TAV Airports announces €227 m in revenues in 1Q
TAV Airports served 22.3 million passengers and posted consolidated revenue of € 227 m in the First Quarter of 2017.
TAV Airports Holding (BIST: TAVHL, “TAV”), a global player in airport operations, announced its First Quarter 2017 EBITDA of EUR77 million and revenue of EUR227 million.
TAV Airports Holding Executive Board Member & CEO Sani Sener stated “2017 started in line with our initial expectations. Adverse weather conditions in January along with the leap year effect impacted both Origin & Destination and transfer passenger figures of Istanbul Ataturk Airport. We have observed that the negative momentum slowed down in March. Hence, our consolidated revenue declined 2% with an overall passenger decline of 2%, despite strong growth in our foreign airports. The rest of the year should be relatively stronger, as the first quarter is the weakest in aviation industry and we still expect to close the year with a four to five percent increase in total passengers. Airlines announcements on passenger numbers fort he summer season and the rest of year confirms our expectations.
Opex excluding depreciation and concession & rent expenses decreased by 7%, due to weak TRY vs EUR during the quarter, which was reflected in 1% decline in EBITDAR. The decrease in EBITDA was more, due to increased TAV Istanbul rent in EUR, which was caused by amortization schedule of rent payments, despite no change in cash payment in USD terms; as well as lower net income contribution from Medinah, due to the doubling of the rent, with the end of the grace period of two years following the completion of the new terminal.
Net profit was negatively affected by higher depreciation expense, mainly due to TAV Istanbul and increased deferred tax expense with TRY depreciation against EUR. Our guidance for significant increase in net income for the full year remains intact.
We distributed TL 247 million of dividends in March, in line with our 50% payout policy. In 2017, we have reached an agreement with Saudi Arabian Civil Aviation Authority (GACA) regarding Yanbu, Qassim and Hail Airports. Our aim is to replicate the success of Medinah Airport.
I would like to thank all our shareholders, business partners and employees for their trust in and dedicated efforts for the TAV Airports brand.“
*Adjusted for IFRIC 12 except net profit.