Moodie Davitt snapshot: Fraport Group Q1 results – Retail revenue declines -4.6% to €45 million – Net retail revenue per passenger down -13.0% to €3.27 – Commercial revenue up +0.3% to €117.4 million as revenue from parking surges +16.1% – Passenger traffic increases +10% – Group revenue up +15.0% to €681.7 million Source: The Moodie Davitt Report |
GERMANY/INTERNATIONAL. Fraport Group has reported a -4.6% year-on-year decrease in retail revenue in the first quarter, to €45 million. Net retail revenue per passenger declined -13.0% to €3.27.
The decrease in retail revenue was primarily attributed to the devaluations of several currencies against the Euro, which resulted in a significant loss of purchasing power.
Another factor was the above-average growth in passenger numbers on European routes, where passengers tended to spend less. Capacity bottlenecks at the terminals, particularly at security checkpoints, also contributed to the decline as time for purchases was reduced. Despite a +10% increase in passengers, to 14.4 million, Fraport said there were -3% less shoppers during the quarter.
However, total commercial revenue (also taking into account parking, real estate and other revenue) was up +0.3%, to €117.4 million. Revenue from parking surged +16.1%. Fraport attributed the overall increase to the growth in passenger numbers.
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Higher other income from the sale of land as well as a slight decrease in personnel and material expenses led to an EBITDA of €89.0 million (+7.0%) in the Retail & Real Estate segment. With depreciation and amortization virtually unchanged, segment EBIT stood at €68.4 million (+10.1%).
Group revenue increased +15.0% in the first three months of 2018 to €681.7 million. At Frankfurt Airport, growth was attributed to higher airport charges based on passenger growth, increased income from security services, a rise in charges from ground services and infrastructure as well as higher parking revenue.
Fraport Greece and group companies Fortaleza and Porto Alegre contributed significantly to revenue growth, as these had not yet taken over operations in the same quarter of the previous year.
Group EBITDA and EBIT rose +27.2% and +49.4% respectively, to €174.7 million and €82.3 million.
Fraport’s Executive Board described the operating and financial performance in the quarter as positive and maintained its forecasts for the group’s asset, financial, and earnings position as well as its forecasts for segment development for fiscal year 2018.
