EANS-News: Flughafen Wien AG Strong First Half-Year 2016 Leads to Significant
Earnings Improvement for the Flughafen Wien Group
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quarterly report
Strong First Half-Year 2016 Leads to Significant Earnings Improvement for the
Flughafen Wien Group
* REVENUE increase to EUR 334.4 million (+7.3%), EBITDA rise to EUR 201.5
million (+ 9.9% or EUR 149.7 million clean i.e. adjusted for the upward
revaluation of stake in Malta Airport), EBIT of EUR 138.3 million (clean:
+20.1% or EUR 86.5 million)
* NET PROFIT FOR THE PERIOD* up considerably to EUR 106.4 million (clean rise of
14.7% to EUR 54.6 million)
* NET DEBT further reduced to EUR 419.0 million (down EUR 47.0 million from the
end of 2015)
* Increase in the free cash flow to EUR 155.4 due to advance rent payment
(+111.9% from EUR 73.4 million in H1/2015)
* Positive guidance confirmed for 2016: increase in the clean net profit for the
period after non-controlling interests, i.e. adjusted for Malta revaluation,
to EUR 115 million, reduction of net debt below EUR 400 million
* Traffic guidance for the Vienna Airport site for 2016 also confirmed:
passenger growth between 0% and 2%, projected development of flight movements
between -1% and 0%
* July 2016: +2.9% passenger increase, +6.0% rise in cargo volume at Vienna
Airport
"An economically strong first half of 2016 resulted in a significant improvement
of all relevant financial performance indicators for the Flughafen Wien Group,
featuring increases in revenue and net profit for the period and a further
reduction of net debt. Accordingly, we continued on this success path for our
fifth straight year. In addition, new companies with 450 employees recently
located their business operations in the Airport City. Our next milestone will
be about EUR 500 million in investments to revitalize and expand the terminal
infrastructure," emphasized Günther Ofner, Member of the Management Board of
Flughafen Wien AG.
"Passenger volume at Vienna Airport is progressing favourably. The month of July
2016 marked a new record of 2.4 million travellers at Vienna Airport, the
highest number of passengers in the airport's history. Low cost carriers such as
Eurowings and easyJet are growing strongly, and long-haul flight service is also
developing well. The winter flight schedule 2016/17 will feature the new long-
haul destinations of Havana and Hong Kong offered by Austrian Airlines in
addition to expanded short-haul and medium-haul flight service. We are
optimistic concerning the entire year 2016, even if the travel industry is
currently under strong pressure due to the terrorist attacks in Paris and
Brussels as well as the unstable economic and political conditions in some
regions", explains Julian Jäger, Member of the Management Board of Flughafen
Wien AG.
Traffic development in H1/2016: Flughafen Wien Group handles 12.9 million
passengers
Vienna Airport and its foreign strategic investments in Malta Airport and Kosice
Airport showed a slight increase in passenger volume in the period January to
June 2016, handling a total of 12.9 million passengers or a rise of 2.1%
compared to H1/2015.
Vienna Airport: passenger growth in H1/2016 despite a difficult market
Environment
Vienna Airport reported a 0.4% rise in passenger volume in the period January to
June 2016 to 10,500,816 passengers compared to the prior-year period. The number
of local passengers increased by 2.6% in the first half of 2016, whereas the
number of transfer passengers declined by 5.2%. Passenger volume to Western
Europe was up by 2.2%, whereas the number of passengers flying to Eastern
European destinations fell by 4.7% as a consequence of the economic situation in
Russia and capacity reductions by the airlines. Far Eastern destinations showed
a 1.1% growth in passenger volume compared to a drop of 0.7% in the number of
travellers to the Middle East. The total number of passengers to North America
was up 4.8%. In contrast, passenger volume to Africa decreased by 23.2% as a
result of the politically unstable situation in North African regions.
The number of flight movements fell by 1.1% year-on-year in the period January
to June 2016 to 108,809 starts and landings. The average seat occupancy (seat
load factor) in the period January to June 2016 equalled 70.0%, down from the
comparable level of 71.5% in H1/2015. In contrast, cargo volume (air cargo and
trucking) increased by 6.3% in the same period to 138,227 tonnes.
Good traffic results and business development at Malta and Kosice Airports
The foreign strategic investments of the Flughafen Wien Group in Malta and
Kosice Airports continued to develop well. Malta Airport reported growth of 9.8%
to reach a volume of 2,183,089 passengers in the first half of 2016. The most
important markets for Malta Airport were Great Britain, Italy and Germany.
Kosice Airport handled a total of 168,648 passengers, comprising a 17.5% rise in
passenger volume in the first half of 2016.
Substantial improvement of financial performance indicators in H1/2016
Revenue of the Flughafen Wien Group in the first six months of 2016 climbed 7.3%
to EUR 334.4 million. In addition to the positive passenger development, higher
revenue in the Handling Segment, the increased revenue can be attributed to the
full consolidation of Malta Airport as of the second quarter of 2016. With the
conclusion of the transaction in which Flughafen Wien AG increased its
shareholding in Malta Airport, and its formal closing on March 30, 2016, the
stake was subject to an upward revaluation and fully consolidated in the
consolidated financial statements of the Flughafen Wien Group starting at the
end of the first quarter of 2016.
Increase of 14.7% in the adjusted net profit for the period* in H1/2016
EBITDA improved to EUR 201.5 million (+48.0%), whereas EBIT climbed to EUR 138.3
million (+92.0%) and the net profit for the period after non-controlling
interests rose 123.6% from EUR 47.6 million to EUR 106.4 million. Adjusted for
this one-off effect relating to the upward revaluation of the stake in Malta
Airport, clean EBITDA totalled EUR 149.7 million. (+9.9% vs. the adjusted H1/
2015 of EUR 136.2 million) and EBIT amounted to EUR 86.5 million (+20.1% vs. the
adjusted H1/2015 of EUR 72.0 million). The reversal of an impairment of an
office building related to increased rental income also had a positive impact.
The clean net profit for the period in H1/2016 was EUR 54.6 million, comprising
a year-on-year rise of 14.7% adjusted for the upward revaluation of Malta
Airport. Net debt was reduced once again to EUR 419.0 million. The free cash
flow rose to EUR 155.4 million (up 111.9% from EUR 73.4 million in H1/2015).
Revenue and earnings development in the segments: New Malta Segment
Revenue of the Airport Segment climbed 2.8% year-on-year to EUR 171.4 million.
As a result, segment EBIT improved by 28.5% to EUR 32.1 million (H1/2015: EUR
25.0 million). The Handling Segment showed a 2.5% increase in revenue to EUR
75.5 million and a 63.0% improvement of EBIT to EUR 5.1 million (H1/2015: EUR
3.1 million). This includes the security services provided by VIAS as well as
the handling services of Vienna Aircraft Handling (VAH). The Retail & Properties
Segment reported a revenue decline of 6.1% in the first half-year 2016 to EUR
59.5 million. This decrease is primarily due to the lower rental income relating
to a special effect of a finance lease agreement in conjunction with the
acquisition of Hermione, a positive one-off effect in the previous year and the
restrained development of parking and retail revenue. EBIT of the Retail &
Properties Segment amounted to EUR 33.5 million (H1/2015: EUR 36.3 million).
Revenue of the Other Segments was up 5.5% in H1/2016 to EUR 8.2 million (H1/
2015: EUR 7.7 million). Segment EBIT increased to EUR 58.5 million as a
consequence of the revaluation of the stake held in Malta Airport. With the
closing of the transaction on March 30, 2016, the strategic investment in Malta
Airport is now in the group of companies which are fully consolidated in the
consolidated financial statements of the Flughafen Wien Group. For this reason,
these business results are reported as the new Malta Segment starting in the
second quarter of 2016. Revenue of the Malta Segment amounted to EUR 19.8
million in Q2/2016, and EBIT totalled EUR 9.2 million.
Investments
Of the total investments (excluding business acquisitions) amounting to EUR 50.5
million in the first half of 2016, EUR 21.8 million related to investments in
the Runway System 11/29 (runway modernisation), EUR 5.7 million was for
investments in connection with the 3rd Runway and EUR 2.0 million involved the
renovation of an operations building. Total investments in the year 2016 are
expected to be about EUR 95 million (excluding the special items relating to
Malta Airport). The following values were added to the consolidated balance
sheet as at March 30 2016 on a provisional basis from the acquisition of Group
companies in connection with Malta Airport: EUR 61.3 million for goodwill, EUR
0.9 million for intangible assets and EUR 363.8 million for property, plant and
equipment and investment property.
Traffic development in July 2016: Flughafen Wien Group handles 3.1 million
passengers (+3.2% vs. July 2015), accumulated passenger growth of 2.3% in the
period January to July 2016
In July 2016, Flughafen Wien AG including its strategic foreign investments in
Malta and Kosice Airports handled a total of 3.1 million passengers, comprising
a rise of 3.2% from July 2015. The accumulated passenger volume for the
Flughafen Wien Group rose 2.3% to 15.9 million in the period January to July
2016.
Vienna Airport in July 2016: 2.9% increase in total passengers, 6.0% cargo
growth
The total number of passengers handled at Vienna Airport rose by 2.9% in July
2016 compared to July 2015 to 2,431,583 passengers. The number of local
passengers climbed 4.3%, whereas the number of transfer passengers fell slightly
by 0.5%. The number of flight movements at Vienna Airport in July 2016 declined
by 1.4% from July 2015. Vienna Airport showed a good level of growth with
respect to cargo volume, which increased by 6.0% from July 2015.
The total number of passengers to Western European destinations increased by
1.3% in July 2016, whereas passenger traffic to Eastern Europe was up 2.4%. The
number of passengers traveling to the Far East rose by 6.8% in July 2016, and
even climbed by 15.8% to destinations in the Middle East. Passenger volume to
North America was up 8.0%. The number of passengers flying to destinations in
Africa fell by 8.9%.
The number of passengers handled by Malta Airport rose 5.9%, whereas passenger
volume at Kosice Airport fell by 7.0%.
Presentation of traffic results
Following the increase of the stake held by Flughafen Wien AG in Malta Airport
at the end of March 2016, the strategic investment is fully consolidated in the
interim consolidated financial statements of the Flughafen Wien Group beginning
at the end of the first quarter of 2016. For this reason, the entire traffic
results for Flughafen Wien AG and its foreign strategic investments have been
included in the monthly reports since April 2016. The traffic results for Vienna
Airport correspond to the comparable values of the monthly announcements of
traffic results up to and including the month of March 2016.
* Profit for the period attributable to the parent company
Results in detail: Traffic development in July 2016:
January-July
July 2016 Change in % 2016 Change in
%
Vienna Airport(VIE)
Passengers 2,431,583 +2.9 12,932,554 +0.9
Local
passengers 1,708,954 +4.3 9,514,796 +2.9
Transfer
passengers 712,816 -0.5 3,362,952 -4.2
Flight
movements
(arrivals and
departures) 20,944 -1.4 129,753 -1.1
Cargo in tonnes
(air cargo and
trucking) 23,466.2 +6.0 161,692.7 +6.3
Malta Airport(MLA, fully consolidated)
Passengers 580,474 +5.9 2,763,563 +9.0
Local
passengers 579,574 +6.1 2,759,379 +9.1
Transfer
passengers 900 -46.6 4,184 -44.1
Flight
movements
(arrivals and
departures) 3,884 +0.0 19,962 +3.6
Cargo in tonnes
(air cargo and
trucking) 1,130.9 -12.4 7,931.5 -2.5
Kosice Airport(KSC, consolidated at equity)
Passengers 66,629 -7.0 235,371 +9.4
Local
passengers 66,629 -7.0 235,371 +9.4
Transfer
passengers - - - -
Flight
movements
(arrivals and
departures) 1,115 +10.0 5,311 +18.1
Cargo in tonnes
(air cargo and
trucking) 9.0 +114.5 56.6 -66.2
Vienna Airport and strategic investments(VIE, MLA, KSC)
Passengers 3,078,686 +3.2 15,931,488 +2.3
Local
passengers 2,355,157 +4.4 12,509,546 +4.3
Transfer
passengers 713,716 -0.6 3,367,136 -4.3
Flight
movements
(arrivals and
departures) 25,943 -0.7 155,026 +0.0
Cargo in tonnes
(air cargo and
trucking) 24,606.1 +5.1 169,680.8 +5.8
Consolidated Interim Financial Statements as of 30 June 2016
______________________________________________________________________________
|in_EUR_million____|____________H1/2016|___________H1/2015*|________Change_in_%|
|Revenue___________|______________334.4|______________311.5|_______________+7.3|
|Other operating | | | |
|income____________|________________6.4|________________5.8|_______________+9.1|
|Other operating | | | |
|income____________|______________340.7|______________317.3|_______________+7.4|
|__________________|___________________|___________________|___________________|
|Consumables and | | | |
|services_used_____|______________-16.6|______________-17.2|_______________-3.6|
|Personnel_expenses|_____________-132.4|_____________-130.3|_______________+1.6|
|Other operating | | | |
|expenses__________|______________-44.5|______________-37.2|______________+19.6|
|Proportional share| | | |
|of income from | | | |
|companies recorded| | | |
|at_equity_________|________________2.4|________________3.5|______________-30.9|
|Revaluation of | | | |
|companies recorded| | | |
|at equity due to | | | |
|company | | | |
|acquisitions______|_______________51.8|__________________-|_______________n.a.|
|Earnings before | | | |
|interest, taxes, | | | |
|depreciation and | | | |
|amortisation | | | |
|(EBITDA)__________|______________201.5|______________136.2|______________+48.0|
|Scheduled | | | |
|depreciation and | | | |
|amortisation______|______________-67.2|______________-64.2|_______________+4.7|
|Reversal of | | | |
|impairment________|________________3.9|__________________-|_______________n.a.|
|Earnings before | | | |
|interest and taxes| | | |
|(EBIT)____________|______________138.3|_______________72.0|______________+92.0|
|__________________|___________________|___________________|___________________|
|Income from | | | |
|investments, | | | |
|excluding | | | |
|investments | | | |
|recorded_at_equity|________________0.6|________________0.1|_______________n.a.|
|Interest_income___|________________0.8|________________1.3|______________-40.4|
|Interest_expense__|______________-11.0|______________-11.2|_______________-1.2|
|Other financial | | | |
|result____________|__________________-|_______________-0.1|_______________n.a.|
|Financial_result__|_______________-9.7|_______________-9.8|_______________-1.3|
|__________________|___________________|___________________|___________________|
|Earnings before | | | |
|taxes_(EBT)_______|______________128.7|_______________62.2|_____________+106.7|
|__________________|___________________|___________________|___________________|
|Income_taxes______|______________-19.1|______________-14.6|______________+30.6|
|Net profit for the| | | |
|period____________|______________109.5|_______________47.6|_____________+130.2|
|__________________|___________________|___________________|___________________|
|Thereof | | | |
|attributable_to:__|___________________|___________________|___________________|
|Equity holders of | | | |
|the_parent________|______________106.4|_______________47.6|_____________+123.6|
|Non-controlling | | | |
|interests_________|________________3.1|_______________-0.0|_______________n.a.|
|__________________|___________________|___________________|___________________|
|Earnings per share| | | |
|(in EUR, basic = | | | |
|diluted)__________|_______________1.27|_______________0.57|_____________+123.6|
* adjusted for at-equity results
Balance Sheet Indicators
______________________________________________________________________________
|in_EUR_million____|__________30.6.2016|_________31.12.2015|________Change_in_%|
|ASSETS:___________|___________________|___________________|___________________|
|Non-current_assets|____________2,100.8|____________1,748.6|______________+20.1|
|Current_assets____|______________148.1|______________161.1|_______________-8.0|
|__________________|___________________|___________________|___________________|
|LIABILITIES:______|___________________|___________________|___________________|
|Equity____________|____________1,211.4|____________1,020.0|______________+18.8|
|Non-current | | | |
|liabilities_______|______________699.7|______________579.1|______________+20.8|
|Current | | | |
|liabilities_______|______________337.8|______________310.6|_______________+8.8|
|__________________|___________________|___________________|___________________|
|Total equity and | | | |
|liabilities_______|____________2,248.9|____________1,909.7|______________+17.8|
|__________________|___________________|___________________|___________________|
|Net_debt__________|______________419.0|______________466.0|______________-10.1|
|Gearing_(in%)_____|_______________34.6|_______________45.7|____________-11.1p%|
Cash Flow Statement
______________________________________________________________________________
|in_EUR_million____|____________H1/2016|____________H1/2015|________Change_in_%|
|Net cash flow from| | | |
|operating | | | |
|activities________|______________132.2|______________110.1|______________+20.1|
|investing | | | |
|activities________|_______________23.2|______________-36.8|_______________n.a.|
|financing | | | |
|activities________|_____________-113.1|______________-69.9|______________+61.8|
|__________________|___________________|___________________|___________________|
|Free_cash_flow____|______________155.4|_______________73.4|_____________+111.9|
|__________________|___________________|___________________|___________________|
|CAPEX*____________|_______________50.5|_______________24.6|______________105.2|
* Excluding financial assets and business acquisitions
The report by Flughafen Wien AG for the first six months of 2016, from January 1
to June 30, 2016, is available to the general public at the company's offices at
1300 Flughafen Wien and at Bank Austria, 1010 Vienna, Schottengasse 6-8. It is
also available on the Internet at http://viennaairport.com/en/company/
investor_relations/publications_and_reports/quarterly_reports
The Management Board of Flughafen Wien AG
Vienna Airport, August 22, 2016
Further inquiry note:
Investor Relations:
Mag. Judit Helenyi (+43-1)7007-23126; j.helenyi@viennaairport.com
Mario Santi (+43-1)7007-22826; m.santi@viennaairport.com
end of announcement euro adhoc
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company: Flughafen Wien AG
Postfach 1
A-1300 Wien-Flughafen
phone: +43 1 7007 - 22826
FAX: +43 1 7007 - 23806
mail: investor-relations@viennaairport.com
WWW: http://viennaairport.com/unternehmen/investor_relations
sector: Transport
ISIN: AT0000911805, NEU: AT00000VIE62
indexes: ATX Prime
stockmarkets: official market: Wien
language: English