Fraport Group Interim Release - Nine Months 2019: Fraport Reports Solid Revenue and Earnings Performance

Frankfurt (ots) -

Growth momentum slowing down - Outlook for full year 2019 confirmed

Fraport AG continued its growth trend in the first nine months of the 2019
business year, achieving an increase in both revenue and earnings. This positive
performance was driven by solid traffic growth at Frankfurt Airport (FRA) and
the Fraport Group's airports worldwide. However, the growth momentum has been
slowing down during the year to date.

Fraport AG's executive board chairman, Dr. Stefan Schulte, said: "Our industry
is being impacted by the weaker global economy and consolidation of the European
aviation market. Furthermore, regulatory interventions by the German government
- such as the planned increase to the national air traffic tax - are also
affecting our sector. After a phase of rapid traffic growth, airlines are
cutting back their plans and thinning out their winter schedules. Nevertheless,
we are maintaining our full-year outlook for the 2019 business year - also
backed by the ongoing positive performance of our Group airports worldwide.
Thanks to Fraport's large and diversified portfolio of international airports,
we are well positioned for the future."

International activities boost growth in revenue and earnings

In the January-to-September 2019 period, Fraport's Group revenue increased by
12.0 percent to EUR2,852.2 million year-on-year. After adjusting for proceeds
related to expansion investments at the Group's airports worldwide (based on
IFRIC 12), revenue rose by 5.2 percent to EUR2,486.7 million. At Frankfurt
Airport, factors contributing to revenue growth included higher proceeds from
ground handling services, airport and infrastructure charges, as well as
security services. Retail, parking and advertising revenue also increased
significantly. However, Fraport's international portfolio clearly continued to
be the largest revenue driver. In particular, the Group company in Lima (up
EUR30.5 million), Fraport Greece (up EUR25.4 million) and Fraport USA (up
EUR21.8 million) contributed substantially to the Group's adjusted revenue
growth.

The operating result or Group EBITDA (earnings before interest, taxes,
depreciation and amortization) rose by 7.7 percent to EUR948.2 million in the
nine-month reporting period. The first-time application of IFRS 16 had a
positive effect on EBITDA, adding EUR34.0 million year-on-year. From the
beginning of January 2019, the mandatory IFRS 16 international financial
reporting standard establishes new rules for the accounting of leases -
specifically affecting the accounting of lease contracts concluded by Fraport
USA. At the same time, the application of IFRS 16 alone resulted in a EUR32.8
million increase in depreciation and amortization. Group EBIT saw a
correspondingly moderate rise of 2.6 percent to EUR595.3 million. The Group
result (or net profit) grew noticeably by 9.4 percent to EUR413.5 million. This
was due to the improved operating result, as well as the markedly higher
contribution from the Group subsidiary in Antalya, which is consolidated using
the at equity method.

Solid traffic performance achieved despite slowing growth momentum

Passenger traffic at Frankfurt Airport advanced by a solid 2.3 percent to about
54.2 million travelers during the first nine months of the year. This growth
momentum, however, decelerated noticeably over the course of the year. Based on
current planning by the airlines, FRA will see a four percent reduction in the
number of flights for the 2019/20 winter schedule (effective October 27)
compared to the same schedule in the previous year. This reduction is due
entirely to the 5.6 percent decline in European traffic, while scheduled
intercontinental flights will climb by nearly 2 percent.

Fraport's Group airports worldwide also saw passenger traffic largely increase
in the first nine months, despite some airlines reducing flight offerings or
even filing for bankruptcy. Only at the Fraport Twin Star airports of Varna and
Burgas, combined passenger traffic dropped noticeably by 11.6 percent
year-on-year.

Outlook confirmed

Fraport AG's executive board is maintaining its full-year traffic outlook for
Frankfurt Airport. Given the reduction in flight offerings for the current
winter schedule, FRA's passenger growth is expected to reach the lower end of
the forecast range of about 2 percent to 3 percent. The executive board is also
maintaining the financial outlook for the full 2019 business year. Group EBITDA
is expected to be reach between approximately EUR1,160 million and EUR1,195
million, while Group EBIT is forecast between about EUR685 million and EUR725
million. Group EBT is projected to be around EUR570 million to EUR615 million,
and the Group result (net profit) between approximately EUR420 million and
EUR460 million.

For further information about Fraport AG please click here: http://ots.de/7L590

Contact:
Fraport AG
Torben Beckmann
Corporate Communications
Media Relations
60547 Frankfurt, Germany

E-mail: t.beckmann@fraport.de

Facebook: www.facebook.com/FrankfurtAirport

Original-Content von: Fraport AG, übermittelt durch news aktuell