Fraport Group Interim Release - Third Quarter and Nine Months 2018: Fraport Continues on Growth Path

Frankfurt (ots) -

- Cross-reference: More information at:
http://www.presseportal.de/dokumente -

All Fraport Group airports report traffic growth - Revenue and
Group Result increase further - Outlook for full year 2018 confirmed

Fraport AG closed the first nine months of fiscal 2018 (ending
September 30) with a significant 14.3 percent increase in Group
revenue to EUR2.55 billion. Adjusting for revenue recognized in
connection with expenses for expansion projects at Fraport's Group
companies worldwide (according to the IFRIC 12 accounting standard),
revenue grew by 7.2 percent to EUR2.36 billion.

At the Group's Frankfurt Airport (FRA) home base, strong traffic
led to higher proceeds from airport charges and security services, as
well as increased parking revenue. With almost 53 million passengers
served (up 8.4 percent), FRA achieved a new record high in the first
nine months of 2018. Buoyed by strong passenger growth, airports in
Fraport's international portfolio also contributed positively to the
Group's increased revenue. In particular, major revenue
contributions came from the Group companies in Brazil (up EUR66.1
million) and Greece (up EUR49.8 million) - both figures adjusted by
IFRIC 12.

The operating result or Group EBITDA (earnings before interest,
taxes, depreciation and amortization) improved correspondingly by 9.0
percent to EUR880.4 million. Group EBIT rose by 7.4 percent to
EUR580.3 million. The Group result (net profit) jumped by 10.4
percent year-on-year to EUR377.8 million. Free cash flow contracted
from EUR388.0 million in the previous year to EUR82.2 million in the
reporting period. Factors contributing to this included higher
capital expenditure at FRA and the international Group companies, as
well as changes in net current assets.

Fraport AG's executive board chairman, Dr. Stefan Schulte, said:
"During the first nine months of 2018, our Group has continued on its
growth path. In particular, the airports in our international
portfolio have made major and ever increasing contributions to our
positive performance. Expansion projects launched in Greece, Brazil,
Lima, and at other Group airports will ensure that this growth trend
continues well into the future."

Referring to the Group's Frankfurt Airport global aviation hub,
CEO Schulte stated: "This year's strong growth has posed a challenge
to the entire aviation industry, including our Frankfurt home base
airport. All partners involved are working intensely to restore and
enhance punctuality and reliability in air traffic. At Frankfurt, we
have hired significantly more staff to achieve this goal.
Ultimately, this measure has had a negative impact on our financial
performance. At the same time, we are meeting further growth by
advancing our infrastructure expansion - with construction work for
Pier G and Terminal 3 well underway."

Fraport AG's executive board confirms the outlook for the current
2018 business year. Revenue, EBITDA and the Group result (net
profit) are expected to reach the upper level of the margins forecast
in the Fraport Annual Report 2017. Taking into account the
additional revenue gained from Fraport's sale of its stake in
Flughafen Hannover-Langenhagen GmbH, Fraport expects to exceed these
margins. The divestiture will have a positive impact of about EUR77
million on the Group result. In view of the ongoing strong passenger
growth at Frankfurt, Fraport AG's executive board revised the traffic
outlook for FRA upwards when issuing the 2018 half-year interim
report, to slightly over 69 million passengers for the full 2018
business year.

Overview of Fraport's Four Business Segments:

Aviation: Revenue in the Aviation business segment rose by 5.9
percent to EUR763.5 million in the first nine months of 2018.
Revenue growth at Frankfurt Airport was primarily driven by higher
proceeds from airport charges, resulting from increased passenger
traffic. Segment EBITDA soared by 15 percent to EUR231.5 million,
despite higher personnel expenses. Segment EBIT climbed by 11.7
percent to EUR127.0 million due to higher depreciation and
amortization, following an update of the useful life of assets as
part of modernization.

Retail & Real Estate: With EUR367.6 million, revenue in the
Retail & Real Estate business segment dropped by 6.7 percent
year-on-year. Significant lower proceeds from the sale of land
compared to last year were the main reason for the decline. In
addition, lower gains in the retail business also impacted the
segment's revenue in the first nine months. Net retail revenue per
passenger slipped by 10.6 percent year-on-year to EUR2.96. In
contrast, the parking business generated higher revenue. Segment
EBITDA increased slightly by 0.6 percent to EUR290.0 million, while
segment EBIT dropped by 0.9 percent to EUR223.6 million.

Ground Handling: In the first three quarters of 2018, revenue in
the Ground Handling business segment improved by 5.4 percent to
EUR508.8 million. This was mainly attributable to increased proceeds
from ground services. Due to strong traffic growth, personnel
expenses rose significantly. Correspondingly, segment EBITDA shrank
by 13.9 percent to EUR32.8 million, while segment EBIT markedly
contracted by EUR7.9 million to EUR0.6 million.

International Activities & Services: Revenue in the International
Activities & Services business segment soared by 43.8 percent to
EUR907.5 million in the first nine months of 2018. Adjusted by IFRIC
12, this segment posted 19.2 percent growth in revenue to EUR724.5
million. Major contributions came primarily from the Brazilian Group
companies in Fortaleza and Porto Alegre (up EUR66.1 million) and
Fraport Greece (up EUR49.8 million). Despite rising personnel
expenses and cost of materials, segment EBITDA rose significantly by
16.4 percent to EUR326.1 million. The segment EBIT improved by 19.1
percent to EUR229.1 million.

The complete Q3/9M 2018 Interim Release is available on Fraport
AG's website (http://ots.de/hHQbF9).

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