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Fraport Interim Report – Nine Months 2012: Positive Financial Figures for the First Three Quarters of the Year

 Fraport AG achieved revenue of €1.85 billion during the first three quarters of 2012 – up 3.5 percent or €63.2 million year-on-year. Group EBITDA (earnings before interest, tax, depreciation and amortization) increased by 5.7 percent or €36.8 million to €683.1 million year-on-year. The Group result rose by 10.1 percent or €22.8 million to a total of €248.4 million year-on-year. Correspondingly, basic earnings per share improved by €0.23 to €2.57 (up 9.8 percent). Reflecting ongoing investments at Frankfurt Airport (FRA), free cash flow was still negative at minus €76.3 million, compared to minus €264.0 million in the first nine months of 2011.

From January to September 2012, the number of passengers using Frankfurt Airport climbed by 3.3 percent to 44.1 million – despite 3,350 strike-related flight cancellations during the months of February, March, August and September. Across the Group’s consolidated airports, passenger traffic advanced overall by 3.4 percent to 78.2 million. Cargo throughput (airfreight and airmail) fell at Frankfurt Airport by 8.1 percent to about 1.56 million metric tons and dropped Group-wide by 7.3 percent to 1.74 million metric tons year-on-year.

The lower cargo volume impacted, in particular, Fraport’s Ground Handling business segment. In the Retail and Real Estate segment “net retail revenue per passenger” grew to €3.12. This indicator is expected to rise further due to the recent inauguration of the new Pier A-Plus at Terminal 1, which offers space for some 60 shops and restaurants. The External Activities and Services segment benefited from good growth at the company’s foreign operations, especially Lima (LIM) and Antalya (AYT) airports. The Aviation segment generated more revenue due to increased passenger figures and the development of airport charges.

Ongoing investments – particularly FRA’s new Runway Northwest – resulted in higher depreciation and financing costs. Commenting at the company’s financial press conference today, Fraport AG executive board chairman Dr. Stefan Schulte said: “Runway Northwest and the construction of the new A-Plus terminal area are major projects that have significantly enhanced the quality and reliability of our intercontinental hub, – while providing FRA with the necessary capacity growth reserves along with a noticeable improvement in punctuality.”

At the same time, Schulte stressed the growing difficulty of the framework conditions for air transportation — particularly in Germany and Europe — which are casting a cloud over the remaining months of the year. While the decline in cargo tonnage will continue to lessen, Fraport expects a decline in domestic and European passenger flight movements for the Winter Timetable. Thus, FRA is following the European-wide trend, whereby air traffic development on the continent is being dampened by the European debt crisis and weak economy. Furthermore, Schulte indicated that political decisions have increased the cost pressure on airlines and airports: “It is increasingly difficult for the aviation industry to compete internationally due to unilateral national implementation of the air transportation tax and the EU emissions trading scheme that has been heavily criticized worldwide.”

The Executive Board has not changed its outlook for full-year 2012. However, due to lower revenue from investments within the foreign concessions, Group revenue will – contrary to previous expectations – not exceed €2.5 billion. Here, the organic revenue generation remains unchanged. EBITDA is expected to advance by at least five percent and the Group result is expected to remain at approximately the same level as last year. Thus, Fraport is striving to be able to recommend a stable dividend of €1.25 per share at the Annual General Meeting. Fraport continues to forecast passenger growth of less than four percent at Frankfurt Airport – depending on the actual course of the remaining months, this could be a growth range of two to three percent. 

Source and photo: Fraport

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