Press Releases

Press Releases

TAV Airports Holding closed 2008 business year with “profit” despite financial crisis

TAV Airports Holding Inc. (ISE: TAVHL, “TAV”) announced 8.9 million TL (€4.7 million) net profit ¹ for the fiscal year ended December 31, 2008. Similarly, cash flow from operating activities reached €226.3 million during the year, the highest level in the company’s history.

TAV Airports Holding Inc. CEO M. Sani Şener commented as; “TAV Airports Holding has gone ahead with its organic and inorganic growth and reached outstanding growth numbers operationally and financially in 2008. We increased our consolidated revenue by 25% and increased our EBITDA by 129%. We are fully investing in the new businesses we have incorporated to our portfolio.

As we all know, TAV Airports is a success story about infrastructure industry. It is hard to announce profit for the companies having growth strategy in the first years of establishment. Considering our benefit to the economy, both our profit announcement and increasing our employee number by 19% together with our continuing investments, it is obvious that we have set the best examples for making rapid decisions in crisis atmosphere, effective communication between employees, and analytic management that is the only method for leading such a voluminous business. In these turbulent times, our company achieved 8.9 million TL (4.7 million Euros) consolidated net profit in 2008 without disrupting the passenger comfort and financial discipline especially by the high cash generation capacity of our existing businesses and operational leverage. This figure indicates the resilience of our businesses to external shocks.”

In 2008, our domestic and international operations maintained profitable growth. Last year the number of passengers using the airports operated by TAV increased by 4% and reached 36 million, while our flagship Istanbul Ataturk International Airport international terminal realized 8% growth. Similarly, average duty free spending per passenger improved to €15.4 from €14.8 a year ago.

By achieving financing of seven major international projects successfully, having a total sum of 1.8 million Euros, in the last five years, TAV Airports Holding has gained a high level of recognition in the industry and international markets, thus we actualize better financing structures and conditions by raising the bar in each our project. With its innovative business model predicated on the vertical and horizontal integration of airport infrastructure and services and business diversity, TAV Airports Holding shall maintain its growth and profitability.”

SUMMARY – FINANCIAL AND OPERATIONEL INFORMATION

 (in million €, unless stated otherwise)*

2008

2007

∆ y-o-y

2008** (Adjusted)

2007** (Adjusted)

∆ y-o-y

Revenues

597.7

479.0

25%

627.3

507.5

24%

EBITDA

111.2

48.5

129%

140.8

77.0

83%

EBITDA margin

18.6%

10.1%

-

22.4%

15.2%

-

EBITDAR

267.2

189.3

41%

296.8

217.8

36%

EBITDAR margin

44.7%

39.5%

-

47.3%

42.9%

-

Net Income (Loss)

4.7

(43.8)

n.m.

-

-

-

Cash flow from operations

226.3

13.4

n.m.

-

-

-

Capex

214.6

120.3

78%

-

-

-

Free Cash Flow

11.7

(106.9)

n.m.

-

-

-

Shareholders’ Equity

294.0

322.5

(9%)

-

-

-

Net Debt

785.0

678.4

16%

-

-

-

Average number of employees

11,289

9,473

19%

-

-

-

Number of passengers (million)

35.9

34.6

4%

-

-

-

- International

22.2

21.4

4%

-

-

-

- Domestic

13.7

13.2

4%

-

-

-

Duty free spend per pax (€)

15.4

14.8

4%

-

-

-

* Construction revenue and construction expenditure are excluded while computing the operational performance in the table.
** Figures are adjusted by including guaranteed passenger fee revenues from airports in Ankara and Izmir

Source:  TAV Airports Holding, DHMI, TAV Tunisie, Georgian Authority

About TAV Airports Holding


TAV Airports Holding is the leader airport operator in Turkey with a market share of 44% as per the DHMI 2008 passenger statistics. TAV Airports Holding operates Istanbul Atatürk Airport (one of the busiest airports in Europe), Ankara Esenboğa Domestic and International Terminals and Izmir Adnan Menderes Airport International Terminal in Turkey, and the Tbilisi and Batumi Airports in Georgia as well as the Monastir Habib Bourguiba International Airport in Tunisia. Furthermore, the Holding has been awarded the rights to operate the Gazipasa Airport in Antalya, the Enfidha-Hammamet Airport in Tunisia, the Alexander the Great Airport in capital Skopje and the St Paul the Apostle International Airport in Ohrid, in Macedonia. TAV Airports is also entitled optionally to operate the new cargo airport in Shtip, Macedonia, the construction of which it has undertaken. As of 3 March 2009, joint venture of TAV Holding and Skonto Buve LTD, a construction company headquartered in Latvia with a shareholding structure of 50% - 50% has been selected to operate SJSC Riga International Airport (for the infrastructure development and the operation of the airport).

TAV Airports operates in other branches of airport operations as well, such as duty free sales, food and beverage services, ground handling services, information technologies, security and operation services. TAV Airports serve 370,000 flights for approximately 300 airline companies and 36 million passengers on average per year.

As per 2008 figures, 61% of TAV Airport's consolidated revenues consisted of non-aviational revenues. Biggest contribution in revenues is from ATU which has a 50% partnership in TAV Airports and which operates duty free stores. TAV Airports Holding generated 598 million Euro consolidated revenues (turnover) according to 2008 financial tables prepared in compliance with the IFRS.

The company shares are listed in the Istanbul Stock Exchange since February 23, 2007, under the name of "TAVHL".