Largely on the strength of strong performance by its largest property, Frankfurt Airport (FRA), Fraport Group reported increases in both revenue and cargo throughput for 2017, according to a release of its year-end financial statement results.
FRA, the company’s major cash cow, has become Europe’s busiest airport in terms of volume; the hub accounted for 2.2 million metric tonnes cargo throughput, an increase of 3.8 percent from the year before, edging out rivals Amsterdam Schiphol and Paris Charles de Gaulle.
Fraport’s earnings before interest, depreciation, taxes and amortization (EBIDTA) was down by 4 percent, but this number shouldn’t be taken as a malignant diagnosis for the company, if we take into account some boosts in 2016 and some additional costs in 2017 that explain the decrease year-to-year.
In 2016, the company received compensation in connection with the Manila project and collected for the proceeds from the sale of shares in Thalita Trading Ltd., which inflated 2016’s EBIDTA. 2017, in contrast, saw some extra costs for the company, such as provisions for staff restructuring and depreciating assets, and amortization tied to FraSec and Airmal. Removing these somewhat unusual costs and infusions from the net results, the company reports the EBITDA increased by approximately 18 percent from 2016 to 2017, totaling about €150 million.
According to the preliminary figures from Airports Council International (ACI), airfreight volume rose by 7.9 percent, internationally, a wave that Fraport has done well in riding. Comparatively, Germany’s growth was 6.7 percent and Europe’s total growth up 8.7 percent. Fraport’s Leipzig/Halle, the second largest airport in Germany, moved about half as much cargo as FRA, with 1.1 million metric tonnes handled in 2017.
“Internationally, we achieved important milestones with the operational takeover of 14 Greek airports and the acquisition of two concessions in Brazil,” said Stefan Schulte, Fraport AG’s executive board chairman. “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.”