Copenhagen Airports, the operator of Copenhagen Airport (CPH), saw concession revenue from its shopping centre rise by +5.6% in the first half of 2014. While this was better than the non-aviation business as a whole (up +3.5%) it was below the rise in traffic of +7.3% to 12.36m (see tables below and click to enlarge).

 

Shopping centre revenue in the six months to June reached DKK330.8m ($59.3m) which CPH says “was primarily the result of new and improved F&B and speciality shop concepts, such as the Lagkagehuset unit in the new Terminal 2 arcade and Johan Bülow Lakrids”.

 

An increase in the number of international departing passengers also had a positive effect on revenue from the duty free and travel retail shops run by Gebr. Heinemann which CPH says “rose year-on-year… partly due to the growth in passenger numbers and an increase in online sales through www.tax-free.dk”.

 

The latter rise was strongly related to the CPH Advantage programme and also to an increase in web traffic to the site from external media.

 

However, it should also be noted that in 2013, the main DF&TR store was affected by an extensive refurbishment and therefore offers a weak comparison.

 

The airport says that development of the shopping centre will continue in 2014. The first changes this year have already been completed with lingerie store Change, B&O Play and Max Mara appearing in H1. Other changes are in progress.

 

 

PAX LIFT

Overall, Copenhagen Airports had a good first half with growth in passenger numbers lifting both revenue (+7.4%) and profit before tax (+9.0%) to DKK 593.3m ($106.4m) – see chart below. CPH retains its full-year forecast.

 

Growth in passenger traffic was particularly strong in Q2, and the growth on intercontinental routes and in transfer traffic have supported CPH’s position as a hub in northern Europe. “It also shows that we are achieving the goals we have set in our World Class Hub strategy,” claims Copenhagen Airports CEO Thomas Woldbye.

 

In H1, international traffic grew by +7.5%, long-haul traffic grew by +6.8%, transfer traffic was up by +13.5%, and domestic traffic rose by +4.9%.

 

 

CAPITAL INVESTMENT & FORECAST

CPH is continuing its high level of capital investment – in the order of DKK 1bn ($179.4m) – and as a result of steadily growing intercontinental traffic, CPH has initiated an extension of Pier C, which is used for long-haul and non-Schengen traffic.

 

The pier will be extended by 100 metres, adding three stands with direct access from the aircraft gates. CPH will also be investing in non-aeronautical projects for the benefit of airlines and passengers.

 

CPH says that it expects a positive full-year effect from the new routes opened in 2013. The increase in passenger numbers is set to have a favourable impact on revenue. However, operating costs are expected to be higher than in 2013, primarily due to the rise in passenger numbers and cost inflation, but this will partly be offset by a continuing focus on operating cost efficiencies.