Earnings Release • Nov 15, 2011
Earnings Release
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Paris, 15 November 2011
Financial information as of 30 September 20111
Traffic
Group revenue up by 2.4% to €2,084 million
Pierre Graff, Chairman and Chief Executive Officer of Aéroports de Paris, said:
"With a traffic growth of 3.8% (excluding the impact of the volcano) over the first nine months of the year, Aéroports de Paris experienced a resilient growth, reflecting the attractiveness of Paris. The performance of shops in restricted area was, once again, excellent, with sales per passenger increasing by 7.4% to €14.6. The Group revenue, up by 2.4%, was however impacted by lower activities of some subsidiaries, due to the end of activities in Libya and the disposal of Masternaut group. We confirm our guidance for the end of the year, i.e. a growth in revenue and EBITDA slightly below those observed in 2010".
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 first 9 months of 2011 with the equivalent data from 2010
Over the first 9 months of the year 2011, Aéroports de Paris' traffic was up by 6.1% to 67.1 million passengers: it increased by 5.1% at Paris-Charles de Gaulle (46.4 million passengers) and by 8.3% at Paris-Orly (20.7 million passengers). Traffic of the 1st, 2nd and 3rd quarters respectively rose by 3.9%, 10.4% and 4.0%. Excluding the impact of the Icelandic volcano Eyjafjöll in April 2010, traffic increased by 3.8% over the 9 first months of 2011.
Affected by the unfavourable geopolitical context in some African and Middle Eastern countries and to a lesser extent by the consequences of the earthquake in Japan, international traffic excluding Europe (38.7% of total traffic) grew by 2.2% over the period. Excluding the Middle East (-6.2%) and Africa (-3.7%), all the routes experienced a strong growth: Asia-Pacific +9.5%, French overseas territories +6.5%, North America +6.4% and Latin America +5.7%.
European traffic excluding France (42.6% of total traffic) surged by 9.0%. Domestic traffic (18.7% of total traffic) grew by 7.8%.
The connecting rate came in at 23.3%, compared to 23.2% over the first 9 months of 2010.
The number of aircraft movements was up by 4.2% to 557,193.
Freight and post fell by 2.2% to 1.8 million ton carried.
Following the authorisation received from the European competition authorities on 20 October 2011 and in accordance with the agreements signed on 26 July 2011, Aélia has bought back the whole stake held by The Nuance Group in the company Duty Free Paris1 .
In this context, the process between Société de Distribution Aéroportuaire and Duty Free Paris to merge those two activities together in a single entity (Société de Distribution Aéroportuaire) is going on. At the same time, Aelia plans to include in this structure the fashion and accessories activities operated in Paris by its wholly-owned subsidiary Duty Free Associates.
This operation would allow to pool resources, to work on common development projects and on opportunities to create additional sales and to generate synergies on costs. The implementation of the project could start at the beginning of 2012.
The Société de Distribution Aéroportuaire would then operate 115 outlets across all Paris-Charles de Gaulle and Paris-Orly terminals, including 70 dedicated to core business (alcohol/tobacco/perfume/cosmetics and gourmet food) and 45 dedicated to fashion and accessories. This partnership would lead to a growth in total surfaces managed by the new joint venture of approximately 35% by 2015 compared to the scope under management at the end of 2010 with an increase of about 38% of surfaces dedicated to "core business" and about 29% of surfaces dedicated to Fashion and Accessories.
In September 2011, Aéroports de Paris has repaid a bank loan of €200 million to the European Investment Bank. Its initial maturity date was June 2021.
1 A company equally owned by Aéroports de Paris and The Nuance Group, operating fashion and accessories boutiques at Paris-Charles de Gaulle and Paris-Orly airports
In November 2011, Aéroports de Paris issued a €400 million bond maturing on 15 February 2022 with a 3.875% coupon.
| In millions of euros | 9M 2011 | 9M 2010 | 2011 / 2010 |
|---|---|---|---|
| Aviation | 1,141 | 1,089 | +4.8% |
| Retail and Services | 734 | 682 | +7.7% |
| Real estate | 179 | 172 | +4.2% |
| Ground handling and related services | 149 | 149 | +0.3% |
| Other activities | 147 | 195 | -24.5% |
| Intersegment eliminations | -266 | -249 | +6.6% |
| Consolidated revenue | 2,084 | 2,036 | +2.4% |
Strong increase in aviation revenue (+4.8% to €1,141 million) driven by traffic growth (+6.1%)
| In millions of euros | 9M 2011 | 9M 2010 | 2011 / 2010 |
|---|---|---|---|
| Aviation | 1,141 | 1,089 | +4.8% |
| Airport fees | 633 | 601 | +5.4% |
| Ancillary fees | 127 | 123 | +3.0% |
| Airport security tax | 349 | 331 | +5.6% |
| Other income | 32 | 34 | -6.6% |
The revenue derived from airport fees2 was up by 5.4%, benefiting from the combined increase in traffic (+6.1% for passengers and +4.2% for the number of aircraft movements) and tariffs (+1.49% on 1 April). These effects were partially offset by the unfavorable change in traffic patterns, the growth in international traffic (+2.2%) being less dynamic than that of the total traffic and the implementation of an incentive mechanism to develop traffic on 1 April 2011.
The revenue derived from ancillary fees was up by 3.0%. The revenue from check-in desks, baggage sorting system and the fees for assisting persons with disabilities or reduced mobility were up, supported by the traffic growth. The revenue from the de-icing fee was down due to a warmer weather in 2011 than 2010.
The airport security tax, which is used to fund security-related activities, amounts to €11.50 per departing passenger since 1 January 2011 (€10.00 in 2010). The revenue from this tax amounted
1 Before inter-segment eliminations
2 Passenger, landing and parking fees
to €349 million, an increase of 5.6% taking into account a €37 million decrease in receivables from the State recorded in the balance sheet, in respect to these activities.
Other revenue consisted in particular of re-invoicing to the French Air Navigation Services Division, and leases linked to the use of terminals.
Continued strong performance in revenues generated by retail and services (+7.7% to €734 million)
| In millions of euros | 9M 2011 | 9M 2010 | 2011 / 2010 | |
|---|---|---|---|---|
| Retail and services | 734 | 682 | +7.7% | |
| Retail | 350 | 309 | +13.1% | |
| Rents | 230 | 206 | +11.5% | |
| Subsidiaries revenue1 | 189 | 160 | +17.9% | |
| Eliminations | -69 | -58 | +20.6% | |
| Car parks and access roads | 119 | 113 | +5.6% | |
| Industrial services | 39 | 45 | -12.4% | |
| Rental income | 73 | 70 | +4.0% | |
| Other | 153 | 145 | +5.5% |
The revenue of retail increased by 13.1%:
The revenue from car parks and access roads rose 5.6%, due to the increase in attendance and in the average spend per customer.
The revenue from the provision of industrial services (electricity and water supply) fell by 12.4%, hit by a fall in consumption volumes due to a warmer weather in 2011 than in 2010 and the disruption of a turbine in the Paris-Charles de Gaulle cogeneration plant.
Rental income (leasing of space within terminals) increased by 4.0% to €73 million.
Other income essentially consisted of internal services.
1 Aéroports de Paris' share (50%)
Growth in real estate revenue (+4.2% to €179 million) driven by new rentals and price indexation
| In millions of euros | 9M 2011 | 9M 2010 | 2011 / 2010 | |
|---|---|---|---|---|
| Real estate | 179 | 172 | +4.2% | |
| External | 140 | 135 | +3.7% | |
| Internal1 | 39 | 37 | +5.9% |
Within this segment, the external revenue increased by 3.7% to €140 million. It was mainly supported by the growth in revenues generated by land rentals (+8.5%) driven by new rentals and the positive impact of indexing revenue to the cost of construction on 1 January 2011 (+1.3%).
The internal revenue was up by 5.9% to €39 million.
| In millions of euros | 9M 2011 | 9M 2010 | 2011 / 2010 | |
|---|---|---|---|---|
| Ground handling and related services | 149 | 149 | +0.3% | |
| Ground handling | 104 | 107 | -2.6% | |
| Security | 45 | 42 | +8.0% |
Within this segment, the revenue of ground handling services was down by 2.6% to €104 million, as the signing of new contracts did not offset losses of contracts and the loss of income caused by airlines discontinuing their activity, and this despite a positive volume effect.
Security increased by 8.0% to €45 million.
| In millions of euros | 9M 2011 | 9M 2010 | 2011 / 2010 | |
|---|---|---|---|---|
| Other activities | 147 | 195 | -24.5% | |
| Hub télécom | 80 | 105 | -24.0% | |
| ADPI | 55 | 77 | -28.1% | |
| Aéroports de Paris Management | 8 | 9 | -7.1% | |
| Aéroports de Paris | 3 | 4 | -8.3% |
Hub télécom's revenue fell by 24.0% following the disposal of Masternaut group. It amounted to €80 million over the first 9 months of the year 2011. Excluding the disposal of Masternaut, it increased by 4.5% as a result of the good performance of the WIFI activity and the sale of devices.
ADPI saw a decrease in its activity over the first 9 months of the year, due in particular to the end of a major contract in Djeddah and the stop of activity in Libya. Its revenue amounted €55 million, down by 28.1%. As of 30 September 2011, the backlog stood at €149 million
1 Coming from companies held by the Group
Aéroports de Paris Management saw its revenue fall by 7.1% to €8 million.
| In millions of euros | 2011 | 2011 / 2010 | ||||||
|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | 9M | Q1 | Q2 | Q3 | 9M | |
| Aviation | 333 | 391 | 416 | 1,141 | +0.7% | +8.5% | +4.9% | +4.8% |
| Retail and Services | 235 | 244 | 255 | 734 | +2.0% | +10.9% | +10.2% | +7.7% |
| Real estate | 58 | 60 | 61 | 179 | +2.1% | +4.8% | +5.6% | +4.2% |
| Ground handling and related services |
45 | 50 | 54 | 149 | +1.2% | +2.2% | -2.0% | +0.3% |
| Other activities | 60 | 42 | 45 | 147 | -13.7% | -34.7% | -26.3% | -24.5% |
| Intersegment eliminations | (89) | (89) | (89) | (266) | +1.5% | +12.2% | +6.7% | +6.6% |
| Consolidated revenue | 644 | 699 | 742 | 2,084 | -0,4% | +4.0% | +3.3% | +2.4% |
The presentation is available on the Group's website: www.aeroportsdeparis.fr
Florence Dalon / Vincent Bouchery : + 33 1 43 35 70 58 - [email protected]
Christine d'Argentré / Charlotte de Chavagnac : + 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 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. With 83 million passengers handled in 2010, Aéroports de Paris is Europe's second-largest airport group in terms of airport passenger traffic and the European leader for freight and mail.
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 2010, the group revenue stood at €2,739 million and the net income at €300 million.
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