Copenhagen Airport reports +2% shopping revenue increase in first half, below +3.1% passenger growth

DENMARK. Copenhagen Airports has reported a +2% year-on-year revenue increase from its shopping centre in the first six months of 2018, to DKK405 million (US$62.3 million).

That figure is below the +3.1% increase in passenger traffic at Copenhagen Airport in the period. A record 14.5 million travellers were handled, a factor considered one of the main drivers in the shopping centre revenue increase. An improved shop and brand mix and the addition of more units in connection with the expansion of the security checkpoint also contributed.

Source (all charts): Copenhagen Airports
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The restaurant segment made a significant contribution and was boosted by the addition of a new Lagkagehuset unit plus five new outlets. These have been opened both before and after the security checkpoint to serve the 60% of passengers who shop or eat before boarding. New units include Danish brands with international ambitions, such as Mikkeller, Wood Wood, Cock’s and Cows and Oh! By Kopenhagen Fur.

Speciality stores experienced a slight decline in revenue, which Copenhagen Airports attributed to the extensive rebuilding work taking place in connection with the expansion of Terminal 2.

The airport’s Tax Free store also experienced a slight drop in revenue, but it too has been undergoing renovation this year.

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Revenue from parking grew +10.6%. An amended price structure introduced in 2017 has helped to increase the average transaction value, Copenhagen Airports said.

Other concession revenue grew +8.5%, mainly because of continued growth in the airport’s advertising contract with Airmagine.

The record passenger growth contributed to a +0.5% increase in overall revenue, but pre-tax  profit, excluding one-off items, was DKK 710.7m (US$109.25m), down -6.2% on the same period in 2017. This was attributed to a reduction in charges from 1 April 2018, higher depreciation charges and higher staff costs.

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The airport, which is the largest in the Nordic countries, has inaugurated the first phase of its 4,000sq m airside expansion, which will accommodate new walking and seating areas as well as new shops and places to eat.

Long-haul, intercontinental routes were the main factor in the increase in passenger numbers, with a +9.2% increase primarily down to new routes, the airport said.

Cathay Pacific opened a direct route to Hong Kong, Air China to Beijing, and both Norwegian and Royal Jordanian Airlines started flying to the Jordanian capital, Amman. Copenhagen now has more than 40 direct routes to destinations outside Europe.

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Based on the expected traffic programme for 2018, a further increase in the total number of passengers is anticipated. Operating costs are expected to be higher than in 2017, primarily due to the expected rise in passenger numbers, stricter regulatory requirements and cost inflation, although the airport believes this will partly be offset by a continuing focus on operating cost efficiencies.

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