Interim report of Copenhagen Airports A/S (CPH) for the six months to 30 June 2013

Stock Exchange Announcement number 7/2013 

The Board of Directors today approved the interim report for the period 1 January – 30 June 2013. 

As in previous years, the Company has adopted an interim dividend based on the interim profit. The dividend amounts to DKK 454.8 million or DKK 57.96 per share. 

Summary for the first six months of 2013  

Passenger numbers at Copenhagen Airports A/S (CPH) rose by 2.2% in the first six months of 2013, with particular growth in a strong second quarter. Growth also continued in the non-aeronautical part of the business due to new food and beverage outlets. These factors had a positive impact on both revenue and pre-tax profit. CPH retains its full-year forecast. 

A total of 11.5 million passengers travelled through Copenhagen Airport in the first six months of 2013. As a result of the rise in passenger numbers and a continued revenue increase in the shopping centre, parking and hotel operations, revenue increased by 3.4% and the pre-tax profit rose by 1.9% to DKK 544.2 million. 

The airlines' strong summer programme is the driving force behind the growth in passenger numbers. Following a minor fall in passenger numbers in Q1, in which the performance was affected by 2012 being a leap year and by the timing of Easter, a particularly strong Q2 led to the improved performance. Most of the growth was generated by the low-cost airlines Norwegian, easyJet and Vueling. In addition it was encouraging to note that SAS' new route to San Francisco was off to a flying start with good load factors. 

Strong performance by Hilton

Revenue rose by 1.7% in the non-aeronautical part of the business. Hilton in particular enjoyed a strong first half after the completion of its refurbishment with increased conference activity combined with a consistently high room occupancy rate. Overall, Hilton revenue increased by 9.9%. 

Parking revenue rose by 3.0% as a result of higher average parking prices due to continued effective yield management. 

The shopping centre revenue rose by 0.9% with specialty shops, restaurants and bars performing strongly as a result of the upgrade of CPH's shop offering in the past few years. At the beginning of the year, CPH refurbished its six tax-free shops to improve the passenger experience. 

International acclaim

During the first half, Copenhagen Airport won two international trade awards. In April it was announced that 12.1 million passengers rating 395 airports worldwide found that Copenhagen Airport's security processing was "the world's best security process", and in June Copenhagen was rated the most efficient airport in Europe for the eighth time in ten years by Air Transport Research Society, a research group that analyses and evaluates efficiency at airports worldwide. 

It is important that CPH delivers efficient processes for the benefit of passengers, airlines, concessionaires and other business partners, and both awards are a clear indication that CPH is continually improving in these areas. The award of "the world's best security process" is particularly appreciated, as CPH ranked above a number of airports with a strong reputation within this field and it is encouraging as CPH continues to execute on our World Class Hub strategy. 


CPH’s US Private Placement from 2003 of USD 100 million matures in August 2013, and therefore the Company decided to take advantage of the current positive market conditions by issuing US bonds for the third time. 

The amount issued was fixed at USD 160 million with a term of ten years. The new loan is USD 60 million higher than the maturing loan as CPH felt it was a prudent to take advantage of the strong market conditions in advance of its future refinancing requirements.

The bond issue was significantly oversubscribed, affirming CPH's position as an internationally recognised and reliable infrastructure company. The debt ensures CPH stable, long-term financing on satisfactory terms. 


In 2012, CPH added Moody's and Fitch as rating agencies in addition to Standard & Poor’s, and since then the Company has been rated by three agencies. At the beginning of June 2013, CPH decided that two ratings were sufficient and, consequently, no longer maintains a rating by Standard & Poor's. CPH's ratings from Moody's and Fitch are Baa2 and BBB+, respectively. Both ratings are investment grade.

Investment in the airport of the future

CPH maintains its high investment levels, having invested DKK 464.9 million at the end of the first half, compared with DKK 403.6 million in 2012. These major investments are made for the benefit of passengers, airlines, concessionaires and other customers of the airport. The investment level is considerably higher than what CPH is committed to investing under the charges agreement. The major investments include an upgrade of the baggage system, refurbishment of Terminal 2, renewal and renovation of the tax-free area, renewal of aircraft stands, and electricity and ventilation projects. 

Highlights of results                                               

  • Passenger numbers at Copenhagen Airport increased by 2.2% during the first six months of 2013. The number of locally departing passengers increased by 3.3%, and transfer traffic decreased by 1.2% 
  • Revenue increased by 3.4% to DKK 1,740.4 million (2012: DKK 1,683.2 million) primarily due to the index adjustment of passenger-related charges in April 2013, more international passengers and increased revenue from parking and increased hotel operation 
  • When excluding one-off items, EBITDA grew by 2.6%. Reported EBITDA increased by 2.6% to DKK 922.1 million (2012: DKK 898.6 million) 
  • When excluding one-off items, EBIT increased by 1.7% to DKK 648.0 million (2012: DKK 637.0 million). Reported EBIT increased by 1.8% to DKK 642.8 million (2012: DKK 631.6 million) 
  • Net financing costs were in line with 2012 and amounted to DKK 98.6 million 
  • Profit before tax amounted to DKK 549.4 million, when excluding one-off items (2012: DKK 539.3 million). Profit before tax increased to DKK 544.2 million (2012: DKK 533.9 million) 
  • Capital expenditure amounted to DKK 464.9 million in the first six months of 2013 (2012: DKK 403.6 million) 
  • The dividend of DKK 454.8 million will be distributed on 19 August 2013. The dividend will be distributed through VP Securities Services on 16 August 2013 on holdings of record on VP accounts at the end of the business day. Consequently, shares purchased for settlement on or before 16 August 2013 will carry dividend, whereas shares sold for settlement on or before 16 August 2013 will lose the right to dividend. This means that transactions up to and including 13 August 2013 will be settled cum dividend, and transactions from and including 14 August 2013 will be settled ex dividend when traded for the normal three-day settlement. 

Outlook for 2013 

Forecast of profit before tax

With the anticipated traffic programme for the rest of 2013, we expect to see an increase in the total number of passengers. A positive full-year effect in 2013 is expected due to the many new routes opened in 2012. In addition, traffic in 2013 is expected to be favourably affected by the full-year effect of the routes restored after the bankruptcy of Cimber Sterling in 2012. Traffic in 2013 could, however, be adversely affected by continuing financial uncertainty in the Eurozone and by any closure of routes due to airline cutbacks. 

The increase in passenger numbers is expected to have a favourable impact on revenue. Operating costs are also expected to be higher than in 2012, primarily due to the expected increase in passenger numbers and cost inflation. This will partly be offset by the continuing focus on operating cost efficiencies. Depreciation charges and financial costs are expected to be higher in 2013 than in 2012 as a result of the continuing high investment level. Overall, a slightly lower profit before tax is expected for 2013 compared to 2012, when excluding one-off items. Conversely, operating profit before depreciation is projected to be higher in 2013 than in 2012, when excluding one-off items. 

Forecast of investments in intangible assets and property, plant and equipment

Under the charges agreement, CPH must invest an average of DKK 500 million annually but, as in previous years, CPH expects to invest at a level significantly higher in 2013 than what we are committed to. However, the investment level is subject to continuing growth in total passenger numbers. CPH will also be investing in other commercial projects for the benefit of airlines and passengers. 

The forecast for 2013 of profit before tax and investments is retained.



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Announcement to the Copenhagen Stock Exchange H1 2013.pdf