Retail joint venture shines as Aéroports de Paris delivers strong revenue and profits growth in 2007 – 13/03/08
Source: ©The Moodie Report
By Martin Moodie
FRANCE. Aéroports de Paris’ (ADP) recent emphasis on driving commercial revenues continued to pay off last year as revenues from airport services increased +6.4% to €1,836.9 million in 2007.
ADP attributed the gain to robust passenger traffic growth, higher airport fees as of 1 April 2007 and strong growth in commercial revenues.
Overall group revenues rose by +10.4% to €2,292.4 million, easily outstripping a +4.7% passenger traffic increase, buoyed by robust retail and real-estate revenue growth of +9.1% and +10.5%, respectively.
Altogether, 7,442sq m of new retail areas were opened in 2007, bringing the total retail surface area in the Paris-Charles de Gaulle and Paris-Orly airports to 42,466sq m, up +21.1% compared to 2006.
ADP Chairman and CEO Pierre Graff: "The Group is in excellent health"
EBITDA increased by +11.7% to €726.5 million thanks to tight control over expenses while the gross margin improved to 39.6% in 2007 from 37.7% in 2006. Current operating income rose +8.6% to €462.7 million. The current operating margin also improved to 25.2% in 2007, from 24.7% in 2006.
The Société de Distribution Aéroportuaire (SDA) joint venture with Aelia* flourished. ‘Other activities’, which includes results from the alliance as well as subsidiaries, generated revenues of €326.9 million in 2007, up+44.4%, amid new store openings. EBITDA for this segment increased +16.8% to €35.7 million in 2007.
The contribution of SDA alone rose +151.6% to €10.4 million thanks to strong business throughout the year, in addition to a positive consolidation effect on revenues of +46.7%.
ADP Chairman and CEO Pierre Graff commented: "The Group’s performance improved strongly in 2007, buoyed by strong passenger traffic growth, robust retail and real-estate revenues and the rapid expansion of our subsidiaries’ business.
“The Group is in excellent health, confirming the pertinence of our strategy. We are confident in 2008 and have raised our 2010 EBITDA growth target to +60% (from the 2005 level), compared to our previous guidance of +45% to +50%, announced during our 2006 IPO."
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MORE STORIES ON AÉROPORTS DE PARIS
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Aelia alliance prospers as Aéroports de Paris posts robust 2007 figures for retail and F&B – 14/02/08
Aéroports de Paris anticipates record Chinese traffic – 06/02/08
Aéroports de Paris posts record passenger traffic – 21/01/08