TAV net profit +60% to €85m

By Charlotte Turner |

TAV Airports Holding, the leading regional airport operator of Turkey, announced a net profit of €85m in the first half of 2014, up by 60% compared to the previous year, however shop renovations hampered retail revenue growth.

 

In the first half of 2014, TAV posted passenger growth of 13%, while Istanbul’s international traffic grew by 11%. It recorded revenue growth of 3%, whilst EBITDA grew at an impressive 15%, reaching €183m.

 

TAV says it owed its ‘spectacular growth’ in profitability – despite seemingly softer revenue growth – to its revenue and cost structure. “Most of our revenues are labelled in hard currencies, while most of our costs are labelled in Turkish lira,” says the operator.

 

However, duty free shop renovations in the departures area in Istanbul and weakness of the Turkish lira and rouble continued to put pressure on retail revenues. With the completion of shop renovations in April, TAV expects normalisation of its retail performance in the coming quarters.

 

TAV says that whilst it is working on uncovering new opportunities in new geographies, its service companies are also actively looking for and finding opportunities to diversify the business.

 

 

TAV Airports Holding CEO M. Sani Şener said: “When we look at the projections on the future of aviation from various industry sources, we see without exception superior growth both inside and outside of our core geography. TAV Airports is changing gears to continue to take full advantage of this potential. We have come a long way and we have an even longer way to go.

 

“In less than two decades we managed to create one of the strongest brands that Turkey has to offer to the rest of the world. We have become a regional powerhouse in airport operations and have formed the largest airport platform in the world through our partnership with Aéroports de Paris.

 

“Now, I believe, we have all the tools we need at our disposal to transform TAV Airports into the globally recognized brand it well deserves to be. I and the rest of the TAV Airports family are working very hard to make this happen.

 

“While Izmir domestic operations have started in the largest domestic terminal in Turkey, proudly built by TAV Construction, starting from July 2014, we will also be serving domestic passengers in Milas Bodrum Airport. The full transition of Milas Bodrum Airport with its international passengers will take place in October 2015.

 

“Our employees who have built this proud regional Turkish brand will be our primary asset in turning it into a global brand. I would like to thank them wholeheartedly for their invaluble efforts.”

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