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Fraport profit soars 24.5pc to US$20.2 million, revenues rise 3.5pc
FRAPORT AG, owner and operator of Germany's Frankfurt Airport, increased first quarter profit 24.5 per cent year on year to EUR18.1 million (US$20.2 million), drawn on revenues of EUR592.6 million, up 3.5 per cent.
Fraport's cargo volume rose 1.8 per cent to 2.11 million tonnes in 2016, the company said.
On March 16, Fraport won the concession for the two Brazilian airports of Fortaleza and Porto Alegre during a public auction.
In view of the takeover of the concessions and the planned capital expenditure, Fraport's executive board currently expects the group's net debt to rise by some additional EUR300 million during the 2017 business year.
Said Fraport chairman Stefan Schulte: "Compared to the mixed performance in 2016, we are currently seeing a clear return to traffic growth, generated both by traditional network carriers and low-cost providers."
Turning to the political environment, Dr Schulte said: "The geopolitical situation and terror risks in Europe were decisive factors contributing to fewer passengers, particularly from Asia and the US. Moreover, Frankfurt Airport's passenger traffic was also impacted by the strong growth of low-cost carriers, especially at those airports within our catchment area."
He said Fraport has initiated responses to this development by opening up Frankfurt Airport to the low-cost segment. "Nevertheless, our core business continues be the premium hub segment and our partnership with Lufthansa as our main customer," he said.
In 2016, passenger traffic at Frankfurt Airport (FRA) dipped slightly by 0.4 per cent to 60.79 million passengers, thus lagging behind the general market trend - which was characterised by an increasing impact of the low-cost segment.
Dr Schulte described Fraport's international portfolio of airports as a growing business segment that strongly contributes to group's revenue: "Our broadly diversified international portfolio enables us to counterbalance downturns in individual markets, for example in Turkey, by positive growth in other regions. We will continue to consistently pursue this successful risk-diversification strategy."
External activities and services generate 20 per cent of the company's revenue and more than a third of net profit. In fiscal 2016, the business segment's contribution even reached about 60 per cent, due to special effects resulting from the Manila project and the St Petersburg subsidiary.
Fraport is further expanding its international activities with the recent successful launch of the concession for managing 14 Greek regional airports, as well as the expected operational takeover of two airports in Brazil.
Dr Schulte said Fraport expects passenger traffic to grow two to four per cent, while revenue is forecast to rise up to EUR2.9 billion, while net profit is expected to reach between EUR310 million and EUR350 million - a significant increase against the EUR300 million achieved in 2016.
Fraport's cargo volume rose 1.8 per cent to 2.11 million tonnes in 2016, the company said.
On March 16, Fraport won the concession for the two Brazilian airports of Fortaleza and Porto Alegre during a public auction.
In view of the takeover of the concessions and the planned capital expenditure, Fraport's executive board currently expects the group's net debt to rise by some additional EUR300 million during the 2017 business year.
Said Fraport chairman Stefan Schulte: "Compared to the mixed performance in 2016, we are currently seeing a clear return to traffic growth, generated both by traditional network carriers and low-cost providers."
Turning to the political environment, Dr Schulte said: "The geopolitical situation and terror risks in Europe were decisive factors contributing to fewer passengers, particularly from Asia and the US. Moreover, Frankfurt Airport's passenger traffic was also impacted by the strong growth of low-cost carriers, especially at those airports within our catchment area."
He said Fraport has initiated responses to this development by opening up Frankfurt Airport to the low-cost segment. "Nevertheless, our core business continues be the premium hub segment and our partnership with Lufthansa as our main customer," he said.
In 2016, passenger traffic at Frankfurt Airport (FRA) dipped slightly by 0.4 per cent to 60.79 million passengers, thus lagging behind the general market trend - which was characterised by an increasing impact of the low-cost segment.
Dr Schulte described Fraport's international portfolio of airports as a growing business segment that strongly contributes to group's revenue: "Our broadly diversified international portfolio enables us to counterbalance downturns in individual markets, for example in Turkey, by positive growth in other regions. We will continue to consistently pursue this successful risk-diversification strategy."
External activities and services generate 20 per cent of the company's revenue and more than a third of net profit. In fiscal 2016, the business segment's contribution even reached about 60 per cent, due to special effects resulting from the Manila project and the St Petersburg subsidiary.
Fraport is further expanding its international activities with the recent successful launch of the concession for managing 14 Greek regional airports, as well as the expected operational takeover of two airports in Brazil.
Dr Schulte said Fraport expects passenger traffic to grow two to four per cent, while revenue is forecast to rise up to EUR2.9 billion, while net profit is expected to reach between EUR310 million and EUR350 million - a significant increase against the EUR300 million achieved in 2016.
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