Double-digit rise in duty free revenue buoys Turkish group TAV Airports’ performance in 2008 – 02/04/09

Istanbul Atatürk Airport, where TAV Airports generated €16.50 per passenger in duty free spend

TURKEY. TAV Airports Holding posted a +10% surge in duty free revenues across its operations in 2008 (year ended 31 December) compared to 2007, with the figure hitting €148.7 million. The group’s subsidiary ATÜ Duty Free operates the key retail concessions at a number of leading Turkish airports, including Istanbul Atatürk, in partnership with Unifree, the company in which Gebr Heinemann is a leading shareholder.

Average duty free spend per passenger increased +4%, from €14.80 in 2007 to €15.40 in 2008. Per passenger spend averaged €16.50 (2007: €16.00) at Istanbul, €11.60 at Izmir Adnan Menderes (2007: €11.60) and €13.40 at Ankara Esenboğa airports (2007: €11.60).

Strong performance: How TAV Airports’ revenue breaks down in 2008 compared to 2007

Commission from the sale of duty free goods (the fee paid by concessionaire ATÜ to TAV Airports) increased by +19% from €60.8 million in 2007 to €72.7 million in 2008. The commission paid by ATÜ to TAV Istanbul is around 43% of sales at Istanbul. The commission paid by ATÜ to TAV Esenboğa and TAV Izmir is 40% of duty free sales at these airports.

TAV Airports’ food & beverage service income (principally through revenue from its BTA catering subsidiary) increased by +15% from €31.7 million in 2007 to €36.4 million in 2008. The increase mainly reflects an increase in per passenger spend and an improvement in BTA’s Cakes & Bakes operations.

The breakdown of income by activity underlines the solid year-on-year performance

Other operating income increased by +18% from €88.5 million in 2007 to €104.4 million in 2008. The increase principally reflects an increase in income from CIP lounge services, income from car parking operations and bus services income. Overall, 61% of TAV Airports’ revenues in 2008 came from non-aviation sources.

TAV Airports Holding posted net profits of €4.7 million for the financial year, following a loss of €43.8 million a year earlier. Revenues rose by +25% to €597.7 million. EBITDA was €111.2 million, up +129%.

Duty free spends increased at the company’s key Turkish locations

Passenger numbers across the group’s airports rose by +4% to 35.9 million, with international passengers also increasing +4% to 22.2 million. International passenger traffic at Istanbul, including transit passengers, rose by +8% year-on-year to 15.9 million.

TAV Airports Holding CEO Sani Şener said: “TAV Airports Holding has gone ahead with its organic and inorganic growth and reached outstanding growth numbers operationally and financially in 2008.

TAV Airports was profiled in the September 2008 issue of The Moodie Report Digital Print Edition

“TAV Airports is a success story in the infrastructure industry. In these turbulent times, our company achieved €4.7 million consolidated net profit in 2008 without disrupting passenger comfort and financial discipline, thanks to the high cash generation capacity of our existing businesses and operational leverage. This figure indicates the resilience of our businesses to external shocks.”

About TAV Airports Holding

TAV Airports Holding is the leading airport operator in Turkey with a market share of 44% (according to civil aviation authority DHMI’s 2008 passenger statistics). TAV Airports Holding operates Istanbul Atatürk Airport (one of the busiest airports in Europe), Ankara Esenboğa Domestic and International Terminals and Izmir Adnan Menderes Airport International Terminal in Turkey, and Tbilisi and Batumi Airports in Georgia as well as Monastir Habib Bourguiba International Airport in Tunisia.

TAV Airports has also been awarded the rights to operate Gazipasa Airport in Antalya, Enfidha Zine Abidine Ben Ali Airport in Tunisia, and in Macedonia it has the rights to operate Alexander the Great Airport in the capital Skopje and St Paul the Apostle International Airport in Ohrid.


TAV Airports Holding and Latvian partner capture contract to operate Riga International Airport – 03/03/09


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