Schiphol Group: Net result for first half of 2009 declined by 76.6 % to EUR 22.4 million, Schiphol Group
Release Date: 2009-08-27
Causes: Drop in traffic and transport, restructuring provision, declining fair value property portfolio, impairment of contract-related assets and increase in financial expenses
Amsterdam Airport Schiphol, 27 August 2009
The net result reported by Schiphol Group for the first half of 2009 decreased by 76.6% compared with the corresponding period in 2008, from EUR 95.8 million to EUR 22.4 million.
Main causes:
the drop in traffic and transport volumes. The first half of 2009 saw 11.0% fewer passengers, 26.5% less cargo and 9.2% fewer air transport movements;
the inclusion of a provision of EUR 33.5 million for the organisational restructuring that was decided upon in early 2009, which measure should result in a 25% reduction in staff numbers at the Schiphol location by the end of 2010;
a decrease in the fair value of the property portfolio amounting to EUR 26,1 million (3.6% of its value). In the first half of 2008 there was a fair value gain of EUR 9.9 million;
an impairment of contract-related assets in the amount of EUR 6.3 million in connection with lower sales forecasts for alcohol and tobacco;
a EUR 31.0 million increase in net financial expenses due to a rise in interest-bearing debts in the second half of 2008, partly attributable to the distribution of a super dividend and the 8% cross participation in Aéroports de Paris (ADP).
Excluding the restructuring provision and the fair value loss on property, the net result reported by Schiphol Group decreased by 24.6%, from EUR 88.4 million to EUR 66.7 million.
Schiphol Group's revenue for the first half of 2009 of EUR 553.5 million was in line with the revenue for the same period last year of EUR 549.5 million.
The operating result declined by 54.2%, from EUR 137.2 million to EUR 62.9 million.
EBITDA declined by 30.8%, from EUR 221.9 million to EUR 153.6 million.
Earnings per share decreased by 78.5%, from EUR 559 to EUR 120.
Summary of main business results
The operating result of the Aviation business area declined by 33.5% to EUR 12.9 million. Operating expenses increased more shapply than revenues partly as a result of the restructuring provision being largely attributable to the aviation business area;
The Consumers business area saw its operating result decline by 42.4% to EUR 38.8 million, due to lower revenues from the See Buy Fly shops, concessions and parking, and the aforementioned impairment of contract-related assets;
Despite an increase in revenues from rents, the operating results of the Real Estate business area decreased by 78.2% to EUR 9.7 million due to the aformentioned decrease in the fair value of the property portfolio;
The international activities of the Alliances & Participations business area contributed EUR 12.1 million to the result before tax for Schiphol Group in the form of interest income and dividends (first half of 2008: EUR 9.7 million).
Jos Nijhuis, President & CEO of Schiphol Group, commented:
"The first half of 2009 was hard hit by the economic crisis. At Amsterdam Airport Schiphol this has resulted in an unprecedented drop in passenger and cargo transport volumes.
Schiphol started the year by streamlining corporate strategy with an eye to securing its main-port function on into the future. Specifically, this strategy centres on shaping the airport's vital societal role based on competitive, innovative and financially sound business operations. Of key importance in this respect is that we continue to pursue our current AirportCity concept.
In line with its reformulated strategy, the past several months have seen the launch of sector-wide marketing campaigns and a far-reaching reorganisation, as well as the introduction of additional cost-control measures. Together, these initiatives form a first step towards optimising our position as 'Europe's preferred airport'. Ultimately, Amsterdam Airport Schiphol is determined to carry on its role as a driving force in the Dutch economy. "
| Type: | NORMAL |
| Company: | Schiphol Group |
| Country: | Netherlands |
| Url: | http://www.schipholgroup.com/AboutUs/NewsMedia/PressreleaseItem/SchipholGroupNetResultForFirstHalfOf2009DeclinedBy76.6ToEUR22.4Million.htm |