Earnings Release • May 15, 2012
Earnings Release
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Paris, 15 May 2012
Financial information as of 31 March 20121
Traffic
Consolidated revenue up by 2.4% to €599 million
Pierre Graff, Chairman and CEO of Aéroports de Paris, said:
"In the first quarter of 2012, traffic grew by 3.7%, with a particularly dynamic intercontinental traffic, up by 5.7%. Combined with the excellent performance of our retail activities, this increase allows the revenue of the Group to grow by 2.4%, despite a lower activity at some subsidiaries' level. Thanks to the ongoing deployment of our retail strategy, the sales per passenger of shops in restricted areas continues its tremendous growth and now stands at €16.3, up by 8.3%
In addition, we opened late March the building of junction between terminals 2A and 2C at Paris-Charles de Gaulle. Designed at the best international standards in terms of quality of service, this facility will allow us to accommodate our passengers in the best conditions.
The quarter's results are encouraging and we can confirm our 2012 targets. In an uncertain economic environment, we assume a moderate growth in traffic, revenue and EBITDA."
1 This document has been drawn up under section IV of article L.451-1-2, of the French Monetary and Financial Code. Unless otherwise indicated, all percentages in this document compare data for the three months of 2012 with the equivalent data from 2011
Over the first 3 months of 2012, traffic increased by 3.7% with 19.6 million passengers handled: it was up by 4.3% at Paris-Charles de Gaulle (13.5 million of passengers) and by 2.4% at Paris-Orly (6.0 million of passengers).
Affected in 2011 by the unfavorable geopolitical context in some countries in Africa and Middle-East and to a lesser extent by the effects of the earthquake in Japan, international traffic (40.8% of total traffic) was up by 5.7% over the period. All destinations grew strongly: French overseas territories +11.9%, Latin America +6.7%, Middle-East +6.6%, North America +5.9%, Asia-Pacific +4.9% and Africa +3.1%. Traffic with Europe excluding France (40.1% of total traffic) was up by 3.3%. Traffic with France (19.1% of total traffic) was up by 0.5%.
Connecting passengers were up by 10.2% and the connecting rate reached 26.4% of total traffic against 25.0% over the first 3 months of 2011.
Air traffic movements (171,000) declined by 1.4%.
Cargo and were down by 7.1% to 546,000 tons handled.
As of January 2012, Société de Distribution Aéroportuaire, company owned at 50% by Aéroports de Paris and at 50% by Aelia, a subsidiary of Lagardère Services, integrated all the Fashion and Accessories activities operated so far by Aelia, via a subsidiary.
Opened 30 March 2012, this new building allows to pool Border Police and Security checkpoints of the terminals 2A and 2C and has 2,200 sqm of retail space.
Aéroports de Paris Management - a wholly owned subsidiary of Aéroports de Paris - entered into share purchase agreements signed on 11 March 2012, with Akfen Holding A.Ş. ("Akfen Holding"), Tepe Đnşaat Sanayi A.Ş. ("Tepe Đnşaat") and Sera Yapı Endüstrisi ve Ticaret A.Ş. ("Sera Yapı") with respect to the purchase of a portion of shares of TAV Havalimanlari Holding A.Ş. ("TAV Havalimanlari Holding" or "TAV Airports") and TAV Yatirim Holding A.Ş. ("TAV Yatirim Holding", owner of TAV Construction, an unlisted company).
Leading airport operator in Turkey, TAV Airports manages 12 airports in 9 counties, of which Istanbul Ataturk airport which handled around 38 million of passengers in 2011.This partnership will create one of the largest airport alliances in the world, managing directly or indirectly around 180 million of passengers in 37 airports.
38% of TAV Airport's issued share capital shall be acquired for a consideration of \$874 million and 49% of TAV Construction's issued share capital shall be acquired for a consideration of \$49 million.
The operation may be effective in May 2012.
From the year ended 31 December 2011, Aéroports de Paris has adopted a new financial statements presentation consisting of the implementation of the option offered by the standard on Interests in Joint Ventures (IAS 31) and consolidating jointly controlled entities using the equity method. This change in methodology allows to comply with IFRS 11 which removes the method of proportionate consolidation and to provide more relevant information, this practice being commonly used in the airport sector.
A distinction is now made between the "profit/loss of associates from operating activities" and the "profit/loss of associates from non-operating activities".
The net result of associates from operating activities is accounted for between the EBITDA and the Operating Income from Ordinary Activities. It consists of Retail JVs, Real Estate JVs and the stake in Schiphol Group.
The net result of associates from non-operating activities is accounted for as previously, below the operating income. It consists of the other associates.
Furthermore, the sale of the 80% stake in Alyzia group resulted in the removal of the segment "Ground handling and related services". The ground handling activities of Alyzia group are accounted for "discontinued activities" under IFRS 5 and the 100% stake in Alyzia Sûreté (Security) is transferred to the segment "Other activities".
From 1 January 2012, the 20% share of the net result of the residual stake in Alyzia group is accounted for "profit/loss of associates from non-operating activities".
Q1 2011 pro forma financial statements have been prepared in accordance with the changes described above.
| In €m | Q1 2012 | Q1 2011 pro forma |
2012 / 2011 |
|---|---|---|---|
| Aviation | 347 | 333 | +4.0% |
| Airport fees | 188 | 183 | +2.8% |
| Ancillary fees | 43 | 40 | +8.0% |
| Airport security tax | 105 | 100 | +5.1% |
| Other income | 11 | 11 | +0.8% |
Airport fees (passenger, landing and parking fees) increased by 2.8% to €188 million, driven by the combined effect of passenger traffic growth (+3.7%) and tariff increase (+1.49% as of 1 April 2011). These effects are partially offset by the implementation, as of 1 April 2011, of the incentive mechanism to bolster traffic and the decrease in ATM (-1.4%)
Ancillary fees increased by 8.0% to €43 million thanks to new rentals of snow removal equipment. Driven by the growth in traffic, the fee for PHMR (assisting persons with disabilities and reduced mobility) was up by 8.2%. Income from the de-icing fee was up due to a colder climate in the 1st quarter of 2012 than in 2011.
The tariff of airport security tax, mostly dedicated to the financing of security-related activities, stands at €11.5 per departing passenger as of 1 January 2011. Its income was up by 5.1% to €105 million and includes a decrease of €8 million in trade receivables towards the French State, recorded on the balance sheet and related to those activities.
Other income mainly consists of re-invoicing to the French Air Navigation Services Department (DSNA, Direction des Services de la Navigation Aérienne) and revenue linked to rentals within terminals. It was stable to €11 million.
| In €m | Q1 2012 | Q1 2011 pro forma |
2012 / 2011 |
|---|---|---|---|
| Retail and Services | 220 | 202 | +9.0% |
| Retail | 75 | 67 | +11.4% |
| Car parks | 38 | 37 | +2.0% |
| Industrial services | 27 | 21 | +28.1% |
| Rental revenue | 25 | 24 | +4.8% |
| Other income | 56 | 53 | +5.1% |
Revenue from retail was up by 11.4% to €75 million. Rents from shops in restricted areas increased by 16.6% to €54 million, driven by the strong increase in the sales per passenger (+8.3% to €16.3). In the duty free stores, the sales per passenger improved by 6.3% to €29.6. This good performance was due to a strong growth in traffic on routes where the passengers tend to spend more, such as Russia, and by the continued good performance of Fashion & Accessories and gastronomy activities. Other rents (from shops in public areas, bars and restaurants, advertising,
banking and foreign exchange activities, and car rental companies) were stable and amounted €21 million.
Revenue from car parks rose slightly by 2.0% to €38 million.
Revenue from the provision of industrial services (electricity and water supply) increased by 28.1% to €27 million due to the increase in tariffs and to a favorable base effect, the disruption of a turbine at the Paris-Charles de Gaulle cogeneration plant having impacted 2011 revenue.
Rental revenue (leasing of space within terminals) was up by 4.8% to €25 million.
Other revenue (internal services mainly) increased by 5.1% to €56 million.
Growth in Real Estate revenue (+5.1% to €61 million) driven by new rentals and price indexing
| In €m | Q1 2012 | Q1 2011 pro forma |
2012 / 2011 |
|---|---|---|---|
| Real Esate | 61 | 58 | +5.1% |
| External Revenue | 49 | 46 | +6.7% |
| Internal revenue1 | 12 | 12 | -1.0% |
External revenue was up 6.7% to €49 million. It benefited from new occupations of lands, mainly the Aéroville2 project, and from the indexation of contracts on the cost of construction index (+5.0% applied as of 1 January 2012).
Internal revenue was quasi-stable to €12 million.
Decrease in the revenue of the Other Activities linked to the completion of contacts ended in 2011 for ADPI and to the sale of Masternaut by Hub télécom
| In €m | Q1 2012 | Q1 2011 pro forma |
2012 / 2011 |
|---|---|---|---|
| Other Activities | 58 | 74 | -21.4% |
| Hub télécom | 25 | 36 | -31.9% |
| Alyzia Sûreté | 15 | 13 | +8.2% |
| ADPI | 14 | 22 | -36.5% |
| Aéroports de Paris Management | 3 | 2 | +56.7% |
| Aéroports de Paris | 1 | 0 | NS |
Hub télécom revenue declined by 31.9% to €25 million following the disposal of the Masternaut group as of 11 April 2011.
Alyzia Sûreté revenue grew by 8.2% to €15 million.
1 With companies within the Group
2 Project involving the construction, by Unibail, of a shopping center located on the platform of Paris-Charles de Gaulle and which opening is expected for the end of 2013
ADPI saw its revenue decrease by 36.5% to €14 million due to the completion of major contracts in 2011. At the end of March, the backlog stood at €118 million.
The revenue of Aéroports de Paris Management increased by 56.7% to €3 million.
As of 1 April 2012, fees increased on average by 3.4% on a like-for-like basis. This increase corresponds to the inflation rate reported between September 2010 and September 2011 increased by 1.0% and after applying an adjustment factor related to the quality of service of 0.7%. The authorised fee increase for the 2012 fee period, according to the Economic Regulation Agreement, was capped at +4.0%. To take into account the difficult environment affecting the air transport sector, Aéroports de Paris brought forward the introduction of the traffic adjustment factor by one year and decided to increase the annual fee rate by less than the maximum.
The annual general meeting of shareholders held on 3 May 2012 voted a dividend payment of €1.76 per share for the 2011 financial year. The payment date will be 18 May 2012. This dividend corresponds to a payout ratio of 50% of consolidated net income attributable to equity holders of the parent company for the 2011 financial year, in line with the payout guidance of Aéroports de Paris.
Florence Dalon / Vincent Bouchery : + 33 1 43 35 70 58 - [email protected]
Christine d'Argentré / Jérôme Marmet : + 33 1 43 35 70 70
Website: www.aeroportsdeparis.fr
Aéroports de Paris
Registered office: 291, boulevard Raspail, 75014 Paris
A French limited company (Société Anonyme) with share capital of €296,881,806
552 016 628 RCS Paris
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 2011, the group revenue stood at €2,502 million and the net income at €348 million.
Aéroports de Paris builds, develops and manages airports including Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget. In 2011, Aéroports de Paris handled more than 88 million passengers and almost 2.5 million tons of freight and mail.
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