SUMMARY FOR THE FIRST SIX MONTHS OF 2009
The current economic downturn had an adverse impact on CPH’s performance in H1 2009 due to a year-on-year fall in passenger numbers by 13.0%. There were signs that passenger numbers were stabilising at the end of the period, although at a lower level than last year.
Summer traffic has held up reasonably well, with a decline of some 7-8% relative to the record summer of 2008. This is a clear indication that the decline has been curbed and passenger numbers are stabilising at a lower level after the 13.0% decline in passenger numbers recorded in the first half. That is not to say that the crisis is behind us, however, and CPH are still uncertain as to how the business travel pattern will look this autumn in particular.
CPH had higher depreciation charges due to investments in service improvements, higher staff costs due to restructuring, and higher financial costs following a recently completed refinancing partly offset by write-back of accruals. Combined with the drop in passenger numbers, which affected revenue, this has had a negative impact on earnings.
Revenue was down 7.0% to DKK 1,424.6 million and the pre-tax profit, which was particularly affected by the higher financial expenses, amounted to DKK 393.7 million, which was 30.7% less than in H1 2008.
The traffic pattern already seen after the first quarter is continuing. These are hard times for the travel and airline industries. This affects CPH’s financial statements as well, and the profit was lower than that of the same period last year. CPH did, however, manage to adapt the organisation in time and the level of investments was adjusted to the present conditions, which explains why CPH is still generating a profit.
HIGHLIGHTS OF THE FIRST SIX MONTHS OF 2009
- Passenger numbers at Copenhagen Airport decreased by 13.0%. The number of locally departing passengers decreased by 12.9%, and transfer traffic decreased by 18.5%
- Revenue fell by 7.0% to DKK 1,424.6 million (2008: DKK 1,531.3 million)
- EBITDA decreased by 13.9% to DKK 726.8 million (2008: DKK 844.1 million). EBITDA amounted to DKK 755.6 million excluding one-off items (2008: DKK 851.8 million)
- EBIT decreased by 21.1% to DKK 510.9 million (2008: DKK 647.7 million). When excluding one-off items, EBIT amounted to DKK 539.7 million (2008: DKK 655.4 million)
- Results of international investments were a profit of DKK 6.5 million, which was an increase of DKK 7.1 million (2008: a loss of DKK 0.6 million)
- Profit before tax decreased to DKK 393.7 million (2008: DKK 568.4 million). Profit before tax amounted to DKK 422.5 million excluding one-off items (2008: DKK 576.1 million). Profit before tax was impacted by an increase in financial expenses due to a higher average level of debt combined with an increase in other financing costs due to the refinancing in March 2009
- Capital expenditure amounted to DKK 237.0 million in the first six months (2008: DKK 441.8 million). CPH is continuously working to improve services to airlines and passengers and intends to retain a significant investment level despite the economic downturn
- CPH adjusted its organisation in Q1 2009 as a result of the falling passenger numbers. This meant that CPH has had to make 74 employees redundant
- In March 2009 CPH obtained credit facilities of DKK 1,625 million and EUR 131 million with a three year maturity. The new facilities equivalent to DKK 2.6 billion were provided by a group of seven banks
The number of passengers at Copenhagen Airport dropped by 13.0% in H1 2009. The decline in passengers was reduced to 8.7% in June though, indicating that many people have chosen to travel on summer vacation despite the economic downturn. The fall in passenger numbers had a substantial impact on revenue and profit before tax in CPH.
CPH continuously seeks to adapt the investment level to the current economic environment. However, despite the financial challenges in 2009, CPH has decided to retain the plan to invest a significant amount under a commercially flexible investment plan for the convenience of airlines and passengers.
The total number of passengers is expected to fall in 2009, due to the economic downturn and the impact of Sterling’s bankruptcy. On the basis of the negative traffic outlook, profit before tax is still expected to be lower than in 2008, when excluding one-off items.