Fraport reports solid performance in challenging environment

In the first half of 2016, the Fraport Group achieved revenue of just over €1.2bn. Although this represents a €17.1m (or 1.4%) decline year-on-year, it must be taken into account that a change in the Group’s scope of consolidated companies occurred in the previous business year. During 2015, Fraport sold 51% of its capital shares in the FCS Frankfurt Cargo Services subsidiary and also made a full disposal of Air-Transport IT Services, both formerly wholly-owned subsidiaries. Adjusting for these changes, Group revenue in the first half of 2016 advanced by €19.2m, up 1.6%. Revenue was positively impacted by higher revenue from the sales of land, among other factors. Outside of Frankfurt, the Group’s subsidiaries, Lima Airport Partners, Twin Star and AMU Holdings Inc., also contributed to revenue growth. Among other things, declining passenger volumes at Frankfurt Airport contributed to negative effects on revenue. The Group’s EBITDA (earnings before interest, tax, depreciation and amortization) declined by 1.7% to €378.4m in the first six months of 2016. This was also due to the slowdown in passenger traffic at Frankfurt Airport and the corresponding drop in retail revenues. With depreciation and amortization remaining almost constant, Group EBIT reached €214.6m (down 3.3%). The slightly improving financial result as well as lower income tax expenses led to a Group result of €99.7m (down 3.2%). Higher cash flow used in investing activities and one-off tax effects in the first quarter of 2016 caused free cash flow to contract by €40.4m to €149.3m.