Aéroports de Paris. Strong revenue growth in the first half of 2008: +12.3% 1

Transcription

1 Paris, 13 August 2008 Aéroports de Paris Strong revenue growth in the first half of 2008: +12.3% 1 Consolidated revenue rose 12.3% to 1,214 million Revenue growth far outpaced passenger traffic growth (+2.8%) Buoyant momentum in airport services (+9.8%) with a very good performance in retailing (+11.6%) and growth in real estate (+7.1%) Other activities (subsidiaries and joint ventures) continued to grow rapidly, up 26.7% 1 Unless indicated otherwise, all percentages in this press release compare first-half 2008 data with comparable data from the year-earlier period. 1

2 Cumulative revenue at 30 June 2008: ( millions) H H Change Airport services % Aeronautical fees % Ancillary fees % Commercial revenue % Car parks and access % Industrial services % Airport security tax % Rental revenue % Other revenue % Real estate % Ground handling & other services % Other activities % Intersegment eliminations % Consolidated revenue 1, , % Quarterly revenue ( millions) Q Q Change Q Q Change Airport services % % Real estate % % Ground handling & other services % % Other activities % % Intersegment eliminations % % Total % % 2

3 Pierre Graff, Chairman and CEO of Aéroports de Paris, commented on these figures: "Aéroports de Paris generated robust revenue growth of 12.3% in the first half of 2008, strongly outpacing passenger traffic growth. This performance illustrates the success of the group's strategy of enhancing revenue, which it has pursued since the IPO, with notably the strong performances in retailing and real estate, and the rapid expansion of our subsidiaries, specialising in commercial retailing, telecoms, and international operations. Key events during the period Traffic up 2.8% in the first half of 2008 Aéroports de Paris handled 42.7 million passengers in the first half of 2008, a 2.8% increase from the year-earlier period. First-half traffic figures were impacted by the June 2007 opening of the East TGV bullet train line and various air transport strikes in air transportation, especially towards the beginning of the year. These factors had a more direct impact on the Paris-Orly airport. Passenger traffic was up 3.7% to 29.6 million passengers at the Paris-Charles de Gaulle airport and 0.8% to 13.1 million passengers at the Paris-Orly airport. Traffic was buoyant to Europe (excluding France) and other international destinations, up 4.1% and 5.4%, respectively, creating a favourable mix effect In the first half of 2008, International traffic (excluding Europe), up by a strong 5.4%, and traffic to European destinations which rose a resilient 4.1% fueled traffic growth. This created a favourable mix effect, as these segments make the largest contributions. In mainland France, traffic declined 4.2%, mainly due to the opening of the East TGV bullet train line in June 2007, labour unrest in the air transport sector in January and February 2008, and a more competitive environment with rail transportation in a mature market. In Europe (+4.1%), traffic with the EU and non-eu member countries rose 4.1% and 3.8%, respectively. Traffic on Schengen routes increased 5.3% at constant scope (the 3

4 Schengen area was expanded to include Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia, Hungary, Slovenia and Malta on 1 April 2008) with growth buoyed mainly by the countries of the Mediterranean basin (Italy, Portugal, Greece and Spain). As regards Europe, excluding Schengen, traffic grew rapidly with Bulgaria and Romania, as well as with Russia and Croatia. On the other hand, traffic with the UK and Ireland declined 2.0%. Low-cost carriers, whose core business departing from Paris is mainly concentrated on European destinations, reported first-half growth of 25.2%, bolstered by the development of EasyJet and Transavia.com France. At 30 June 2008, low-cost carriers accounted for 11.9% of Aéroports de Paris passenger traffic. Traffic to other international destinations rose a buoyant 5.4%. The biggest contributors to growth were: - The Middle East (+10.9%), thanks to the dynamic development of local airlines serving the United Arab Emirates, Kuwait and Saudi Arabia, as well as to buoyant tourist traffic to Egypt, Israel and Jordan; - Latin America (+9.5%), with robust traffic growth to Brazil and solid traffic to Central America; - Africa (+6%), driven by vibrant growth in North Africa (+10.9%), thanks to the boom in low-cost carriers in this market, which contrasts with the fragility of traffic to sub- Saharan Africa, due notably to political instability (Kenya, Mauritania, etc.). Traffic with the Asia/Pacific region was up 3.9% buoyed by the strong performance of Chinese routes (+10.8%). Traffic with India increased 5.6%. North America reported a very strong performance for a mature market, with traffic up 3.7%. Traffic to the French overseas territories increased a slight 0.4%. The number of aircraft movements increased 1.9% to 390,237 movements, with a 3% increase at Paris-Charles de Gaulle and a 0.5% decline at Paris-Orly. The average passenger load ratio stood at 72.9% in the first half of 2008, versus 73.2% in the yearearlier period. Average capacity increased to 115 passengers per flight in the first half of 2008 from 114 in the first half of At Paris-Le Bourget, Europe's leading business aviation airport, traffic declined slightly, down 2.3% to 33,894 movements. The cargo activity (freight and mail) increased 2.7% with 1.22 million tons shipped 2. Aéroports de Paris is the leader among European airports for cargo and mail. 2 Aéroports de Paris estimate 4

5 Opening of the new Terminal 2E boarding lounge From an operational perspective, the highlight of the first half was the successful opening of the new Terminal 2E boarding lounge at the Paris-Charles de Gaulle airport on 30 March Services were rapidly brought up to full cruising speed to accommodate summer passenger traffic under optimal conditions. The terminal now offers two worldclass boarding lounges (la Galerie Parisienne and the new departure area), which enhance the Paris-Charles de Gaulle hub and help improve the quality of services. Revenues by segment 3 Strong growth of airport services: +9.8% Revenues from Airport services rose strongly in the first half of 2008, up 9.8% to million. The main contributors to revenue growth were fees, commercial activities and the leasing of space in new facilities. Aeronautical fees (passenger fees and aircraft landing, parking, fuelling and lighting fees) rose 9% to million. This increase can be attributed to higher fees (application of an average 4.25% increase in aeronautical fees from 1 April 2007 and an average 3.8% increase from 1 April 2008); passenger traffic growth (2.8%) and a favourable mix effect 4, as well as a 1.9% increase in aircraft movements. Aircraft parking revenue rose a robust 20.5% thanks to the big increase in the number of terminal side parking slots with the opening of La Galerie Parisienne followed by the new Terminal 2E boarding lounge. Ancillary services, a category consisting of ancillary fees (baggage handling, check-in counters, de-icing) and other services (VIP lounges, network leasing), generated revenues of 66.9 million, a very big increase of 26.8%. De-icing services posted relatively robust growth in comparison with the low level of operations in 2007, when weather conditions were very mild. Check-in counter revenues increased thanks to the opening of new facilities at Paris-Charles de Gaulle Terminal 2E. 3 Before intersegment eliminations 4 This positive mix effect reflects an increase in the share of traffic on routes that make the largest contributions to revenues: "International ex Europe" and "Europe ex France" 5

6 Baggage handling revenues continued to rise strongly, buoyed by the start-up of new baggage sorting systems at Paris-Charles de Gaulle Terminal 2E. Starting in first-half , this segment also includes 3 million in revenues from the new fee for the delivery of security badges introduced on 1 January 2008 following a decision by the French government (previously, the cost of manufacturing these badges was covered by the airport security tax). Commercial revenue (shops, bars and restaurants, car rentals and advertising) increased 11.6% to million. Shops in restricted areas reported a 14.1% increase in revenues, boosted by international passenger traffic growth (+5.4%) and enhanced performances of retail areas. Several factors contributed to this strong performance including La Galerie Parisienne 6, opened on 27 June 2007, followed by the partial reconfiguration of international passenger flows at Paris-Orly Sud 7 and the renovation of three quarters of the Paris-Charles de Gaulle Terminal 1 at the end of March Bar and restaurant revenues increased 10.1% in the first half of Car park and access revenue increased 4.2% to 77.5 million. Excluding the impact of the loss of the STIF subsidy from the Ile-de-France transport union, which was eliminated with the start-up of the Paris-CDG Airport shuttle on 1 April 2007, business grew 7.4%. Hourly revenues and subscriptions increased further. Revenue from industrial services (such as power and water supply ) rose 12.7% to 41.1 million. Sales of heating, air conditioning and cooling services, as well sales of power to EDF (cogeneration at the Paris-Charles de Gaulle airport) benefited from the indexing of prices to the increase in gas purchase prices. Quantities of thermal energy sold rose as well because of a colder winter in the first quarter of 2008 than in the first quarter of Airport security tax revenue, which mainly finances security related activities, increased 6.3% to million. 5 In first-quarter 2008, these revenue were reported as "other revenues" in the Airport Services segment. 6 At 30 June 2008, it was still too early to determine the impact of the gradual opening of shops at the new Terminal 2E boarding lounge between late March and the end of September Three new shops were opened between December 2007 and mid February 2008 (additional retail area of about 1000 sq m) and a new restaurant in April 2008 (an additional 300 sq m). 6

7 Rental revenue (from leasing space in air terminals) rose 18.1% to 44.9 million, buoyed by two factors: - The full impact over the six-month period of leasing new retail areas in the Paris-Charles de Gaulle terminals, notably La Galerie Parisienne, as well as adjacent land and buildings; - The indexing of leases on the cost of construction index (ICC) with the application of a 5.05% rate increase from 1 January Other revenue (invoicing or re-invoicing of various services) rose 4.2% to 45.3 million. 7

8 Vigorous growth in the real estate segment (excluding terminals): +7.1% The real estate segment reported a 7.1% increase in revenues to million in the first half of Revenue growth in the real estate segment was affected by: - External revenue growth of 10.3%, reflecting mainly: The full impact over the six-month period of marketing for the new GB2 cargo station at the Paris-Charles de Gaulle airport as of 1 July 2007 and various new locations, which reflects the commercial dynamism of this business. Higher rent, indexed to the cost of construction index, up 5.05% from 1 January 2008 (after a 7.05% increase in 2007) - A slight decline in internal revenue, down 1.8%. Ground handling: restructuring under way; first-half revenue up 4.1% Ground handling and related services reported revenues of 97.3 million in the first half of 2008, up 4.1% from the year-earlier period. The favourable impact of new contracts signed in 2007, which lifted segment revenue by 12.9% in the first half of 2007, has worn off. Ground handling services are facing fierce competition and lost some customers in the first half of 2008, which were only partially offset by the gain of new customers in the second quarter. This business is being restructured. 8

9 Other activities (subsidiaries and joint ventures) continued to grow rapidly: +26.7% Revenues from other activities increased 26.7% to million in the first half of Owned in partnership with Aelia, an expert in airport retailing, Société de Distribution Aéroportuaire (SDA) operates shops specialising in alcohol, tobacco, perfume and cosmetics in all of the Aéroport de Paris terminals as well as the gourmet food shops in terminal 2F and, since 1 January 2008, in terminals 2B and 2C. Société de Distribution Aéroportuaire s revenue grew 17.1% to 87.2 million in the first half 8. This growth reflects the dynamic sales momentum of shops located in restricted areas as well as the strong performance of the new shops in La Galerie Parisienne 9 and the renovation of existing retail areas, notably at Orly Sud (reconfiguration of international passenger flows with the creation of a more propitious environment for the development of retailing and the expansion of retail areas) and at Paris-Charles de Gaulle Terminal 1, three quarters of which has been renovated. Hub telecom reported a 25.9% increase in revenue to 48.7 million. This strong growth mainly results from the half-year impact of the 12 July 2007 acquisition of BGI Technologie 10, a Lyon-based specialist in mobile solutions for companies. Excluding the consolidation effect, Hub telecom's revenue growth was 4.9%. ADPi, the engineering subsidiary specialising in international design, architecture and engineering services, continued to expand rapidly in the first half of 2008, with revenue up 55% to 41.9 million. These figures reflect the subsidiary's successful commercial performance in 2007 (primarily projects at the Tripoli, Benghazi and Sebah airports in Libya, launched in 2007), as well as the start-up of work on projects won in 2008 (notably the project to develop the King Abdulaziz International Airport in Jeddah in Saudi Arabia). Aéroports de Paris Management, the airport management subsidiary with stakes in other airport companies, remains particularly buoyant with revenues up 40.7% to 5.9 million. This robust growth mainly reflects: 8 Aéroports de Paris' share. 9 At 30 June 2008, it was still too early to determine the impact of the gradual opening of shops at the new Terminal 2E boarding lounge between late March and late September Renamed Hub telecom Region on 15 May

10 - The half-year impact of contracts signed in 2007: a 25-year operating contract for the Queen Alia airport in Amman, Jordan (start-up in November 2007), and a management contract for the Hajj Terminal won in Jeddah, Saudi Arabia (start-up in September 2007); - The satisfactory performance of previous contracts: good business in Algeria and Egypt, to which part of the compensation of management contracts is indexed All of the information published today, 13 August 2008, can be viewed on our website: - Press release on first-half 2008 revenues: FR/Groupe/Finance/CommuniquePresseFinancier/juilletdecembre2008/juilletdecembre20 08.htm - Presentation of first-half 2008 revenues: FR/Groupe/Finance/Publications/resultatsetchiffresdaffaires/PublicationRapportActiviteDe v.htm A recording of the conference call will be available as of 12 pm (Paris time) on 13 August: - From France: Dial: + 33 (0) Enter access code: # - Outside of France: Dial: + 44 (0) Enter access code: # Upcoming events: First-half 2008 results: 29 August