DENMARK. Copenhagen Airports has reported a +3% year-on-year revenue increase from its shopping centre in the first nine months of 2018, to DKK652.7 million (US$100 million). Gebr Heinemann is the core duty free and travel retailer.

Growth was largely driven by restaurants and cafés, the company said, and was below the +3.7% increase in passenger traffic recorded at Copenhagen Airport in the period.

Copenhagen Airports CEO Thomas Woldbye: “The number of US tourists and business travellers coming to Copenhagen has doubled in just a few years. We expect to see an equivalent development for the Chinese market.”

Copenhagen Airports also noted the increase in departing passengers, an improved shop and brand mix, and more units in connection with the expansion of Terminal 2 and the security checkpoint as drivers of shopping centre growth.

The restaurant segment was boosted by the opening of a Lagkagehuset unit plus ten new units added in connection with the expansions. New speciality stores also helped growth, Copenhagen Airports said.

Concession revenue by segment in the first nine months. Click on image to enlarge.

The airport said its tax free shop suffered a slight fall in revenue, but noted it had been undergoing renovation this year.

Overall concession revenue was up +6.2% to DKK1,024.1 million (US$157 million), while non-aeronautical revenue increased +5.3% to DKK1,413.2 million (US$216 million).

Parking made a strong contribution, with revenue up +12.7% in the period. Copenhagen Airports said growth was driven by the introduction of an amended price structure in 2017, which it said has helped to increase the average transaction value. A continuing stronger online and media presence and growth in local departing passengers were also factors.

The CPH overall performance by revenue and profits. Click on image to enlarge.

A total of 23.3 million people travelled through Copenhagen Airport in the first nine months [a +3.7% increase, as noted]. Long-haul, intercontinental routes recorded double-digit growth rates, while transfer traffic increased +1.3%.

Overall revenue was up +0.6% to DKK3,397.7 million (US$520.5 million), driven by the increase in passenger numbers and higher revenue from parking and the shopping centre. This was partly offset by the reduction in airport charges from 1 April 2018, which have had a negative impact on revenue of DKK148 million (US$22.7 million).

EBITDA, excluding one-off items, decreased -2.8% to DKK1,983.1 million (US$303.8 million). Reported EBITDA fell -3.3% to DKK1,959.9 million (US$300.2 million).

Income statement for the first nine months. Click on image to enlarge.

Commenting on passenger dynamics, Copenhagen Airports CEO Thomas Woldbye said: “In recent years, we’ve succeeded in attracting a number of new long-haul direct routes, for example to the USA, India and China. New routes often mean more passengers, something that has been very clear this year, with +10.9% more passengers on long-haul routes in the first nine months. This level of growth is significant, and it’s precisely this traffic that is helping to support our position as a traffic hub and increase transfer traffic.

“The number of US tourists and business travellers coming to Copenhagen has doubled in just a few years, topping a million for the first time in 2017. We expect to see an equivalent development for the Chinese market. In 2017, the airlines’ total seat capacity between Copenhagen and China was 175,000, but in 2019 this has increased by +84% to 323,000 available seats.”

Non-aeronautical performance by revenue and profits. Click on image to enlarge.