H1 2018 SPP dropped due to depreciation of the Turkish lira impacting Turkish spending, but there was also weakness in European spending.

TURKEY. TAV Airports has reported a fall in spend per passenger (SPP) at its retail entity ATÜ Duty Free in the first half of 2018, but overall revenue from this division exceeded the same period in 2017.

SPP fell at flagship location Istanbul Atatürk Airport and across the TAV network.

The Turkey-based airport operator noted: “SPP dropped in the first half of 2018, mainly due to depreciation of the Turkish lira impacting Turkish passengers’ spending, as well as weakness in European passengers.”

ATÜ  Duty Free is the largest duty free retailer in Turkey, with travel retail stores also in Georgia, Tunisia, Macedonia, Latvia, Oman and Medinah, plus Houston in the US since September 2015. The company is a 50:50 joint venture between TAV Airports and Heinemann/Unifree.

It also has extensive food & beverage operations run by BTA both home and abroad.

The global airports player generated revenue of 550 million (US$734 million) in H1, an increase of +8%, of which duty free contributed a 21% share. EBITDA increased +25% to reach 254 million (US$339 million) and net income rose by +55% to hit 93 million (US$124 million). This was on the back of a large passenger increase of +31% to 67 million passengers.

Duty free’s contribution was just over one fifth.

All-time high financial results’

Commenting on the performance, TAV Airports Holding Executive Board Member & CEO Sani Sener stated: “The 31% surge in our passenger numbers was thanks to strong growth in international traffic and the addition of Antalya Airport, where we started operations in May 2018.”

He added: “Even excluding the inorganic contribution from Antalya we achieved +16% passenger growth (like-for-like). Antalya Airport is the second-largest airport in Turkey in terms of international passengers and has tremendous growth potential. We have crowned the record passenger numbers with all time high financial results for the first half of 2018.”

Other H1 highlights for TAV Airports were the BTA division starting catering services in Muscat Airport in March 2018 – a sizeable operation, and TAV Operation Services opening lounges in Zurich, Copenhagen, Frankfurt and Muscat airports in the period.

TAV Airports’ headline financials in H1 2018. Click to enlarge.