TAV increased net profit by 52% in nine months
TAV Airports Holding (ISE: TAVHL, “TAV”), the leading regional airport operator of Turkey, announced a net profit of EUR 174 million in first nine months of 2014, up by 52% compared to the previous year.
TAV Airports Holding Executive Board Member and CEO M. Sani Şener commented, “It has been 14 years since we started operations at Istanbul Ataturk Airport and during this time we have added 13 more airports to our portfolio which goes to show the dynamism of TAV Airports. The tradition of expanding our portfolio through the addition of new and profitable airport operations continues with Milas Bodrum Airport. In July 2014, we took over the operations of the domestic terminal in Milas Bodrum Airport. In October 2015, we are going to take over the international terminal, as well. We are going to serve our country and our shareholders by developing Milas Bodrum Airport to its maximum potential in the years to come.
Together with Aéroports de Paris we have formed the largest airport platform in the world. This platform provides a global network of know-how and business acumen which we will exploit to its fullest by finding and acting on the best airport development opportunities around the world. TAV takes a great pride in its ability to perform at maximum capacity in very diverse cultures and now we have taken this ability to a global level.
In December 2013 we had also added a minority stake in Zagreb Airport to our portfolio. Zagreb and Milas Bodrum together have contributed 4% to our passenger growth in the first nine months of 2014. The 14% passenger growth we have recorded would instead be 10% without inorganic growth.”
Sener added that the third quarter of 2014 was a great period for inorganic growth in TAV Airports’ service companies: “Offering our passengers more than 52 000 products with the ‘travel value’ concept, ATU Duty Free won tenders to operate duty free shops at five airports in Tunisia (including capital city of Carthage) and also in Salalah Airport in Oman. As a result, ATU will provide services at a total of 19 airports across seven countries. TAV Operation Services started to provide lounge services for Air France-KLM’s passengers at three airports in Germany. Now, passengers at Frankfurt, Munich and Stuttgart airports will have the chance to experience the exclusive services we provide under our brand ‘primeclass’. BTA began operating the food court area of a large shopping mall in Istanbul called ‘Uniq Istanbul’. Portfolio expansion through our service companies is going to be crucial in the years to come.”
Şener commented on the financial performance of the company in the first nine months as follows: “In first nine months of 2014, our revenues increased by 4% reaching EUR 720 million, while EBITDA came in at EUR 327 million with 9% growth. With strict cost discipline and strong operating leverage we managed to increase our EBITDA margin to 45.4%, the highest 9-month cumulative EBITDA margin we have had in our history. Net profit reached EUR 174 million and already surpassed last year’s full year net profit figure. Duty free completely recovered in Q3, Havaş’s profitability recovery continued as a result of the turnaround initiative. BTA grew significantly through Cakes & Bakes and the new logistics company. Izmir was soft due to new opex from the new domestic terminal, and Ankara’s revenues fell due to accounting changes.
Şener also underlined the strong corporate governance culture at TAV: “We strongly believe in good corporate citizenship and channel our business activities with a strong awareness of our contribution to society and effect on the environment. While we consistently take our place among the top few Turkish companies in corporate governance we now also have the honor of being included in the BIST Sustainability Index as one the 15 companies that have met the required ESG criteria. We believe that the index will serve to encourage and foster the responsible investment culture. Additionally, TAV has been placed among the 10 companies with the highest performance in CDP Turkey’s Climate Change Report. I would like to express my deepest gratitude to all TAV employees, our business partners, our clients, and to all of our social and economic stakeholders for their efforts and trust which has turned a Turkish company to a global player in only 14 years.”