Interim report of Copenhagen Airports A/S (CPH) for the six months to 30 June 2014

Stock Exchange Announcement 2014 

Copenhagen, 12 August 2014


The Board of Directors today approved the interim report for the period 1 January – 30 June 2014.

Summary for the first six months of 2014

Copenhagen Airports A/S (CPH) had a good first half year of 2014 with 7.3% growth in passenger numbers. The increase lifted both revenue and profit before tax. CPH retains its full-year forecast.

Passenger numbers at Copenhagen Airport increased to 12.4 million passengers. For the first time ever, the airport achieved more than 12 million passengers in the first six months of a year. The growth in passenger numbers lifted revenue by 7.4%, and profit before tax was up by 9.0% to DKK 593.3 million.

The growing passenger numbers, reflecting higher airline load factors and the full year effect of new routes started up in 2013, lifted revenue from the aeronautical segment by 10.4% in H1. The growth in passenger numbers was particularly strong in Q2, and the growth on intercontinental routes and in transfer traffic have supported Copenhagen Airport's position as the key hub of northern Europe. It also shows that CPH is achieving the goals set in the World Class Hub strategy. In the first six months of 2014, international traffic grew by 7.5%, long-haul traffic grew by 6.8%, transfer traffic was up by 13.5%, and domestic traffic rose by 4.9%.

Non-aeronautical growth

Revenue in the non-aeronautical part of the business was up by 3.5%, generated by a 5.6% increase in shopping centre revenue, a 3.6% increase in hotel revenue and a 6.6% increase in parking revenue. CPH continually works to enhance the offering at the airport shopping centre, and in early June Copenhagen Airport was officially rated best in the world in terms of food and beverage, winning the "Airport Food & Beverage Offer of the Year" award and two other prestigious awards at the international FAB Awards 2014 ceremony.

High level of capital investment maintained in 2014

CPH is continuing its very high level of capital investment in 2014 in strengthening and expanding Copenhagen Airport. In recent years, CPH's capital investment has been in the order of DKK 1 billion annually, and as a result of the steadily growing intercontinental traffic, CPH has now initiated an extension of Pier C, which is used for long-haul and non-Schengen traffic. The pier will be extended by 100 metres, adding three stands with direct access from the aircraft gates.


In April 2014, CPH refinanced its five-year committed bilateral facilities totalling DKK 2.0 billion. The new facilities have resulted in improved terms for CPH and address all identified short- to medium-term refinancing risks. The new facilities ensure that CPH will be able to maintain the necessary investment level. The new facilities expire on 2 April 2019.

New charges agreement

After the end of Q2, CPH has signed a new charges agreement with the airlines, which will now be submitted to the Danish Transport Agency for approval, and will come into effect on 1 April 2015. Under the agreement the price of using Copenhagen Airport will follow CPI over the next four years. The new agreement provides certainty around airline charges and ensures that the necessary level of investment in the airport can continue. The agreement also includes investment in facilities that will help the airlines reduce their overall operating costs. The new charges agreement means that the airlines know their costs for the next four years, and that the airport will have stable earnings. This will support CPH's plans to invest in the airport, creating the framework for CPH's long-term plan of expanding the airport as and when growth materialises and according to the "Expanding CPH" plan.

After the end of Q2, Copenhagen Airport was rated "Europe's most efficient airport" for the ninth time in eleven years by the Air Transport Research Society (ATRS), a special research group that analyses and evaluates efficiency at airports worldwide.

As in previous years, the Company has adopted an interim dividend based on the interim profit. The dividend amounts to DKK 436.0 million or DKK 55.56 per share.

Highlights of results

  • Passenger numbers at Copenhagen Airport increased by 7.3% during the first six months of 2014. The number of locally departing passengers increased by 5.2%, and the number of transfer passengers increased by 13.5%
  • Revenue increased by 7.4% to DKK 1,869.0 million (2013: DKK 1,740.4 million) primarily driven by the increase in international locally departing and transfer passengers. The increase was also positively impacted by the index adjustment of passenger-related charges effective from 1 April 2014
  • When excluding one-off items, EBITDA grew by 10.9% to DKK 1,028.3 million (2013: DKK 927.3 million). Reported EBITDA increased by 10.6% to DKK 1,020.1 million (2013: DKK 922.1 million)
  • When excluding one-off items, EBIT increased by 9.8% to DKK 711.3 million (2013: DKK 648.0 million). Reported EBIT increased by 9.4% to DKK 703.1 million (2013: DKK 642.8 million)
  • Net financing costs were DKK 11.2 million higher than in 2013
  • Profit before tax increased by 9.5% to DKK 601.5 million, when excluding one-off items (2013: DKK 549.4 million). Reported profit before tax increased to DKK 593.3 million (2013: DKK 544.2 million)
  • Capital expenditure amounted to DKK 306.6 million in the first six months of 2014 (2013: DKK 464.9 million). The lower level was due to timing differences in the start-up of projects, including the preparation of the Pier C extension
  • The dividend of DKK 436.0 million will be distributed on 18 August 2014. The dividend will be distributed through VP Securities Services on 15 August 2014 on holdings of record on VP accounts at the end of the business day. Consequently, shares purchased for settlement on or before 15 August 2014 will carry dividend, whereas shares sold for settlement on or before 15 August 2014 will lose the right to dividend. This means that transactions up to and including 12 August 2014 will be settled cum dividend, and transactions from and including 13 August 2014 will be settled ex dividend when traded at normal three-day settlement.

Outlook for 2014

Forecast of profit before tax

With the anticipated traffic programme for 2014, we expect to see an increase in the total number of passengers. A positive full-year effect in 2014 is expected from the many new routes opened in 2013.

The increase in passenger numbers is expected to have a favourable impact on revenue. Operating costs are expected to be higher than in 2013, primarily due to the expected rise in passenger numbers and cost inflation, but this will partly be offset by a continuing focus on operating cost efficiencies. Depreciation charges and financial costs are expected to be higher in 2014 than in 2013 as a result of the continuing high investment level. Overall, profit before tax for 2014 is still expected to be in the range of DKK 1,100.0 million to DKK 1,200.0 million, when excluding one-off items. If the passenger growth continues to be strong, profit before tax is expected to be in the higher end of the range. Operating profit before depreciation is projected to be higher in 2014 than in 2013, when excluding one-off items.

Forecast of capital investment

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 2014 than what it is committed to invest under the charges agreement. CPH will also be investing in non-aeronautical projects for the benefit of airlines and passengers.

The forecast for 2014 regarding passenger growth, profit before tax and capital investment is retained.


P.O. Box 74

Lufthavnsboulevarden 6

DK-2770 Kastrup


Lars Jønstrup Dollerup


Telephone: +45 3231 3231

Fax: +45 3231 3132
Email: cphweb@cph.dk

CVR no. 14 70 72 04



Read announcement

H1 2014 Announcement to the Copenhagen Stock Exchange.pdf