CPH Group Annual Report 2010 announcement

Stock Exchange Announcement number 1/2011 

21.02.2011

Copenhagen, 21 February 2011

 

Group Annual Report 2010 announcement 

  • Strong 9.1% growth in passenger numbers generated good results for Copenhagen Airports A/S (CPH) in 2010 with increases in both revenue and net profit. CPH’s “dual airport” strategy has started to be successful, generating substantial growth in low-cost-carrier traffic and historic long-haul growth. This has made Copenhagen Airport one of the fastest growing major European airports in 2010. Copenhagen Airport expects passenger numbers to continue to grow in 2011. In 2010 CPH sold its investment in a number of Mexican airports, with a favourable impact on profit. 
  • Passenger numbers at Copenhagen Airport rose 9.1% in 2010, resulting in a revenue increase of 10.8% to DKK 3.2 billion. Adjusted for special items, profit after tax rose 18.2% to DKK 763.4 million, primarily as a result of the growth in passenger numbers and an agreement to terminate a long-term lease with SAS Cargo. 
  • Had it not been for the ash cloud which closed European airspace for several days, Copenhagen Airport would have exceeded its passenger record from 2008, and this massive passenger growth made Copenhagen Airport one of the most rapidly growing major European Airports in 2010. 
  • The number of locally departing international passengers grew by 9.5%, whilst transfer traffic grew by 7.8%. Low-cost traffic accounted for 3.8 million passengers in 2010, equivalent to a 34.3% increase. By the end of 2010, low-cost traffic accounted for 17.8% of traffic at Copenhagen Airport, and the share grew during the year. 
  • Traffic revenue grew by 8.0% to DKK 1.7 billion, primarily due to the higher passenger numbers. 

 New charges agreement generates growth

  • In 2010, CPH entered into a supplementary charges agreement which reduced the passenger charge for Copenhagen Airport’s low-cost facility, CPH Go, by approximately 35% as compared with the existing level. This charges agreement will form the basis for additional growth in the future. 
  • The increase in the number of low-cost customers and the growing number of transfer passengers represent clear evidence that CPH’s “dual airport” strategy is working. The opening of CPH Go with a 35% lower passenger charge supports one part of the dual strategy of generating growth in both low-cost traffic and network traffic. The strategic collaboration with the network carriers, including Copenhagen Airports’ largest customer, SAS, as well as with Norwegian, supports the overall strategy. It was also pleasing to see that after eight years of falling transfer traffic, this trend was reversed in 2010. 
  • The number of intercontinental routes grew significantly during 2010. With the opening of Qatar Airways to Doha, Air Canada to Toronto, Delta Air Lines to New York JFK, Egypt Air to Cairo, Cimber Sterling to Tel Aviv and Norwegian to Marrakech and Agadir, the total number of intercontinental routes out of Copenhagen has now reached 22, the highest number in this millennium. The intercontinental routes also contribute to the increase in the number of transfer passengers, and they support Copenhagen Airport’s position as a key northern European traffic hub. 

 New strategy for the shopping centre

  • CPH implemented a new strategy for the shopping centre in 2010 in order to achieve greater differentiation by opening a number of new shops in different price segments. In 2010, shop openings such as JOE & THE JUICE, Pieces, Tiger and Pandora were good examples of this new strategy. CPH intends to continue to optimise the shop mix and product offerings in 2011. 
  • Commercial revenues increased by 14.3%, primarily as a result of rising rent following an agreement to terminate a long-term lease with SAS Cargo and the changed recognition of revenue from CPH Parkering A/S. 

 Divestment in Mexico

  • In 2010, CPH sold its 49% investment in the Mexican airport company Inversiones y Técnicas Aeroportuarias, S.A. de C.V. (“ITA”) for DKK 498.5 million. The divestment added DKK 286.7 million to profit before tax.

 Continuing investment in CPH infrastructure 

  • CPH invested DKK 774.7 million in 2010 in infrastructure expansion and improvement, including the construction of CPH Go, a new odd-size baggage drop in Terminal 3 and a groundwater cooling system in Terminal 3. 
  • In order to strengthen capacity and improve passengers’ experience in the growing intercontinental traffic, CPH intends to further expand Pier C in 2011, the pier primarily used for intercontinental traffic. In 2011, CPH also plans to expand the check-in facilities in Terminal 2 in order to meet the demand for additional check-in desks as a result of the growing passenger numbers. CPH also intends to increase its outbound baggage capacity in 2011 by renovating and optimising its baggage system.

 Outlook

  • Based on the expected traffic programme for 2011, the total number of passengers is expected to continue to increase. The full-year effect of the new routes in 2010 is expected to have a positive effect in 2011 together with the expected new routes. 
  • The increase in passenger numbers is expected to have a positive impact on revenue. Operating costs are also expected to be higher than in 2010, primarily due to the forecast passenger growth and cost inflation. In accordance with the charges agreement, CPH is committed to invest an average of DKK 500 million per year supplemented by commercial investments for the benefit of the airlines and passengers, with a resulting increase in depreciation. Financial costs are expected to be lower than in 2010. Overall, profit before tax is expected to be on a level with 2010 when taking into account one-off items.

 

The Group Annual Report is enclosed in Pdf-format

 

COPENHAGEN AIRPORTS A/S

 

P.O. Box 74
Lufthavnsboulevarden 6
DK-2770 Kastrup

Contact:
Per Madsen
CFO

Telephone: +45 3231 3231
Fax: +45 3231 3132
E-mail: cphweb@cph.dk
www.cph.dk

CVR no. 14 70 72 04

 

Attached files: 

Read announcement

Arsrapport_2010_UK_final.pdf

Parent Company Financial Statements of Copenhagen Airports AS 2010.pdf

Announcement to the NASDAQ OMX Copenhagen Stock Exchange UK.pdf