During Fraport AG’s 13th Annual General Meeting at the Jahrhunderthalle in Frankfurt-Höchst, CEO Dr Stefan Schulte told shareholders that Fraport expects an increase in all financial key figures in 2014, as well as passenger growth of 2% to 3% in Frankfurt.
Due to an amended accounting regulation, as of January 1, 2014, the Group is no longer able to include joint ventures proportionally in its consolidated accounting, which for Fraport has a particular impact on the investment in Antalya Airport.
From now on, its earnings will be reported in the Group’s financial result, which will lead to a change in the figures reported in the current financial year.
Consolidated revenues are expected to rise to up to €2.45bn or US$3.33bn (pro forma 2013: €2.378m). Group EBITDA is anticipated at somewhere between €780m and €800m (pro forma 2013: €733m), while Group EBIT is expected to rise to up to around €500m (pro forma 2013: €439m). The Group result is not affected by the new accounting standards and is expected to see a slight increase compared to fiscal year 2013. Correspondingly, the dividend proposal is to be at least at the level of the previous year.
Fraport CEO Dr Stefan Schulte.
MORE MOMENTUM IN THE MIDDLE EAST
Schulte told shareholders that in the past financial year, Frankfurt reported moderate growth in passenger figures (up 0.9%).
“Compared with Germany and Europe as a whole, this puts us in a decent position, whereas real growth is currently happening in other regions of the world,” said Schulte.
In air transport, nations in the Middle and Far East showed much more momentum last year with 10% and 7% growth in passenger numbers respectively.
Thanks to investment in airports such as Lima in Peru, St. Petersburg in Russia, Xi‘an in China, Antalya in Turkey and Varna and Burgas in Bulgaria, the Fraport Group performed well in ‘international growth markets’.
NEW TERMINAL BUILDINGS
Fraport has invested in new terminal buildings in St Petersburg, Varna und Burgas. The airport in Lima has just been chosen by the renowned consultancy Skytrax as the best airport in South America for the sixth time in a row. For the fourth time, the employees there have been honored as the best airport staff in South America.
As previously reported, the financial performance in 2013 met expectations: Adjusted revenues climbed 3.4% – primarily due to the increase in airport charges, higher retail and property revenues plus higher revenues from international business.
However, results were less positive, especially for retail, in the first quarter of 2014. Net retail revenue per passenger slipped by 1.3% to €3.69. Despite lower revenue, segment EBITDA rose by 2.5% or €2m to €82.4m, resulting mainly from lower operating expenses for energy supply and utility services.