FRANKFURT/MAIN 29.05.2002 (PROTEXT) - For the first timesince the company's initial public offering last summer, FraportAG Frankfurt Airport Services Worldwide has issued a first-quarter interim report: Compared to the corresponding periodlast year, Fraport clearly increased consolidated revenues fromJanuary to March 2002 by 14.4 percent to EURO 401.7 million.Consolidated profits grew 166 percent to EURO 18.1 million.
The airport management company today said that it is verysatisfied with the first three months of the current year. Asignificant increase in revenues and a lowering of operatingcosts led to a clear improvement in results. The first- time fullconsolidation of ICTS Europe - the European market leader foraviation security services - contributed substantially to thepositive revenue development. Excluding this full consolidation,Fraport exceeded the prior year's revenues by 4.9 percent.
In addition, the increase in consolidated revenues resultedfrom an average increase of 3.2 percent in airport fees andcharges from central infrastructure for ground-handling serviceseffective January 1, 2002, as well as higher revenues fromaviation-specific security services. Once again, the retailingbusiness saw satisfying revenue development, growing by 10.4-percent to EURO 15.5 million.
For the first quarter of 2002, Group-wide passenger trafficdropped by only 3.0 percent to 13.5 million. Frankfurt Airport(FRA) - the company's most important location - received 10.5million passengers or 4.4 percent less than in the same periodlast year. From January 1 to May 20, Frankfurt Airport recordeda 4.1 percent decline in passenger traffic. Thus, the recovery inpassenger traffic continued following the strong drop in the lastquarter of last year.
Earnings before interest, tax, depreciation, and amortization(EBITDA) increased by 10.4 percent to EURO100.2 million, up fromEURO90.8 million in the same quarter of 2001. This increaseresulted from the positive revenue development along with the10.3 percent reduction in non-staff costs. Although there was a17.8 percent increase in personnel expenses due to the first-time consolidation of ICTS Europe, the positive revenuedevelopment and improved interest rates - resulting fromrepayment of bank loans - led to a strong 166.2 percent increasein consolidated profit to EURO 18.1 million. Earnings pershare, according to International Accounting Standards (IAS),were EURO 0.20 compared to EURO 0.11 for the previous year'squarter.
Comparing first-quarter year-on-year figures, the operatingcash flow nearly tripled to EURO 35.9 million. Above all, thiscan be attributed to lower advance interest and tax payments.
In the first quarter of 2002, Fraport invested EURO122.2million (2001: EURO 141.9 million). The most importantinvestments included EURO 69.2 million for acquiring theremaining 55 percent share of ICTS Europe on January 1, 2002.
Negotiations in connection with Fraport's activities in thePhilippine capital of Manila are ongoing. Up to May 15, 2002,there have not been any changes in Fraport's total exposure of$374.9 million. Not taking into account the open negotiatingpoints, construction of the new terminal is progressing onschedule and the terminal is expected to become operational atthe end of 2002. Fraport still expects the entire project to becompleted successfully.
In keeping with the medium and long-term traffic forecaststhat indicate high-growth potential for Frankfurt Airport,capacity expansion at FRA is the most important activity duringthe coming years. With Fraport AG's IPO last year, thefinancial basis for FRA's further development was laid.Preparations for airport expansion are running as scheduled.Fraport AG expects the responsible regional administrativedistrict to make its concluding planning decision (ROV regionalplanning procedure) shortly. This will be followed by the so-called project approval or zoning procedure (Planfest-stellungsverfahren).
Despite the relatively good development during the firstmonths of 2002, Fraport remains cautious in its traffic forecastand expects a slight decline in passenger volume for the entireyear versus 2001. Nevertheless, Fraport expects a clear increasein revenues in 2002. Taking into consideration the absence ofone-off gains in the previous year and a slight reduction inoperating costs, Fraport is forecasting the 2002 EBITDA to reacha similar level as last year.
ots Original Text Service: Fraport AG Internet:http://www.presseportal.de
For More Information, Please Contact: Fraport AG FrankfurtAirport Services Worldwide Attn: Robert A. Payne - ManagerInternational Press 60547 Frankfurt am Main, Germany Tel.: +49 69690 -78547 / Fax: +49 69 690 -60548 E-Mail: r.payne@fraport.deInternet: www.fraport.de (cllick on "Press Lounge")
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