Ad-hoc | 8 September 1999 09:33

Ad hoc-Service: Flughafen Wien AG 1st HY 1999

Ad hoc-Mitteilung übermittelt durch die DGAP. Für den Inhalt der Mitteilung ist allein der Emittent verantwortlich. —————————————————————————— Flughafen Wien Group Record Results for the First Six Months of 99 Following the record results in 1988, the Flughafen Wien Group increased both turnover and earnings again during the first half of 1999. Net profit rose by 18.4% and EBIT by 27.4%. These record results were announced by the Chief Executive Officers of Flughafen Wien AG, Dr. Gerhard Kastelic and Dr. Franz Kotrba, on Wednesday at a press conference in Vienna. Traffic increased during the first six months of 1999 in spite of the war in Kosovo and a decline in vacation travel to Turkey. The number of passengers rose by 5.9% over the comparable period of the prior year, although flight movements increased by only 4.5%. Maximum take-off weight (MTOW) rose by 8.2% during the first half year, reflecting a continuation of the trend seen in the first quarter towards the use of larger aircraft. The previous strong growth in transfer passengers slowed, but still recorded an increase of 13.7%. During the first half of the year transfer passengers represented 28.2% of all passengers departing from Vienna. After a weak first quarter start, cargo volume rose by 2.2% over the first half of 1998. Air cargo increased by 4.4%, while trucking declined by 3.7%. OVERVIEW OF KEY DATA: Operating income ATS 2,107 mill. EUR 153 mill. + 1.0 % Profit on ordinary activities ATS 598 mill. EUR 43 mill. + 20.5 % Net profit for the first six months ATS 389 mill. EUR 28 mill. + 18.4 % Cash flow ATS 763 mill. EUR 55 mill. + 15.8 % Passengers 5.1 mill. + 5.9 % Transfer passengers 720,633 + 13.7 % Flight movements 83,000 + 4.5 % Maximum take-off weight 2.4 mill. tonnes + 8.2 % Cargo 75,310 tonnes + 2.2 % TURNOVER AND OPERATING PROFIT Operating profit rose by 27.4% to a level of ATS 555 million (EUR 40 mill.), considerably outpacing the increase in traffic volume. This strong growth is on a 1.0% increase in turnover, despite the partial loss of traffic handling revenues, and a decline of 5.9% in operating expenses. TURNOVER Aviation turnover during the first six months of 1999 is not directly comparable with 1998 due to the new Austrian Ground Handling Act and the general withdrawal of Flughafen Wien AG from the traffic handling business. These events have led to a complete revision of billing structures, and the introduction of an infrastructure fee for services which can only be provided by Flughafen Wien AG. Not only were the majority of revenues from traffic handling lost, but also related expenses of approximately ATS 170 million (EUR 12 mill.). As a result, aviation turnover declined by 1.4%. In contrast, non-aviation turnover rose by 7.0%. The strongest growth was recorded in rental and concession revenues. The new access fee for self-handling agents and new invoicing for land- side infrastructure services also limit direct comparisons with the prior year. OPERATING COSTS The cost of materials and services decreased by half to a level of ATS 128 million (EUR 9 mill.) due to the absence of expenses related to traffic handling. As a result of the severe winter, the use of materials rose by ATS 13 million (EUR 1 mill.). Personnel expenses rose by 7.3% primarily as the result of one-time payments mandated by collective bargaining agreements, severance compensation, and growth of 3.4% in the average number of employees. Productivity – measured in traffic units per employee – also increased by 1.8 % during the first half of 1999. Other operating expenses declined by 2.1%. RESULTS IN DETAIL Operating profit rose by 27.4% to ATS 555 million (EUR 40 mill.) and the EBIT margin for the first six months of the year was 26.4% (20.9%). Financial results for the first half of the year declined by ATS 18 million (EUR 1 mill.) to ATS 43 million (EUR 3 mill.) due to the write-down of a mezzanine capital investment. Profit on ordinary activities increased by 20.5% to ATS 598 million (EUR 43 mill.). After the deduction of taxes totalling ATS 209 million (EUR 15 mill.), net profit amounted to ATS 389 million (EUR 28 mill.). This figure represents an increase of 18.4% over the first half of 1998. CAPITAL EXPENDITURES During the first half of 1999, capital expenditures totalled ATS 201 million (EUR 15 mill.). Major projects included the upgrading of Runway System 16/34, start of construction on Multi-Storey-Car Park 4, the purchase of special vehicles for aircraft handling, and investments in the baggage reconciliation system. OUTLOOK: Vienna International Airport is optimistic that the development of business during the reminder of 1999 will follow the positive trend of the first six months. Based on currently available data, an increase of 5.8% in the number of passengers and 4.6% more fight movements are expected. Charter flights show little signs of improvement due to weakness in the package tour market. Maximum take-off weight, which is forecast to increase by 7% due to the use of larger aircraft. Cargo volume is expected to rise by 1%, and has shown strong growth since the end of the war in Kosovo. In order to compensate for losses arising from the new regulation which prohibits the sale of duty-free goods to EU travellers after July 1, 1999, in addition to opening new shops, we are also supporting the Austrian Airlines concept of Travel-Value Shops. All merchandise – with the exception of cigarettes – are no more expensive today than on July 1, 1999. The loss arising from the absence of duty free during the second half of the year will therefore remain within expected limits. Contrary to initial forecasts, we will have no competitors in the ground handling segment during 1999. Based on our sizeable market share and high standard of quality, we are confident that we will be able to maintain our position in this area during the year 2000. As of September 30, 1999 Kastelic and Kotrba will resign as chief executive officers, but will continue on in various positions until Summer 2000. On October 1, 1999 they will be succeeded by Herbert Kaufmann, Gerhard Schmid and Dr. Kurt Waniek. For additional information contact: Flughafen Wien AG, Communications: Dagmar Lang (+43-1-)7007- ext. 22103 Hans Mayer (+43-1-)7007- ext. 22223 Ende der Mitteilung