Groupe Aéroports de Paris saw first half year revenue from retail and services grow marginally by 1.7% to €463m ($540m) while rents from airside shops grew 5% to €145m ($169m) up 5% thanks to a ‘good performance’ from luxury, although this was dampened somewhat by the negative impact introduction of plain tobacco packaging.

 

Retail rents from airside/landside shops, bars, restaurants, banking, forex, car rentals and advertising grew by +3.9% in HY1 to €219m ($255m).

 

At the same time, sales per passenger remained stable at €18.10 ($21.15), with duty free sales per pax at €34.0 ($39.67), while duty paid sales per pax fell back -1.9% to €6.80 ($7.93).

 

MIXED DYNAMICS IN FIRST HALF

In addition, ADP said that rents from landside shops rose by 7.4% to €8m ($9.3m) while bars and restaurants showed ‘strong growth’ of 4.9% to €20m ($23.3m).

 

 

 

 

In addition, the share of profit from operating associates (Société de Distribution Aéroportuaire, RELAY@ADP and EPIGO) grew by €2m ($2.3m). This all compared with the aviation revenue contribution up +5% to €879m ($1bn).

 

Within Groupe Aéroports de Paris there was strong growth in first half year passenger traffic up +4.6% to 73.3m passengers with a 5% increase to 48.5m at the two Paris airports of Charles de Gaulle and Orly.

 

The company also noted a ‘good performance’ in relation to consolidated revenue up +2.4% to €1.459m ($1.705m).

 

 

 

 

 

 

Positively, ADP also pointed to operating income from ordinary activities (including operating activities of associates) up 25.2% and said this was primarily due to an improved contribution from TAV Airports with passenger traffic up 2.4% to 50.7m passengers.

 

Commenting on the top line results, Augustin de Romanet, Chairman and CEO of Aéroports de Paris SA – Groupe ADP said: “Paris Aéroport traffic reached 48.5m passengers in the 1st half of 2017, with international traffic more dynamic than total traffic.

 

Those figures lead Groupe ADP to revise upwards its 2017 traffic growth assumption – between +3.5% and +4.0% in 2017 compared with 2016. Groupe ADP confirms its forecast of an upward trend for 2017 EBITDA.

 

 

 

 

 

 

“The results for the 1st half of 2017 attest to Groupe ADP’s capacity to take advantage of the recovery in traffic in Paris since the end of 2016. However, this recovery is only partially translated into retail sales.

 

“Sales per passenger, in spite of the dynamism of the luxury sector, are being penalised by the negative effect on the sales of tobacco of the introduction – on 1 January 2017 – of the plain packet.”

 

Augustin de Romanet added that an international level, the 1st half of 2017 saw the rolling out of its strategy to bolstering its shareholding involvement in the TAV Airports group by refocusing its activities on the core business.

 

 

 

 

 

This resulted in the divestment of its stake in TAV Construction [TAV Airports will be fully integrated into Groupe ADP’s accounts in the second half, so removing TAV construction as a cost-ADP also focused on divesting itself of other non-core assets during the period-Ed].

 

Equally positively, ADP also pointed to TAV Airports’ solid results thanks to its geographical and operational diversity of activities, with growth in its revenue of 2.0% and in its EBITDA of 4% to €202m ($236m) with a net result of 90% to €60m ($70m). ADP also pointed to TAV Airports’ growth in revenue of 2%, to €511m ($596m).

 

Besides all of the good news, ADP still pointed to an increase in net debt at €2,877m ($3,356m) at 30 June 2017, compared with €2,709m ($3,160m) as of 31 December 2016.

 

AVIATION REVENUE +5% RETAIL REVENUE +1.7%

Over the first half of the year, aviation revenue rose by 5.0% to €879m ($1.025m) with revenues from airport passenger fees, landing, aircraft and parking fees up 5.4% to €503m ($587m). This benefited both from traffic and tariff increases back in April.

 

 

 

 

 

 

Various other segmental fees, plus what ADP terms as ‘good control over expenses’ resulted in an EBITDA result from the aviation segment +30.6% to€242m ($282m).

 

Turning to retail and services, first half revenue grew marginally by 1.7% at €463m ($540m). Retail rents from airside/landside shops, bars, restaurants, banking, forex, car rentals and advertising grew by +3.9% in HY1 to €219m ($255m).

 

Within this total, rents from airside shops generated €145m ($169m) up 5.0% with ADP pointing to the aforementioned ‘good performance’ from luxury activity, although dampened in effect by the negative impact of the plain tobacco packet introduction.

 

 

 

 

 

 

As mentioned, sales per passenger across the board remained stable at €18.10 ($21.15), as were duty free sales per pax at €34.0 ($39.67) although duty paid sales per pax fell back by -1.9% to €6.80 ($7.93).

 

In addition, ADP said that rents from landside shops rose by 7.4% to €8m ($9.3m) while bars and restaurants showed ‘strong growth’ of 4.9% to €20m ($23.3m).

 

In addition, the share of profit from operating associates (Société de Distribution Aéroportuaire, RELAY@ADP and EPIGO) grew by €2m ($2.3m), at €1m ($1.1m). As a consequence, operating income from ordinary activities (including operating activities of associates) decreased by 1.0%, to €195m ($227m).