Fraport 2018 Fiscal Year: Revenue and Earnings Increase Significantly

Frankfurt (ots) -

- Cross reference: Press release is available at
http://www.presseportal.de/dokumente -

- Boards propose dividend increase to EUR2
- Outlook remains positive

In the 2018 fiscal year (ending December 31), Fraport AG continued
on its growth path, achieving new records in revenue and earnings.
Supported by strong passenger growth at its Frankfurt Airport home
base and its Group airports worldwide, revenue climbed by 18.5
percent to nearly EUR3.5 billion. After adjusting for revenue related
to capital expenditure for expansion measures at the international
Group companies (based on IFRIC 12), revenue rose 7.8 percent to over
EUR3.1 billion. About two-thirds of this increase can be attributed
to Fraport's international portfolio - with the airports in Brazil
and Greece, in particular, making a significant contribution.

Fraport AG's executive board chairman Dr. Stefan Schulte said: "We
are pleased to look back on another very successful year, especially
for our Group airports around the world. Here in Frankfurt, however,
2018 presented challenges due to the constraints in European airspace
and the strong traffic demand. For the medium and long term, we are
very well positioned both at Frankfurt Airport and in our
international business. Moreover, we are laying the foundations for
further long-term growth by implementing our expansion projects."

Revenue and earnings targets achieved

The operating result (Group EBITDA) climbed markedly by 12.5
percent to over EUR1.1 billion. The Group result (net profit) rose
even stronger, by 40 percent to EUR505.7 million. This includes
earnings gained from the sale of Fraport's stake in Hanover Airport,
which contributed EUR75.9 million. However, even without the positive
effects from the Hanover transaction, Fraport already achieved its
revenue and earnings targets. Operating cash flow slightly dipped by
2.0 percent to EUR802.3 million. This was mainly due to changes in
the net current assets related to the reporting date. After adjusting
for these changes, operating cash flow rose by 18.8 percent to
EUR844.9 million. In line with expectations, free cash flow fell
sharply by 98.3 percent, because of more extensive capital
expenditure for Frankfurt Airport and Fraport's international
business, while remaining in positive territory at EUR6.8 million.

Given the positive business development, the Executive Board and
Supervisory Board will propose to the Annual General Meeting that the
dividend be raised to EUR2.00 per share for the 2018 fiscal year
(2017 fiscal year: EUR1.50 per share).

Passenger traffic rises noticeably at FRA and internationally

Serving some 69.5 million passengers, Frankfurt Airport (FRA)
achieved a new passenger record in 2018 and growth of 7.8 percent
compared to 2017.

CEO Schulte commented: "We are pleased that the airlines have
significantly expanded their flight offerings at Frankfurt Airport
for the second year in a row, thus improving connectivity and
prosperity for businesses far beyond the Frankfurt Rhine-Main Region.
Until the first pier of the new Terminal 3 opens in late 2021, we
will focus on maintaining a high level of service quality at
Frankfurt Airport - while dealing with the constraints affecting the
entire aviation industry. In particular, enhancing the situation at
the security checkpoints will be a top priority for us."

In response to strong passenger growth, Fraport hired over 3,000
new staff members at Frankfurt Airport in 2018. Despite the
constraints experienced at some central process points in the
terminals during peak periods - particularly at the security
checkpoints - global satisfaction of passengers with Frankfurt
Airport was at 86 percent in 2018 - thus even posting a slight
increase compared to the previous year (2017: 85 percent). To provide
additional space for security checkpoints, Fraport is investing in an
extension to Terminal 1 for installing seven extra security lanes in
the summer of 2019.

Fraport's international portfolio also posted a significant gain
in passenger traffic during 2018. In Brazil, the two airports of
Porto Alegre and Fortaleza reported a 7.0 percent increase to 14.9
million passengers in 2018 - Fraport Brasil's first year of operating
these airports. At the 14 Greek airports, traffic rose by almost 9
percent to 29.9 million passengers. Antalya Airport in Turkey grew by
a significant 22.5 percent to 32.3 million travelers, a new historic
passenger record.

Outlook: Growth expected to continue

Fraport is forecasting sustained growth at all of the Group
airports in fiscal year 2019. At Frankfurt Airport, passenger volume
is expected to rise between around two and roughly three percent.

Fraport expects consolidated revenue to increase slightly up to
around EUR3.2 billion (adjusted for IFRIC 12). Group EBITDA is
expected to reach a range of around EUR1,160 million and
approximately EUR1,195 million, despite the non-recurring revenue
from the sale of Fraport's stake in Hanover Airport. The application
of the IFRS 16 accounting standard - which changes the accounting
rules for leases - will not only make a positive contribution to
Group EBITDA, but will also lead to much higher depreciation and
amortization in fiscal year 2019. As a result, Fraport expects Group
EBIT to be in the range of about EUR685 million and around EUR725
million. The company also expects to post a Group result (net profit)
of around EUR420 million and about EUR460 million. The dividend per
share is expected to remain stable at the higher level of EUR2 for
the 2019 fiscal year.

Fraport's four business segments at a glance

Revenue in the Aviation segment increased by 5.5 percent to
slightly over EUR1 billion. This was due partly to higher revenue
from airport charges resulting from increased passenger traffic at
Frankfurt Airport. At EUR277.8 million, segment EBITDA increased by
11.3 percent year-on-year, while segment EBIT rose 6.5 percent to
EUR138.2 million.

Revenue from the Retail & Real Estate segment dropped 2.8 percent
year-on-year to EUR507.2 million. A major reason for this drop was
significantly fewer proceeds from the sale of land (EUR1.9 million in
the 2018 fiscal year versus EUR22.9 million for the same period in
2017). In contrast, parking income (+ EUR8.3 million) and retail
revenue (+ EUR0.8 million) grew. Net retail revenue per passenger
fell 7.4 percent year-on-year to EUR3.12. Segment EBITDA increased by
3.4 percent to EUR390.2 million, while segment EBIT climbed 2.8
percent to EUR302.0 million.

Revenue in the Ground Handling segment rose by 5.0 percent
year-on-year to EUR673.8 million. The strong growth in passenger
traffic resulted, in particular, in stronger revenue from ground
services and higher infrastructure charges. On the other hand,
passenger growth also led to higher personnel expenses at the
FraGround and FraCareS subsidiaries. Accordingly, segment EBITDA
declined by EUR7.0 million to EUR44.4 million. Segment EBIT dropped
considerably by 94 percent, but at EUR0.7 million still remained in
positive territory.

At nearly EUR1.3 billion, the International Activities and
Services segment significantly advanced by 58 percent compared to the
previous year. After adjusting for the EUR359.5 million in revenue
related to IFRIC 12, the segment's revenue rose by 20.1 percent to
EUR931.4 million. This revenue growth received major contributions
from the Group subsidiaries in Fortaleza and Porto Alegre (+ EUR90.9
million), as well as Fraport Greece (+ EUR53.2 million). Segment
EBITDA increased a noticeable 28.3 percent to EUR416.6 million, while
segment EBIT jumped 40.7 percent to EUR289.6 million.

You can find our 2018 Annual Report (http://ots.de/byEv1V) and the
presentation from the press conference on our financial statements
(http://ots.de/BrZ4lr) (as of 10:30 a.m.) on the Fraport AG website.

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