Københavns Lufthavne A/S
INTERIM REPORT OF COPENHAGEN AIRPORTS A/S (CPH) FOR THE THREE MONTHS TO 31 MARCH 2013
The Board of Directors today approved the interim report for the period 1 January – 31 March 2013.
Summary for the first three months of 2013
Passenger numbers at Copenhagen Airport were down by 0.7% in Q1 2013 to 5.1 million passengers, but showing growth when adjusted for the early Easter and a leap day in February in 2012. Both revenue and profit before tax improved by 2.4% to DKK 787.1 million and 4.9% to DKK 202.6 million respectively. The growth in revenue was partly due to continuing growth at the shopping centre and in the number of international passengers. CPH is expecting a busy summer season and retains its forecast for the full year.
The months of spring are always difficult to compare as the timing of the Danish public holidays differs from year to year and with them travel activity. The underlying figures showed growth throughout the quarter, and the weeks leading up to Easter showed strong traffic growth, which bodes well for the coming period.
Intercontinental traffic continued to grow with the number of passengers on long-haul overseas routes increasing by 1.1% in Q1. Overall, the number of international passengers was up by 1.5% in the first three months of the year. Before its bankruptcy in May last year, Cimber Sterling accounted for 49% of all Danish domestic traffic, and therefore the absence of Cimber Sterling in 2013 contributed to a 20.1% year-on-year decline in domestic traffic in 2013. Capacity on international routes has been restored following the Cimber Sterling bankruptcy. Revenue from the aeronautical segment was up by 3.3%.
Growth continues at the shopping centre
Revenue from the non-aeronautical segment was up by 2.8%, which was driven by continuing growth at the shopping centre, increased parking revenue and growing hotel activity. The completion of the Hilton refurbishment project and a higher number of meetings and conferences resulted in a 10.2% increase in revenue from the hotel.
In Q1, revenue from the Copenhagen Airport shopping centre continued the recent years' growth. Better performing food and beverage outlets and a number of new, strong brands supported a 3.8% revenue improvement.
CPH focused on strengthening Copenhagen Airport's range of restaurants, cafés and bars in 2012, including the MASH steak restaurant and the Le Sommelier Bistro & Bar. In addition, CPH finished a refurbishment and renovation of the duty- and tax-free shops in early 2013, further improving the extraordinary passenger experiences CPH offers. CPH also saw the opening of the first Marc By Marc Jacobs shop at a European airport during the period. By these steps, CPH continues to respond to passenger wishes and demands, which have a positive effect on the passenger spend at the airport.
Highlights of results
Passenger numbers at Copenhagen Airport decreased by 0.7% during the first three months of 2013. The number of locally departing passengers decreased by 0.1%, and transfer traffic decreased by 3.4%
Revenue increased by 2.4% to DKK 787.1 million (2012: DKK 768.3 million) primarily due to the index adjustment of passenger-related charges effective from 1 April 2012, more international passengers and increased spend in the shopping centre
When excluding one-off items, EBITDA grew by 2.0%. Reported EBITDA increased by 2.7% to DKK 385.0 million (2012: DKK 374.9 million)
When excluding one-off items, EBIT increased by 2.8% to DKK 253.2 million (2012: DKK 246.4 million). Reported EBIT increased by 3.8% to DKK 252.0 million (2012: DKK 242.7 million)
Net financing costs were in line with 2012 and amounted to DKK 49.4 million
Profit before tax amounted to DKK 203.8 million, when excluding one-off items (2012: DKK 196.8 million). Profit before tax increased to DKK 202.6 million (2012: DKK 193.1 million)
Capital expenditure amounted to DKK 214.6 million in the first three months of 2013 (2012: DKK 166.0 million)
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 of 2013 of profit before tax and investments is retained.