Finance & governance

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 passengers (2)
  • 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 passenger (3) are 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 forecast

  • Between +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 EBITDA (4)
 (in millions of euros - unless otherwise stated)   H1 2017   H1 2016
 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 1st half 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 1st half 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 1st half 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 1st half 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 2nd half of 2017. Over the 1st half 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%."

(1) Unless otherwise stated, percentages compared 2017 data to 2016 comparable data.
(2) Traffic 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"