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A shift towards transfer passengers in Istanbul has put pressure on TAV’s financials |
TURKEY. TAV Airports Holding has reported a +6% year-on-year increase in retail and catering revenue in Q1 2016, but said that duty free sales were flat in the period.
The company noting the “dilutive” effect of transfer passengers in Istanbul on the duty free business (ATU Duty Free, a 50:50 partnership with Gebr Heinemann). Despite a weak Turkish Lira, the positive impact of a newly established logistics company contributed to the retail and catering revenue result of €26.3 million, the airport company said.
Spend per passenger in duty free fell from €15.60 to €15.10, which was attributed to a softness in O&D passengers in Istanbul.
TAV Airports reported overall revenue growth of +2% to €231 million in the quarter, and posted €82 million in EBITDA – an increase of +4%.
“The first quarter is traditionally the weakest season for the aviation industry. This year, we had a very challenging start, mainly due to security concerns driven by increased geopolitical risks,” commented TAV Airports Holding Executive Board Member & CEO Sani Sener.
“Despite these, TAV Airports Holding realised +6% growth in passenger numbers year-on-year, while Istanbul Ataturk Airport enjoyed the same growth in international passengers.”
Sener said the first quarter results had been achieved despite the passenger mix shifting towards transfer passengers, which he said had put significant pressure on the company’s financials.
“In the future, we are going to keep to our ‘smart growth’ strategy and continue to balance growth with dividends,” he said.
“Going forward, we will focus on the organic growth of our existing airports portfolio and the enlargement of this portfolio by addition of new airport operation assets.
“The third pillar of our strategy is the vertical growth of our service companies. We will continue to seek value accretive potential opportunities across the world.”
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Positive outlook despite a weak Q1: TAV Airports Holding Executive Board Member & CEO Sani Sener |
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Istanbul Ataturk Airport posted a +6% growth in international passengers in the period |
