FRANCE. Groupe ADP, which runs Paris’ two major airports, has released its first-half results for 2017, with commercial revenues climbing by +3.9% to €219 million. Commercial sits within the Retail and Services division, where revenue was up by +1.7% to €463 million.

Rent from airside shops stood at €145 million, up by +5% year-on-year, driven by a strong performance from luxury goods, though this was partly offset by the negative impact of the roll-out of plain packaging (from 1 January 2017) on tobacco sales.

Overall sales per passenger hit €18.10 in the half, the same as a year earlier. Within this, duty free sales per passenger were stable at €34, with duty paid sales per passenger down by -1.9% to €6.80.

How the commercial performance broke down in the first half, with luxury driving a strong performance from airside shops

Rents from landside shops increased by +7.4% to €8 million, while bars and restaurants continued to post healthy growth of +4.9% to €20 million, driven by the F&B EPIGO joint venture, which was created in February last year.

Media Aéroports de Paris saw a decrease of -2.8% in revenue to €26 million, due to the negative base effect linked to the strong activity in 2016 related to the European football championship. Revenue from car parks was down by -2.1% at €86 million.

The share of profit from operating associates (Société de Distribution Aéroportuaire, RELAY@ADP and EPIGO) was up by €2 million, reaching €1 million. Revenue from these joint ventures climbed by +8.6% to €403 million, with SDA revenue rising by +6.2%, aided by international traffic growth.

Groupe ADP consolidated revenue rose by +2.4% in the half to €1,459 million, with EBITDA (excluding a one-off capital gain from the sale of a cargo hub) up by +3.7% and net income up by +27.1%.

Group traffic climbed by +4.6% to 73.3 million with the two Paris airports posting +5% growth to 48.5 million in the six months.

Aéroports de Paris SA – Groupe ADP Chairman and CEO Augustin de Romanet said: “Paris Aéroport traffic reached 48.5 million passengers in the first half of 2017, with international traffic more dynamic than total traffic. Those figures lead Groupe ADP to revise upwards its 2017 traffic growth assumption—between +3.5% and +4.0% in 2017 compared with 2016. Groupe ADP confirms its forecast of an upward trend for 2017 EBITDA.

“The results for the first half of 2017 attest to Groupe ADP’s capacity to take advantage of the recovery in traffic in Paris since the end of 2016. However, this recovery is only partially translated into retail sales. Sales per passenger, in spite of the dynamism of the luxury sector, are being penalised by the negative effect on the sales of tobacco of the introduction, on 1 January 2017, of the plain packet.

“At an international level, the first half saw the rolling out of Groupe ADP’s strategy, on the one hand, by bolstering its involvement, as a leading shareholder, in the airport group TAV Airports, and, on the other hand, by refocusing its activities on its core business, with the divestment of its stake in TAV Construction. As a reminder, TAV Airports will be fully integrated in Groupe ADP’s accounts in the second half of 2017. Over the first half of 2017, TAV Airports has posted solid results, thanks to the geographical and operational diversification of its activities, with growth in its revenue of +2.0%, in its EBITDA of +4%, to €202 million, and in its net result of +90%, to €60 million. The Groupe ADP EBITDA growth target, of between +30% and +40% for 2020, is confirmed, before full integration of TAV Airports. Groupe ADP’s other 2020 targets remain unchanged.”