Outlook for 2017 fiscal year fulfilled – International business
expansion achieves important milestones – Frankfurt Airport records
strong growth – More efficient security screening processes required
At Fraport AG’s regular Annual General Meeting (AGM) held today (May
29), CEO Dr. Stefan Schulte presented the results of a highly
successful 2017 fiscal year (ending December 31). Commenting on the
Group’s positive business performance, Schulte said: “Supported by
strong traffic growth, both our revenue and adjusted earnings reached
new record levels. We achieved our targets in full and are well
positioned to continue this growth trend.” Group revenue climbed by
almost 13.5 percent to EUR2.93 billion. The first-time consolidation
of Fraport’s Greek airports contributed a significant EUR235 million
to Group revenue. The slight decline in operating earnings (EBITDA)
can be attributed to extraordinary effects in the previous 2016
business year. In particular, Fraport’s strong earnings in 2016
resulted from the compensation payment received for the Manila
project and from the sale of shares in Thalia Trading Ltd. Adjusting
for these one-off effects, EBITDA increased by around 18 percent to
just over EUR1 billion, while the adjusted Group result (net profit)
improved by 21.6 percent to about EUR360 million.
International business gaining momentum
Fraport’s international business segment made a significant
contribution to the Group’s strong performance, boosting its share of
total operating earnings from 24 percent in 2016 to 32 percent in
fiscal year 2017 (also adjusted for special effects). A marked
increase in passenger traffic at all of Fraport’s Group airports
worldwide triggered the growth of this segment. In the long term,
Fraport’s strategy is to further increase the segment’s share of
earnings. With the operational takeover of airports in Greece and
Brazil, Fraport has reached important new milestones in expanding its
international portfolio. Dr. Schulte said: “By continuously expanding
our international portfolio, we are utilizing additional growth
opportunities. As a result, we are giving our company an even
stronger and broader business footing, and, above all, we are
generating more revenue.”
Frankfurt Airport sees strong growth
At Fraport’s Frankfurt Airport (FRA) home base, passenger traffic
increased by 6.1 percent to 64.5 million passengers in 2017. This
growth trend has continued throughout the first four months of 2018,
with passenger numbers rising by 8.7 percent. FRA’s strong passenger
growth stems, in particular, from traditional network carriers – with
Lufthansa being the main growth driver. CEO Schulte stated:
“Frankfurt Airport will always remain a premium hub with a clear
focus on providing best transfer processes and world-class
connectivity. To fulfil this commitment, however, passenger screening
processes at German airports need to be streamlined. Compared to
Germany, other international hub airports benefit from more efficient
and simpler processes that allow about twice as many passengers to be
screened per checkpoint, in the same amount of time. Therefore, we
urgently need the appropriate decision-making by the responsible
German Ministry of the Interior to achieve acceptable waiting times
again at the security checkpoints.”
Targeted infrastructure development at FRA
To accommodate the expected long-term growth in the aviation market,
Fraport continues to advance its targeted infrastructure development.
The construction of FRA’s new Terminal 3 is proceeding as scheduled.
Fraport is awaiting the construction permit from the City of
Frankfurt for the new Pier G, which will be realized earlier than
originally scheduled. Dr. Stefan Schulte explained: “With these
investments, we are opening a new chapter for Frankfurt Airport. Our
investments will ensure that, in a growing aviation market, we will
be able to provide the necessary capacities to airlines now and in
the future.”
Outlook for 2018 confirmed
Based on the positive performance in the year to date, Fraport is
maintaining its guidance for the full 2018 fiscal year. Passenger
traffic at FRA is expected to reach between 67 million and 68.5
million passengers, representing an increase of more than 6 percent.
Fraport expects the Group revenue to grow up to some EUR3.1 billion
(adjusted for IFRIC 12 effects). Group EBITDA is forecast to range
between about EUR1,080 million and EUR1,110 million, while Group EBIT
is expected to be between approximately EUR690 million and EUR720
million. The Group result is also anticipated to rise significantly
to between about EUR400 million and EUR430 million. The Executive
Board and Supervisory Board will propose to the Annual General
Meeting a dividend of EUR1.50 per share for the 2017 fiscal year –
the same amount as in the previous year. Fraport plans to increase
the dividend for fiscal year 2018.
