Fraport Group revenue and earnings grew in the first half 2019

Thursday, August 8, 2019

The Fraport Group achieved growth in both revenue and earnings during the first half of fiscal 2019 (ending June 30). The Group’s  revenue increased by 5.2 percent to €1,513.9 million, after adjusting for revenue in connection with capital expenditures made for expansion projects at Fraport’s Group airports worldwide (according to IFRIC 12). Factors including higher proceeds from ground handling services and infrastructure charges, as well as from the retail and parking business gave a boost to the revenue growth.

In Fraport’s international portfolio, major contributions came from the Lima Airport Partners subsidiary in Peru, as well as from Fraport USA and Fraport Greece.

The operating result or Group EBITDA (earnings before interest, taxes, depreciation and amortization) advanced by 10.9 percent or by 50.2 million euros to 511.5 million euros in the reporting period. This amount includes a 22.8 million euros positive effect resulting from the first-time application of the IFRS 16 accounting standard. When adjusting for this effect, EBITDA grew by 27.4 million euros or 5.9 per cent. The increase can be attributed to the positive performance of the Ground Handling and Retail & Real Estate business segments in Frankfurt, and traffic growth at Frankfurt Airport.

Frankfurt Airport (FRA) welcomed more than 33.6 million passengers in the first six months of 2019 which is an increase of 3.0 per cent year-on-year. Most of Fraport’s Group airports worldwide also recorded passenger growth in the reporting period. Only the two Bulgarian airports of Varna (VAR) and Burgas (BOJ) saw combined traffic drop by 12.9 percent, with this trend expected to continue over the course of the year.

In the January-to-June 2019 period, operating cash flow expanded by 13.0 per cent to 367.5 million euros. In contrast, free cash flow decreased noticeably – as forecast – by 282.5 million euros to minus 305.7 million euros. This was due to higher capital expenditure at Frankfurt Airport and some Group airports in Fraport’s international portfolio.

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