AENA posts +16% rise in H1 duty free income; F&B ahead +19.1%

SPAIN. Spanish airports company AENA has posted a +16.0% year-on-year increase in duty free income [not sales] for the first six months of 2016 to €124.9 million. Income from food & beverage jumped +19.1% (see charts below), while that from other shops rose +15.2% to €41.8 million.

The sharp gains underline the heavy minimum annual guarantees (MAGs) in place across AENA’s various commercial concessions, including duty free, F&B, specialist retail and advertising.

Average revenue per passenger was flat at  €4.4.

Passenger traffic in AENA’s Spanish network totalled about 104 million, a +11.7% increase compared to the first half of 2015. The company has handled a record 218.3 million passengers over the last twelve months.

Off-terminal income was highlighted by a +11.7% rise in car parking revenue to €58.4 million, driven by a +11.3% rise in domestic passenger traffic, enhanced pricing strategies and marketing and loyalty measures.

Across all operations, AENA reported a net profit increase of almost +80% (+78.7%) in the first six months to €492 million.

The strong growth reflects both positive business development and a reversal of extraordinary provisions for legal proceedings related to land expropriations at Adolfo Suárez Madrid–Barajas Airport, whose net impact of tax was €153.7 million. Excluding this, net profit growth would be +22.9%, to €63 million.

Total revenues increased to €1,732.5 million, up +8.4% year-on-year. Commercial revenues and revenue from off-terminal services grew by +12.2% as a result of increased traffic and the result of contractual terms reviewed in previous years, AENA noted.

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Business has picked up sharply at Madrid Airport as passenger traffic has increased. With tough minimum annual guarantees in place for its concessionaires, AENA has benefited accordingly.

EBITDA was €931.7 million, a gain of +12.7% year-on-year.

AENA-owned Luton Airport contributed €97.9 million to overall revenues, a +10.9% increase year-on-year. Passenger traffic at the UK airport increased +20.6%, with an extra 6.7 million passengers handled.

In Pound Sterling terms, Luton’s +13.6% increase in aeronautical revenues outstripped passenger growth. AENA noted the good performance of car parks, reflecting traffic growth and the management and pricing strategies implemented, as well as food & beverage and shops – despite restrictions on access and visibility caused by the remodelling of the retail area. As reported, the second phase of the new Luton Airport walk-through store opened on 18 June.

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Commercial information for the first half of 2016 Source: AENA
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