Company Performance Highlights
EBITDA: €576 million, a record high, 18% higher than the previous year.
Group Revenues: Increased by 13% to over €2 billion in H1 2024.
Net Debt to EBITDA: Improved to 6.4 times.
Full-Year Guidance: Maintained, expecting to meet the lower half of traffic forecast and the midpoint of financial targets.
Key Takeaways
Recovery Rate: 85.5% in the first half of 2024 compared to 2019 levels.
Group Revenues: Up by 13% to over €2 billion.
Net Income: Nearly doubled from the previous year.
Porto Alegre Airport: Operations to restore from October onwards.
Company Outlook
Traffic Guidance: Lower half of the expected range for Frankfurt Airport passengers.
Financial Expectations: Midpoint for group EBITDA and group result.
Net Debt to EBITDA: Expected to remain stable.
Bearish Elements
Shopping and Service Revenues: Flat compared to 2019 levels.
Porto Alegre Airport: Closed due to flooding, resulting in revenue and EBITDA loss.
Bullish Elements
International Portfolio: Surpassing 2019 benchmarks.
Advertising Revenues: Catching up to 2019 levels.
Retail Revenues: On par with 2019, exceeding the previous year's second quarter by 3%.
Q&A Highlights
CFO Zieschang: Expects A320neo engines back and some Dreamliners delivered by 2025.
Lufthansa's Acquisition of Alitalia: Not expected to change traffic patterns.
Growth in International Portfolio: Solid fee increases and traffic growth contributing to 2025 EBITDA.
Dividends: Will be paid once free cash flow is consistently positive.
Financial Performance
EBITDA: €355 million in Q2 2024, roughly 10% above the previous year and 14% higher than 2019.
Operating Cash Flow: €359 million, sufficient for positive free cash flow in H1 without expansion CapEx.
Net Debt: Increased to €8.2 billion at the end of H1.
International Operations
Fraport Greece and Antalya: Continued strong performance.
Lima Airport: Encouraging development, exceeding 2019 levels.
Porto Alegre: Expected €100 million for restoration, blend of insurance coverage and local authority rebalancing.
Segment Analysis
Aviation: Revenues exceeded 2019 levels, driven by traffic recovery and higher airport charges.
Retail and Real Estate: Revenues and EBITDA above 2019 levels, with spend per passenger expected to outperform previous years.
Ground Handling: Improved cost coverage from higher passenger numbers expected.
International Activities: Strong performance despite challenges at Porto Alegre Airport.
Future Guidance
2024 Guidance: Specified within the initial ranges.
Traffic Forecast: Lower half of the guidance range for Frankfurt.
Financial Targets: Midpoint for group EBITDA and group result.
Operational Adjustments
Project Investments: Terminal 3 in Frankfurt and new midfield terminal in Lima.
CapEx Management: Focus on productivity and cost control, especially in ground handling.
In summary, Fraport AG has demonstrated a robust financial performance amidst challenges, maintaining a strategic outlook for continued recovery and growth, particularly in its international portfolio. The management remains focused on achieving its financial targets and efficiently managing operations.
