NETHERLANDS. Schiphol Group this morning unveiled an impressive set of annual results for 2005 with its net result rising by +19.9% to €193 million.
All business areas contributed, the group said. See Buy Fly concession revenues per passenger rose fractionally to €3.72 from €3.71 in 2004.
The Consumers business area, which is responsible for operating concessions (airport shops plus food & beverage outlets), car parks and advertising plus e-business at Amsterdam Airport Schiphol, generated 21% of group revenues in 2005 and accounted for 40% of the operating result. The business area is also active outside the Netherlands.
Net revenue for this area was up +7.1% to €195 million with EBITDA rising +15.7% to €140 million. The operating result also rose sharply, up +17.9% to €125 million.
Schiphol Group commented: “The operating result of the Consumers business area was up by €19 million in 2005. Concession income from the See Buy Fly shops at Amsterdam Airport Schiphol rose by €3.4 million (+4.4%) to €81.4 million, this improvement being largely produced by the newly-opened outlets (including several specialty shops) in Departure Lounge 1, more competitive product pricing and the ‘Buy Bye’ marketing campaign.”
As a result, it said, See Buy Fly concession income per passenger showed a “fractional increase” over the year, from €3.71 to €3.72. Spending began to pick up in the closing months of the year in particular.
Income from the other concessions rose by €2.3 million, partly as a result of the introduction of new catering concepts and new concessions, including a car lottery, and an increase in the number of banking outlets at the airport.
Car parking revenue increased as a result of a longer average stay and increases of +3.3% in long-stay parking charges and +2.5% in short-stay charges. As a result, parking revenues per passenger, excluding transfer passengers, rose by +4.2%, from €2.61 in 2004 to €2.72 in 2005.
Advertising income rose by +14.6% to €10.6 million. The increase was largely attributable to making available new advertising space, for example on passenger bridges, making outdoor advertising more attractive. The take-up of both existing and new advertising space in the Amsterdam Airport Schiphol terminal also improved.
Investment on the part of the Consumers business area in 2005 totalled €16 million, mainly in new shops in Departure Lounge 1, the renovation of which was completed in 2005.
Summary of group results
– Net result, including capital gains on property: up +19.9% to €193 million
– Excluding capital gains on property, net result up +17.1% to €184 million;
– Operating result up +17.4% to € 311 million;
– EBITDA up +12.5% to €478 million;
– Earnings per share up +19.9% at €1,126
– Proposed dividend of €323 (2004: €271) per share.
Main business results
Passenger numbers: A +4.0% increase in passenger numbers at Amsterdam Airport Schiphol, Rotterdam Airport and Eindhoven Airport to 46.2 million, with Amsterdam Airport Schiphol handling 44.2 million passengers (+ 3.8%).
Security: A strong increase in the costs of security measures imposed by the government. These costs will be incorporated in future charges;
Commercial: See Buy Fly concession revenues up fractionally at €3.72 (2004: €3.71) per passenger;
Capital gains: €12 million capital gains on investment property (2004: €5 million)’
International activities: contributed €9.2 million to the net result (2004: €7.8 million).
Gerlach Cerfontaine, President & CEO of Schiphol Group commented: ‘We can look back on a successful year for Schiphol Group. Operationally, commercially and financially we performed better than in 2004.
“In 2006 we shall be building on these good results and it is likely that we shall see revenues of over €1 billion for the first time. We expect passenger numbers at Amsterdam Airport Schiphol, our main business, to increase to 46 million.
“We are preparing ourselves for the sale by the Dutch government of a minority interest in Schiphol Group, partially by means of a stock market flotation, partially with other shares being placed privately with institutional investors.”
More details soon.
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