Solid revenue growth for Fraport during Jan-Sep period
Nov 6, 2019: Fraport, in the January-to-September 2019 period, reported 12 percent growth in revenue.
The airport operator is responsible for managing several airports worldwide. Out of the several airports, it is the operator of one of the major German hubs, Frankfurt Airport.
According to Fraport, revenue of EUR2,852.2 million can be attributed to the traffic growth at Frankfurt Airport (FRA) and the Fraport Group's airports worldwide.
After adjusting for proceeds related to expansion investments at the Group's airports worldwide (based on IFRIC 12), revenue rose by 5.2 percent to EUR2,486.7 million.
However, Fraport's international portfolio clearly continued to be the largest revenue driver. In particular, the Group company in Lima (up EUR30.5 million), Fraport Greece (up EUR25.4 million) and Fraport USA (up EUR21.8 million) contributed substantially to the Group's adjusted revenue growth.
The Group EBITDA (earnings before interest, taxes, depreciation and amortization) rose by 7.7 percent to EUR948.2 million. The first-time application of IFRS 16 had a positive effect on EBITDA, adding EUR34.0 million year-on-year.
Profit grew noticeably by 9.4 percent to EUR413.5 million, for the group, due to improved operating result, as well as the markedly higher contribution from the Group subsidiary in Antalya.
Fraport AG's executive board chairman, Dr. Stefan Schulte said: "Our industry is being impacted by the weaker global economy and consolidation of the European aviation market. Furthermore, regulatory interventions by the German government - such as the planned increase to the national air traffic tax - are also affecting our sector. After a phase of rapid traffic growth, airlines are cutting back their plans and thinning out their winter schedules.”
The airport operator, through a statement, highlighted factors contributing to revenue growth at Frankfurt Airport. These include higher proceeds from ground handling services, airport and infrastructure charges, as well as security services.