Copenhagen, 31 October 2012
INTERIM REPORT OF COPENHAGEN AIRPORTS A/S (CPH) FOR THE NINE MONTHS TO 30 SEPTEMBER 2012
The Board of Directors today approved the interim report for the period 1 January – 30 September 2012.
Summary for the first nine months of 2012
Copenhagen Airports A/S (CPH) generated 3.1% growth in passenger numbers in the first nine months of 2012. This improvement was primarily driven by international traffic, confirming the success of CPH's strategy of strengthening Copenhagen Airport's position as the northern European transport hub. In addition, revenue from the shopping centre continued to grow thanks to a strongly improved shop and brand mix. CPH retains its full-year forecast.
The historically busy summer season helped boost passenger numbers at Copenhagen Airport by 3.1% to 17.8 million in the first nine months of the year. Revenue increased by 5.5%, and profit before tax excluding one-off items was up by 13.0% to DKK 925.3 million, driven by higher passenger numbers, growing revenues from the shopping centre, focus on efficient operating costs and lower financial costs.
CPH are firmly committed to strengthening its position as the northern European transport hub, making significant investments in expanding Copenhagen Airport and developing the international traffic. These investments contributed to the 12.9% increase in intercontinental in the first nine months of the year, primarily driven by the new SAS service to Shanghai and increased capacity on the services to Middle East destinations Dubai, Doha and Bahrain.
Overall, the number of international passengers was up by 5.8% in the first nine months, and the approximately 900,000 additional international passengers' highlights that the World Class Hub strategy launched last March was the right move.
In the course of the year, Copenhagen Airport has started up a major project to increase check-in capacity and flow in Terminal 2 and the Arcade between Terminals 2 and 3, extension of Pier C, which is used for intercontinental traffic, and extending the capacity of the baggage area to 30 million passengers per year.
Transfer traffic also continued to grow, with 8.5% more transfer passengers travelling through Copenhagen Airport in the first nine months of the year.
Domestic traffic was down 20.3% year-on-year. However, after the bankruptcy of Cimber Sterling in May, domestic traffic began to stabilise as the effect of the new domestic routes opened by SAS, Norwegian and DAT began to show.
Copenhagen Airport's shopping centre continued the positive trend of the first half year, generating a 12.3% increase in revenue thanks to a number of new shops, restaurants and bars that have opened in the course of the year as well as the effect of the shopping centre being fully let. Moreover, the spend per passenger also increased.
After the end of Q3, CPH has sold its 49.0% ownership interest in NIAL Group Ltd., the parent company of Newcastle International Airport. A part of CPH's strategy since 2007 was to focus its activities on the development and operation of the airport in Copenhagen. This is also described in the World Class Hub strategy, presented on 1 March 2012. The divestment of NIAL completes the strategy.
The divestment of NIAL will be recognised the financial statements for Q4 2012. For additional comments see note 8.
Highlights of results
- Passenger numbers at Copenhagen Airport increased by 3.1% during the first nine months of 2012. The number of locally departing passengers increased by 1.4%, and transfer traffic increased by 8.5%
- Revenue increased by 5.5% to DKK 2,650.4 million (2011: DKK 2,512.0 million), primarily due to the increase in passenger numbers
- When excluding one-off items, EBITDA grew by 8.2%. Reported EBITDA increased by 9.4% to DKK 1,464.6 million (2011: DKK 1,338.7 million)
- When excluding one-off items, EBIT increased by 10.0% to DKK 1,073.3 million (2011: DKK 975.9 million). Reported EBIT grew by 11.7% to DKK 1,066.4 million
- Net financial expenses decreased by DKK 8.9 million, primarily caused by extraordinary amortisation of loan costs in connection with a cancellation of bank facilities in 2011
- Profit before tax increased to DKK 918.4 million (2011: DKK 797.7 million). Profit before tax amounted to DKK 925.3 million, when excluding one-off items (2011: DKK 819.0 million)
- Capital expenditure amounted to DKK 627.2 million in the first nine months of 2012 (2011: DKK 484.1 million)
Outlook for 2012
Based on the expected traffic programme for 2012, the total number of passengers is expected to increase. Traffic, however, could be adversely impacted by the continuing economic uncertainty in the Eurozone and any closure of routes due to airline reductions. The forecast is retained despite airline bankruptcies during the year.
The increase in passenger numbers is expected to have a positive impact on total revenue. Operating costs are expected to be higher than in 2011, primarily due to the expected increase in passenger numbers, cost inflation and increased depreciation charges as a result of the higher level of investment with a focus on continuing growth. Overall, profit before tax is expected to be higher than in 2011, when excluding one-off items including the gain from the divestment of NIAL.
Under the charges agreement, CPH must invest an average of DKK 500 million annually, but CPH expects to invest significantly more than this in 2012. CPH will also be investing in other commercial projects for the benefit of airlines and passengers.