Half Year Result 2010: Positive Net Result despite volcanic eruption in April - Full year guidance confirmed
Despite a several days long suspension of air traffic due to the volcanic eruption in Iceland, Flughafen Zürich AG reports a positive net result of 49.7 million Swiss Francs for the first half year 2010 (plus 5.3 percent compared to last year). Profit excluding noise increased by 11.8% to 44.9 million Swiss Francs.
While passenger figures increased by 3.0 percent, air traffic movements rose by 1.3 percent. At 408.1 million Swiss Francs total revenue shows an increase of 3.1 percent and at 195.0 EBITDA is 3.6 percent higher than last year. During the three days of suspension of air traffic in April 2010, Zurich Airport recorded a cumulated loss of revenue of about 7 million Swiss Francs.
Traffic development Passenger figures started to recover already in the end of 2009. This development continued in the first half year 2010. 10.5 million passengers (plus 3.0 percent) were handled at Zurich Airport during the first six months of 2010. While local passenger numbers increased by 5.3 percent, transfer passengers decreased by 1.0 percent in the first semester 2010. Thus the transfer rate declined from 36.4 percent to 35.0 percent. Air traffic movements increased by 1.3 percent to 128‘912 movements in the first half year 2010. During the three days, in which the Swiss airspace was suspended, around 3’000 movements were cancelled at Zurich Airport. The Seat Load Factor increased by 2.1 percent to 70.5 percent and the average number of passengers per movement rose by 2.3 percent to 96.4.
Revenue developmentRevenue increased from 395.7 million Swiss Francs to 408.1 million Swiss Francs (plus 3.1 percent) compared to last year. Aviation revenue rose by 3.8 percent to 247.8 million Swiss Francs and non-aviation revenue increased by 2.0 percent to 160.3 million Swiss Francs.
Operating key figures and result Operating costs increased from 207.5 million Swiss Francs to 213.1 million Swiss Francs. This increase is due to the costs incurred on the implementation of the so-called PRM-services since November 1, 2009. According to a EU regulation airports are responsible for the handling of passengers with reduced mobility. Zurich Airport levies a result-neutral charge of one Swiss Franc from all departing passengers.Earnings before interest, taxes, depreciation and amortization (EBITDA) shows an increase of around 7 million Swiss Francs from 188.2 million Swiss Francs to 195.0 million Swiss Francs. EBITDA margin is with 47.8 percent slightly higher than last year.
OutlookFor the full year 2010 Zurich Airport confirms its guidance of a passenger increase of 3 to 5 percent. Considering this traffic forecast Flughafen Zürich AG estimates an increase of the net result of approximately 10 to 20 percent compared to 2009 (2009 excluding extraordinary gain on 12 percent divestment in Bangalore International Airport Limited).
Organizational changes per October 1, 2010As of October 1, 2010 the management board of Zurich Airport will be restructured and reduced by one business division. Stephan Widrig, currently Head of Corporate Development, will succeed Peter Eriksson, Head of Marketing & Real Estate, who will be leaving the company at the end of September. This internal change results in breaking up the division Corporate Development, which was established two years ago, and therewith leads to a smaller management board. The departments of Corporate Development will be allocated to the existing divisions Operations, Marketing &Real Estate and Finance. The responsibility for the project “The Circle” will remain with Stephan Widrig, while the International Airport Activities will be under the responsibility of the CFO. The management board of Flughafen Zürich AG will be consisting of five members as of October 1, 2010: Thomas E. Kern, CEO; Stefan Conrad, Operation; Stephan Widrig, Marketing &Real Estate; Daniel Schmucki, Finance and Michael Schallhart, Services.