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Fraport AG (FPRUF) Q3 2024 Earnings Call Highlights: Strong Revenue Growth Amidst Operational ...

In This Article:

  • Revenue: EUR1.35 billion, grew by more than 10%.

  • EBITDA: EUR1.05 billion, increased by about 10%.

  • Net Income: Group result increased by more than 20% to EUR434 million.

  • Operating Cash Flow: Increased by 22% to EUR896 million.

  • Free Cash Flow: Negative at minus EUR318 million, excluding expansion CapEx.

  • Net Debt: More than EUR8 billion at the end of the first nine months.

  • Passenger Recovery: Frankfurt at 86%-87% compared to 2019.

  • International Revenue Contribution: 47% of EBITDA from international operations.

  • CapEx: Expected to exceed EUR1.5 billion for fiscal year 2024.

  • Segment Revenue Growth: Retail and real estate segment grew by about EUR10 million.

  • International Segment Revenue: Grew by more than 30% to EUR511 million.

Release Date: November 05, 2024

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

Positive Points

  • Fraport AG (FPRUF) reported a revenue growth of over 10% in Q3 2024, with contributions equally from international operations and Frankfurt.

  • The company's EBITDA increased by about 10% year-to-date, aligning with full-year expectations.

  • International operations, particularly in Greece and Lima, showed strong performance, contributing significantly to the group's financial results.

  • The Terminal 3 project at Frankfurt Airport is progressing well, with approvals in place and expected operational readiness by 2026.

  • Fraport AG (FPRUF) is seeing positive developments in its international portfolio, with Lima and Antalya airports preparing for new infrastructure openings.

Negative Points

  • Passenger recovery at Frankfurt Airport is lagging behind other European hubs, with geopolitical issues and aircraft shortages impacting growth.

  • The German aviation tax increase is creating a competitive disadvantage for Frankfurt Airport compared to other European airports.

  • The ground handling segment continues to face financial challenges, with a negative EBITDA expected for the full year.

  • High wage inflation and increased operational costs are impacting the company's financial performance.

  • The temporary closure of Porto Alegre Airport has negatively affected the group's financial results, though compensations are expected.

Q & A Highlights

Q: Can you provide an update on the expected increase in tariffs and your traffic expectations for 2025? A: We anticipate a tariff increase between 5% and 9.5%, but not at the upper end. Discussions are ongoing, and we hope to provide an update in the next 4 to 5 weeks. For 2025, we expect traffic growth, but it will be modest due to factors like the German aviation tax and aircraft capacity issues at Lufthansa.