euro adhoc: SkyEurope Holding
quarterly or semiannual financial statement /
SkyEurope Q1/06 results:
Revenue growth of 42.5% and improved financial performance
Higher revenues: +EUR 7.8m
Lower unit costs: -10.5%
More passengers: +42.6%
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
08.02.2006
In the first quarter of its financial year 2006, SkyEurope generated net operating revenues in the amount of EUR 26.2m compared to EUR 18.4m in the first quarter of 2005, which corresponds to an increase of 42.5%. A total of 409,946 passengers were carried, compared to 287,456 passengers in the same period of the previous year (+42.6%). Load factor improved by 0.2%, reaching 65.9%.
Despite a strong competitive situation SkyEurope continued its growth strategy by expanding in terms of destinations and frequencies. In early December, SkyEurope started to offer flights to Bulgaria and Romania as part of its "Go East" strategy. In addition, a winter campaign was launched. Direct flight connections to attractive European ski resorts have been introduced. SkyEurope now offers direct flights to Milan/Bergamo, Salzburg and Innsbruck in the Alps and to Poprad/Zakopane in the Tatra Mountains. In December 2005, SkyEurope reached the milestone of three million passengers. For the summer season several new destinations have been launched for sale from Bratislava, Krakow and Budapest.
With the launch of new routes and the increased usage of larger Boeing 737 aircraft, replacing the phased out Embraer 120 fleet, the capacity in terms of available seat kilometers (ASK) increased by 38.1%. Operating costs rose by 23.8%.
The largest cost items were aircraft and traffic servicing (EUR 12.3m), fuel costs (EUR 11.9m), aircraft rental (EUR 6.1m), and personnel expenses (EUR 4.1m). EBIT slightly improved by 0.6% to EUR -14.0m. Due to significantly increased productivity, the negative impact of high fuel prices, in the range of 29% above the previous year, could be more than compensated. Adjusted by this fuel price impact, this would have resulted in an EBIT improvement of 25%.
Net loss for the period was reduced by 0.5% and amounted to EUR 12.0m.
SkyEurope implemented a financial risk management program by hedging its USD foreign currency risk. Given the current high jet kerosene forward rates, the company has not yet entered into fuel hedging, but has finalized the framework to start hedging at the right market terms. SkyEurope expects fuel prices at an equivalent index of around USD 60 bbl Brent for 2006.
"Despite high fuel costs, heavy competition and seasonal effects, we were able to improve our first quarter results. We carried more passengers, increased our revenues substantially and managed to drive costs down" said Christian Mandl, CEO of SkyEurope. "With the first new Boeing 737-700 NG aircraft joining our fleet in March 2006, we will enhance our product offering, increase seat capacity and reduce unit costs further. This will allow us to reinforce our leadership position in Central and Eastern Europe."
Summary table of results (IFRS)
In thousands of EUR, unaudited (quarter ended) 31 Dec 2005 31 Dec 2004 Change % Net operating revenues 26,201 18,382 42.5% EBITDAR (7,689) (9,636) 20.2% EBIT (13,974) (14,059) 0.6% Net loss for the period (12,044) (12,107) 0.5% Passengers 409,946 287,456 42.6% Load factor 65.9% 65.7% 0.2pp Cost per ASK (EURc) 5.90 6.59 (10.5%)
end of announcement euro adhoc 08.02.2006 07:59:00
Further inquiry note:
SkyEurope Holding AG
Mag. Erhard Schmidt, CFO
Tel.:+421 2 4850 1180
mailto:investor.relations@skyeurope.com
http://www.skyeurope.com
Branche: Air Transport
ISIN: AT0000497003
WKN: A0F5WU
Index: WBI
Börsen: Wiener Börse AG / official market