Press Releases

Press Releases

TAV increased net profit by 28% in the first quarter

Consolidated net profit of TAV Airports reached €20 million in the first quarter of 2014. The company increased passenger numbers by 16% compared to 2013.

TAV Airports Holding (ISE: TAVHL, “TAV”), the leading regional airport operator of Turkey, announced a net profit of €20 million in first quarter of 2014, up by 28% compared to the previous year.

TAV Airports Holding President&CEO M. Sani Şener commented, “In the first quarter of 2014, our flagship, Istanbul Ataturk Airport was the second busiest airport in Europe. This is a well-deserved source of pride for us and just goes to show how far we have come both as a country and a company in less than two decades. With visionary macro policies and a very supportive environment for airport investments, we have changed the face of aviation in Turkey in close collaboration with the State Airports Authority (DHMI) and our airline clients led by Turkish Airlines. Turkey now boasts a top-tier aviation sector in the world with well respected brands and state of the art infrastructure.

What’s even more encouraging is the outlook for the future. According to DHMI, the total passenger traffic in Turkey is poised to double in the next 10 years. Eurocontrol, on the other hand projects 7% CAGR for Turkey over the course of the next seven years while Airbus expects 7% CAGR in Middle Eastern traffic growth. We have come a long way in fourteen years and we have a long way to go in the years coming ahead.

In line with these projections, we achieved a good set of passenger results in the first quarter of 2014.  Overall, passenger growth was 16% for TAV Airports, while Istanbul grew 12% in international passengers.

In the first quarter of 2014 our EBITDA grew 27% and reached €67m. Our net profit increased 28% and reached €20m. We achieved these results in an environment where shop  renovation  in the  duty free at the departures area in Istanbul and weak Turkish Lira and Ruble have put  significant pressure on our retail revenues.

At the end of 2013, we started implementing a turnaround strategy for Havas centered on better cost control, higher operational efficiency and revenue optimization. Based on this strategy, Havas financials visibly improved compared to 1Q13.

We completed the construction of the Izmir Adnan Menderes Domestic Terminal and opened it in March 2014. This terminal, being the largest domestic terminal in Turkey will serve the Aegean region well and boost tourism and business.

During the quarter, we won the tender for the lease of Milas-Bodrum airport and upon necessary approvals plan to operate it for 20 years.

I would like to thank all members of the TAV family for  always giving their best at what they do even in uncertain economic environments.”

KEY PERFORMANCE INDICATORS

 (in m€) 

1Q13*

1Q14*

∆ y-o-y 

Consolidated Revenue*

186

190

2%

EBITDA*

53

67

27%

EBITDA margin (%)

28.2%

35.2%

6.9 ppt

Net Profit

16

20

28%

Average number of employees*

13,085

13,425

3%

Number of passengers (m)

17.6

20.3

16%

- International

9.5

11.1

17%

- Domestic

8.1

9.2

14%

*:Revenue and EBITDA have been adjusted to reverse IFRIC 12.