Vienna Airport operator, Flughafen Wien AG, has said its Retail & Properties segment ‘developed positively’ in 2014, with revenue up 2.2% to €123.8m ($138.3m), which was driven by higher income from shopping and gastronomy. EBIT rose by 41.0% to €59.0m ($66m).

Shopping and gastronomy revenue increased 4.1%. The airport also discloses that there was a rise in income per passenger. Retail & Properties now accounts for a 19.6% share of the airport’s total revenue.

As previously reported, Hamburg-based travel retailer, Gebr. Heinemann, opened the biggest duty free shop in Austria at Vienna Airport’s plaza covering 1,200sq m, in June last year. The unit increased the size of the previous Heinemann Duty Free store, by over 70% from 700sq m.

And in November 2014, the airport carried out design upgrades of Pier West and C-Gates, and introduced a new F&B concept by DO & CO – an Austrian catering company – as part of an infrastructure modernisation project. More than 102 shops and restaurants have opened at Vienna Airport (VIE) since September 2011.

 

Flughafen Wien board members said that despite numerous crises and strikes in 2014, it achieved a ‘considerable increase in earnings’. “In addition to a slight rise in revenue and EBITDA, the net profit for the period (after non-controlling interests) could be significantly improved in the 2014 financial year,” said the operator.

The airport operator’s total revenue growth was almost flat (+1.3%) in 2014, reaching €630.2m. However, EBITDA was €250.2m (+3.6%) and net profit for the period rose substantially to €82.5m(+12.5%).

 

Flughafen Wien also said that it was possible to achieve a sharp reduction in net debt as well as an increase in the dividend to be distributed of €1.65 per share (+26.9%).

DRIVING SPEND PER PAX IN 2015

Separate to the publication of Flughafen Wien’s preliminary financial statement yesterday, Adil Raïhani, Senior Vice President Centre Management for the airport told TRBusiness in the magazine’s Annual Survey (which was published in the January issue) that the company is determined to focus on driving revenue per pax in 2015.

At the end of last year, Raïhani told TRBusiness: “In 2014 we have seen a lot of developments in terms of new shops and restaurants which has driven up spend and revenue per pax. This obviously has been shadowed by strong impacts from Ukraine, Russia and the strong devaluation of the Rouble.

“On a positive note, we have seen good uplift from passengers to European destinations, which is due to an improved shopping landscape and the introduction of our newest duty free concept.”

Concerning the airport’s retail activities, Raïhani believes it will be a better year, despite the Russian crisis. “This will be driven by investments we are going to make in customer service and staff training.”

According to Vienna Airport, the outlook for the year 2015 is positive. In spite of a sharp decline in passenger volume in the first quarter of the year, Flughafen Wien AG expects passenger growth to pick up to between 0% and 2%.

 

Flughafen Wien expects revenue to climb accordingly, above the €645m mark, and EBITDA to rise above €250m. The consolidated net profit for the period is expected to surpass €85m, and net debt should fall below €500m.

“Flughafen Wien AG is once again on a healthy economic footing. In spite of global economic and industry-related challenges, the 2014 financial year developed gratifyingly, and the company succeeded in achieving a perceptible improvement in all relevant financial indicators,” says Günther Ofner, Member of the Management Board of Flughafen Wien AG.

 

“We expect growth in revenue and earnings in 2015, although negative effects are likely to arise from the capacity reductions of the airlines and the crisis situations in Russia, Ukraine and the Middle East in the first quarter of the current year. Consistent productivity increases and high quality has considerably improved the company’s competitive situation, which will enable further growth on our path to becoming an Airport City.”

“In terms of traffic development, the past year went very well, featuring a new passenger record of 22.5m travellers using Vienna Airport. We achieved strong growth in the long-haul segment of 27.8% to North America and 12.5% to the Far East. Cargo volume was also up, rising by 8.3%”, explains Julian Jäger, Member of the Management Board of Flughafen Wien AG.

 

“We are slightly optimistic with respect to the current year, and new flight offerings have already been announced. Although decreases in flight traffic are still likely to occur in the first months of 2015, we expect an increase in passenger volume of between 0% and 2% for the entire year 2015”, he Jäger adds.

 

Of the total investments amounting to €75.1m in 2014, €10.9m related to construction of a new maintenance hangar, and €9.6m was for modernization of Pier West. Investments of about €95.0m are planned for 2014.

Vienna Airport achieved a new passenger record of 22.5m passengers in 2014, a rise of 2.2% in a year-on-year comparison.

 

Due to the ongoing crisis in Russia and Ukraine as well as the Middle East, Flughafen Wien AG expects the number of passengers handled by Vienna Airport to decline in the first quarter of 2015.

 

However, the situation should improve in the course of the year, with total passenger volume rising by between 0% and 2% compared to 2014. “From today’s perspective, impetus to growth will be provided by expanded frequencies and new routes added to the summer 2015 flight schedule, for example to destinations in the USA, Italy, Greece, France, Spain, Turkey, Estonia, Moldova, Montenegro and Switzerland,” says Flughafen Wien.