NETHERLANDS. Schiphol Group today posted a strong 2006 performance for its Consumers business, despite the sharply negative impact of the recent aviation security crisis.
The Dutch airport company’s Consumers business division is responsible for the granting of concessions for airport shopping and cafe, bar and restaurant facilities, operation of car parks and the marketing of advertising opportunities at Amsterdam Airport Schiphol. The Consumers business area also has retail management contracts outside the Netherlands, including Sweden.
In 2006, the business area accounted for 22% of Schiphol Group’s revenues and 43% of the operating result.
Revenues generated by Consumers were up +11.2% in 2006 to €231 million, with concession income making the biggest contribution, followed by parking fees. The strongest revenue growth was seen in advertising. Thanks to several new contracts and major campaigns by financial institutions, advertising income increased +29% to €13.7 million.
The group said: “The increase in concession income was attributable to growth in passenger numbers, a higher average spend per passenger and an increase in the average level of concession fees. Car parking revenue was lifted by the increased attractiveness of long-stay parking at Amsterdam Airport Schiphol due to the introduction of the Smart Parking online booking product and higher charges for short-stay parking.
“The liquids & gels ban in response to the foiled terrorist attacks in London on 10 August 2006 had the effect of depressing overall concession income by €1.5 million. However, effective marketing campaigns and the introduction of the gate delivery service minimised the impact, and concession revenue for the whole of 2006 was in fact up by +7.7%.”
Concession revenues from the “˜See Buy Fly’ shops per departing passenger on international flights, rose fractionally from €3.68 to €3.75. This was partly attributable to the opening of new shops, such as Rolex, Swatch and Montblanc. Car parking revenues per passenger rose by +2.2% to €2.78.
As reported, at the end of 2006 agreement was reached with long-time concessionaire KLM for Schiphol Group to take over the operation of the liquor and tobacco retail activities in the See Buy Fly area, previously operated by KLM, with effect from 3 January 2007. In connection with this agreement a new company, Schiphol Airport Retail BV, was established for the independent operation of airport shops. From 2007, these retail operations activities are part of the Consumers business area.
“Taking over these activities is in line with the strategy of expanding non-aviation activities,” the group said.
CEO Gerlach Cerfontaine said: “We can look back with satisfaction on 2006 as a year in which we exceeded our published financial forecasts. Amsterdam Airport Schiphol maintained its position as one of the four most important airports in Europe. Once again, our unique AirportCity formula proved its worth, with Consumers and Real Estate together contributing 75% of the company’s operating result.”
Summary of Schiphol Group main business results
– A +4.6% increase in passenger numbers at Amsterdam Airport Schiphol, Rotterdam Airport and Eindhoven Airport to 48.3 million, with 46.1 million passengers passing through Amsterdam Airport Schiphol (+4.3%)
– Return on Aviation business considerably lower, owing to higher costs and one-off environmental contributions
– Concession revenues generated by the Consumers business area +7.7% higher at €120 million despite depressed sales following liquids & gels ban
– International activities contribute €10 million to result after tax (2005: €6 million)
– Result after tax, excluding fair value gains on the property portfolio and excluding non-recurring income from finalisation of opening balance sheet for tax purposes, up by +7.2% to €198 million – ahead of financial target
– Revenue topping €1 billion for the first time, up +9.4% to €1,037 million
– Operating result up +1.7% at €316 million
– EBITDA, at €478 million, almost unchanged compared with 2005
– Low return on regulated aviation activities amply compensated by Consumers and Real Estate – the strength of the AirportCity formula
MORE STORIES ON AMSTERDAM SCHIPHOL AIRPORT
New Dutch government shelves Schiphol Group IPO – 08/02/07
Schiphol takeover of liquor & tobacco from KLM Tax Free completed – 12/01/07
Schiphol reports +4.3% passenger increase in 2006 and outlines plans for further growth – 05/01/07
Aelia and Schiphol Airport pledge €50,000 each to Aviation Security campaign – 20/12/06
Catherine Saurais and Schiphol Airport join ACI Business & Trinity Forum line-up – 15/12/06
