Fraport Raises Forecasts for 2010
The Fraport Group looks back on a successful first half of fiscal year 2010, with approximately EUR1.02 billion in sales revenue.
Despite a multi-day standstill of flight operations at its Frankfurt Airport (FRA) home base due to the volcanic ash cloud from Iceland, Fraport achieved a year-on-year increase in Group revenue of EUR52.9 million or 5.5 percent. EBITDA (earnings before interest, tax, depreciation and amortization) climbed by 15.8 percent to EUR304.6 million.
"By year end we should achieve an operating result of EUR670 million or EUR680 million - between EUR35 million and EUR45 million more than expected," explained Fraport AG executive board chairman Dr. Stefan Schulte.
Because of this positive development Group results will exceed the previous year's level by year end. However, with EUR52 million for the year to date, results still fell 21.9 percent short of the previous year. This was not only due to a jump in interest expenses for capital expenditures on airport expansion in the reporting period resulting from reserve financing, but also to a positive extraordinary effect in the previous year. Basic earnings per share, i.e., the profit per outstanding share, slipped from EUR0.72 to EUR0.55.
In the six-month period from January to June 2010, Fraport registered approximately 24.5 million passengers at Frankfurt Airport, an increase of 1.4 percent on the first six months of 2009.
The Fraport Group's five majority-owned airports welcomed nearly 38.6 million passengers. Cargo throughput (airfreight and airmail tonnage) jumped 30 percent to a total of 1.22 million metric tons. Aircraft movements for the Group rose by 4.2 percent to almost 350,000 takeoffs and landings.
"Passenger volume at our FRA home base continued to increase throughout July. The first vacation month of the summer brought another rise in passenger traffic for Fraport, with passenger figures exceeding the previous year's level by nearly 8 percent," Schulte said with satisfaction regarding the latest traffic development.
Fraport Group revenue reached EUR1,015.4 million in the first half of 2010. After adjusting for the disposition of shares in Hahn Airport in the previous year, revenue was up by EUR58.7 million (6.1 percent) in the reporting period. In addition to traffic growth at Frankfurt Airport, the major revenue driver was the extremely positive development of Fraport's investments in Antalya Airport (AYT), Turkey, and Lima Airport (LIM), Peru. Especially Antalya benefited from a strong rise in holiday travel demand.
"In the first half of 2010, our business segments contributed consistently to improving EBITDA," Schulte stated. Achieving nearly 20 percent of its revenue and almost 30 percent of the EBITDA in the External Activities segment during the first six months of the year, Fraport benefited from global air traffic growth. Rising demand also gave impetus to the Ground handling segment at Frankfurt Airport. "It is worth noting that our FRA home base for the first time generated net retail revenue per passenger of more than three euros despite continuing difficult economic times," explained Fraport's CEO. Segment results prove that the Group is strategically in an excellent position and, therefore, could well offset the previous year's economic difficulties. Thus, the Group will continue to profit from further economic recovery in the coming months.
With EUR753million, operating expenses of the Fraport Group increased merely 1.4 percent on the previous year's level. Adjusted for the consolidation effects from the sale of Hahn Airport, operating expenses rose by EUR18.2 million or 2.5 percent.