Flughafen Wien AG

Earnings Release • Nov 16, 2006

News Details

Corporate | 16 November 2006 08:00

Flughafen Wien AG: Third quarter of 2006 brings strong growth

Corporate news transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— Flughafen Wien AG recorded excellent results for the first three quarters of 2006. Turnover rose by 13.8% to EUR 346,975.8 and EBITDA increased 9.9% to EUR 134,573.7. The total number of passengers handled by Vienna International Airport grew by 6.4% to 12,837,409. Growth in passenger volume Traffic at Vienna International Airport continued to rise during the third quarter of 2006 with an increase of 6.4% in passenger volume for the first nine months. The strongest growth was registered in the number of passengers travelling to the Near East (+ 14.6%). Key impulses for this development were provided not only by the Austrian Airlines Group, but also by the low-cost carriers. This group of airlines recorded a plus of 12.3% in the total number of passengers from January to September 2006 and increased their share of passenger volume by 0.7 percentage points to 13.0%. Maximum take-off weight (MTOW) gained 3.7% during the reporting period, flight movements rose by 2.6% and cargo recorded a plus of 17.5%. An important factor for the growth in cargo volume was formed by ‘cargo only’ flights originating in the Asian region with destinations throughout Eastern Europe. Traffic growth leads to improvement in turnover Turnover reported by the Airport Segment rose by 10.9% to EUR 157.8 million, supported above all by the positive development of traffic. The largest contributions to this growth were provided by the Austrian Airlines Group, Lufthansa, SAS, Air China, Emirates and the low-cost carriers. In order to strengthen its competitive position, Vienna International Airport cut landing and parking tariffs by 2.8% and reduced the general infrastructure tariff and infrastructure tariff for fuelling by 1.0% and 1.87%, respectively, as of 1 January 2006. The parallel increase of EUR 1.12 in the passenger tariff to EUR 14.62 is designed to provide partial financing for the introduction of new environmental protection measures required by the mediation contract. The Handling Segment recorded an increase of 8.9% in external turnover to EUR 106.1 million. This development was supported by growth of 1.4% in handling activities and, above all, an increase of 17.5% in cargo and 26.8% in revenues from individual services (e.g. aircraft de-icing). The average market share declined 1.1 percentage points to 89.6%. The Handling Segment also continued to pursue its attractive price policy, which will support corporate measures to safeguard the future position of Vienna International Airport. The Non-Aviation Segment recorded outstanding growth of 27.5% in turnover to EUR 83.0 million for the reporting period. The development of business was driven primarily by higher revenues from security controls, parking and rental income. The 50.1% drop in other operating income to EUR 8.6 million resulted chiefly from a decrease in services provided by Vienna Airport Infrastruktur Maintenance GmbH for Flughafen Wien AG as well as lower income from the reversal of provisions. Expenses The cost of materials and services rose by 7.2% to EUR 25.8 million. Higher expenses for energy were contrasted with a reduction in the use of materials by Vienna Airport Infrastruktur Maintenance GmbH. Personnel expenses increased 8.8% to EUR 145.9 million as a result of additional hiring as well as wage and salary increases mandated by collective bargaining agreements. The growth in traffic and the expansion of security services that are provided by Vienna International Airport Security Services Ges.m.b.H., a wholly owned subsidiary of Flughafen Wien AG, led to an increase of 8.2% in the workforce over the comparable prior year period to a total of 3,729 employees. Of the total increase, 82.0% was related to the security area and 18.8% to the Handling Segment. The other segments reported a slight decline in the number of employees. Other operating expenses rose by 18.7% to EUR 49.3 million. This increase was related to higher leasing expenses as well as additional maintenance costs. Earnings Earnings before interest, depreciation, amortisation and taxes (EBITDA) rose by 9.9% to EUR 134.6 million, and the EBITDA margin declined 0.2 percentage points to 37.8%. Income before interest and taxes (EBIT) increased 6.9% to EUR 87.7 million, while the EBIT margin fell 0.8 percentage points to 24.7%. Financial results turned from a plus of EUR 7.9 million in the comparable prior year period to a minus of EUR 0.6 million for the first nine months of 2006. This reversal was caused primarily by the increased use of external borrowings to finance the extensive investment programme in tangible assets and stakes in other companies, and was the primary reason for the 3.2% decline in profit before taxes (EBT) to EUR 87.2 million. Following a reduction of 8.7% in tax expense to EUR 21.2 million, net profit for the period totalled EUR 66.0 million. The share of profit due to minority interests equalled EUR -0.03 million. Net profit attributable to the parent company totalled EUR 66.0 million for the first three quarters of 2006, which is 0.7% below the comparable prior year level. Investments for the future The major investment projects during the first three quarters of 2006 included the VIE-Skylink Terminal, Phase 2 of the Office Park (Austrian headquarters), the expansion of car park 7 and the aprons as well as the enlargement of the railway station. Financial assets increased 63.5% to EUR 150.6 million following a deposit of EUR 55.5 million for the planned acquisition of 66% of the shares in Bratislava and Košice Airports by the two Slovakian holding companies and the acquisition of additional shares in Malta International Airport plc. for EUR 4.7 million. Outlook The positive development of traffic also continued during October 2006. Vienna International Airport recorded an increase of 6.7% in the number of passengers, 4.2% in flight movements and 4.4% in maximum take-off weight (MTOW). Air Moldava, Dniproavia, Transaero and Sunexpress added Vienna to their schedules for the winter flight plan in 2006. A total of 63 scheduled airlines flew from Vienna to 171 destinations throughout the world during the first three quarters of this year. Delta Air Lines will provide service on the Vienna–Atlanta route five-times per week beginning on 21 May 2007. Korean Air plans to add scheduled traffic on the Vienna-Seoul route with the summer flight plan for 2007. The transfer of 66% of the shares in Košice Airport to the TwoOne Consortium took place in an official ceremony at this facility on 25 October 2006. The annual general meeting on 19 October 2006 elected a new managing board for Košice Airport. The CEO is Michael Fazekas, who directed the efforts of Flughafen Wien AG to acquire the airport. The TwoOne Consortium will invest roughly EUR 10.7 million by 2011 to support the long-term development of Košice Airport, with projects focusing on the expansion of the aprons and taxiways as well as the strengthening of the non-aviation business. Košice will use its special key strategic position in the catchment area to further expand point-to-point traffic with passengers from nearby areas in Slovakia, Hungary, Ukraine and Poland. Consolidated Income Statement for the First Three Quarters of 2006 according to IFRS in T€ 1-9/2006 1-9/2005 Change in % Turnover 346,975.8 304,909.6 13.8% Other operating income 8,632.6 17,291.5 -50.1% Operating income 355,608.3 322,201.1 10.4% Cost of materials and services -25,841.5 -24,111.5 7.2% Personnel expenses -145,906.6 -134,128.1 8.8% Other operating expenses -49,286.4 -41,518.5 18.7% Earnings before interest, taxes, depreciation and amortisation (EBITDA) 134,573.7 122,443.1 9.9% Amortisation of intangible assets and depreciation of tangible assets -46,840.9 -40,357.4 16.1% Income before interest and taxes (EBIT) 87,732.9 82,085.7 6.9% Income from investments in other companies,excl. associates at equity 233.2 30.5 663.9% Net financing costs -2,460.0 1,248.1 -297.1% Other income from financing activities 0.0 5,793.5 -100.0% Financial results, excl. associates at equity -2,226.7 7,072.1 -131.5% Income from associates at equity 1,675.3 875.8 91.3% Financial results -551.4 7,947.9 -106.9% Profit before tax (EBT) 87,181.5 90,033.6 -3.2% Taxes on income -21,226.6 -23,260.3 -8.7% Net profit for the period 65,954.9 66,773.3 -1.2% Thereof minority interests -26.9 358.9 -107.5% Thereof parent company 65,981.8 66,414.3 -0.7% Earnings per share (in €) 3.14 3.16 -0.6% Consolidated Income Statement for the Third Quarter in T€ 7-9/2006 7-9/2005 Change in % Turnover 121,715.4 108,890.2 11.8% Other operating income 2,227.5 3,747.3 -40.6% Operating income 123,943.0 112,637.4 10.0% Cost of materials and services -7,356.9 -7,467.8 -1.5% Personnel expenses -49,335.5 -46,155.7 6.9% Other operating expenses -16,603.5 -14,096.7 17.8% Earnings before interest, taxes,depreciation and amortisation (EBITDA) 50,647.1 44,917.3 12.8% Amortisation of intangible assets and depreciation of tangible assets -16,258.3 -13,805.7 17.8% Income before interest and taxes (EBIT) 34,388.7 31,111.6 10.5% Income from investments in other companies, excl. associates at equity 15.9 0.0 n.a. Net financing costs 329.7 176.9 86.4% Other income from financing activities 0.0 5,741.2 -100.0% Financial results, excl. associates at equity 345.6 5,918.0 -94.2% Income from associates at equity 1,287.1 835.5 54.0% Financial results 1,632.7 6,753.6 -75.8% Profit before taxes (EBT) 36,021.4 37,865.1 -4.9% Taxes on income -8,677.5 -10,311.3 -15.8% Net profit for the period 27,343.9 27,553.8 -0.8% Thereof minority interests -5.0 207.7 -102.4% Thereof parent company 27,348.9 27,346.1 0,0% Earnings per share (in €) 1.30 1.30 0.0% Michael Kochwalter – Head of Communications (+43-1-) 7007-22300 Robert Dusek – Head of Investor Relations (+43-1-) 7007-23126 (c)DGAP 16.11.2006 ————————————————————————— Language: English Issuer: Flughafen Wien AG Postfach 1 1300 Wien-Flughafen Österreich Phone: +43-1-7007/23126 Fax: +43-1-7007/23058 E-mail: r.dusek@viennaairport.com WWW: www.viennaairport.com ISIN: AT0000911805 WKN: 091180 Indices: ATX Listed: Amtlicher Markt in Wien; Freiverkehr in Berlin-Bremen, Stuttgart, München; Open Market in Frankfurt; Foreign Exchange(s) London End of News DGAP News-Service —————————————————————————