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Fraport AG (FPRUF) (FY 2024) Earnings Call Highlights: Record EBITDA and Strategic Expansion ...

In This Article:

  • EBITDA: Achieved an all-time high of EUR1.3 billion.

  • Net Result: More than EUR500 million, close to the record level of 2018.

  • Passenger Traffic: Frankfurt at 87% recovery rate with a 3.7% increase; international portfolio fully recovered to 2019 levels.

  • Group Net Debt: Approximately EUR8.4 billion with a leverage ratio of 6.4 times.

  • Operating Cash Flow: EUR1.18 billion, a 37% increase from the previous year.

  • Free Cash Flow: Negative at minus EUR675 million due to expansion CapEx.

  • Retail Revenue: Expected increase of 50% by 2027 with Terminal 3 operations.

  • Average Cost of Debt: Expected to rise to a maximum of 3.5% in 2025.

  • Segment EBITDA - Aviation: Increased by more than 21% to EUR374 million.

  • Segment EBITDA - Retail and Real Estate: Slight growth to EUR375 million.

  • Segment EBITDA - International Activities: Strong growth driven by investments in Fraport Greece, Fraport USA, and Lima Airport.

  • Dividend Expectation: No dividend payment expected for 2025 financial year.

Release Date: March 18, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Fraport AG (FPRUF) achieved an all-time high EBITDA of EUR1.3 billion and a group result of more than EUR500 million, close to the record level of 2018.

  • The group airports outside of Frankfurt have fully recovered to 2019 levels on average, with significant growth in Greece and Peru.

  • Fraport AG (FPRUF) expects a turning point in Frankfurt traffic momentum, driven by new capacities and routes from airlines like Condor and EasyJet.

  • The company is on track with major expansion programs, including the new terminal at Lima Airport and the upcoming opening of a new terminal in Antalya.

  • Fraport AG (FPRUF) is implementing AI initiatives to increase operational efficiency and improve customer satisfaction at Frankfurt Airport.

Negative Points

  • Fraport AG (FPRUF) faces challenges from high location costs and continued low supply of aircraft, impacting traffic growth in Frankfurt.

  • The German aviation tax and increased security costs have made Germany one of the most expensive countries to operate, affecting competitiveness.

  • The company expects a flat to down group result for 2025 due to non-recurring gains from the previous year and ongoing financial pressures.

  • Ground handling remains a loss-making segment, with challenges in renewing the Lufthansa contract and improving financial stability.

  • Fraport AG (FPRUF) does not expect to pay a dividend for the 2025 financial year, focusing instead on reducing leverage.