Fraport Interim Report - 6 Months 2014: Financial Figures Grow as Expected
August 07, 2014 --
FRANKFURT, Germany, August 7, 2014 /PRNewswire/ --
Executive Board Confirms Outlook: "Growth Above Last Year's Level" - Further Potential Via Growing Demand in Air Traffic Worldwide
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In the second quarter of 2014, Fraport AG's revenue rose by one percent to 600.1 million compared to the adjusted figures for the second quarter of 2013. The Frankfurt-based airport company recorded a noticeable increase in Group EBITDA (earnings before interest, tax, depreciation and amortization) of 9.6 percent to 219.7 million, as well as a 10.4 percent jump in the Group result to 85.7 million.
For the first six months (January to June) of fiscal year 2014, Fraport reported a one-percent gain in the adjusted revenue to about 1.12 billion. Fraport achieved double-digit gains in both Group EBITDA (up by 10 percent to 354.2 million) and Group result (up by 11.7 percent to 91.7 million). With 82.4 million, free cash flow at the half-year mark was clearly in the positive range, versus minus 25.2 million during the same period in 2013 due to the higher capital investment volumes last year.
This positive financial development parallels the growing traffic volumes. Welcoming some 27.8 million passengers, FRA registered growth of 2.4 percent year-on-year as well as a new half-year passenger record - despite a number of strike days that affected the airport from February to April 2014. The Frankfurt hub's cargo throughput (airfreight and airmail) grew by 2.2 percent to 1.1 million metric tons. Although aircraft movements remained relatively flat at 229,039 takeoffs and landings in the first half (down 0.1 percent), accumulated maximum takeoff weights (MTOWs) climbed by 1.9 percent to 14 million metric tons - due to the deployment of larger aircraft types. Passenger figures also continue to grow positively at the Group's international airports.
Fraport AG's executive board chairman, Dr. Stefan Schulte, explained: "Fraport's good financial performance in the first half of 2014 can be attributed to ongoing passenger growth both in Frankfurt and at our international airports - and also because of lower capital expenditures. The ongoing growth in demand for air traffic worldwide opens up development opportunities for Fraport domestically and internationally - whereby the timely creation of the required capacities at each airport is vital."
Fraport Four Business Segments:
Revenue for Fraport's Aviation segment climbed by 3.9 percent in the first half of 2014 to 418.4 million - mainly due to passenger growth at Frankfurt Airport as well as an increase in airport charges. Reduced expenses for winter services at FRA following the mild winter led to lower segment expenditures. Thus, segment EBITDA jumped by 20.4 percent to 104.4 million. Slightly higher depreciation and amortization resulted in segment EBIT of 46.1 million - a noticeable gain of 16.1 million versus the same period in 2013.
Retail and Real Estate:
The Retail and Retail Estate segment reported revenue of 218.7 million in the first six months of 2014, down 4.4 percent year-on-year. Contributing factors here included lower revenue from land sales as well as energy supply services and utilities. The "net retail revenue per passenger" key performance indicator declined from 3.56 to 3.42 during the first half of 2014. In particular, this drop can be attributed to fluctuations in exchange rates and passenger traffic, especially for some destinations having high retail purchasing patterns. Nevertheless, segment EBITDA remained at a stable level of 172.3 million (up 0.1 percent) due to declining costs for energy supply and utilities in the reporting period. Segment EBIT dropped by 1.3 million to 131.1 million.
The increase in passenger traffic, deployment of larger aircraft types, and the rise in infrastructure charges at FRA enabled Fraport's Ground Handling segment to post revenue of 317.5 million, up 1.1 percent year-on-year.
Although personnel expenses rose slightly due to pay increases under collective wage agreements, material and other operating expenses for the Ground Handling segment dropped because of one-off effects in the previous year and successful cost management. In total, segment EBITDA improved significantly by 9.2 million to 11.2 million. Depreciation and amortization remained constant resulting in segment EBIT remaining in the red with minus 7.3 million.
External Activities and Services:
Revenue for Fraport's External Activities and Services segment declined by 14.1 percent to 167.8 million in the first six months of 2014. Adjusting for lower realization of earnings-neutral capital expenditures in Fraport's Twin Star and Lima Group companies (IFRIC 12), segment revenue rose from 160.8 million to 162.8 million in the reporting period (up 1.2 percent year-on-year). The reason for this positive revenue development was primarily the passenger growth at the Group airports.
Segment EBITDA advanced by 8.3 percent to 66.3 million thanks to organic growth in revenue and a decrease in expenses. Growing depreciation and amortization - including for the inauguration of new passenger terminals in Burgas and Varna, Bulgaria, last year - led to segment EBIT of 35.8 million, up 1.4 million year-on-year.
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About Fraport AG and Frankfurt Airport
Fraport AG - which ranks among the world's leading companies in the global airport business-offers a full range of integrated airport management servicesand boastssubsidiaries and investments on four continents.In 2013, the Fraport Group generated sales of 2.56 billion, EBITDA of 880.2 million and a profit of about 236 million. Last year, more than 103 million passengers used airports arround the world in which Fraport has a majority stake.
At itsFrankfurt Airport (FRA) home base,Fraport welcomed more than 58 million passengers in 2013 and handled some 2.1 million metric tons of cargo (airfreight and airmail). For the current flight timetable, FRA is served by 108 passenger airlines flying to some 295 destinations in 105 countries worldwide. More than half of FRA's destinations are intercontinental (beyond Europe)-underscoring Frankfurt's role as a leading hub in the global air transportation system. In Europe,FrankfurtAirportranks first in terms of cargo tonnage and is the third-busiest for passenger traffic. With well over 50 percent of all passengers usingFrankfurtas a connecting hub, FRA also has the highest transfer rate among the major European hubs.
Frankfurt Airport Cityhas become Germany's largest job complex at a single location, employing more than 78,000 people at about 500 companies and organizations directly on site. TheFRAAirportC ityalso serves as a magnet for other companies located throughout the economically vital Frankfurt/Rhine-Main-Neckar region. Thanks to synergies associated with the region's dynamic and diverse industries, plus networked expertise and outstanding intermodal transportation infrastructure,FrankfurtAirportmeets the increasing needs of the flourishing export-oriented economies of the State ofHesseas well asGermanyas a whole, for optimal connections to growth markets around the globe. Likewise, FRA is also a strategic gateway for companies wanting to access the huge European marketplace. Thus,FrankfurtAirport-which is strategically located in the heart of Europe, is one of the most important hubs in the world and a major infrastructure site forGermanyandEurope.
Major new real estate developments - such as The Squaire, the Gateway Gardens business park, and the Mnchhof Logistics Park, etc. - are creating an exciting new dimension and range of services at the evolving Frankfurt Airport City of the 21stcentury.
Robert A. Payne
Press Office, Corp.Communications
60547 Frankfurt, Germany
SOURCE Fraport AG
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