Finance & governance

2019 half-year results: good performance of all the activities and Istanbul Atatürk airport closure

Groupe ADP 2019 half-year results1

  • Groupe ADP traffic's: excluding Istanbul Atatürk, traffic increased by 3.1% compared to the 1st half-year of 2018, at 101.0 million passengers. Including Istanbul Atatürk, group's traffic decreased by -10.3%2 at 117.1 million passengers3, linked to the termination of commercial flights to Istanbul Atatürk on 6 April 2019
  • Paris Aéroport traffic's (Paris-Charles de Gaulle and Paris-Orly): +4.8% at 52.3 million passengers
  • Good performance of consolidated revenues (€2,185 million), driven by the growth of aviation activities at Paris, retail activities dynamics, the impact of the full consolidation in ADP accounts of Société de Distribution Aéroportuaire and of Relay@ADP4 since April 2019 and Airport International Group (AIG) since April 2018. Excluding the full consolidation of these entities, revenue increased by 6.2% at €1,927 million. Revenue per passenger5 of airside shops increased by 5.1% at €18.8
  • EBITDA6 at €764 million, up by €75 million (+10.9%) notably thanks to TAV Airports' growth and the full consolidation of AIG
  • Operating income from ordinary activities7 at €453 million, up by €24 million
  • Net result attributable to the Group (NRAG) at €250 million, up by €45 million (+22.0%)
(in millions of euro – unless otherwise stated) H1 2019 H1 2018 2019/2018
Revenue(1)  2,185  1,867 +17.0% +€318M
EBITDA(1)  764  689 +10.9% +€75M
Operating income from ordinary activities(1)  453  428 +5.8% +€24M
Net result attributable to the Group(1) 250  205 +22.0% +€45M
Sales/PAX (€) €18.8 €17.9 +5.1% -
(1) The figures take into account the full consolidation of Société de Distribution Aéroportuaire and of Relay@ADP results since April 2019, and AIG results since April 2018. Revenue and operating expenses of TAV Istanbul for 2018 and 2019 are presented on a separate line on the income statement as "net income from discontinued activities", in accordance with the IFRS 5 standard. Therefore, consolidated revenue, EBITDA and operating income of the Group don't take into account the activity of Istanbul Atatürk airport anymore.  
 
Revision of certain 2019 assumptions and forecasts, revised compared with the publication of the 2018 annual results on 14 February 2019
  • Revision of the traffic growth assumption for Paris Aéroport that should be between +3.0% and +3.5% in 2019 compared to 2018 (vs. +2.5% and +3.0% previously)
  • Traffic for TAV Airports: traffic decline assumption between -38% and -42% compared to 2018 (calculated with Istanbul Atatürk in 2018 and without Istanbul Atatürk in 2019) (unchanged)
  • 2019 consolidated EBITDA 9 10 11: decrease between -8% and -13% compared to 2018 (unchanged)
  • Revision of the guidance of consolidated EBITDA restated of Istanbul Atatürk airport contribution in 2018 (proforma) and 20199 10 11: increase between +3% and +6% compared to 2018 (vs. +1% and +5% previously)
  • Revision of the guidance of consolidated EBITDA excluding the full consolidation of TAV Airports and AIG11 : increase between +2% and +3% (vs. +1% and +2% previously)
  • Pay-out ratio of 60% of NRAG 2019 (unchanged)

 
Augustin de Romanet, Chairman and CEO of Aéroports de Paris SA - Groupe ADP, stated:
"Groupe ADP traffic's, excluding Istanbul Atatürk, increased by 3.1% over the 1st half-year of 2019, with an increase of 4.8% of traffic at Paris Aéroport. Taking into account the Istanbul Atatürk airport, the groupe traffic has dropped by 10.3% because of the closure of this airport on 6 April 2019. EBITDA reached €764 million, up to 10.9% compared to 2018 1st half-year and net result increased by 22% at €250 million. During the 1st half-year, the Paris-Orly junction building, major infrastructure project of the 2016-2020 economic regulation agreement, was commissioned: it came with a new toponymy of a single terminal. ADP proposal for the next 2021-2025 economic regulation contract was published in a public consultation document in April and consultations have begun. Furthermore, the CDG Express project took a step forward with the confirmation by the Minister for Transport of its achievement despite a gap of calendar to end of 2025. Groupe ADP is following its trajectory and is revising upward some of its objectives for 2019".         
 
(1). Limited audit and procedures on 2019 half-year accounts have been carried out. Furthermore, the accounts have been approved by the Board of Directors of ADP S.A. on 25/07/2019.
(2). Unless otherwise stated, percentages are comparing 2019 1st half-year data with 2018 comparable data.
(3). TAV Airports traffic is taken into account at 100% according to their financial communication, including Istanbul Atatürk traffic until 6 April 2019. Following the acquisition of a 49%-stake in Antalya airport, traffic of this airport is 100%-included since January 2018 for the need of the analysis, while TAV Airports only has included Antalya traffic since May 2018.
(4). In April 2019, Groupe ADP reviewed its links with Société de Distribution Aéroportuaire, Relay@ADP and MZLZ-TRGOVINA D.o.o (Société de Distribution Aéroportuaire Croatia) and considers controlling these entities since then. Booked until this date with the equity method, these companies are since April 2019 fully consolidated.

(5). Sales in airside shops divided by the number of departing passengers (Sales/Pax).
(6). Revenues and other ordinary income reduced by operating consumables and expenses from ordinary activities excluding depreciation and amortization of tangible and intangible assets.
(7). Until 31st December 2018, the Group disclosed the share of profit or loss in associates and joint ventures on two separate lines "Share of profit or loss in associates and joint ventures from operating activities" and ""Share of profit or loss in associates and joint ventures from non-operating activities". For non-materiality reasons, the Group discloses since 1st January 2019 the share of profit or loss in associates and joint ventures on one single line included within the operating income.
(8). As a reminder, Istanbul Atatürk airport welcomed 16mpax between 01/01/2019 and 06/04/2019 which were not taken into account in TAV Airports' traffic growth assumption concerning 2019.
(9). TAV Airports' EBITDA guidance, underlying Group's EBITDA guidance, is built on the assumption the following exchange rate assumptions: EUR/TRY = 6.6, EUR/USD = 1.14.
(10). Following the Istanbul Ataturk airport end of operation on 6 April 2019 (see 8 April 2019 press release), the IFRS 5 standard "Non-current assets held for sale and discontinued operations" is applying to TAV Airports since this date. Revenue and operating expenses of TAV Istanbul for 2018 and 2019 are presented on a separate line on the income statement as "net income from discontinued activities", in accordance with the IFRS 5 standard. Therefore, consolidated revenue, EBITDA and operating income of the Group don't take into account the activity of Istanbul Atatürk airport anymore.
(11). Takes into account the introduction by the law No. 2018-1317 of 28 December 2018 of finance of the mechanism charging Aéroports de Paris 6% of the costs hitherto fully covered by the airport tax product.


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