Trbusiness. The travel retail Trbusiness. The magazine for global retail and duty free professionals.Groupe ADP clocks strong Q1 as it gears up for Paris Olympics surge
By Benedict Evans |
Chairman & CEO Augustin de Romanet, provided comment on Groupe ADP’s strong Q1 2024 performance.
Groupe ADP has released its Q1 2024 consolidated revenue, which was up +10.9% compared to the same period in 2023 to €1.3bn, attributing its growth to both an increase in passenger traffic, and an increased number of retail outlets.
The aviation activities segment was up +4.0%, in line with passengers traffic in Paris (+4.4%).
Retail and services also benefitted from increasing pax, up 11.1% on last year (€426m vs €384m).
Extime Duty Free Paris contributed €175m in revenue over Q1 2024, while Extreme Travel Essentials Paris added a further €35m, respectively a 10.2% and 64.3% increase yoy.
However, the revenue generated from what is classified as ‘Other Shops and Bars and Restaurants’, a large part of which is Extreme Food & Beverage Paris, was down 20.3% to €28m.
Revenue from ancillary fees grew 5.6% to €62m, linked to an increase in passenger traffic.
Chairman’s statement
Augustin de Romanet, Chairman and CEO of Groupe ADP, said of the Q1 results: “Over the 1st quarter of 2024 we welcomed 77.1 million passengers across all of Groupe ADP airports, up +11.3% more compared to the same period in 2023.
In Paris Aéroport, traffic is up +4.4% with 22.0 million passengers. This traffic dynamic, which is in line with our hypotheses, and the good performance of retail activities in Paris, allow us to record a strong growth in consolidated revenue, up +10.9%, to reach 1,324 million euros.”
Groupe ADP attributed these strong growth figures both to the increase passenger traffic, as well as the increased number of retail outlets at its Paris airports.
Romanet also noted: “All segments of activities are growing, especially the contribution of international activities, driven by the strong traffic momentum at TAV Airports. We confirm our 2024-2025 financial targets.
He also made mention of the upcoming Olympic and Paralympic Games, which he previously told TRBusiness would place Paris as the ‘centre of the world’.
“At the start of this year, Groupe ADP teams are fully mobilized and are ready to host Paris 2024 Olympic and Paralympic Games.
We have also launched a voluntary public consultation process at Paris-Orly, a key step in making this platform a precursor of the industrial and environmental transformation which is part of our 2025 Pioneers strategic roadmap.”
Voluntary Public Consultation
On 26 February 2024, Groupe ADP launched a voluntary public consultation on the “Paris-Orly 2035” development project for Paris-Orly.
Passsenger traffic for the group increased across all but one of its locations, with its airport in Amman the outlier. Total passenger traffic increase by 11.3%.
It says this consultation, which ends on 26 May 2024, will enable it to collect the opinions of stakeholders, and in particular of local residents.
Groupe ADP added it views the Paris-Orly 2035 project as the embodiment of the new airport model driven by Groupe ADP’s commitments to the environment and to quality of service.
Strong performance in 2023
The preparation of the merger project between GIL & GAL to form an airport holding company listed on the Indian Stock Exchanges is ongoing.
The planned merger is intended to simplify and clarify the capital structure of the airport assets, and enable the merged company a more agile development platform to pursue new opportunities in India and Southeast Asia.
The transaction is expected to be completed in the first half of 2024.
The merger will lead to the recognition of a non-cash expense, reflecting a change in the economic interest of Groupe ADP and the integration of the assets, excluding GAL, of New GIL.
This expense was estimated at around €100m when the agreement was signed in March 2023, though its final amount will be determined on the effective merger date.
Groupe ADP reported record results in 2023, with revenue up +17.2% to €5,495m, underpinned by group traffic growth of +20.2% to 336.4m pax.
Extime Paris sales per pax reached €30.6 (+€3.2 vs. 2022 and +€7.1 vs. 2019).
Matthieu Daubert, Chief Customer Officer, Groupe ADP said: “2023 was an outstanding year for our commercial activities, with a strong growth in traffic (+15,1%), coupled with a strong growth in our airside sales per passenger reaching a record €30.6 (+€3.2 / 2022 and +€7.1 / 2019).
“Our performance reflects the successful launch of our global Extime project, in which all the components of the project – new brand, new venues, new digital ecosystem Extime Rewards and extime.com, new operators – have contributed to the growth.
“The first Extime premium Boutique Terminal at Charles de Gaulle Terminal 1, opened in December 2022, has performed particularly well since its first year of operation, setting a new standard in sales per passenger that no one had achieved before.
“Our digital ecosystem is also fully operational, with 2.7 million members already enrolled in our Extime rewards loyalty program, and an Extime.commarketplace in place. Finally, all our Extime sub-brands (Extime Duty Free Paris, Extime Lounge) and operators (Extime Duty Free Paris, Extime Food & Beverage Paris, Extime Media, Extime Travel Essentials Paris) are now fully deployed, working in synergy to offer our passengers and customers the best possible experience.”
“In 2024, we will continue to roll out our project, wtih the opening of the Extime Campus, serving and training our teams, and the opening of our first Extime Exclusive Boutique Terminal at Charles de Gaulle, just before the Olympic Games. “
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