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Fraport Turns To Profit In FY21, Sees Higher FY22 Results; Stock Down

fraport march15 lt

German airport operator Fraport reported Tuesday a profit in its fiscal 2021, compared to last year's loss, benefited by higher passenger demand and strict cost reductions.

Looking ahead for fiscal 2022, the company said it initially expects lower passenger traffic dynamics in the first few months, but sees higher results for fiscal 2022. Fraport shares were losing around 7 percent in the morning trading in Germany.

The traffic warning for initial months is due to the spread of the omicron virus variant. By around Easter and Pentecost, the company expects a noticeable wave of travel and in the summer again strong holiday traffic - clearly above the previous year.

Overall, the company expects to count between 55 and 65 percent of the passenger numbers of 2019 in Frankfurt this year, depending on how the coronavirus pandemic and the war in Ukraine develop.

For the current 2022 business year, Fraport expects Group net profit to reach between 50 million euros and 150 million euros. Group EBIT is forecast to rise to between 320 million euros and 440 million euros, and Group EBITDA is expected to range between 760 million euros and 880 million euros.

Group revenue is projected to reach about 3 billion euros. Traffic at Fraport's home-base hub Frankfurt Airport or FRA would range between about 39 million and 46 million travelers - equaling 55 to 65 percent of the pre-crisis 2019 passenger level.

The company further said its executive board will propose to the Supervisory Board and the AGM, like in fiscal 2021, not to distribute a dividend for the current 2022 financial year.

Fraport AG's CEO Stefan Schulte said, ".. we are now focusing on ramping up operations. This includes plans to recruit up to 1,000 operational staff in 2022."

The company added that it is intensifying climate goals, aiming to become carbon free by 2045 - in Frankfurt, as well as at all Group airports worldwide.

For fiscal 2021, net profit attributable to shareholders was 82.8 million euros, compared to a loss of 657.6 million euros in the previous year. In the pre-pandemic 2019, net loss was 690.4 million euros.

Earnings per share were 0.90 euro, compared to loss of 7.12 euros a year ago.

Group EBIT also increased markedly to 313.7 million euros, compared to loss of 708.1 million euros a year ago.

Group earnings before interest, taxes, depreciation and amortization or EBITDA reached 757.0 million euros, compared to loss of 250.6 million euros last year.

On an adjusted basis, Group EBITDA was significantly higher than last year's 48.4 million euros.

Group revenue rose 27.8 percent to 2.14 billion euros from 1.68 billion euros a year ago, reflecting Fraport's overall positive traffic performance.

Adjusted Group revenue grew 30.9 percent to 1.90 billion euros.

In 2021, a total of 24.8 million passengers traveled through FRA, representing an increase of 32.2 percent year-on-year.

Across the company, traffic growth rates ranged between 31 percent at Ljubljana Airport and 126 percent in Antalya, year-on-year. Cargo throughput at Frankfurt Airport also continued to grow in 2021.

In Germany, Fraport shares were trading at 49.40 euros, down 7.32 percent.

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