Fraport Fiscal Year 2017: Strong Results Supported by Significant Traffic Growth at All Group Airports

Frankfurt (ots) - Targets for revenue and earnings fully reached -
Fraport's international business makes important contribution to
earnings

The Fraport Group can look back on a highly successful 2017 fiscal
year (ending December 31), in which revenue and earnings targets were
fully reached. Supported by significant traffic growth at all of the
Group's airports, revenue climbed by almost 13.5 percent to EUR2.93
billion. A major revenue contribution from the Greek airports (which
Fraport began operating in 2017) boosted the company's revenue by
EUR234.9 million.

Operating earnings (Group EBITDA) slipped slightly by 4.8 percent
to EUR1,003 million, due to lower other operating income. The main
reasons for the decrease were, in particular, positive one-time
effects in the corresponding period of 2016. Adjusting the previous
year's figures for the compensation payment received in connection
with the Manila project, for the proceeds from the sale of shares in
Thalita Trading Ltd., and for other extraordinary effects (provisions
for staff restructuring and depreciation and amortization tied to
FraSec and Airmall), EBITDA increased by approximately 18 percent or
about EUR150 million. The Group result (consolidated earnings) fell
by 10.1 percent to EUR360 million. However, compared to the
corresponding adjusted 2016 figure, there was a noticeable increase
of about EUR60 million - up more than 20 percent.

Dr. Stefan Schulte, Fraport AG's executive board chairman, said:
"In Frankfurt, the strategic decisions that we have taken are
allowing us to benefit from considerable market growth once again,
and we can look back on a very strong year indeed. Internationally,
we achieved important milestones with the operational takeover of 14
Greek airports and the acquisition of two concessions in Brazil.
With these developments, we are securing the Fraport Group's
long-term growth prospects, while diversifying our portfolio with a
broader and stronger foundation for the future."

The operating cash flow of EUR790.7 million in 2017 exceeded the
previous year's figure by 35.6 percent, particularly due to the
contribution from operations at Fraport Greece and the growth at
Frankfurt Airport. Correspondingly, the free cash flow rose markedly
by about 30.3 percent to EUR393.1 million.

Traffic growth achieved by all of the Group's airports provided
the basis for Fraport's strong business development in fiscal year
2017. Frankfurt Airport ended 2017 with a 6.1-percent gain in
traffic to more than 64.5 million passengers. In Fraport's
international business, the airports of Ljubljana (LJU), Varna (VAR)
and Burgas (BOJ), St. Petersburg (LED), Lima (LIM), and Xi'an (XIY)
each posted new annual passenger records. The 14 Greek regional
airports, which joined the Fraport Group in April 2017, welcomed a
total of 27.6 million passengers in 2017 - thus posting a new annual
record in combined passenger traffic. Following a difficult 2016,
Antalya Airport (AYT) on the Turkish Riviera registered renewed
growth with passenger traffic rising by 38.5 percent to more than
26.3 million passengers.

Fraport is expecting continued strong growth for the 2018 fiscal
year. At Frankfurt Airport, the company is forecasting annual
passenger volume ranging from about 67 million to 68.5 million.
Furthermore, the company expects overall positive development at its
airports outside of Germany. In particular, the airports in Antalya,
Lima, and Xi'an are expected to record high traffic volumes again
this year. Fraport expects its Brazilian airports in Fortaleza and
Porto Alegre, as well as the 14 Greek airports, to experience
single-digit growth rates, in the middle range.

Dr. Stefan Schulte explains: "In the current fiscal year,
Fraport's international business is focused on progressing with
various expansion and construction projects in Greece and Brazil, so
that we can increase capacity and enhance the travel experience of
our passengers. We are also continuing the demand-driven development
of infrastructure at Frankfurt Airport, and are on schedule with the
construction of Terminal 3. We plan to commence construction of Pier
G in the second half of 2018."

For the current fiscal year, Fraport is expecting consolidated
revenue to reach up to EUR3.1 billion (adjusted for effects of IFRIC
12). Group EBITDA is forecasted to be in the range of about EUR1.080
billion to approximately EUR1.110 billion, with consolidated EBIT of
about EUR690 million to about EUR720 million. The company also
expects to post a significantly higher Group result between about
EUR400 million and approximately EUR430 million. A corresponding
increase in the dividend for the 2018 fiscal year is anticipated.
The financial outlook also includes the two airports in Fortaleza and
Porto Alegre, Brazil. However, they will not yet make any significant
contribution to Group result.

The Executive Board and Supervisory Board will propose to the
Annual General Meeting (AGM) that last year's raised dividend remain
at the same level for the 2017 fiscal year - with distribution of
EUR1.50 per share once again.

Fraport's four business segments at a glance:

In the Aviation segment, revenue increased by 4.8 percent to
EUR954.1 million year-on-year in 2017. Positive factors at Frankfurt
Airport included passenger growth, the increase in airport charges
(as at January 1, 2017) by an average of 1.9 percent, as well as
higher revenue from security services. EBITDA rose by 14.5 percent to
EUR249.5 million year-on-year. This positive development in operating
results, along with significantly lower depreciation and amortization
(due to the impairment of goodwill related to the Group's company
FraSec in the amount of EUR22.4 million in 2016) led to a significant
87.1 percent increase in EBIT to EUR131.7 million.

The Retail and Real Estate segment posted revenue of EUR521.7
million in 2017, up 5.6 percent year-on-year. The positive revenue
development can be attributed to a variety of factors, including
passenger traffic and higher proceeds from the sale of land. Net
retail revenue per passenger decreased by 3.4 percent year-on-year to
EUR3.37. In addition to the depreciation of various currencies
against the euro - which led to reduced purchasing power - the
reasons for this decrease also included changes to the passenger mix
caused by a disproportionate increase in passenger numbers on
European routes. EBITDA increased by 2.6 percent to EUR377.5 million,
while EBIT climbed by 3.6 percent to EUR293.8 million.

The Ground Handling segment reported a slight 1.8 percent gain in
revenue to EUR641.9 million in 2017. This is due mainly to increased
revenue from ground services thanks to traffic growth at Frankfurt
Airport. EBITDA increased by 48.1 percent to EUR51.4 million, mainly
resulting from lower additions to the provisions for the staff
restructuring program. There was a corresponding increase in EBIT,
which rose by EUR17.1 million to EUR11.6 million following a loss of
EUR5.5 million in 2016.

The International Activities and Services segment achieved revenue
of EUR817.1 million in 2017, representing a 48.1 percent jump
year-on-year. Revenue growth was driven mainly by the Group companies
Fraport Greece (+EUR234.9 million), Lima (+EUR19.9 million) and
Fraport Slovenija (+EUR5.7 million). Revenue included EUR41.7 million
in connection with the application of IFRIC 12 (previous year:
EUR19.9 million). The segment's other income decreased significantly
due to the compensation payment received in the previous year from
the Manila project (-EUR241.2 million) as well as the gains from the
sale of shares in Thalita Trading Ltd. (-EUR40.1 million). EBITDA
dropped by 25.1 percent to EUR324.8 million, due primarily to a
decrease in other income. Higher depreciation and amortization, in
particular in connection with Fraport Greece, led to segment EBIT of
EUR205.9 million (-40.4 percent). Adjusting for the one-time effects
mentioned above during the corresponding period in 2016, EBITDA and
EBIT for this segment rose by EUR122.3 million (+60.4 percent) and
EUR84.3 million (+69.3 percent), respectively.

Visit our Fraport AG website to view and download our Annual
Report 2017.

For further information about Fraport AG please click here:
http://ots.de/7L590

Contact:
Fraport AG
Torben Beckmann
Corporate Communications
Media Relations
60547 Frankfurt, Germany
E-mail: t.beckmann@fraport.de
Facebook: www.facebook.com/FrankfurtAirport

Original-Content von: Fraport AG, übermittelt durch news aktuell