Schiphol Group commercial revenues dip by -14.9% in first half as net profits slide sharply – 27/08/09
Source: ©The Moodie Report
By Dermot Davitt
NETHERLANDS. Revenue at Schiphol Group’s Consumers Business Area – which covers key commercial activities, fell by -14.9% to €124.6 million in H1 2009, the company announced today. EBITDA for the division fell -28.5% to €57 million while the net operating result was down by -42.4% to €38.8 million.
The Consumers Business Area covers the operation of retailing and car parks, retail and food & beverage concession income, plus marketing and media at Amsterdam Airport Schiphol. It also covers activities outside the Netherlands, such as retail outlets operated by the group via management contracts.
Within the Consumers Business Area results, concession income dipped by -15.5% to €50.3 million, car parking was down by -12.1% to €37.6 million and spend per international departing passenger fell -4.6% to €15.22.
Due to lower than expected sales of liquor & tobacco, the group provided for “an impairment of contract-related assets” to the amount of €6.3 million in the half-year results.
For the group as a whole, revenue increased marginally (+0.7%) to €553.5 million as aviation revenues rose by +7.7%, despite an -11.2% fall in passenger traffic to 20.3 million. The revenue increase was due to higher airline tariffs in the first quarter of the year.
But net profit plunged -76.6% to €22.4 million due to the fall in traffic, group restructuring (which will result in a -25% reduction in staff levels by the end of 2010), a decrease in the fair value of the property portfolio, higher financial expenses and the impairment of contract-related assets connected to lower liquor & tobacco sales noted above. EBITDA declined by -30.8% to €153.6 million.
The group said it expected a net result for the year of between €40 million and €50 million.
Schiphol Group President & CEO Jos Nijhuis said: "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 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.
“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. "
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