Growth momentum slowing down – Outlook for full year 2019
confirmed
FRANKFURT AM MAIN, Germany, Nov. 6,
2019 /PRNewswire/ -- Fraport AG continued its growth trend
in the first nine months of the 2019 business year, achieving an
increase in both revenue and earnings. This positive performance
was driven by solid traffic growth at Frankfurt Airport (FRA) and
the Fraport Group's airports worldwide. However, the growth
momentum has been slowing down during the year to date.
Fraport AG's executive board chairman, Dr. Stefan Schulte, said: "Our industry is being
impacted by the weaker global economy and consolidation of the
European aviation market. Furthermore, regulatory interventions by
the German government - such as the planned increase to the
national air traffic tax - are also affecting our
sector. After a phase of rapid traffic growth, airlines are
cutting back their plans and thinning out their winter schedules.
Nevertheless, we are maintaining our full-year outlook for the 2019
business year - also backed by the ongoing positive performance of
our Group airports worldwide. Thanks to Fraport's large and
diversified portfolio of international airports, we are well
positioned for the future."
International activities boost growth in revenue and
earnings
In the January-to-September 2019
period, Fraport's Group revenue increased by 12.0 percent to
€2,852.2 million year-on-year. After adjusting for proceeds related
to expansion investments at the Group's airports worldwide (based
on IFRIC 12), revenue rose by 5.2 percent to €2,486.7 million. At
Frankfurt Airport, factors contributing to revenue growth included
higher proceeds from ground handling services, airport and
infrastructure charges, as well as security services. Retail,
parking and advertising revenue also increased significantly.
However, Fraport's international portfolio clearly continued to be
the largest revenue driver. In particular, the Group company in
Lima (up €30.5 million), Fraport
Greece (up €25.4 million) and Fraport USA (up €21.8 million) contributed
substantially to the Group's adjusted revenue growth.
The operating result or Group EBITDA (earnings before interest,
taxes, depreciation and amortization) rose by 7.7 percent to
€948.2 million in the nine-month reporting period. The first-time
application of IFRS 16 had a positive effect on EBITDA, adding
€34.0 million year-on-year. From the beginning of January 2019, the mandatory IFRS 16 international
financial reporting standard establishes new rules for the
accounting of leases - specifically affecting the accounting of
lease contracts concluded by Fraport USA. At the same time, the application of IFRS
16 alone resulted in a €32.8 million increase in depreciation and
amortization. Group EBIT saw a correspondingly moderate rise of
2.6 percent to €595.3 million. The Group result (or net
profit) grew noticeably by 9.4 percent to €413.5 million. This
was due to the improved operating result, as well as the markedly
higher contribution from the Group subsidiary in Antalya, which is
consolidated using the at equity method.
Solid traffic performance achieved despite slowing growth
momentum
Passenger traffic at Frankfurt Airport advanced by a solid 2.3
percent to about 54.2 million travelers during the first nine
months of the year. This growth momentum, however, decelerated
noticeably over the course of the year. Based on current planning
by the airlines, FRA will see a four percent reduction in the
number of flights for the 2019/20 winter schedule (effective
October 27) compared to the same
schedule in the previous year. This reduction is due entirely to
the 5.6 percent decline in European traffic, while scheduled
intercontinental flights will climb by nearly 2 percent.
Fraport's Group airports worldwide also saw passenger traffic
largely increase in the first nine months, despite some airlines
reducing flight offerings or even filing for bankruptcy. Only at
the Fraport Twin Star airports of Varna and Burgas, combined passenger traffic
dropped noticeably by 11.6 percent year-on-year.
Outlook confirmed
Fraport AG's executive board is maintaining its full-year
traffic outlook for Frankfurt Airport. Given the reduction in
flight offerings for the current winter schedule, FRA's passenger
growth is expected to reach the lower end of the forecast range of
about 2 percent to 3 percent. The executive board is also
maintaining the financial outlook for the full 2019 business year.
Group EBITDA is expected to be reach between approximately
€1,160 million and €1,195 million, while Group EBIT is
forecast between about €685 million and €725 million. Group EBT is
projected to be around €570 million to €615 million, and the Group
result (net profit) between approximately €420 million and €460
million.
Print-quality photos of Fraport AG and Frankfurt Airport are
available for free downloading via the photo library on the Fraport
Web site. For TV news and information broadcasting purposes only,
we also offer free footage material for downloading. If you wish to
meet a member of our Media Relations team when at Frankfurt
Airport, please do not hesitate to contact us. Our contact details
are available here.
For further information about Fraport AG please click here.
Fraport AG
Torben Beckmann
Corporate Communications
Media Relations
60547 Frankfurt, Germany
Tel: +49 69 690 70553
E-mail: t.beckmann@fraport.de
www.fraport.com
Facebook: www.facebook.com/FrankfurtAirport