Flughafen Wien increases revenue and earnings in the first quarter of 2012
Following a successful first quarter, management raises the annual forecast for passenger traffic and after-tax profit in 2012.
Supervisory Board approves 11.1 million insurance settlement as compensation for damages in Skylink.
In the first quarter of 2012 the Flughafen Wien Group recorded a strong improvement in all relevant indicators. Revenue rose by 5.7% to 139.0 million and EBITDA by a sound 12.6% to 49.8 million. EBIT increased by 8.5% to 30.4 million and net profit for the period by 9.1% to 21.6 million. Earnings per share for the first quarter equalled 1.03, compared with 0.94 in the first quarter of 2011.
The first quarter improvements involved absolute figures as well as profitability indicators. The EBITDA margin rose from 33.6% in the previous year to 35.8% and the EBIT margin from 21.3% to 21.9% (also see the attached table).
The sound development of traffic and results in the first quarter of 2012 confirms not only our set course, but also our three strategic focal points: to improve productivity, drive growth and reduce costs, commented Günther Ofner, member of the Management Board (CFO) of Flughafen Wien AG, on this solid performance. The effects of our previously implemented measures are now visible. We successfully reduced other administrative operating expenses and cut personnel costs. Our guidance on results for 2012 appears to be very well protected from the current point of view, added the Airport CFO: Based on our latest assumptions for the full 2012 financial year, revenue will exceed 600 million and EBITDA will top 200 million. We have also raised the forecast for net profit from at least 50 million to 55 million.
The sound financial indicators resulted, above all, from positive development in the core business: Traffic remained strong throughout the first quarter with an increase of 9.2% in the number of passengers. Based on this growth, we are raising our traffic forecast for 2012. We now expect an increase of 4 % to 5% in the number of passengers, whereby the successful start of operations in the Skylink represents an important factor in reaching this target. We expect a significant improvement in quality for our passengers, explained Julian Jäger, member of the Management Board (COO) of Flughafen Wien AG, commenting with optimism on projected results for the full 2012 financial year. Conversely, Jäger does not see any growth in flight movements (0 to -1%) or maximum take-off weight (MTOW) (-2 % to -3%) in 2012.
Compensation for damages in Skylink: Supervisory Board approves insurance settlement with UNIQA
In a meeting on 22 May 2012, the Supervisory Board of Flughafen Wien AG approved a proposed insurance settlement of 11.1 million. This settlement is the result of claims against planners and consultants for compensation related to damages in the Skylink. A further 3.0 million were recognised following the waiver of receivables by the involved companies, which resulted in a total of 14.1 million for Flughafen Wien AG. Independent of these circumstances, Flughafen Wien AG will continue to actively pursue claims for damages against the involved companies. Current estimates place the cost of the Skylink at less than 770 million. However, Ofner also sees a significant negative impact on 2012 earnings due to the start of operations in the terminal extension. The projected additional income of approx. 20 million is contrasted by higher operating costs of 35 to 40 million. Depreciation will total nearly 40 million and interest expense will rise by approx. 20 million.
Plus 9.2% in passengers during Q1/2012
Vienna Airport handled 4,485,787 passengers in the first quarter of 2012, or 9.2% more than the previous year. The number of transfer passengers rose by 22.4%. Traffic to Eastern Europe increased 24.1% during the period from January to March 2012. The number of passengers travelling to the Middle East and Far East rose by 7.9% and 5.1%, respectively. The percentage rise in traffic to North America and Africa was even higher at 37.3% and 14.2%. This growth trend continued during April 2012 with a 9.5% increase in the number of passengers.
Growth reported by Austrian Airlines
The Austrian Airlines Group, Viennas most important customer, handled 13.8% more passengers at Vienna Airport during the first quarter of 2012. This raised the carriers share of total passenger traffic from 47.4% in the first quarter of 2011 to 49.4%. The so-called low-cost carriers recorded a 3.2% decline in number of passengers, which reduced their share of total passenger traffic from 23.4% in the comparable prior year period to 20.7%. In contrast to the development of passenger volume, flight movements decreased 2.0% to 56,238. Seat occupancy improved from 60.9% in the first quarter of 2011 to 65.3%. These factors and a lower number of cargo flights were responsible for a 2.8% decline in maximum take-off weight (MTOW) to 1,861,752 tonnes. Cargo volume (air cargo and trucking) fell 9.1% to 65,173 tonnes.
Revenue development in the segments
Revenue in the Airport Segment rose by 3.7 million or 5.9% over the first quarter of 2011 to 66.2 million for the reporting period. This growth was supported, above all, by the sound development of traffic with a strong increase in the number of passengers. The Handling Segment recorded an increase of 1.4% in revenue to 40.3 million. The Retail & Properties Segment generated the highest revenue growth with a plus of 12.6% to 28.8 million. This increase was supported by higher rental income as well as the positive development of revenue from shopping, gastronomy and parking. Revenue recorded by the Other Segments amounted to 3.6 million and remained relatively constant in comparison with the previous year.
Preparations for the Skylink start-up proceeding at full speed
The new terminal Skylink ? which will be designated as Check-in 3 on all airport signs ? will start full operations on 5 June 2012. Preparations for the start-up are proceeding at full speed. In extensive trials, over 3,200 test passengers walked through all procedures and simulated over 1,700 arrivals and departures as well as the check-in of more than 85,000 pieces of baggage. Current activities include the conversion of test systems to real time, the relocation of individual operating units, technical testing and official approval processes. The designation of the terminals at Vienna Airport will now change as follows: Check In 1 (for Terminal 1), Check In 1A (for Terminal 1A) and Check In 2 (for Terminal 2).
Of the 10.9 million invested in the first quarter of 2012, the major component was directed to the terminal extension Skylink at 8.5 million. Other projects included 2.1 million for a forwarding agent building and 0.5 million for quick boarding gates. Investments are expected to total a maximum of 160 million for the full 2012 financial year. Net debt should reach a maximum level in 2012, but will remain below four-times EBITDA, i.e. under 800 million.
For additional information contact:
Corporate Communications Flughafen Wien AG Investor Relations:
Peter Kleemann (+43-1-) 7007-23000 Judit Helenyi (+43-1-)7007-23126
Clemens Schleinzer (+43-1-) 7007-22399 Mario Santi (+43-1-) 7007-22826
Stefanie Tomanek (+43-1-) 7007-26939 email@example.com
Consolidated Interim Financial Statements
Consolidated Income Statement
Change in %
Other operating income
Consumables and services used
Other operating expenses
Earnings before interest, taxes, depreciation and amortisation (EBITDA)
Depreciation and amortisation
Earnings before interest and taxes (EBIT)
Income from investments, excl. companies at equity
Other financial expense/income
Financial results, excl. companies at equity
Income from companies at equity
Profit before taxes (EBT)
Net profit for the period
Thereof attributable to:
Equity holders of the parent
Earnings per share (in Euro) basic/diluted
Flughafen Wien Aktiengesellschaft
Announcement The report by Flughafen Wien AG on the first quarter from 1 January to 31 March 2012 is available to the general public at the companys offices in 1300 Flughafen Wien and Flughafen Wien, 23.05.2012 The Management Board
at Bank Austria, 1010 Vienna, Schottengasse 6-8. It is also available in the Internet under http://ir.viennaairport.com menu point Publications,
sub-section "Quarterly Reports".
The report by Flughafen Wien AG on the first quarter from 1 January to 31 March 2012 is available to the general public at the companys offices in 1300 Flughafen Wien and
Flughafen Wien, 23.05.2012 The Management Board