FINANCIAL RELEASE
24 July 2017, 17h45
Aéroports de Paris SA
2017 first half year results: EBITDA up, driven by the dynamism of traffic and control over expenses Groupe ADP 2017 first half year results:Groupe ADP traffic: +4.6%1, at 73.3 million passengers2
Paris Aéroport traffic: +5.0%, at 48.5 million passengers
Good performance of consolidated revenue (+2.4%, at €1,459 million), driven primarily by growth in aviation activities and the good performance of commercial activities, notably of airside shops. H1 2017 sales per passenger3are stable at €18.1;
EBITDA (excluding capital gain linked to cargo hub buildings): solid growth (+3.7%, at €547 million), thanks to the dynamism of traffic and control over expenses;
Profit linked to cargo hub buildings under IAS 17 norm: €63 million in other income;
Operating income from ordinary activities (including operating activities of associates) up by 25.2%, due notably to the improvement in the contribution of TAV Airports, partly offset by provisions on international stake;
Net result attributable to the Group (NRAG)up by 27.1%, at €161 million, despite the increase in tax linked to the increase in pretax profit
Revision of 2017 traffic growth assumption and confirmation of 2017 EBITDA forecastBetween +3.5% and +4.0% in 2017 compared to 2016 (vs. +3.0, more or less 0.5 points previously)
Confirmation of upward trend for 2017 EBITDA4
(in millions of euros - unless otherwise stated)
H1 2017
H1 2016
restated
2017/2016
change
Revenue
1,459
1,425
+2.4%
EBITDA (Excl. capital gain linked to hub cargo buildings)
547
527
+3.7%
EBITDA
610
527
+15.7%
Operating income from ordinary activities (including operating activities of associates)
341
272
+25.2%
Financial income
(64)
(59)
+8.1%
Income taxes
(114)
(90)
+27.2%
Net income attributable to the Group
161
127
+27.1%
Sales/PAX (€)
18.1
18.1
+0.1%
Augustin de Romanet, Chairman and CEO of Aéroports de Paris SA - Groupe ADP, stated:
"Paris Aéroport traffic reached 48.5 million passengers in the 1sthalf of 2017, with international traffic more dynamic than total traffic. Those figures lead Groupe ADP to revise upwards its 2017 traffic growth assumption-between +3.5% and +4.0% in 2017 compared with 2016. Groupe ADP confirms its forecast of an upward trend for 2017 EBITDA.
The results for the 1sthalf of 2017 attest to Groupe ADP's capacity to take advantage of the recovery in traffic in Paris since the end of 2016. However, this recovery is only partially translated into retail sales. Sales per passenger, in spite of the dynamism of the luxury sector, are being penalised by the negative effect on the sales of tobacco of the introduction, on 1 January 2017, of the plain packet. EBITDA posted growth of 3.7%, amounting to €547 million (excluding the capital gain linked to the cargo hub buildings), thanks to good control over operating expenses. It reached €610 million in the 1sthalf of the year, including the capital gain linked to the cargo hub buildings, following the signing of the agreement to extend the presence of FEDEX at Paris-Charles de Gaulle until 2048. This long-term lease is translated, in Groupe ADP financial statements, by a capital gain of €63 million.
At an international level, the 1sthalf of 2017 saw the rolling out of Groupe ADP's strategy, on the one hand, by bolstering its involvement, as a leading shareholder, in the airport group TAV Airports, and, on the other hand, by refocusing its activities on its core business, with the divestment of its stake in TAV Construction. As a reminder, TAV Airports will be fully integrated in Groupe ADP's accounts in the 2ndhalf of 2017.
Over the 1sthalf of 2017, TAV Airports has posted solid results, thanks to the geographical and operational diversification of its activities, with growth in its revenue of 2.0%, in its EBITDA of 4%, to €202 million, and in its net result of 90%, to €60 million. The Groupe ADP EBITDA growth target, of between +30% and +40% for 2020, is confirmed, before full integration of TAV Airports. Groupe ADP's other 2020 targets remain unchanged. "
1 Unless otherwise stated, percentages compared 2017 data to 2016 comparable data.
2Traffic weighted with the 38%-stake in TAV Airports in the 1sthalf of 2017
3 Sales in airside shops divided by the number of departing passengers (Sales/PAX)
4 Please refer to paragraph "Forecasts and Targets"
1
Groupe ADP 2017 first half year results
2017 first half year consolidated accounts1
RevenueH1 2017
H1 2016
restated
2017/2016
change
(in millions of euros)
Revenue
1,459
1,425
+2.4%
EBITDA (excl. profit linked to cargo hub buildings)
547
527
+3.7%
EBITDA / Revenue
37.5%
37.0%
+0.5pt
EBITDA
610
527
+15.7%
EBITDA / Revenue
41.8%
37.0%
+4.8pts
Operating income from ordinary activities (including operating activities of associates)
341
272
+25.2%
Operating income from ordinary activities / Revenue
23.4%
19.1%
+4.3pts
Operating income (including operating activities of associates)
341
272
+25.2%
Financial income
(64)
(59)
+8.1%
Net income attributable to the Group
161
127
+27.1%
(in millions of euros)
H1 2017
H1 2016
restated
2017/2016
change
Revenue
1,459
1,425
+2.4%
Aviation
879
837
+5.0%
Retail and services
463
455
+1.7%
Real estate
130
139
-6.8%
International and airport developments
28
45
-38.6%
Other activities
115
106
+8.5%
Inter-sector eliminations
(156)
(158)
-1.5%
Over the first half of 2017, consolidated revenue of Group ADP was up by 2.4%, at €1,459 million, mainly thanks to:
The increase in airport fees (+5.4%, to €503 million), driven by passenger traffic dynamics (+5.0%, at Paris airports) combined with the increase in tariffs as of 1 April 2017 (+0.97%),
The strong increase in the ancillary fees (+7.5%, to €115 million), notably of the de-icing fee,
The good performance of commercial activities (+3.9%, at €219 million), that benefit from the recovery in international traffic and of the sales of luxury products, partly offset by the negative impact on tobacco sales of the rolling out of the plain packet on 1 January 2017,
And the good performance of the Other Activites segment, notably thanks to Hub One's Mobility division (+9.1%, at
€75 million)
This favourable items are nevertheless offset by:
The decrease in real estate revenue, notably linked to the decrease in internal rent, that has no impact on the consolidated EBITDA,
The decrease in revenue from International activities (-38.6%, at €28 million), linked to the slowdown in activities and in backlog of ADP Ingénierie in the Middle East and, in ADP International2, due to the correction, already taken into account during the 1stquarter.
Over the 1sthalf of 2017, intersegment eliminations3amounted to €156 million, down by 1.5%.
1 For H1 2016 restated accounts, please refer to the 2016 full year results of 22 February 2017, available onwww.groupeadp.fr
2 Aéroports de Paris Management was renamed ADP International as of 1st July 2017
3 Internal revenue realised between segments
2
EBITDA(in millions of euros)
H1 2017
H1 2016
restated
2017/2016
change
Revenue
1,459
1,425
+2.4%
Operating expenses
(942)
(940)
+0.2%
Consumables
(59)
(55)
+7.3%
External services
(337)
(338)
-0.4%
Employee benefit costs
(358)
(361)
-0.7%
Taxes other than income taxes
(176)
(175)
+0.6%
Other operating expenses
(11)
(11)
+7.3%
Other incomes and expenses
93
42
+€5m
EBITDA (excl. profit linked to cargo hub buildings)
547
527
+3.7%
EBITDA
610
527
+15.7%
EBITDA / Revenue
41,8%
37,0%
+4,8pt
Operating expenses are almost stable (+0.2%), at €942 million over the 1sthalf of 2017, thanks to control over staff costs that offset the increase in consumables.
The operating expenses of the parent company decreased by 0.2%, to €860 million over the 1sthalf of 2017. The distribution of operating expenses is as follows:
Consumables were up by 7.3%, at €59 million, mainly due to the increase in supply needs for de-icing activities over the 1stquarter and due to the increase in activities at Hub One,
The costs related to external services decreased by 0.4%, to €337 million, notably due to lower advertising spending than in 2016,
Employee benefit costs were down slightly, by 0.7%, and stood at €358 million, thanks, notably, to the decrease in direct staff costs. The average number of employees1stood at 9,004 as at 30 June 2017, down by 1.6%2.
(in millions of euros)
H1 2017
H1 2016
restated
2017/2016
change
Employee benefit costs
358
361
-0.7%
Aéroports de Paris
283
288
-1.6%
Subsidiaries
75
73
+2.9%
Average staff numbers (Full-Time Equivalent)
9 004
9 148
-1.6%
Aéroports de Paris
6 454
6 496
-0.6%
Subsidiaries
2 550
2 652
-3.8%
Taxes other than income taxes were almost stable (+0.6%), at €176 million.
Other operating expenses were up 7.3%, at €11 million.
Other income and expenses stood at €93 million, due to the accounting, under to the IAS 17 norm, of the capital gain linked to the long term lease of cargo hub buildings3, for €63 million.
EBITDA before profit linked to the cargo hub buildings stood at €547 million, up by 3.7%, thanks to the dynamism of traffic and to the control over expenses. Reported EBITDA was up strongly, by 15.7%, at €610 million.
The gross margin rate4for the 1sthalf of 2017, excluding profit linked to the cargo hub buildings is up by 0.5 points, at 37.5%.
1 Full-time equivalent
2 The average number of employees of the parent company decreased by 0.6% over the 1st half of 2017
3 Please refer to the paragraph " Highlights of the 1st half of 2017"
4 EBITDA/ Revenue
3
Net result attributable to the Group(in millions of euros) | H1 2017 | H1 2016 restated | 2017/2016 change |
EBITDA | 610 | 527 | +15.7% |
Amortisation & Depreciation | (230) | (236) | -2.7% |
Share in associates and joint ventures from operating activities after adjustments related to acquisition of holdings | (39) | (18) | -€21m |
Share of profit or loss of operating associates and joint ventures before adjustments related to acquisition of holdings | (16) | 7 | -€23m |
Adjustments related to acquisition of holdings in operating associates and joint ventures (1) | (23) | (25) | -6.1% |
Operating income from ordinary activities (including operating activities of associates) | 341 | 272 | +25.2% |
Operating income (including operating activities of associates) | 341 | 272 | +25.2% |
Financial income | (64) | (59) | +8.1% |
Associates from non-operating activities | - | 5 | -€5m |
Income before tax | 277 | 218 | +26.8% |
Income taxes | (114) | (90) | +27.2% |
Net results from continuing activities | 162 | 128 | +26.5% |
Net income attributable to non-controlling interests | (1) | (1) | +27.5% |
Net income attributable to the Group | 161 | 127 | +27.1% |
(1) Including depreciation and amortisation of PPA of associates
Amortisation and depreciation decreased (-2.7%, to €230 million) due to a favourable base effect linked to exceptional amortisation during the 1sthalf of 2016 and to the review of the lifespan of some assets in 2016.
Operating income from ordinary activities (including operating activities of associates) was up strongly by 25.2%, at €341 million, thanks, notably, to the growth in EBITDA and to the return to growth of TAV Airports (of which the share of profit, at 38%, is up by €12 million) and thanks to the deconsolidation of TAV Construction (favourable base effect of
€10 million), more than offset by provisions for international stake amounting to €46 million.
Over the 1sthalf of the year, TAV Airports has showed a growth in revenue of 2%, to €511 million, in EBITDA of 4%, to
€202 million, and its net result attributable to the Group almost double, at €60 million.
Operating income is in line with the operating income from ordinary activities (including operating activities of associates), increasing by 25.2%, to €341 million.
The net financial result was a loss of €64 million, up by 8.1% mainly due to provisions for international, for €9 million.
Groupe ADP net debt was up and stood at €2,877 million as at 30 June 2017, compared with €2,709 million as at 31 December 2016.
The share of profit of non-operating associates is zero, due notably to the completion of the sale of Groupe ADP's stake in Mexican airports operator OMA, occurring in October 2016, whose share of profit amounted to €5 million on H1 2016.
The income tax expense was up by 27.1%, at €114 million over the 1sthalf of 2017, due to the increase in the tax base. Taking into account all these items, the net result attributable to the Group increased by 27.1%, to €161 million.
4
ADP - Aéroports de Paris SA published this content on 24 July 2017 and is solely responsible for the information contained herein.
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