Københavns Lufthavne A/S
Interim report of Copenhagen Airports A/S (CPH) for the three months to 31 March 2015

DGAP-News: Københavns Lufthavne A/S

2015-05-08 / 11:09

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Stock Exchange Announcement 2015

Copenhagen, 8 May 2015

INTERIM REPORT OF COPENHAGEN AIRPORTS A/S (CPH) FOR THE THREE MONTHS TO 31
MARCH 2015 

The Board of Directors today approved the interim report for the period 1
January - 31 March 2015. 

Summary for the first three months of 2015

Copenhagen Airports A/S (CPH) was off to a good start in 2015 with an increase
in passenger numbers of 1.8%, or 5.4 million passengers, making Q1 the busiest
first quarter in the airport's 90-year history. International traffic, and not
least intercontinental traffic, were the drivers of the growth, and the
non-aeronautical part of the business also continued to improve. CPH retains
its profit forecast for the full year. 

The growth in passenger numbers was mainly due to the full-year effect of the
many new routes opened in 2014. The growing number of intercontinental
passengers was due to the introduction of new long-haul routes by Norwegian and
a capacity increase on Qatar Airways' route to Doha. The growing number of
passengers led to a 4.8% increase in revenue to DKK 871.9 million and an
increase in profit before tax by 12.9% to DKK 240.4 million. 

Growing intercontinental traffic

In the competition with other European hubs it is important for Copenhagen to
be able to continue growing the intercontinental traffic. More overseas
destinations served by Norwegian, additional weekly frequencies from Qatar and
the announced introduction by Emirates of the A380 in December are important
steps in realising CPH's growth strategy. 

Intercontinental traffic grew by 4.7%, while European traffic grew by 2.2%
despite strikes at both SAS and Norwegian. On the other hand, the volume of
traffic was positively affected by Ryanair's start-up of operations at
Copenhagen. Domestic traffic was down by 6.7% due to a drop in capacity on a
number of the domestic routes. 

A high level of capital investment

Capital investments in Q1 2015 were higher than in Q1 2014. To accommodate the
significant intercontinental growth, CPH is expanding the intercontinental Pier
C and one of the runways. These projects are two of the initiatives that will
prepare Copenhagen Airport for the Airbus A380. Moreover, CPH will complete the
renovation and expansion of Terminal 2 later this year. Also, the two
additional lanes for security screening were opened recently. 

Capital investment in Q1 also included the merger of Domestic and Schengen
traffic and an expansion of the critical security restricted area (CSRA)
connected to the terminals. These two projects are the result of the new
charges agreement that came into effect on 1 April 2015, and both projects will
lower the airlines' costs of operating at Copenhagen Airport, which is in line
with CPH's strategic focus. 

Strong shopping centre makes investment possible

Revenue at the shopping centre was up by 8.9%, and the spend per passenger was
higher than in the same period of last year, driven by an improved shop and
brand mix and the full-year effect of a number of new units. Parking revenue
grew by 6.3%, driven by higher online sales. Lastly, the hotel operation
improved by 6.9%, primarily due to a very high occupancy rate at the Hotel
Hilton Copenhagen Airport. 

In Q1, the non-aeronautical part of the business accounted for 44.4% of
revenue, but 85.9% of EBIT. Thus, the non-aeronautical part of the business
contributes to an increasing extend to the large capital investments CPH is
making to develop and expand the airport. 

Lower external costs

In Q1, CPH reduced its external costs excluding one-off items by 4.5%, which
was driven by ongoing efficiency improvements. Conversely, staff costs were up
by 10.6%, partly because an additional 52 security staff were hired as a result
of stricter regulatory requirements. 

Highlights of results

  -- Passenger numbers at Copenhagen Airport increased by 1.8% during the first
     three months of 2015. The number of locally departing passengers increased
     by 4.9%, and the number of transfer passengers decreased by 3.2%

  -- Revenue increased by 4.8% to DKK 871.9 million (2014: DKK 831.9 million),
     primarily driven by the increase in international locally departing
     passengers and high concession revenue due to an improved specialty store
     concept

  -- When excluding one-off items, EBITDA grew by 4.8% to DKK 448.6 million
     (2014: DKK 427.9 million). Reported EBITDA also increased by 4.8% to DKK
     445.2 million (2014: DKK 424.9 million)

  -- When excluding one-off items, EBIT increased by 8.5% to DKK 292.4 million
     (2014: DKK 269.6 million). Reported EBIT increased by 8.4% to DKK 289.0
     million (2014: DKK 266.6 million)

  -- Net financing costs decreased with DKK 5.1 million compared to Q1 2014 

  -- Profit before tax increased by 12.9% to DKK 243.8 million, when excluding
     one-off items (2014: DKK 215.9 million). Reported profit before tax
     increased by 12.9% to DKK 240.4 million (2014: DKK 212.9 million)

  -- Capital expenditure amounted to DKK 193.9 million in the first three months
     of 2015 (2014: DKK 82.2 million). The first three months of the year were
     affected by the extension of Pier C and the conversion and renovation of
     Terminal 2



Outlook for 2015

The outlook for traffic growth, profit before tax and capital expenditure is
unchanged from the announcement of 26 February 2015. 



Forecast of profit before tax

Based on the expected traffic programme for 2015, an increase in the total
number of passengers is expected. However, unexpected fluctuations in the
offering of routes or the general economy may affect developments and profit. 

The growth in the number of passengers and the changed structure of charges
from 1 April 2015 is expected to have a positive impact on revenue. 

Operating costs are expected to be higher than in 2014, primarily due to the
expected rise in passenger numbers, stricter requirements to security, and cost
inflation, but this will be partly offset by a continuing focus on operating
cost efficiencies. 

Overall, depreciation charges and financial costs are expected to be slightly
higher in 2015 than in 2014 primarily as a result of the continually high
investment level. 

Profit before tax for 2015 is expected to be in the range of DKK 1,300.0
million to DKK 1,400.0 million, excluding one-off items. Operating profit
before depreciation is projected to be higher in 2015 than in 2014, excluding
one-off items. 

Forecast of capital investment

CPH expects to continue to invest for growth. As in recent years, CPH still
expects to invest at a high level in 2015. Planned investments include
expansion of the critical security restricted area (CSRA) at the airport and
the merger of the terminal areas, which is part of the charges agreement that
comes into force on 1 April 2015. CPH will also be investing in
non-aeronautical projects for the benefit of airlines and passengers. 





P.O. Box 74                   
Lufthavnsboulevarden 6        
DK-2770 Kastrup               
Contact:                      
Lars Jønstrup Dollerup        
CFO                           
Telephone:  +45 3231 3231     
Fax:             +45 3231 3132
Email: cphweb@cph.dk          
www.cph.dk                    
CVR no. 14 70 72 04
News Source: NASDAQ OMX



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Language:    English                   
Company:     Københavns Lufthavne A/S  
 
 
             Denmark                   
ISIN:        DK0010201102              
 
 
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