Fiscal Year 2015: Fraport Achieves Positive Result Despite Challenging Business Environment

Mar 16, 2016, 02:00 ET from Fraport AG

FRANKFURT, Germany, March 16, 2016 /PRNewswire/ --

61 Million Passengers Handled at FRA in 2015 - Key Financial Figures Increase Significantly - Moderate Positive Outlook for 2016 

FRA - The Fraport Group closed fiscal year 2015 successfully with a 2.5 percent rise in passenger traffic - serving 61 million at its Frankfurt Airport (FRA) home base - as well as a significant increase in its key financial figures. Group revenue climbed 8.4 percent year-on-year to €2.58 billion (adjusted for IFRIC 12). The Group's operating profit (EBITDA) increased by 7.4 percent to €848.8 million, while EBIT climbed by 7.8 percent to €520.5 million. The Group result advanced significantly by 18.0 percent to €297 million. Operating cash flow also climbed by 28.8 percent to €652.2 million, while free cash flow soared even higher by 59.5 percent to €393.6 million. After an increase in the dividend for fiscal year 2014, a dividend proposal at the previous year's level of €1.35 per share will be made to the Annual General Meeting this year. This corresponds to a dividend payout ratio of 45.1 percent of the Group result attributable to shareholders.

The positive business performance was mainly due to passenger growth at Frankfurt Airport, combined with considerably higher retail and parking revenues. Net retail income per passenger was up €0.19 or 5.5 percent year-on-year, rising to €3.62 in 2015. Also Fraport AG's global activities outside Frankfurt largely contributed to the noticeable increase in the Group's financial result. This was attributable to the first-time full consolidation of the two new Group subsidiaries, AMU Holding (U.S.A.) and Aerodrom Ljubljana (Slovenia), which had been acquired during the year 2014, as well as the ongoing excellent performance of the Group's Lima Airport subsidiary (Peru), which was additionally boosted by the relative weakness of the euro against the U.S. dollar.

The ground-breaking ceremony for the future Terminal 3 at Frankfurt Airport and the signing of the concession contracts for the operation of 14 regional airports in Greece represented significant events in the past year. Fraport AG's executive board chairman, Dr. Stefan Schulte, said: "The start of construction of the third terminal is an important step towards securing the future viability and competitiveness of Frankfurt Airport in the long term. In Greece, we can make a significant contribution to thriving tourism and additional jobs thanks to our expertise in the development and management of airports. Therefore, we are convinced that by taking over the operation of the Greek airports we are creating a win-win situation both for Greece and Fraport."

CEO Schulte is satisfied with the Group's overall performance in the past fiscal year, but expects "stormier seas" in 2016: "In 2015, we achieved a significant improvement in our key financial figures and cash resources, and thus also in the net-debt-to-equity ratio in our balance sheet. What matters now, however, is the outlook for the future and this is currently characterized by restrained holiday bookings in Germany and significantly declining passenger figures in Turkey as a result of the recent terrorist attacks."

In view of these uncertainties, Fraport anticipates an increase in passenger traffic at Frankfurt Airport of between 1 and 3 percent in fiscal year 2016. The Group's operating indicators, EBITDA and EBIT, are expected to be in a range between slightly above the 2015 level and up to €30 million higher. Revenue is anticipated to reach up to €2.65 billion, while the Group result is expected to be at or slightly above the level of fiscal year 2015. This will depend, in particular, on how the situation develops at the Group's Turkish airport in Antalya. The forecast does not take into account the closing of the transaction for the operation of the regional airports in Greece.

Fraport's international portfolio of airports displayed varying traffic results in 2015. While the airports of Ljubljana (LJU) in Slovenia, Lima (LIM) in Peru, Hanover (HAJ) in northern Germany, and Xi'an (XIY) in central China posted positive growth, the Bulgarian Twin Star airports in Varna (VAR) and Burgas (BOJ) combined, and the airports of Antalya (AYT) in Turkey and St. Petersburg (LED) in Russia recorded decreasing passenger numbers, partly reflecting the political situation in Russia.

Weak global trade and economic difficulties in some industrialized and emerging markets contributed to a 2.6 percent decline in cargo volumes, with 2.1 million metric tons handled at FRA during the reporting period.

Fraport's Four Business Segments:  

Aviation: Revenue in the Aviation business segment increased by 4.9 percent to €927.3 million, due to passenger growth at Frankfurt Airport and an increase in airport charges. Despite the rise in revenue and higher income from reversals of provisions, segment EBITDA remained at the previous year's level, reaching €237.5 million (up 0.3 percent). Segment EBITDA was impacted by a significant rise in expenses due to higher personnel costs and the recognition of a provision for transitional pensions for Airport Fire Department employees. Segment EBIT improved to €116.3 million - a slight increase of 0.7 percent.

Retail & Real Estate: The Retail & Real Estate business segment posted a significant increase in revenue of €32.5 million (or 7.1 percent) to €488.2 million in fiscal year 2015, boosted by additional income in the retail business as a result of higher passenger numbers. In particular, the high share of intercontinental passengers, who tend to spend more while at the airport, had a positive effect on revenue. Other reasons included the depreciation of the euro in relation to other international currencies, income from leasing and parking, and the sale of property in the Mönchhof Logistics Park. Segment EBITDA increased to €378.8 million (up 6.3 percent) as a result of higher income, while EBIT grew by 7.3 percent to €295.1 million.

Ground Handling: At €673.1 million, revenue in the Ground Handling business segment was up 2.6 percent or €16.9 million compared to the previous year. Higher passenger numbers, a rise in maximum take-off weights and the increase in infrastructure charges were the main factors behind this growth, which in turn contributed to an increase in segment EBITDA to €46.4 million (up 4.7 percent). The decline in EBIT to €6.0 million (down 20.0 percent) is partly due to the sale of an equity interest in FCS Frankfurt Cargo Services GmbH.

External Activities & Services: Adjusted for recognizing earnings-neutral capacity investments in connection with the application of IFRIC 12, revenue in the External Activities & Services business segment climbed by 27.7 percent to €495.2 million. Reasons included passenger growth at Lima Airport, the first-time consolidation of the two new Group companies AMU Holdings and Aerodrom Ljubljana (acquired during the year 2014), and the currency translation of revenues gained at the Lima Airport subsidiary from U.S. dollars into the Group's standard currency (euro). Segment EBITDA rose significantly by 22.1 percent to €186.1 million, while segment EBIT also exceeded the previous year's level, rising to €103.1 million (up 21.6 percent).

Print-quality photos of Fraport AG and Frankfurt Airport are available for free downloading via the photo library located in our Press Center on the Fraport Web site. For TV news and information broadcasting purposes only, we also offer free footage material for downloading.

Fraport AG - which ranks among the world's leading companies in the global airport business - offers a full range of integrated airport management services and boasts subsidiaries and investments on three continents. The Fraport Group generated sales of €2.6 billion and profit of about €297 million in 2015.  In 2015, some 111 million passengers used airports around the world in which Fraport has more than a 50 percent stake.

At its Frankfurt Airport (FRA) home base, Fraport welcomed more than 61 million passengers and handled about 2.1 million metric tons of cargo (airfreight and airmail) in 2015. For the current winter timetable, FRA is served by 88 passenger airlines flying to 247 destinations in 100 countries worldwide. More than half of FRA's destinations are intercontinental (beyond Europe) - underscoring Frankfurt's role as a leading hub in the global air transportation system. In Europe, Frankfurt Airport ranks first in terms of cargo tonnage and is the fourth busiest for passenger traffic.  With about 55 percent of all passengers using Frankfurt as a connecting hub, FRA also has the highest transfer rate among the major European hubs.

Frankfurt Airport City has become Germany's largest job complex at a single location, employing more than 80,000 people at some 500 companies and organizations on site. Almost half of Germany's population lives within a 200-kilometer radius of the FRA intermodal travel hub - the largest airport catchment area in Europe. FRA Airport City also serves as a magnet for other companies located throughout the economically vital Frankfurt/Rhine-Main-Neckar region. Thanks to synergies associated with the region's dynamic industries, networked expertise, and outstanding intermodal transportation infrastructure, FRA's world route network enables Hesse's and Germany's export-oriented businesses to flourish in global growth markets. Likewise, FRA is a strategic gateway for companies wanting to access the huge European marketplace.  Thus, Frankfurt Airport - which is strategically located in the heart of Europe - is one of the most important hubs in the global logistics chain.

Fraport AG
Robert Payne
Group International Spokesman
Press Office, Corp. Communications
60547 Frankfurt, Germany
Tel.:  +49-69-690-78547
E-mail:  r.payne@fraport.de
Internet:  http://www.fraport.com
Facebook:  http://www.facebook.com/FrankfurtAirport

SOURCE Fraport AG