TAV increased net profit by 60% in the first half
Consolidated net profit of TAV Airports reached EUR 85 million in the first half of 2014. The company increased passenger numbers by 13% compared to 2013.
TAV Airports Holding (ISE: TAVHL, “TAV”), the leading regional airport operator of Turkey, announced a net profit of EUR 85 million in first half of 2014, up by 60% compared to the previous year.
TAV Airports Holding CEO M. Sani Şener commented, “When we look at the projections on the future of aviation from various industry sources, we see without exception superior growth both inside and outside of our core geography. TAV Airports is changing gears to continue to take full advantage of this potential. We have come a long way and we have an even longer way to go.
In less than two decades we managed to create one of the strongest brands that Turkey has to offer to the rest of the world. We have become a regional powerhouse in airport operations and have formed the largest airport platform in the world through our partnership with Aéroports de Paris. Now, I believe, we have all the tools we need at our disposal to transform TAV Airports into the globally recognized brand it well deserves to be. I and the rest of the TAV Airports family are working very hard to make this happen.
While we are working on uncovering airport operations opportunities in new geographies, our service companies are also actively looking for and finding opportunities to diversify their businesses to new locations and to new business segments. In the coming years, we will see fresh business development opportunities both in airport operations and in our service companies, which will create new sources of growth and profitability.
In the first half of 2014, we achieved total passenger growth of 13%, while Istanbul’s international traffic grew at 11%. While we recorded revenue growth of 3%, EBITDA grew at an impressive 15% and reached EUR 183m. Our net profit grew even more strongly at 60% and reached EUR 85m. We owe the spectacular growth in our profitability, despite seemingly softer revenue growth, to our revenue and cost structure, where most of our revenues are labeled in hard currencies, while most of our costs are labeled in Turkish liras. Shop renovations in the duty free at the departures area in Istanbul and weak Turkish lira and rouble continued to put pressure on our retail revenues. Nevertheless, with the completion of shop renovations in April, we should expect normalization in retail performance in the coming quarters. Havas, also helped by the weak Turkish Lira, is continuing to reap the results of our turnaround strategy with its eye catching profitability.
While Izmir domestic operations have started in the largest domestic terminal in Turkey, proudly built by TAV Construction, starting from July 2014, we will also be serving domestic passengers in Milas Bodrum Airport. The full transition of Milas Bodrum Airport with its international passengers will take place in October 2015.
Our employees who have built this proud regional Turkish brand will be our primary asset in turning it into a global brand. I would like to thank them wholeheartedly for their invaluble efforts.”