FRANKFURT, Germany, May 8, 2014 /PRNewswire/ --
Rising Passenger and Cargo Figures Drive Positive Q1 Results - CEO Schulte: "Upward Trend During the First Three Months Confirms Our Outlook for Full-Year 2014"
FRA/gk-rap> Fraport AG posted positive financial results in the first quarter of 2014 - primarily due to traffic growth across the Group's airports. Group revenue saw underlying growth of €5.4 million or 1.1 percent, rising to €517.3 million. Group EBITDA (earnings before interest, tax, depreciation and amortization) jumped by €13 million or 10.7 percent to €134.5 million, while the Group result advanced by €1.5 million to €6 million year-on-year.
At Frankfurt Airport (FRA), Fraport AG's home base, passenger numbers increased by two percent in the first three months of 2014, while aircraft movements (takeoffs and landings) climbed by 1.1 percent - despite a large number of strike-related flight cancellations. FRA also recorded higher tonnage for cargo and accumulated maximum takeoff weights (MTOWs), increasing by 4.5 percent and 2.1 percent respectively. Relatively mild winter weather at FRA was one of the factors behind the overall positive performance. Across the Group, passenger figures also continued to grow at the airports of Lima (LIM) in Peru, Antalya (AYT) in Turkey, St. Petersburg (LED) in Russia, and Xi'an (XIY) in China.
As a result of the positive operating performance and a lower investment volume compared to 2013, the Group's free cash flow markedly increased by €65.9 million to €19.5 million. Commenting on the financial results, Fraport AG's executive board chairman, Dr. Stefan Schulte, said: "Our first-quarter financial results are a positive start for the Fraport Group's 2014 business year. Also because of the ongoing growth trend in air traffic demand, we expect the Group's positive development to continue. We thus confirm our full-year outlook and expect overall performance in 2014 to exceed the levels reached last year."
Overview of Fraport's Four Business Segments:
Aviation: Revenue in Fraport's Aviation business segment rose by 2.4 percent to €189.4 million in the first three months of 2014. This gain was primarily driven by Frankfurt Airport's passenger growth as well as an increase in airport charges by an average of 2.9 percent (effective January 1, 2014). On the expense side, the Aviation segment registered a significant year-on-year reduction in costs for Fraport's Winter Services, due to the relatively mild winter weather at FRA. Higher revenue and lower expenses resulted in the segment EBITDA soaring by 56.2 percent to €30.3 million. With amortization and depreciation remaining almost level, segment EBIT grew by €11.0 million to €1.6 million year-on-year.
Retail & Real Estate: With €106.5 million, revenue in the Retail & Real Estate business segment declined in the first quarter of 2014 by 1.1 percent compared to the same period last year. Revenue dropped in the Real Estate sub-segment because of lower proceeds from energy and utility services, due to the milder winter. In contrast, the Retail sub-segment generated lower revenue mainly because of fewer passenger on some intercontinental routes. Compared to travelers flying on European routes, intercontinental passengers spend on average much more on purchasing goods and services while at the airport. Correspondingly, the key performance indicator "net retail revenue per passenger" slipped by 1.3 percent to €3.69. Despite lower revenue, segment EBITDA rose by 2.5 percent or €2 million to €82.4 million, resulting mainly from lower operating expenses for energy supply and utility services. Segment EBIT reached €61.9 million, up 2.7 percent year-on-year.
Ground Handling: Revenue in Fraport's Ground Handling business segment edged up by 0.5 percent to €148.7 million in the first quarter of 2014, driven by higher passenger numbers and an increase in airport charges. Despite a pay increase from collective wage agreements, personnel expenses could be reduced in the first quarter of 2014 through optimized deployment of staff. Due to higher revenue and lower personnel expenses, segment EBITDA improved by €2.7 million, while remaining in negative territory, at minus €2.8 million. Improving by €2.9 million, segment EBIT also remained in the red at minus €11.9 million.
External Activities & Services: Fraport's External Activities & Services business segment registered a decline in revenue of €14 million or 15.7 percent to €75.1 million in the first quarter of 2014. In connection with the application of IFRIC 12 accounting standards, segment revenue dropped by €15.5 million, solely due to the lower recognition of capacitive capital expenditure, neutral on earnings, in the Group's Twin Star and Lima companies. Without the IFRIC 12 effect, underlying segment revenue rose to €72.7 million or 2.1 percent. The increase in revenue was largely driven by passenger growth at Lima Airport, which compensated for the negative currency effect from converting U.S. dollars to euros. Segment operating expenses decreased primarily due to low capacitive capital expenditure in the Twin Star and Lima Group subsidiaries. Despite organic revenue growth, segment EBITDA declined by 9.6 percent to €24.6 million - mainly due to non-recurring income gained in the previous year by Fraport's IT services division at Frankfurt Airport. At €9.6 million, segment EBIT declined by 31.9 percent compared to the same period in 2013.
The Fraport Group Interim Report (January 1 to March 31, 2014) is available for viewing and downloading via the following link:
For Further Information, Please Contact:
Fraport AG Frankfurt Airport Services Worldwide
Robert A. Payne, B.A.A. - International Spokesman and Head of International Press/PR & External Activities Team, Press Office (UKM-PS), Corporate Communications, 60547 Frankfurt, Germany; Tel.: +49-69-690-78547; E-mail: email@example.com; Internet: http://www.fraport.com; http://www.airportcarbonaccreditation.org
SOURCE Fraport AG