In the first six months of fiscal year 2008 the Fraport Group registered sales revenue of €1,044.5 million, 7.1 percent below last year’s first half, which benefited from special effects. Adjusted for these effects, however, sales revenue jumped by a noticeable 5.8 percent. At the same time, EBITDA (earnings before interest, taxes, depreciation and amortization) in the first two quarters of 2008 rose by 4.5 percent to €285.4 million; the adjusted EBITDA advanced by 2.4 percent. Group profit in the first half of 2008 reached €93 million, 9.5 percent short of the previous year’s level due to higher interest expenses. The undiluted profit per share slipped from €1.12 to €1.01. 

From January through June 2008, Fraport recorded 26,262,754 passengers at Frankfurt Airport, 2.2 percent more than in the first six months of 2007. At Fraport’s majority-owned airports (Frankfurt, Frankfurt-Hahn, Antalya, Lima, Burgas and Varna), the number of passengers climbed by 3.7 percent to 36,624,192 in the first half of 2008.  Also in the reporting period the Group’s cargo (airfreight + airmail) throughput surged 6.1 percent year-on-year to 1,250,146 metric tons.

The lower sales revenue was due to a loss of €79.6 million in revenue because of Fraport’s sale of its ICTS Europe security subsidiary on April 1, 2008, and to revenue of €57.6 million received last year in connection with the Airrail Center finance lease. Adjusted for these two special effects, Group profits rose by 5.8 percent. In particular, this increase can be attributed to the first-time full consolidation since August 2007 of Lima Airport (up €42.7 million). At Frankfurt Airport, higher revenue was achieved especially from additional business in the Retail and Properties segment.

Operating expenses dropped by 8.7 percent to €813.1 million in the reporting period. Adjusted for the aforementioned special effects, operating expenses were up by eight percent year-on-year. This rise can also be primarily attributed to the first-time full consolidation of Fraport’s Peruvian investment in Lima (up €30.6 million).

Personnel expenses sank by 9.9 percent to €495.1 million due to the sale of ICTS Europe in the first half of 2008.   Adjusted, personnel expenses grew under-proportionately by 3.6 percent compared to the same period last year – despite the rise in personnel figures and the newly negotiated collective pay settlement.

Non-staff costs declined from €340.6 million in the first half of 2007 to €318 million in the first half of 2008 due to the previously mentioned special effects. On an adjusted basis, non-staff costs increased by 15.8 percent. 

The personnel expense ratio of 47.4 percent was one percentage point below the adjusted 2007 figure, while the  non-staff cost ratio of 30.4 percent was 2.6 percentage points above.

EBITDA in half-year comparison grew by 4.5 percent to €285.4 million. The EBITDA margin of 27.3 percent exceeded the previous year’s figure by three percentage points. Adjusted for the special effects, EBITDA rose by 2.4 percent or €6.5 million over the adjusted half-year period in 2007 to €275.4 million. The financial result deteriorated noticeably from minus €4.1 million in the comparable period last year to minus €48.7 million in the reporting period. This deterioration was mainly due to a strong increase in interest expenses: resulting primarily from interest cost compounded on Fraport’s long-term liabilities for the concession payable to operate Antalya, the liabilities in connection with the framework agreement signed with Celanese AG/Ticona GmbH, and from increased capital investments.

For the entire business year 2008, Fraport expects the pending payment of €41.9 million under the German federal government’s investment guarantee for capital investments abroad (GKA) in connection with Fraport’s engagement in Manila to have a positive impact on Group profits. However, when adjusted for this amount, Group profit will fall below the previous year’s level. In contrast to previous expectations, Fraport’s Aviation segment will achieve revenue growth due to increased security standards and stronger demand for security services.  In contrast, the unexpectedly high collective pay settlement will have a negative impact on the results of the personnel-intensive Ground-handling segment. Fraport expects results to advance for the Retail and Properties segment. The External Activities segment will develop according to plan. However, profits could be curbed due to the weak U.S. dollar.

Despite the aforementioned changes, Fraport remains steadfast in its forecast  to raise Group EBITDA above the 2007 figure.  Likewise, revenue – adjusted for the one-time Airrail Center finance leasing effect and the de-consolidation of ICTS Europe – is expected to exceed the previous year’s level.