Corporate | 14 August 2013 08:01

Flughafen Wien AG: 3.8% increase in revenue to EUR 304.8 million for first half of 2013 in spite of a decline in passenger traffic – earnings guidance for 2013 is confirmed

Flughafen Wien AG / Key word(s): Half Year Results

14.08.2013 / 08:01

Flughafen Wien on a sound course:
3.8% increase in revenue to EUR 304.8 million for first half of 2013 in spite of a decline in passenger traffic – earnings guidance for 2013 is confirmed

– EBITDA rises by 10.2% to EUR 120.4 million

– Scheduled deprecation on Check-in 3 reduces EBIT to EUR 59.4 million (-13.4%)
and net profit to EUR 40.9 million (-16.6%)

– Full year target for net debt already met at EUR 683 million by end of June – investments reduced to EUR 100 million

Flughafen Wien AG successfully mastered the first half of 2013 despite numerous challenges created by the extremely severe winter with numerous flight cancellations, strikes at airline companies and key airports, capacity adjustments by airlines and the lack of an extra calendar day (i.e. leap day in 2012). Passenger traffic, flight movements, maximum take-off weight and cargo declined during the first six months of 2013, but revenue rose by 3.8% to EUR 304.8 million and EBITDA increased by 10.2%. Net debt was reduced by a further EUR 36.6 million to EUR 683.0 million. Free cash flow tripled year-on-year during the first six months to EUR 68.3 million. Scheduled depreciation on Check-in 3 reduced as expected EBIT to EUR 59.4 million (-13.4%), and net profit after non-controlling interests to EUR 40.9 million (-16.6%).

Flughafen Wien confirms earnings targets for 2013
Flughafen Wien confirms the previously announced earnings guidance for 2013: EBITDA is expected to increase to over EUR 230 million and net profit should top EUR 65 million. Net debt should fall below EUR 680 million by year-end. Revenue should reach EUR 625 million, but could be slightly lower if there is a decline in the number of passengers. With respect to traffic, Flughafen Wien AG still expects the development of passenger traffic will range from minus 1% to plus 1%. Flight movements are forecasted to decline by 4% to 6% and maximum take-off weight (MTOW) should slightly decline.

‘The measures introduced to reduce costs and improve productivity have brought positive results. With this latest reduction in net debt, we have already met our target for 2013 and are now aiming for a further improvement to under EUR 680 million. Free cash flow also tripled during the past half-year. That strengthens the company’s financial power and is a course we intend to follow’, explained Günther Ofner, member of the Management Board (CFO) of Flughafen Wien AG.

‘Traffic development in the first half of 2013 was challenging throughout Europe. The branch is under substantial cost pressure which is reflected, above all, in capacity reductions by the airlines. We are well-positioned and have a sound cost structure, as is illustrated by the constant level of personnel expenses despite increases defined by collective bargaining agreements. The first signs of market recovery have appeared, and the airlines see an improvement in the seat load factor’, commented Julian Jäger, member of the Management Board (COO) of Flughafen Wien AG.

Passenger traffic in the first half of 2013
Vienna Airport handled a total of 10,241,736 passengers during the first half of 2013, which represents a year-on-year decline of 1.7%. The development of traffic was influenced by numerous external factors, including the extremely severe winter and resulting limitations on air traffic across Europe during the first quarter, flight cancellations due to strikes at other airports, on-going capacity adjustments by the airlines and the lack of an extra calendar day (i.e. leap day in 2012). The number of transfer passengers fell 6.4% below the comparable 2012 level. Passenger traffic to destinations in Eastern Europe fell by 2.9% in the first half-year, while the West European destinations remained largely stable with a minus of 0.4%. Traffic was 4.9% lower to destinations in the Middle East and 10.9% lower to the Far East. Africa recorded growth in the number of passengers with an increase of 3.7%.

The Austrian Airlines Group handled 49.2% of the total number of passengers using Vienna Airport from January to June 2013, and carried 2.8% less passengers during this period. NIKI recorded a decline of 8.5% in the number of passengers during the first half of 2013 and a 10.6% share of the total passengers in Vienna.

The decline in flight movements was stronger than the decrease in passenger traffic, amounting to a minus 6.4% to 112,806 movements. This led to an improvement in the seat load factor from 69.7% in the first half of 2012 to 72.5%. The lower number of flight movements and cargo flights led to a decline of 5.1% in maximum take-off weight (MTOW) to 3,810,878 tonnes. Cargo volume (air cargo and trucking) fell by 6.2% to 122,872 tonnes.

Revenue development in the segments
Revenue in the Airport Segment rose by EUR 11.2 million, or 7.7%, to EUR 156.5 million for the first half of 2013. The Handling Segment recorded a slight 1.8% decline in revenue to EUR 79.2 million because of a decline in cargo volumes, despite positive development in June. The Retail & Properties Segment recorded a 1.7% increase in revenue to EUR 60.6 million. Revenue in the Other Segments increased 6.5% to EUR 8.5 million.

Investments
A total of EUR 37.0 million was invested during the first half of 2013, whereby the major project involved the renovation of Runway 16/34 at EUR 23.3 million. A further EUR 4.6 million was spend on the expansion of a forwarding agent building. Investments for the full 2013 financial year have been reduced and are now expected to total EUR 100 million.

Consolidated Interim Financial Statements as of 30 June 2013

in TEUR	H1/2013	H1/2012	Change in %
Revenue	304,828.1	293,581.9	3.8
Other operating income	13,910.1	12,981.2	7.2
Operating income	318,738.3	306,563.1	4.0
Consumables and services used	-26,267.3	-20,630.2	27.3
Personnel expenses	-125,510.0	-125,094.5	0.3
Other operating expenses	-46,522.4	-51,538.2	-9.7
Earnings before interest, taxes, depreciation and amortisation (EBITDA)	120,438.6	109,300.3	10.2
Depreciation and amortisation	-61,006.9	-38,091.3	60.2
Impairment	0.0	-2,548.3	-100.0
Earnings before interest and taxes (EBIT)	59,431.7	68,660.7	-13.4
Income from investments, excl. companies at equity	2,338.0	932.3	150.8
Interest income	1,080.1	2,293.2	-52.9
Interest expense	-13,233.6	-10,276.1	28.8
Other financial expense/income	0.0	133.6	-100.0
Financial results, excl. companies at equity	-9,815.5	-6,917.0	41.9
Income from companies at equity	2,101.7	1,934.0	8.7
Financial results	-7,713.8	-4,983.0	54.8
Profit before taxes (EBT)	51,717.9	63,677.7	-18.8
Income taxes	-10,811.9	-14,173.7	-23.7
Net profit for the period	40,906.0	49,504.0	-17.4
Thereof attributable to:
Equity holders of the parent	40,908.7	49,062.4	-16.6
Non-controlling interests	-2.7	441.6	n.a.
Earnings per share in EUR Basic=diluted	1.95	2.34	-16.7

Flughafen Wien Aktiengesellschaft

Announcement

The report by Flughafen Wien AG on the first half-year from 1 January to 30 June 2013
is available to the general public at the company’s offices in 1300 Flughafen Wien and 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 Management Board

Flughafen Wien, 14.8.2013

Contact:
Judit Helenyi
Flughafen Wien AG
Investor Relations
Tel: +43 1 7007/23126
e-mail: j.helenyi@viennaairport.com

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Language:	English
Company:	Flughafen Wien AG
	Postfach 1
	1300 Wien-Flughafen
	Austria
Phone:	+43-1-7007/22826
Fax:	+43-1-7007/23806
E-mail:	investor-relations@viennaairport.com
Internet:	http://www.viennaairport.com
ISIN:	AT0000911805
WKN:	884216
Indices:	ATX Prime
Listed:	Freiverkehr in Berlin, München, Stuttgart; Frankfurt in Open Market ; London, Wien (Amtlicher Handel / Official Market)

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