GERMANY. Fraport total sales increased +14% to €1.8 billion (US$2.0 billion) and adjusted EBITDA exceeded €500 million (US$552 million) in financial year 2002.
Fraport said the major factors contributing to sales growth were the increase in airport charges at Frankfurt at the beginning of 2002, as well as continued good growth in retail revenues. Proceeds from retail and duty free shops increased by over +12% to €67.6 million (US$74.6 million). Another factor was the success at the now fully consolidated ICTS Europe subsidiary, a supplier of aviation security services.
Fraport made a complete write-down – in the context of its business caution and conservative balance sheet policy – on its financial investment in the T3 project at Manilia Ninoy Aquino International airport in the Philippines. This overshadowed positive results elsewhere in the operating business. Excluding the exceptional write-down for Manila, the 2002 EBITDA (earnings before income, tax, depreciation and amortization) of €500 million (US$552 million) almost reached the 2001 level.
Nevertheless, because of the exceptional effect of €290 million (US$320 million) resulting from the Manila write-down, Fraport had an annual net loss of €121 million (US$134 million) and retained earnings were zero after a release from capital reserves.
“In these difficult global economic and political times, we have achieved a precise landing and successful business results,” said Wilhelm Bender Fraport’s executive board chairman.
“Our Airport Expansion Plan will not be endangered by the Manila write-down or by the current traffic situation,” stressed Bender.
“After all, the long-term growth trend in passenger traffic always remained intact even after significant market incisions such as the Gulf war or terrorist attacks,” he said.
Fraport said it is currently assuming the 2002 passenger levels “will not be fully reached” in 2003.