Flughafen Wien AG

Earnings Release • Sep 10, 1998

News Details

Ad-hoc | 10 September 1998 10:01

Ad hoc-Service: Flughafen Wien AG Half Year 98

—————————————————————— Ad hoc-Service: Flughafen Wien AG Half Year 98 Ad hoc-Mitteilung übermittelt durch die DGAP. Für den Inhalt der Mitteilung ist allein der Emittent verantwortlich. —————————————————————————— VIENNA INTERNATIONAL AIRPORT INTERIM RESULTS 1998 10 September 1998 The Flughafen Wien Group announces its results for six months to 30 June 1998. HIGHLIGHTS Operating Income (ATSm) 2,085.2 + 4.5 % Pre-tax Profit (ATSm) 496.2 + 18.0 % Net Income (ATSm) 328.9 + 14.7 % Cashflow (ATSm) 658.9 + 9.3 % Passengers (m) 4.9 + 8.4 % Transfer Passengers (‘000) 633.9 + 39.8 % Movements (‘000) 79.4 + 4.8 % Maximum Take-off-Weight 2.232,502 + 3.1 % Freight 73,688 + 8.8 % STRONG TRAFFIC GROWTH The strong underlying growth seen in the first quarter continued in the second quarter. The number of passengers handled was 8.4 percent higher than for the first half of 1997. Flight movements increased by 4.8 percent and cargo grew by 8.8 percent. Maximum Take-Off Weight (MTOW) increased by 3.1 percent. Growth was stronger in short and medium-haul flights, which use lighter aircraft. Airlines benefited from a further improvement in aircraft load factors from 59.1 to 61.7 percent. The strong growth in transfer passengers evident last year, has continued. An increase of 39.8 percent was posted in the first half of 1998. In keeping with its strategy, Vienna International Airport has been strengthening its position as a transfer hub month by month. Due to the favourable economic climate, the increase in cargo volume exceeded expectations, rising by a further 8.8 percent following the strong increases posted last year. This growth breaks down to 8.5 percent in air cargo and 9.8 percent in trucking. STRONG IMPROVEMENT IN OPERATING RESULTS The growth in turnover, coupled with a decline in operating expenses, led to a 28.2 percent improvement in operating profit (EBIT) ATS 436 mn. Net profit for the first half year for the Vienna International Airport Group rose by 14.7 percent to ATS 329 mn. TURNOVER Aviation turnover grew by 4.5 percent due to traffic growth. Despite losing the hangar income, non-aviation turnover posted an increase of 5.6 percent EXPENDITURE The cost of material was down ATS 22 mn as a result of using less de-icing agent and fuel. The average number of employees rose by 1.6 percent over the first half of 1998. This increase related solely to the subsidiary company, Vienna International Airport Security Services, which is responsible for security control of passengers and baggage. Flughafen Wien AG registered a decline in personnel numbers. Overall personnel costs were up 1.9 percent in the first half of the year. Other operating expenses were down 3.5 percent. RESULTS IN DETAIL Operating profit rose by ATS 96 mn, or 28.2 percent, to ATS 436 mn. Due to the lower level of funds for investment and the slight decline in interest rates, the financial result was ATS 20 mn lower at ATS 61 mn. Profit before tax improved by 18.0 percent to ATS 496 mn. After deducting ATS 167 mn in taxes, net profit for the first half year amounted to ATS 329 mn, which corresponds to an increase over the first half of 1997 of 14.7 percent. INVESTMENTS Since major expansion projects, such as improvement of Runway 16/34, have been postponed until next year, the level of investment showed a marked reduction. ATS 88 mn were spent on projects such as expanding district heating, planning for Car Park 4, the baggage reconciliation system and expanding cargo facilities. OUTLOOK The growth in traffic figures is expected to continue in the second half of 1998. Based on the data available, for 1998 as a whole we currently expect to see passenger volume grow by about 8 percent, flight movements by some 4 percent and MTOW by 3 percent. The positive trend in results for the first six months of the year is expected to continue into the second half. Flughafen Wien AG therefore anticipates another good result for the year as a whole. The growth rates will, however, be slower in the second half, as the corresponding period last year recorded strong growth. Looking forward, the management expects to enter 1999 from a position of some strength. The company is prepared for the loss of duty free sales from 1 July and the potential competition in ground handling. Ende der Mitteilung