SWITZERLAND. Zürich Airport’s non-aviation revenue increased by +17.9% year-on-year in the first half of 2019 to CHF272.6 million (US$278.2 million), according to interim results.
This was primarily due to an increase in revenue from commercial operations and higher earnings from the international airport business. Excluding IFRIC12 (concession accounting), non-aviation revenues grew by +2.3%.
Commercial revenues climbed by +2.55% to CHF120.5 million (US$123 million) in the first half, and retail, tax and duty free income rose by +4.8% to CHF54.7 million (US$55.8 million). Revenue from food & beverage operations was up +2.25% to CHF9.1 million (US$9.3 million).
Passenger traffic grew +2.4% in the half, to 14.9 million. Zürich Airport’s total revenue jumped +8.8% to CHF588 million (US$600 million). EBITDA increased by +26.8% to CHF303.7 million (US$309.9 million). Factoring out the one-off effect in the prior-year period, EBITDA improved by +2.2%. EBITDA margin stood at 51.6% for the first half of 2019. Profit amounted to CHF143.4 million (US$146.3 million), up +10.1%.
Chairman of the Board of Directors Andreas Schmid and Chief Executive Officer Stephan Widrig said the rise in passenger numbers drove positive growth in airside revenues. “As well as the opening of a new Rolex boutique, structural changes to the eating facilities in the gate areas and various alterations were made as part of the new Hudson newsstand concept. Despite this construction work, the luxury goods segment encompassing watches, jewellery and accessories posted above-average growth. In particular, the targeted use of digital channels enabled the growing number of travellers from Asia to be directly informed about offerings at Zürich Airport ahead of their journey.
“Specifically, our airside partners were invited to present their products on Chinese channels and also to conduct any special sales promotions. Despite the impact of several remodelling projects during the first half of the year, revenues from the landside retail and café/restaurant segment rose by around +1%. Landside, our premium offering was strengthened with a Nespresso boutique plus the opening of a Globus Delicatessa and Globus Bar.”
Schmid and Widrig also gave an update on the progress of The Circle commercial complex, with topping-out of the project celebrated in March. “The building work is proceeding apace, and this new destination is on track to open in stages from mid-2020. Great progress has been made in attracting tenants, and the leasing situation is buoyant. Further rental contracts were signed during the first half of the year, including with Globus and the fast-growing management consulting firm Horváth & Partners.
“With its varied occupancy mix, The Circle will enrich the whole region, both culturally and economically. An 80,000sq m park is being created right next to it. This recreational space will put nature experiences centre stage and seek to achieve a balance between nature and recreational use by the park’s visitors. The park will be opened at the same time as The Circle.”
Looking ahead, Zürich Airport said it expected passenger growth of around +2% in 2019. Excluding one-off effects, EBITDA and profit for the 2019 financial year are expected to be higher than for the previous year. Investments in 2019 will be in the region of CHF350 million.
