Groupe ADP took note of the finance bill for 2024, adopted today by the Council of Ministers. The bill plans to introduce a new tax applicable to certain French transport infrastructure companies, including Aéroports de Paris SA (ADP SA).
The bill provides for a 4.6% tax applicable to the revenue, as stated in Aéroport de Paris SA's annual accounts, notably excluding revenues from airport safety and security services, and after the deduction of a 120 million euros exemption. The tax base would therefore have been 2,175 million euros as of December 31st, 2022 [1] (to be compared with 2022 consolidated revenue of 4,688 million euros).
On this basis, the tax would have had an impact of c.100 million euros, on ADP SA's operating expenses (taxes other than income taxes), reducing the group's EBITDA by the same amount.
The group estimates that c.75% of the additional expense related to this tax would be attributable to the regulated scope, and c.25% to the non-regulated scope.
The portion of the tax attributable to the non-regulated scope could not be passed through and would remain borne by the group.
Pursuant with the French Transport Code and subject to the annual tariffs' approval by the Transport Regulation Authority (ART), Aéroports de Paris SA intends to pass the increase in regulated expenses through the tariffs. The tariffs' increase would be phased in two to three years, as to contain its impact on airlines and to comply with the principle set in the law of "moderate" yearly changes in tariffs. The first increase, covering around half of the impact from the tax, would be applied for the 2024 tariff-period [2]. Further increase(s) would be applied to the subsequent tariff period(s).
If the bill were to be passed in its current form, and subject to the annual tariffs' approval, the group estimates the remaining impact to amount to c.90 million euros in 2024 (for a tax estimated at c.120 million euros in 2024), reducing the group's EBITDA by the same amount.
This impact would gradually decrease from 2025 onwards and would be limited to its non-regulated portion from 2027 onwards.
This bill must be submitted to the National Assembly by October 3rd, 2023, at the latest, to be reviewed and debated before being put to the vote of both chambers (i.e. the National Assembly and the Senate). During this process, the National Assembly and the Senate will deliberate on the principle of the tax, and may amend its terms (scope, nature of the tax, tax base and tax rate).
The enactment of the initial finance law for 2024 will occur by December 31st, 2023.
[1] Calculated as follows: ADP SA 2022 revenues of 2,723 million euros, deducting 428 million euros of revenues related to airport safety and security and a 120 million euros exemption.
[2] Tariff periods start on April 1st.
