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During the first half of fiscal 2019 (ending June 30), the Fraport Group achieved growth in both revenue and earnings. Group revenue increased by 5.2 percent to €1,513.9 million, after adjusting for revenue in connection with capital expenditures made for expansion projects at Fraport’s Group airports worldwide (according to IFRIC 12). At Frankfurt Airport, factors contributing to revenue growth included higher proceeds from ground handling services and infrastructure charges, as well as from the retail and parking business. In Fraport’s international portfolio, major contributions came from the Lima Airport Partners subsidiary in Peru, as well as from Fraport USA and Fraport Greece.
The operating result or Group EBITDA (earnings before interest, taxes, depreciation and amortization) advanced by 10.9 percent or by €50.2 million to €511.5 million in the reporting period. This amount includes a €22.8 million positive effect resulting from the first-time application of the IFRS 16 accounting standard. When adjusting for this effect, EBITDA grew by €27.4 million or 5.9 percent. The increase can be attributed, in particular, to the positive performance of the Ground Handling and Retail & Real Estate business segments in Frankfurt, with both segments benefitting, among other things, from traffic growth at Frankfurt Airport.
Effective January 1, the mandatory IFRS 16 international financial reporting standard establishes new rules for the accounting of leases. Specifically, this affects the accounting of lease contracts concluded by the Group’s Fraport USA subsidiary. The application of IFRS 16, on the one hand, led to lower operating expenses with a respective positive impact on EBITDA. On the other hand, this positive effect was offset by higher amortization and depreciation in the amount of €21.6 million and by a €5.8 million increase in interest expense. Thanks to an overall improved financial result, the Group result (net profit) rose by €24.1 million or 17.1 percent to €164.9 million in the reporting period.