Fraport retail revenue climbs in first quarter driven by passenger traffic growth

GERMANY/INTERNATIONAL. Fraport Group has reported a +3.9% year-on-year increase in retail and real estate revenue across its airports in the first quarter of 2017, to €117.1 million.

Net retail revenue per passenger rose +3.87% to €3.76. EBITDA was up +3.7% to €83.2 million. The improved performance was driven by passenger growth at the majority of airports in the group, Fraport said.

Frankfurt (Germany), Lima (Peru), Ljubljana (Slovenia), St. Petersburg (Russia), Varna (Bulgaria), and Xi’an (China) airports reported robust passenger growth, but Antalya Airport (Turkey) continued to register declining passenger traffic, which Fraport said was due primarily due to the late Easter,  which fell in April this year instead of March last year.

Source (all tables): Fraport Group
Click on image to enlarge

Group revenue increased +3.5% to €592.6 million in the quarter but EBITDA decreased -5.7% to €137.3 million, due to higher personnel expenses and cost of materials, as well as one-off effects. These include the creation of provisions for a personnel-restructuring programme at Frankfurt, and expenses for staff hired for the new Fraport Greece subsidiary, Fraport said.

Net profit was up +24.5% to €18.8 million, while earnings per share rose to €0.20 – an increase of +25.0%.

Click on image to enlarge

Fraport won the concession for two Brazilian airports (Fortaleza and Porto Alegre) in March 2017. In view of the takeover of the concessions and the planned capital expenditure, Fraport said it expected the group’s net debt to rise by some additional €300 million during the 2017 business year, after a ratification procedure for the two concessions has concluded.

Fraport USA lost the tender for the operation of the retail and food & beverage areas in all four terminals at Boston Logan International Airport in April. The concession will end on 31 October 2017. The group expects the loss of the tender to result in an unscheduled depreciation and amortization and negative earnings effects of approximately €6 million in fiscal year 2017.

Click on image to enlarge

The company said it was maintaining its further forecasts for the its asset, financial, and earnings position for the entire 2017 business year. Fraport Executive Board Chairman Dr. Stefan Schulte said: “In particular, a number of one-off effects at Frankfurt Airport had a negative impact on the operating result in the first quarter. Nevertheless, we could achieve a marked increase in the group result. Compared to the mixed performance in 2016, we are currently seeing a clear return to traffic growth, generated both by traditional network carriers and low-cost providers.”

Food & Beverage The Magazine eZine