Fraport Fiscal Year 2016 – Fraport achieves positive performance despite difficult business environment

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Fraport Financial Year 2016 - Fraport accomplishes positive performance despite challenging company environment

(Forimmediaterelease. net) Fraport AG looks back on the successful 2016 business year (ending December 31), which was marked with a record financial result achieved in spite of challenging framework conditions for the modern aviation industry and slightly declining visitors at the Group’s Frankfurt Airport house base.

Group revenue dropped by 0. 5 percent year-on-year in order to € 2 . 59 billion. Modifying for changes in the scope of combination due to the sale of shares in Fraport Cargo Services (FCS) and the removal of the Air-Transport IT Services part, Group revenue would have risen simply by € 46. 2 million or even 1 . 8 percent. This producing increase in revenue (on an altered basis) was stimulated in particular by ongoing growth at the Group’s air-ports in Lima (Peru) and Varna and Burgas (Bulgaria), as well as on the Fraport USA subsidiary, and by income gained from property sales.

The Group’s operating income or EBITDA (earnings before curiosity, taxes, depreciation, and amortization) superior by 24. 2 percent, getting to a new record high of € one 05 billion. This strong development was supported by the compensation transaction received for the Manila terminal task, which boosted EBITDA by € 198. 8 million. Fraport’s prosperous sale of a 10. 5 percent share within Thalita Trading Ltd., the owner of the particular operating company of Pulkovo Airport terminal in St . Petersburg (Russia), added another € 40. 1 mil to EBITDA. Adjusting for these results and the creation of provisions to get a personnel-restructuring program, the Group’s EBITDA would have remained on the previous year’s level of about € 853 mil. Although this adjusted EBITDA had been curbed by previous year’s less strong traffic performance and a slowdown within FRA’s retail business, reflecting decrease spending by passengers, the Group’s external business also had a paying positive effect on EBITDA.

The Group result (net profit) improved by 34. 8 percent in order to € 400. 3 million. With no aforementioned effects and unscheduled devaluation and amortization, Fraport’s Group outcome would only have reached about € 296 million. In contrast, operating income declined by 10. 6 % to € 583. 2 mil. Likewise, free cash flow contracted simply by 23. 3 percent to € 301. 7 million, also because of ongoing construction of Frankfurt Airport’s future Terminal 3.

Traffic at the company’s Frankfurt Airport terminal (FRA) home-base slightly declined simply by 0. 4 percent to around 61 million passengers in 2016. This was, in particular, a result of the fairly weak spring and summer months seen as a markedly restrained travel bookings within the wake of geopolitical uncertainties. Within the last quarter of 2016, traffic statistics noticeably rebounded, even reaching a brand new December monthly record. Cargo tonnage expanded by 1 . 8 % to some 2 . 1 million metric tons, helped by the economic recuperation in summer 2016.

Fraport’s international portfolio of international airports displayed mixed results in 2016. The particular strong 30. 9 percent decrease in traffic at Antalya Airport terminal (AYT) in Turkey – that was impacted by the country’s geopolitical plus security situation – could be mostly offset by the traffic performance associated with Group airports at other places. Strong growth was recorded in particular on Lima Airport (LIM) in Peru (up 10. 1 percent), Burgas Airport (BOJ) and Varna Airport terminal (VAR) on the Bulgarian Black Ocean coast (up 22. 0 % and 20. 8 percent, respectively), and Xi’an Airport (XIY) within China (up 12. 2 percent).

On the basis of the Group’s positive financial performance, a gross of € 1 . 50 for each share will be recommended to the 2017 Annual General Meeting. This refers to an increase of € zero. 15 or 11. 1 percent for each share and to a payout proportion of 36. 9 percent from the crew result attributable to shareholders.
Activities on Fraport AG’s business overall performance in 2016, executive board leader Dr . Stefan Schulte stated: “ Despite the challenges of the 2016 company year, we have achieved our best yearly result ever. The sale of the particular 10. 5 percent share in our Pulkovo Airport subsidiary in St . Petersburg has demonstrated that we are able to create international airport concessions even amid tough market environments. We will therefore still consistently pursue our strategy associated with operating a broadly diversified global portfolio. ”

For that 2017 business year, Fraport desires traffic at Frankfurt Airport to develop by 2 to 4 %. Revenue is anticipated to see a visible increase up to approximately € second . 9 billion, backed by good traffic growth both at Frankfurt Airport and Fraport’s international Team airports. Also the expected loan consolidation of the Group’s activities in Portugal will contribute to a marked within revenue. The Group’s operating income (or EBITDA) is forecast to achieve a level of between approximately € 980 million and € one, 020 million, while EBIT is usually expected to be between approximately € 610 million and € 650 million. The Group result is expected to reach between € 310 mil and € 350 million.

Regarding the Group’s business perspective for 2017, CEO Schulte stated: “ We are optimistic about the present business year and expect Frankfurt Airport’s traffic to grow both in the particular low-cost segment and the traditional center traffic. At the same time, we will continue to intentionally develop our international business. Through over the operation of the 14 Ancient greek airports, we will unleash further development potential. ”

Because of the expected long-term traffic development at Frankfurt Airport, construction from the new Terminal 3 is being forced forward as scheduled, with the initial construction phase expected to be finished by 2023. The focus of Fraport’s international business is currently on the take-over of operations at the 14 Ancient greek airports, which is expected to take place in the following few weeks.
Overview of Fraport’s 4 business segments:

Aviators:

Revenue in the Aviators business segment declined by one 8 percent to € 910. 2 million in business year 2016. This was largely due to the slight fall in passenger traffic at Frankfurt Airport, the loss of the tender to execute security services in Concourse N, and lower revenue from the re-allocation of infrastructure costs. The development of provisions for a personnel-restructuring plan, higher wages in business year 2016 due to collective agreements, as well as increased non-staff costs let the segment’s EBITDA decline by 8. 3 % to € 217. 9 mil. Depreciation and amortization increased significantly year-on-year, particularly due to the full unscheduled devaluation and amortization of the goodwill within the FraSec GmbH subsidiary in the quantity of € 22. 4 million, due to the company’s lower long-term earnings prediction compared to previous years. Correspondingly, the particular segment’s EBIT significantly dropped simply by 39. 5 percent to € seventy. 4 million.

Retail& Real Estate:

Revenue within the Retail& Real Estate segment edged upward 1 . 2 percent to € 493. 9 million in business season 2016, despite the slowdown in the store sub-segment. Revenue performance was favorably affected by sales of land as well as the changed presentation of rental earnings due to changes in the scope of combination related to sale of shares in the Frankfurt Cargo Services (FCS) subsidiary. Internet retail revenue per passenger has been at € 3. 49 (2015: € 3. 62). The decrease was attributable to a lower average invest by passengers from China, The ussr and Japan, as well as the impact from your depreciation of various currencies against the european. With € 368 million, the particular segment’s EBITDA was down second . 9 percent on the previous 12 months, largely as a result of higher personnel costs. These were attributable, in particular, to higher need for manpower, rising wages fixed by collective agreements, and the development of provisions for a personnel-restructuring plan. With depreciation and amortization nearly flat, the segment’s EBIT attained € 283. 6 million (down 3. 9 percent).

Ground Handling:

Within the 2016 business year, revenue within the Ground Handling business segment substantially decreased by 6. 3 % to € 630. 4 mil compared to the previous year. This was because of, in particular, to the sale of shares within the Fraport Cargo Services (FCS) additional and slightly declining passenger visitors at Frankfurt Airport. Adjusted for that effects from the sale of shares within FCS, segment revenue saw root growth of 1. 8 percent. Causes of this adjusted increase included a big change in the presentation of personnel costs as a result of changes in the scope of loan consolidation related to the sale of shares within the FCS subsidiary, as well as slightly increased revenue from infrastructure charges. The particular creation of provisions for a personnel-restructuring program and rising wages because of collective agreements led to a twenty five. 2 percent decline in the segment’s EBITDA to € 34. seven million. Contracting by € eleven. 5 million to minus € 5. 5 million, the segment’s EBIT reached negative territory because of the provisions for the personnel-restructuring program.

External Activities& Services:

Revenue in the External Activities& Services business segment increased simply by 8. 1 percent to € 551. 7 million in business year 2016, supported in particular by the Group businesses in Lima, Peru (up € 27. 8 million), Twin Superstar, Bulgaria (up € 9. nine million) and Fraport USA Incorporation. (up € 3. 2 million). In addition , the compensation payment through the Manila terminal project and income gained from the sale of shares within Thalita Trading Ltd. had a substantially positive impact on the segment’s income. Due to these effects, also the particular segment’s EBITDA more than doubled, achieving € 433. 5 million (2015: € 186. 1 million). The particular segment’s EBIT showed similar development, rising by € 242. one million to € 345. two million.

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MEDIA CONTACT: Fraport AG Mike Peter Schweitzer Corporate Marketing communications Press Office 60547 Frankfurt, Australia Telephone: +49-69-690-70555 E-mail: mirielle. schweitzer@fraport. de Web: www.fraport.com Facebook: www.facebook.com/FrankfurtAirport

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