Dépêches
Aéroports de Paris: Growth in Interim Results Despite the Downturn in Traffic
Dépèche transmise le 28 août 2009 par Business Wire
Aéroports de Paris: Growth in Interim Results Despite the Downturn in Traffic
PARIS--(BUSINESS WIRE)--Regulatory News:
Aéroports de Paris (Paris:ADP) (Pink Sheets:AEOPF):
Solid interim results:
- Revenue up 5.9%1 to €1,285.9 million
- EBITDA2 up 4.5% to €423.6 million
- Net income attributable to equity holders of the parent up 1.3% to €127.3 million
Objectives reiterated:
Assuming a decrease in passenger traffic of between 4.5% and 6.5% in 2009 and a slight increase in 2010:
- Slight growth in 2009 revenue
- 2009 EBITDA in the range of 2008 EBITDA
- Growth in EBITDA of between 50% and 60% between 2005 and 2010.
Aéroports de Paris in line with its 2009 savings plan
Pierre Graff, Chairman and CEO of Aéroports de Paris, said:
“Our financial performance has been good. Business trends were underpinned by the commissioning of new infrastructure, the introduction of new services, dynamic performance in retail and services, recent lettings in real estate and the strong development of our subsidiaries. What’s more, the savings plan introduced at the beginning of the year has enabled us to hold up in the face of the current economic environment. These results show the relevance of our strategy and the robustness of our business model.
Recent efforts to modernize our terminals are paying off, notably in terms of quality of service, an area in which we are stepping up our efforts to meet our customers’ needs more and more effectively.
Amid tough conditions, we possess some key strengths and are looking ahead to the second half of 2009 with confidence.
Provided that the decline in traffic works out at between 4.5% and 6.5% in 2009, we are reiterating our forecast of slight growth in 2009 revenue and EBITDA in the range of 2008 EBITDA.
Key events during the period
Start-up of the Duty Free Paris joint venture
Specializing in fashion and accessories retailing at the Paris-based airports and jointly-owned by Aéroports de Paris and The Nuance Group, Duty Free Paris started up its operations at the beginning of February 2009.
Duty Free Paris currently operates 23 stores in the terminals of the Paris-Charles de Gaulle and Paris-Orly airports, with a total of 1,600 sqm in retail space.
From 2012, the joint venture plans to operate 40 stores with around 5,000 sqm in retail space, nearly half through the creation of new retail space.
Passenger traffic in the first half of 2009
Passenger traffic decreased by 6.4% compared with the first half of 2008 (to 39.9 million passengers), with a 6.6% decline at Paris-Charles de Gaulle (27.7 million passengers) and a 6.2% fall at Paris-Orly (12.3 million passengers). Second-quarter traffic dropped by 4.6%.
The traffic mix improved, with international traffic outside Europe (38.3% of the total) holding up better than overall traffic (down 4.9%) thanks to Africa, which posted an increase of 1.6%, with traffic on routes to the Middle East down 5.3%, North America down 6.9%, Latin America down 8.0% and Asia/Pacific down 9.3%.
European traffic excluding France (42.1% of the total) declined by 7.9%.
Domestic traffic (19.6% of the total) fell back 6.4%.
The connecting traffic rate increased by 0.3 point to 24.4%.
The number of aircraft movements declined by 5.2%.
Change in segmentation
In accordance with IFRS 8, a new segmentation of the Group’s business activities was adopted as of 1 January 2009. The segmentation now has five segments and head office costs, which were previously unassigned, are now allocated to the various segments. Figures for H1 2008 were restated to bring them into line with the new segmentation adopted.
Consolidated financial statements: good results highlight the Group’s resilience to the downturn in traffic
| In millions of euros | H1 2009 | H1 2008 |
H1 2009 / H1 2008 |
|||
| Revenue | 1,285.9 | 1,214.0 | +5.9% | |||
| EBITDA | 423.6 | 405.5 | +4.5% | |||
| Operating income from ordinary activities | 247.1 | 236.6 | +4.4% | |||
| Operating income | 242.3 | 232.9 | +4.0% | |||
| Net finance cost | -53.0 | -42.3 | +25.3% | |||
| Net income attributable to equity holders of the parent company | 127.3 | 125.6 | +1.3% |
Consolidated revenue during the first half of 2009 grew by 5.9% to €1,285.9 million in spite of the downturn in traffic. Severely depressed by the fall in traffic, the ground handling and related services segment was down 3.4%. Excluding this activity, other activities grew and were driven by:
- the development of infrastructure and services: opening of new infrastructure during 2008 (new boarding pier for terminal 2E and regional terminal 2G) and 2009 (completion of the CDG 1 refurbishment) and introduction of a new airport fee to cover the cost of assisting passengers with disabilities or reduced mobility from July 2008,
- a price effect linked to increases in fees with effect from 1 April 2008 and from 1 April 2009,
- growth in retail revenues (+1.4%), boosted by the addition of retail space at the new infrastructure and further growth in revenues per passenger,
- the strong increase in real estate revenues (+5.5%), mainly attributable to the lettings made in 2008,
- further growth in the diversification activities (+25.1%),
- non-recurring items linked to the exceptional weather conditions, which had a positive impact on de-icing activities.
EBITDA continued to grow (up 4.5% to €423.6 million) thanks to efforts to control current expenses, in spite of the increase in the cost base resulting from the entry into service of the new installations.
Raw materials and consumables used increased by 11.5% to €93.7 million owing to the rise in purchases of de-icing products and purchases of goods held for resale by subsidiaries.
External services moved up 8.1% to €328.2 million owing to the increase in costs linked to the introduction of assistance services for passengers with disabilities or reduced mobility (from late July 2008), the increase in subsidiaries’ external charges (notably at ADP Ingénierie and Alyzia) and the rise in cleaning and maintenance charges (opening of new infrastructure). Conversely, intermediary fees declined owing to the cost-cutting efforts initiated in 2009. In addition, the first half of 2008 was impacted by expenses related to an advertising campaign that was not renewed in 2009.
The Group’s personnel expenses increased by 6.9% to €375.4 million. The number of employees at the parent company declined by 3.7%. Alyzia Group’s headcount rose by 8.0% owing to the transfer of the ground handling activities from Aéroports de Paris and expansion in Alyzia Sûreté’s operations. The growth in the number of employees at the other subsidiaries was primarily attributable to the increase in the headcount of ADP Ingénierie and of Hub télécom owing to the expansion of these subsidiaries.
Taxes other than income tax rose slightly (to €82.1 million) as a result of the increase in taxes other than income tax at subsidiaries.
Other expenses amounted to €5.4 million, down 65%, with the first quarter affected by non-recurring items.
On 12 March 2009, Aéroports de Paris announced implementation of a structural savings plan to unlock €17 million in savings in 2009 and €30 million in 2010. Given the current economic environment and traffic outlook, Aéroports de Paris also decided to implement an additional cyclical plan to save €25 million for 2009 based primarily on a hiring freeze and measures to save on external charges. At the half-way stage, the plans unlocked €21 million in total savings, in line with the target of €42 million for 2009.
Given the number of new facilities commissioned in 2008 and 2009, depreciation and amortization expense rose by €7.6 million to €176.5 million (+4.5%). Operating income from ordinary activities advanced by 4.4% to €247.1 million.
After taking into account non-recurring items linked primarily to the reorganization of the ground handling activities, operating income rose by 4.0% to €242.3 million.
Net finance cost amounted to €53.0 million, up 25.3%, owing to the increase in gross expenses linked to the debt mainly to the November 2008 bond issue.
The share of profit of associated companies stood at €2.8 million (compared with €0.6 million in the first half of 2008), as a result of the acquisition of an 8% stake in Schiphol Group during December 2008. Income tax expense dropped by 1.8% to €64.5 million, leading to an increase of 1.7% in net income to €127.7 million.
Results by segment
The aviation’s EBITDA holds up
| In millions of euros | H1 2009 | H1 2008 |
H1 2009 / H1 2008 |
|||
| Revenue | 692.2 | 647.3 | +6.9% | |||
| Aeronautical fees | 376.0 | 376.4 | -0.1% | |||
| Ancillary fees | 86.2 | 61.2 | +40.8% | |||
| Airport security tax | 207.4 | 185.9 | +11.6% | |||
| Other revenue | 22.6 | 23.8 | -4.7% | |||
| EBITDA | 154.5 | 155.2 | -0.5% | |||
| Operating income from ordinary activities | 40.9 | 49.8 | -18.0% |
Aeronautical fees3 were hit by the impact of the traffic downturn. They were nonetheless driven by rate increases related to application of the Economic Regulation Agreement (+3.8% on average at 1 April 2008 and 5.5% on average at 1 April 2009) and the increase in the number of aircraft parking areas located close to the terminals (aircraft parking fees up 13.1%).
Ancillary fees were driven by the introduction of new services and the opening of new capacity. As a result, the assistance services provided to passengers with disabilities or reduced mobility performed since July 2008 generated €15.8 million in additional revenue during 2009. Revenue linked to the baggage sorting and check-in counter capacity increased by €4.1 million owing to the opening of new facilities. Lastly, de-icing services generated €4.6 million in additional revenue owing to a colder winter in 2008/2009 than in 2007/2008.
The airport security tax, which mainly finances security-related activities, was raised to €9.5 per departing passenger on 1 January 2009 from €8.75 in 2008. It amounted to €207.4 million and included €17.1 million in accrued income.
EBITDA remained stable at €154.5 million, producing a gross margin of 22.3%, down 1.7 points compared with the first half of 2008.
Depreciation and amortization expense increased by 7.8% to €113.6 million as a result of the numerous facilities commissioned during 2008 and 2009. Operating income from ordinary activities dropped back by 18% to €40.9 million.
Retail and services continue to grow in spite of the downturn in traffic
| In millions of euros | H1 2009 | H1 2008 |
H1 2009 / H1 2008 |
|||
| Revenue | 430.9 | 425.0 | +1.4% | |||
| EBITDA | 198.1 | 191.1 | +3.7% | |||
| Operating income from ordinary activities | 159.8 | 151.1 | +5.7% |
Breakdown of revenue:
| In millions of euros | H1 2009 | H1 2008 |
H1 2009 / H1 2008 |
|||
| Revenue | 430.9 | 425.0 | +1.4% | |||
| Retail activities | 178.5 | 176.1 | +1.4% | |||
| Airport fees | 120.8 | 119.3 | +1.3% | |||
| Société de Distribution Aéroportuaire & Duty Free Paris | 89.4 | 87.2 | +2.6% | |||
| Eliminations | -31.7 | -30.4 | +4.3% | |||
| Car parks and access | 72.1 | 77.4 | -6.9% | |||
| Industrial services | 36.7 | 40.5 | -9.4% | |||
| Rental revenues | 50.0 | 40.2 | +24.3% | |||
| Other | 93.6 | 90.8 | +3.1% |
Despite the downturn in traffic, revenue from retail activities grew by 1.4%. Fees4 rose by 1.3% to €120.8 million. On closer analysis, shops in restricted areas posted a revenue increase of 3.9% (after elimination of non-recurring items) buoyed by the continuing rise in revenue per passenger, despite the traffic downturn. Revenue per passenger moved up 9.8% to €12.3 thanks to the development of additional space and a positive traffic mix (growth in the contribution made by international routes). Revenue from Société de Distribution Aéroportuaire and Duty Free Paris climbed 2.6% to €89.4 million5.
Car parks and access revenue declined by 6.9% owing to the traffic downturn.
Revenue from industrial services (such as power and water supply) fell by 9.4% owing to the transfer of heating and air-conditioning services to rental revenue in the same segment. Adjusted for this change, revenue grew by 6.6% owing to the opening of new infrastructure and the increase in the purchase cost of gas, to which revenue from these services is indexed.
Rental revenue6 was boosted by new rentals in the facilities opened during 2008 and 2009 and from the transfer of the heating and air-conditioning services.
Other revenue primarily comprises internal services.
Thanks to cost-cutting efforts, the segment’s EBITDA advanced by 3.7% to €198.1 million, since the first half of 2008 was depressed by €4.1 million in allowances to provisions (net of reversals) (compared with €1.0 million in the first half of 2009). The gross margin came to 46.0%, up one point compared with the first half of 2008.
Depreciation and amortization expense dropped by 3.9% to €38.3 million, leading to an increase of 5.7% in operating income from ordinary activities to €159.8 million.
Real estate continues to post good results
| In millions of euros | H1 2009 | H1 2008 |
H1 2009 / H1 2008 |
|||
| Revenue | 107.8 | 102.2 | +5.5% | |||
| EBITDA | 62.2 | 53.4 | +16.5% | |||
| Operating income from ordinary activities | 46.7 | 38.0 | +23.0% |
The real estate segment’s revenue continued to expand, moving up 5.5% to €107.8 million owing to strong growth in revenue from third parties. Third-party revenue came to €83.8 million, with this strong growth (8.6%) driven by the lettings made in 2008 (Paris-Orly cargo station and extension of the FedEx hub at Paris-Charles-de Gaulle). The indexation of rental agreements to the cost of construction index (CCI) also had a positive impact (+6.2% on average applied from 1 January 2009). Internal revenues fell back 4.3% to €24.0 million.
The real estate segment’s EBITDA recorded a steep increase (16.5%) to €62.2 million, with expenses growing at a slower pace than revenue. In addition, it was boosted by €9.4 million in reversals of provisions (net of allowances) during the first half of 2009 compared with €3.5 million in the first half of 2008. The gross margin moved up 5.5 points to 57.7%.
Depreciation and amortization expense remained stable at €15.5 million. Operating income from ordinary activities came to €46.7 million, up 23.0%.
Recovery in ground handling and related services
| In millions of euros | H1 2009 | H1 2008 |
H1 2009 / H1 2008 |
|||
| Revenue | 94.0 | 97.3 | -3.4% | |||
| EBITDA | -1.8 | -7.9 | -77.5% | |||
| Operating income from ordinary activities | -3.0 | -9.2 | -67.5% |
Revenue from ground handling and related services fell back 3.4% during the first half of 2009. Severely affected by the downturn in traffic, revenue posted by the ground handling dropped by 9.0%, with new contracts failing to offset contract losses and the contraction in the activities of certain airline clients. Conversely, security services posted an increase of 14.6% to €26.5 million owing to the renegotiation of contracts and the higher volume of services provided.
The reorganization of this business, which was initiated in 2007, is now complete. It led to the pooling of the ground handling and related services business at the Alyzia subsidiary.
A savings plan helping to reduce the current loss in 2009 and to contend with the traffic downturn was implemented. Thanks to the reorganisation of the activity and the drive to control personnel expenses, purchases and external charges through implementation of this savings plan, EBITDA recovered to negative €1.8 million, up from negative €7.9 million in the first half of 2008.
Operating income from ordinary activities showed a loss of €3.0 million (vs. a loss of €9.2 million in the first half of 2008).
Strong growth in other activities
| In millions of euros | H1 2009 | H1 2008 |
H1 2009 / H1 2008 |
|||
| Revenue | 123.5 | 98.7 | +25.1% | |||
| EBITDA | 9.9 | 13.7 | -27.7% | |||
| Operating income from ordinary activities | 2.4 | 6.7 | -63.9% |
ADP Ingénierie continued to grow rapidly thanks to the ramp-up of contracts signed in 2007, 2008 and 2009, notably in Jeddah (Saudi Arabia), Bogota (Colombia), Mauritius and Libya (Tripoli, Benghazi and Sebah). Its revenue came to €60.0 million, up by over 43%. EBITDA came to €3.5 million (+6.5%), with operating income from ordinary activities amounting to €3.1 million (+3.8%). At end-June 2009, the order book remained very high at €290 million.
On 8 April 2009, Hub télécom acquired Masternaut, European leader in geolocation solutions. Revenue from the Hub télécom group came to €54.7 million, representing an increase of 12.4%. At comparable scope, revenue contracted by 4.3% due notably to the impact of the economic crisis on sales of tracking/mobility solutions at Hub Telecom Région. Its EBITDA stood at €8.1 million, down by close to 28%. Its operating income from ordinary activities amounted to €1.1 million, down by almost 76% owing notably to the burden of depreciation and amortization expense.
Aéroports de Paris Management signed a management contract in fall 2008 for the Republic of Mauritius airport. The positive impact of implementing the contract failed to offset the business contraction affecting other airports managed by Aéroports de Paris Management. Its revenue came to €5.5 million (down 7.9%), with EBITDA working out at €0.3 million and operating income from ordinary activities at €0.2 million.
Debt
On 30 June 2009, the gearing stood at 78%, 73% at year end 2008, and 68% on 30 June 2008.
Group net debt amounted to €2,412 million (vs €2,254 million at 31 December 2008) mainly due to €200 million drawn down on a loan from the European Investment Bank (EIB) during H1 2009 to finance the cost of Satellite 4 at Paris-Charles de Gaulle airport.
Outlook
Assuming a decrease in passenger traffic of between 4.5% and 6.5%, Aéroports de Paris is reiterating its forecast of a slight rise in revenue for 2009. 2009 EBITDA is expected to be of the same order of magnitude as 2008 EBITDA. Aéroports de Paris still forecasts EBITDA growth of between 50% and 60% between 2005 and 2010.
To help it contend with the current economic environment, Aéroports de Paris announced in March 2009 the adoption of a programme of structural savings aimed at stripping out €17 million in costs during 2009 and €30 million during 2010, as well as saving €25 million through additional measures linked to the 2009 environment. These savings measures are accompanied by the postponement of €100 million in investments initially scheduled for 2009. The programme is progressing in line with our expectations.
For the ground handling activities, Aéroports de Paris continues to anticipate a significant reduction in revenue and expects a fall in its current operating loss during 2009.
Calendar
Friday 28 August 2009:
- analyst meeting at 10:00 am
- live video webcast , indexed version from 02:00 pm
Friday 13 November 2009: third quarter 2009 revenue
Disclaimer
Forward-looking statements are included in the above press release. They are based on data, assumptions and estimates deemed sensible by Aéroports de Paris. They notably include information regarding the financial condition, results of operations and business of Aéroports de Paris. These forward-looking statements include risks (a list of which can be found in the reference document filed on April 30, 2009 with the French financial markets authority (AMF) under the number R. 09-038) and uncertainties, many of which cannot be controlled by Aéroports de Paris and cannot be easily predicted. They can lead to results substantially different from the information included in the forward-looking statements.
Aéroports de Paris
Registered office: 291, boulevard Raspail, 75014 Paris
A Société anonyme with a share capital of 296,881,806 euros
552 016 628 RCS Paris
Aéroports de Paris builds, develops and manages airports including Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget. Aéroports de Paris is Europe's second-largest airport group in terms of airport revenue and the European leader for freight and mail. Aéroports de Paris accommodates nearly 460 airlines, including the main companies in the air transport industry. With an exceptional geographic location and a major catchment area, the Group is pursuing its strategy of adapting and modernizing its terminal facilities and upgrading quality of services, and also intends to develop its retail and real estate business. In 2008, Aéroports de Paris had revenues of €2,527.0 million, and the Group handled 87.1 million passengers.
APPENDIX
Condensed consolidated income statement
| (in thousands of euros) | Notes |
H1
2009 |
H1
2008 |
|||
| Revenue | 7 | 1,285,882 | 1,213,952 | |||
| Other ordinary operating income | 8 | 4,014 | 2,084 | |||
| Own work capitalized | 9 | 22,408 | 21,925 | |||
| Changes in finished goods inventory | 10 | 4,955 | ||||
| Raw materials and consumables used | 10 | (93,656) | (84,001) | |||
| Employee benefit costs | 11 | (375,447) | (351,188) | |||
| Other ordinary operating expenses | 12 | (421,271) | (402,051) | |||
| Depreciation and amortization | 13 | (176,516) | (168,933) | |||
| Impairment of assets, net | 13 | (2,404) | (231) | |||
| Net allowances to provisions | 13 | 4,050 | 56 | |||
| Operating income from ordinary activities | 247,071 | 236,568 | ||||
| Other operating income and expenses | 14 | (4,769) | (3,685) | |||
| Operating income | 242,302 | 232,883 | ||||
| Finance Revenue | 15 | 42,109 | 47,061 | |||
| Finance costs | 15 | (95,072) | (89,324) | |||
| Net finance revenue (costs) | 15 | (52,963) | (42,263) | |||
| Share of the profit of associates | 16 | 2,877 | 645 | |||
| Income before tax | 192,215 | 191,266 | ||||
| Income tax expense | 17 | (64,503) | (65,689) | |||
| Net income for the period | 127,713 | 125,577 | ||||
| Net income attributable to non controlling interests | 444 | 2 | ||||
| Net income attributable to equity holders of the parent company | 127,268 | 125,575 | ||||
| Earnings per share (EPS) attributable to holders of ordinary shares of the parent: | ||||||
| Basic EPS (in euros) | 18 | 1.29 | 1.27 | |||
| Diluted EPS (in euros) | 18 | 1.29 | 1.27 |
Notes refer to the condensed consolidated financial statements.
Condensed consolidated balance sheet
| ASSETS | Notes | At | At | |||
| (in thousands of euros) | 30.06.2009 | 31.12.08 | ||||
| Intangible assets | 19 | 69,800 | 52,783 | |||
| Property, plant and equipment | 20 | 5,377,580 | 5,400,326 | |||
| Investment property | 21 | 329,238 | 293,736 | |||
| Investment in associates | 16 | 398,475 | 401,601 | |||
| Other non-current financial assets | 22 | 53,936 | 53,553 | |||
| Deferred tax assets | 17 | 1,370 | 1,837 | |||
| Non-current assets | 6,230,398 | 6,203,837 | ||||
| Inventories | 23 | 15,634 | 11,369 | |||
| Trade receivables and related accounts | 24 | 594,846 | 518,904 | |||
| Other receivables and prepaid expenses | 25 | 104,387 | 112,699 | |||
| Other current financial assets | 22 | 73,751 | 82,386 | |||
| Current tax assets | 17 | 3,338 | 1,448 | |||
| Cash and cash equivalents | 26 | 412,130 | 372,997 | |||
| Current assets | 1,204,086 | 1,099,802 | ||||
| TOTAL ASSETS | 7,434,484 | 7,303,638 | ||||
| SHAREHOLDERS' EQUITY AND LIABILITIES | Notes | At | At | |||
| (in thousands of euros) | 30.06.2009 | 31.12.08 | ||||
| Capital | 27 | 296,882 | 296,882 | |||
| Share premium | 27 | 542,747 | 542,747 | |||
| Treasury shares | 27 | (2,589) | (4,190) | |||
| Translation gains and losses | 27 | (2,066) | (2,192) | |||
| Prior year retained earnings | 27 | 2,128,325 | 1,990,910 | |||
| Net income for the period (after minority interests) | 127,268 | 272,561 | ||||
| Non controlling interests | 27 | 1,209 | 773 | |||
| Shareholders' equity | 3,091,776 | 3,097,491 | ||||
| Non-current debt | 29 | 2,336,627 | 2,592,052 | |||
| Provisions for employee benefit obligations (more than one year) | 11 | 294,835 | 301,591 | |||
| Other non-current provisions | 28 | - | 38 | |||
| Deferred tax liabilities | 17 | 151,896 | 138,623 | |||
| Other non-current liabilities | 31 | 31,225 | 31,135 | |||
| Non-current liabilities | 2,814,582 | 3,063,439 | ||||
| Trade payables and related accounts | 32 | 380,073 | 476,814 | |||
| Other liabilities and deferred income | 33 | 489,694 | 446,763 | |||
| Current debt | 29 | 542,880 | 92,805 | |||
| Provisions for employee benefit obligations (less than one year) | 11 | 35,311 | 35,311 | |||
| Other current provisions | 28 | 80,142 | 84,563 | |||
|
Current tax payables |
17 | 26 | 6,453 | |||
| Current liabilities | 1,528,126 | 1,142,708 | ||||
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 7,434,484 | 7,303,638 |
Condensed consolidated cash flow statements
