Interim report of Copenhagen Airports A/S (CPH) for the three months to 31 March 2012

8 May, 2012 12:47 CET

Københavns Lufthavne A/S
Quarterly report

Interim report of Copenhagen Airports A/S (CPH) for the three months to 31
March 2012

INTERIM REPORT OF COPENHAGEN AIRPORTS A/S (CPH) FOR THE THREE MONTHS TO 31
MARCH 2012 



The Board of Directors today approved the interim report for the period 1
January – 31 March 2012. 

Summary for the first three months of 2012

A 6.4% increase in passenger numbers gave Copenhagen Airports A/S (CPH) a
strong Q1 2012 performance. The improvement in passenger numbers was generated
by increased numbers of international and transfer passengers supporting CPH’s
new World Class Hub strategy. The Copenhagen Airport shopping centre also
reported continuing growth. CPH retains its forecast for the full year of
continuing growth in the total number of passengers. 

The 6.4% increase in passenger numbers meant that CPH's revenue rose by 6.5% in
Q1 2012. Profit before tax, when excluding one-off items rose 21.2% to DKK
196.8 million. 

The aeronautical segment of CPH's business continued to grow, especially
transfer traffic, which performed strongly in Q1 with a 12.4% increase in
passenger numbers. The increase in transfer traffic was primarily driven by
routes from Norway, Poland, Germany, the Baltic States and, not least, Finland,
where SAS-owned Blue1 has changed its traffic program so that its passengers
now transfer at Copenhagen Airport instead of at Helsinki. There are also more
Norwegian passengers transferring at Copenhagen Airport; in the first quarter,
the airline recorded an increase of more than 200 per cent in the number of
transfer passengers. 

New strategy strengthens hub

The performance was satisfactory, and CPH is pleased to see that the World
Class Hub strategy is already producing results.  CPH is working to strengthen
our position as the northern European hub, and is therefore very pleased to see
the strong growth in transfer traffic. Another strategic focus is to increase
accessibility to the growth markets of the world, especially the BRIC
countries, and the new routes and frequencies to Shanghai, Moscow and
Kaliningrad are therefore important to the airport as well as to Denmark. 

Revenue from the aeronautical segment rose 7.4% in Q1 2012.

Continued growth at the shopping centre

The non-aeronautical part of the business also showed growth of 5.4%. Revenue
from the Copenhagen Airport shopping centre was up 16.0% due to changes in the
shop and brand mix, fulfilling passengers requirements, resulting in an
increase in the spend per passenger. 

In a time when the retail trade in the rest of the economy is under pressure,
CPH is very pleased to see that the shops in the shopping centre are reporting
significant revenue growth.  This confirms that operating a shop at Copenhagen
Airport is attractive, further supported by the fact that CPH currently have no
shop vacancies. 

Plans for new restaurants and cafés

The revenue growth was highest in the specialty shops, one of the reasons being
that Copenhagen Airport is currently in the process of upgrading a number of
Food and Beverage units. In 2012, a Le Sommelier Bistro, a MASH steakhouse and
two Food Market delis will open at Copenhagen Airport, continuing the
successful relaunch of the shopping centre during 2010. 

Parking revenue rose 2.4%. The increase was favourably affected by the growth
in locally departing passengers, which was partly offset by lower average
parking prices. 

After the end of the first quarter, Copenhagen Airport consolidated its
position as a northern European traffic hub, when for the second straight year
CPH was rated best airport in northern Europe in the annual Skytrax passenger
satisfaction survey covering 388 airports worldwide. This year, twelve million
passengers were surveyed. 



Highlights of results

  -- Passenger numbers at Copenhagen Airport increased by 6.4% during the first
     three months of 2012. The number of locally departing passengers increased
     by 5.2%, and transfer traffic increased by 12.4%
  -- Revenue increased by 6.5% to DKK 768.3 million (2011: DKK 721.3 million)
     primarily due to the increase in passenger numbers
  -- When excluding one-off items, EBITDA grew by 9.2%. Reported EBITDA
     increased by 9.6% to DKK 374.9 million (2011: DKK 342.0 million)
  -- When excluding one-off items, EBIT increased by 10.0% to DKK 246.4 million
     (2011: DKK 224.0 million)
  -- Net financial expenses decreased by DKK 12.0 million primarily caused by
     extraordinary amortisation of loan costs in connection with a cancellation
     of bank facilities in 2011
  -- Profit before tax increased to DKK 193.1 million (2011: DKK 157.8 million).
     Profit before tax amounted to DKK 196.8 million, when excluding one-off
     items (2011: DKK 162.4 million)
  -- Capital expenditure amounted to DKK 166.0 million in the first three months
     of 2012 (2011: DKK 140.2 million)

Outlook for 2012

Based on the expected traffic program for 2012, the total number of passengers
is expected to increase. Traffic, however, could be adversely impacted by the
continuing economic uncertainty in the Eurozone and any closure of routes due
to airline reductions. 

The increase in passenger numbers is expected to have a positive impact on
total revenue. Operating costs are expected to be higher than in 2011,
primarily due to the expected increase in passenger numbers, cost inflation and
depreciation charges as a result of the higher level of investment with a focus
on continuing growth. Overall, a higher total profit before tax, when excluding
one-off items, is expected for 2012. 

Under the charges agreement, CPH must invest an average of DKK 500 million
annually, but expects to invest significantly more in 2012. CPH will also be
investing in other commercial projects for the benefit of airlines and
passengers.