GERMANY. Fraport Group retail revenue fell -2.6% year-on-year to €149 million in the first nine months of 2018. Net retail revenue per passenger dropped -10.6% to €2.96 in the period.
Influences on retail revenue included the above-average growth in passenger numbers on European routes, where passengers tend to spend less, according to Fraport Group. Capacity bottlenecks at the terminals were also noted, along with the devaluation of various currencies compared to the Euro, which led to a “loss of purchasing power”.
The wider Retail & Real Estate division posted a -6.7% drop in revenue to €367.6 million. The negative revenue performance for the business segment was attributed to significantly lower proceeds from the sale of land compared to last year. Lower gains in the retail business also impacted the segment’s revenue in the first nine months, Fraport said.
The parking business generated a +11.5% revenue increase, to €73 million. Segment EBITDA increased slightly (+0.6%) to €290 million, while segment EBIT dropped -0.9% to €223.6 million.
Overall Fraport Group revenue jumped +14.3% to €2.55 billion in the first nine months. Adjusting for revenue recognised in connection with expenses for expansion projects at Fraport Group companies worldwide, revenue grew +7.2% to €2.36 billion.
Frankfurt Airport served almost 53 million passengers in the first nine months, an increase of +8.4% and a new record for the period. Other airports in Fraport’s international portfolio also posted strong passenger growth.
Group EBITDA was up +9% to €880.4 million, while EBIT rose +7.4% to €580.3 million. Net profit increased +10.4% to €377.8 million.
“During the first nine months of 2018, our Group has continued on its growth path,” commented Fraport Executive Board Chairman Dr. Stefan Schulte. “In particular, the airports in our international portfolio have made major and ever increasing contributions to our positive performance. Expansion projects launched in Greece, Brazil, Lima, and at other Group airports will ensure that this growth trend continues well into the future.”
On Frankfurt Airport, Schulte stated: “This year’s strong growth has posed a challenge to the entire aviation industry, including our Frankfurt home base airport. All partners involved are working intensely to restore and enhance punctuality and reliability in air traffic. At Frankfurt, we have hired significantly more staff to achieve this goal.
“Ultimately, this measure has had a negative impact on our financial performance. At the same time, we are meeting further growth by advancing our infrastructure expansion – with construction work for Pier G and Terminal 3 well underway.”