was positively affected by
fair value changes of derivatives. On the basis of the improved
financial result, the Group’s EBT (earnings before taxes) showed
overall positive performance in the first quarter of 2017, rising by
18.8 percent to EUR25.9 million. Likewise, the Group result (net
profit) improved to EUR18.8 million (up 24.5 percent), while earnings
per share rose to EUR0.20 – an increase of 25.0 percent.
Operating cash flow increased by 32.3 percent to EUR119.6 million,
helped by the positive business performance and lower payments for
taxes on income. These factors also contributed to improved free cash
flow, which advanced by 19.5 percent to EUR54.0 million. Net
financial debt reduced to EUR2,295.6 million at the end of the first
quarter, while the gearing ratio reached 63.3 percent (December 31,
2016: EUR2,355.9 million and 65.4 percent, respectively).
On March 16, 2017, Fraport AG won the concession for the two
Brazilian airports of Fortaleza and Porto Alegre during a public
auction. In view of the takeover of the concessions and the planned
capital expenditure, Fraport’s executive board currently expects the
Group’s net debt to rise by some additional EUR300 million during the
2017 business year, after a ratification procedure for the two
concessions has been concluded.
Against the background of the development in the first quarter,
Fraport AG’s executive board is maintaining its further forecasts for
the Group’s asset, financial, and earnings position for the entire
2017 business year. Fraport’s executive board chairman, Dr. Stefan
Schulte, said: “In particular, a number of one-off effects at
Frankfurt Airport had a negative impact on the operating result in
the first quarter. Nevertheless, we could achieve a marked increase
in the Group result. Compared to the mixed performance in 2016, we
are currently seeing a clear return to traffic growth, generated both
by traditional network carriers and low-cost providers.”
ZVOKUBVA MUNYAYA INO:
- Frankfurt Airport had a negative impact on the operating result in.
- Against the background of the development in the first quarter,.
- The majority of airports in the Fraport Group achieved passenger.
