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FRAPORT: First Half 2018 positive business performance despite challenges

Revenue and EBITDA increase significantly - Group result on the rise - Frankfurt Airport and Fraport Group airports record strong passenger growth

FRAPORT: First Half 2018 positive business performance despite challenges
The Fraport Group closed the first six months of the 2018 business
year (ending June 30) with a significant 13.0 percent rise in Group
revenue to EUR1.532 billion. At the Group’s Frankfurt Airport (FRA)
home base, the increase was driven, in particular, by traffic growth
– resulting in higher proceeds from airport charges and security
services, a rise in charges from ground services and infrastructure,
as well as higher parking revenue. Fraport’s international business
also contributed to revenue growth, with major contributions coming
from Fraport Greece (plus EUR83.5 million) and Fraport Brasil (plus
EUR76.4 million). In the first half of 2017, the two Brazilian
airports of Fortaleza (FOR) and Porto Alegre (POA) were not yet
operated by Fraport Brasil and thus not incorporated into the Group.
The operational result or EBITDA (earnings before interest, taxes,
depreciation, and amortization) also increased significantly by 9.8
percent year-on-year to EUR461.3 million, but was dampened, among
other things, by traffic-related higher personnel expenses for ground
handling and security services at FRA. Higher interest expenses for
Fraport Greece and the two Fortaleza and Porto Alegre subsidiaries
had a negative influence on the Group’s financial result – slipping
from minus EUR50.4 million in the first half of 2017 to minus EUR77.4
million in the reporting period. This led to a Group result (net
profit) of EUR140.8 million, up 2.8 percent.
Due to higher investments at FRA and Fraport’s international Group
airports, free cash flow decreased by EUR221.3 million to minus
EUR23.2 million in the first six months of 2018.
Frankfurt Airport served 32.7 million passengers in the first half of
2018 – an increase of 9.1 percent. With about 1.1 million metric
tons, cargo throughput (airfreight + airmail) remained almost stable
year-on-year. Across the Group, all airports in Fraport’s
international portfolio posted strong passenger growth.
Summarizing the first half of the 2018 business year, Fraport AG’s
executive board chairman, Dr. Stefan Schulte, said: “The ongoing
growth underscores Frankfurt Airport’s attractiveness as a global
aviation hub, but also poses great challenges to all of us. It was
only thanks to the excellent cooperation with our partners,
government agencies and our airline customers and the outstanding
commitment of all airport employees that we were able to accommodate
the considerable growth experienced in the first half of this year.
Overall, we have delivered a positive business performance despite
numerous challenges.”
In view of FRA’s strong traffic growth in the first six months of the
year, Fraport AG’s executive board now expects passenger numbers to
reach slightly over 69 million for the full 2018 business year.
Excluding the effects from Fraport’s expected divestiture of Hanover
Airport (HAJ), the executive board is maintaining its outlook for the
Group’s key financial figures and expects them to reach the upper
levels of the margins forecast in the Annual Report at the beginning
of the year (Group EBITDA: between approximately EUR1,080 million and
EUR1,110 million; Group EBIT: between about EUR690 million and EUR720
million; Group EBT: between some EUR560 million and EUR590 million;
Group Result: between approximately EUR400 million and EUR430
Following the expected sale of Fraport’s stake in Hanover Airport,
the executive board expects the divestiture to contribute some EUR25
million to Group EBITDA and about EUR85 million to Group EBT. After
deduction of related income tax liabilities, the Hanover transaction
will also have a positive impact of about 77 million euros on the
Group result (net profit). Taking into account these special effects,
Fraport’s executive board expects the Group’s EBITDA, EBIT, EBT and
Group Result to exceed the above-mentioned margins for the full 2018
business year.
Fraport AG
Alexander Zell
Corporate Communications
Media Relations
60547 Frankfurt, Germany
Telephone:  +49 69 690-70555