Interim report of Copenhagen Airports A/S (CPH) for the six months to 30 June 2014
(OMX Via Acquire Media NewsEdge)
Stock Exchange Announcement 2014
Copenhagen, 12 August 2014
The Board of Directors today approved the interim report for the period 1
January – 30 June 2014.
Summary for the first six months of 2014
Copenhagen Airports A/S (CPH) had a good first half year of 2014 with 7.3%
growth in passenger numbers. The increase lifted both revenue and profit before
tax. CPH retains its full-year forecast.
Passenger numbers at Copenhagen Airport increased to 12.4 million passengers.
For the first time ever, the airport achieved more than 12 million passengers
in the first six months of a year. The growth in passenger numbers lifted
revenue by 7.4%, and profit before tax was up by 9.0% to DKK 593.3 million.
The growing passenger numbers, reflecting higher airline load factors and the
full year effect of new routes started up in 2013, lifted revenue from the
aeronautical segment by 10.4% in H1. The growth in passenger numbers was
particularly strong in Q2, and the growth on intercontinental routes and in
transfer traffic have supported Copenhagen Airport's position as the key hub of
northern Europe. It also shows that CPH is achieving the goals set in the World
Class Hub strategy. In the first six months of 2014, international traffic grew
by 7.5%, long-haul traffic grew by 6.8%, transfer traffic was up by 13.5%, and
domestic traffic rose by 4.9%.
Revenue in the non-aeronautical part of the business was up by 3.5%, generated
by a 5.6% increase in shopping centre revenue, a 3.6% increase in hotel revenue
and a 6.6% increase in parking revenue. CPH continually works to enhance the
offering at the airport shopping centre, and in early June Copenhagen Airport
was officially rated best in the world in terms of food and beverage, winning
the "Airport Food & Beverage Offer of the Year" award and two other prestigious
awards at the international FAB Awards 2014 ceremony.
High level of capital investment maintained in 2014
CPH is continuing its very high level of capital investment in 2014 in
strengthening and expanding Copenhagen Airport. In recent years, CPH's capital
investment has been in the order of DKK 1 billion annually, and as a result of
the steadily growing intercontinental traffic, CPH has now initiated an
extension of Pier C, which is used for long-haul and non-Schengen traffic. The
pier will be extended by 100 metres, adding three stands with direct access
from the aircraft gates.
In April 2014, CPH refinanced its five-year committed bilateral facilities
totalling DKK 2.0 billion. The new facilities have resulted in improved terms
for CPH and address all identified short- to medium-term refinancing risks. The
new facilities ensure that CPH will be able to maintain the necessary
investment level. The new facilities expire on 2 April 2019.
New charges agreement
After the end of Q2, CPH has signed a new charges agreement with the airlines,
which will now be submitted to the Danish Transport Agency for approval, and
will come into effect on 1 April 2015. Under the agreement the price of using
Copenhagen Airport will follow CPI over the next four years. The new agreement
provides certainty around airline charges and ensures that the necessary level
of investment in the airport can continue. The agreement also includes
investment in facilities that will help the airlines reduce their overall
operating costs. The new charges agreement means that the airlines know their
costs for the next four years, and that the airport will have stable earnings.
This will support CPH's plans to invest in the airport, creating the framework
for CPH's long-term plan of expanding the airport as and when growth
materialises and according to the "Expanding CPH" plan.
After the end of Q2, Copenhagen Airport was rated "Europe's most efficient
airport" for the ninth time in eleven years by the Air Transport Research
Society (ATRS), a special research group that analyses and evaluates efficiency
at airports worldwide.
As in previous years, the Company has adopted an interim dividend based on the
interim profit. The dividend amounts to DKK 436.0 million or DKK 55.56 per
Highlights of results
-- Passenger numbers at Copenhagen Airport increased by 7.3% during the first
six months of 2014. The number of locally departing passengers increased by
5.2%, and the number of transfer passengers increased by 13.5%
-- Revenue increased by 7.4% to DKK 1,869.0 million (2013: DKK 1,740.4
million) primarily driven by the increase in international locally
departing and transfer passengers. The increase was also positively
impacted by the index adjustment of passenger-related charges effective
from 1 April 2014
-- When excluding one-off items, EBITDA grew by 10.9% to DKK 1,028.3 million
(2013: DKK 927.3 million). Reported EBITDA increased by 10.6% to DKK
1,020.1 million (2013: DKK 922.1 million)
-- When excluding one-off items, EBIT increased by 9.8% to DKK 711.3 million
(2013: DKK 648.0 million). Reported EBIT increased by 9.4% to DKK 703.1
million (2013: DKK 642.8 million)
-- Net financing costs were DKK 11.2 million higher than in 2013
-- Profit before tax increased by 9.5% to DKK 601.5 million, when excluding
one-off items (2013: DKK 549.4 million). Reported profit before tax
increased to DKK 593.3 million (2013: DKK 544.2 million)
-- Capital expenditure amounted to DKK 306.6 million in the first six months
of 2014 (2013: DKK 464.9 million). The lower level was due to timing
differences in the start-up of projects, including the preparation of the
Pier C extension
-- The dividend of DKK 436.0 million will be distributed on 18 August 2014.
The dividend will be distributed through VP Securities Services on 15
August 2014 on holdings of record on VP accounts at the end of the business
day. Consequently, shares purchased for settlement on or before 15 August
2014 will carry dividend, whereas shares sold for settlement on or before
15 August 2014 will lose the right to dividend. This means that
transactions up to and including 12 August 2014 will be settled cum
dividend, and transactions from and including 13 August 2014 will be
settled ex dividend when traded at normal three-day settlement.
Outlook for 2014
Forecast of profit before tax
With the anticipated traffic programme for 2014, we expect to see an increase
in the total number of passengers. A positive full-year effect in 2014 is
expected from the many new routes opened in 2013.
The increase in passenger numbers is expected to have a favourable impact on
revenue. Operating costs are expected to be higher than in 2013, primarily due
to the expected rise in passenger numbers and cost inflation, but this will
partly be offset by a continuing focus on operating cost efficiencies.
Depreciation charges and financial costs are expected to be higher in 2014 than
in 2013 as a result of the continuing high investment level. Overall, profit
before tax for 2014 is still expected to be in the range of DKK 1,100.0 million
to DKK 1,200.0 million, when excluding one-off items. If the passenger growth
continues to be strong, profit before tax is expected to be in the higher end
of the range. Operating profit before depreciation is projected to be higher in
2014 than in 2013, when excluding one-off items.
Forecast of capital investment
Under the charges agreement, CPH must invest an average of DKK 500 million
annually but, as in previous years, CPH expects to invest at a level
significantly higher in 2014 than what it is committed to invest under the
charges agreement. CPH will also be investing in non-aeronautical projects for
the benefit of airlines and passengers.
The forecast for 2014 regarding passenger growth, profit before tax and capital
investment is retained.
P.O. Box 74
Lars Jønstrup Dollerup
Telephone: +45 3231 3231
Fax: +45 3231 3132
CVR no. 14 70 72 04
Copyright © 2014 OMX AB (publ).
Copyright © 2014 OMX AB (publ)
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