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Fraport AG FY16 Profit Rises, Revenue Down 0.5%; Proposes To Increase Dividend

Fraport AG (FRA.DE,0O1R.L,FPRUF.PK) reported that its fiscal 2016 Group result (net profit) increased by 34.8 percent to 400.3 million euros from 297.0 million euros, last year. Fraport noted that, without the special items and unscheduled depreciation and amortization, fiscal 2016 Group result would only have reached about 296 million euros. Profit to shareholders was 375.4 million euros compared to 276.5 million euros, prior year. Basic earnings per share was 4.07 euros compared to 3.00 euros.

The Group's operating profit or EBITDA (earnings before interest, taxes, depreciation, and amortization) advanced by 24.2 percent, reaching a new record high of 1.05 billion euros. The Group noted that the strong growth was supported by the compensation payment received for the Manila terminal project, which boosted EBITDA by 198.8 million euros. Fraport's successful sale of a 10.5 percent share in Thalita contributed another 40.1 million euros to EBITDA. Adjusting for these effects and the creation of provisions for a personnel-restructuring program, the Group's EBITDA would have remained on the previous year's level of about 853 million euros.

Group revenue declined by 0.5 percent year-on-year to 2.59 billion euros. Adjusting for changes in the scope of consolidation due to the sale of shares in Fraport Cargo Services and the disposal of the Air-Transport IT Services subsidiary, Group revenue would have risen by 1.8 percent. Traffic at the company's Frankfurt Airport home-base slightly declined by 0.4 percent to approximately 61 million passengers in 2016.

The Group said a dividend of 1.50 euros per share will be recommended to the 2017 Annual General Meeting. This corresponds to an increase of 11.1 percent per share and to a payout ratio of 36.9 percent of the Group result attributable to shareholders.

For the 2017 business year, Fraport expects traffic at Frankfurt Airport to grow by 2 to 4 percent. Revenue is anticipated to see a noticeable increase up to approximately 2.9 billion euros, backed by positive traffic growth both at Frankfurt Airport and Fraport's international Group airports. Also the expected consolidation of the Group's activities in Greece will contribute to a marked rise in revenue.

For 2017, the Group's operating profit (or EBITDA) is forecast to reach a level of between approximately 980 million and 1.02 billion euros, while EBIT is expected to be between approximately 610 million and 650 million euros. The Group result is anticipated to reach between 310 million and 350 million euros. The Group expects that dividends will remain at the level of 1.50 euros per share.

by RTT Staff Writer

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