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Aerodrom Ljubljana’s performance in the period from January to March is in line with plan

Brnik, 24 May 2012 – The Supervisory Board of Aerodrom Ljubljana, d.d. discussed the company’s report on its performance in the period from January to March 2012. In the segment of traffic handled by foreign airlines, the first quarter exceeded the forecast in the plan and the numbers for the same period last year, while figures for traffic handled by the domestic airline were lower than planned and worse than in the same period last year. Net profit was higher than forecast in the plan.

Despite a drop in traffic handled by the domestic airline, the first quarter came to a positive close and was within the forecast; it was also without cash flow or liquidity problems. Our efforts to implement cost controls over operating expenses in response to the drop in traffic made an important contribution towards this end. On the operating expenses side, we continued to implement cost control measures. In the first quarter, operating expenses totalled €6,413 thousand, which is 4.3% less than the plan’s forecast for the period and 1.1% less than the expenses generated in the same quarter last year. Operating revenue generated in foreign markets exceeded the figures for the first quarter of last year by nearly one tenth, and also exceeded the forecast. In the commercial services segment, increased marketing activities and a selective approach to customers of these services enabled us to exceed the plan’s forecast for the period; despite the drop in traffic, we succeeded in maintaining revenue on the level of the first quarter of last year. Regardless of the described growth, we were not successful in making up for the drop in revenue from air services and aircraft ground handling in the domestic market. The reason for this is the large share of traffic handled by the domestic airline at Ljubljana Jože Pučnik Airport (although this share is decreasing, in terms of the number of passengers served it still accounts for 72%). In the period in question, we generated operating revenue in the total amount of €6,512 thousand, which is 5.7% below the forecast and 6.9% less than the figures for the same period last year. At €99 thousand, earnings before interest and taxes (EBIT) are below the plan’s forecast for the period and less than the figures for the same period last year.

Net profit generated in the amount of €301 thousand is 6.5% higher than the forecast, despite the drop in traffic handled by the domestic airline.The loss of traffic handled by the domestic airline is the main reason behind the fact that net profit generated in this quarter trails behind the net profit generated in the first quarter of last year.

In the first three months, Aerodrom focused on increasing cooperation with its existing foreign airlines and on entering into agreements with new foreign airlines. As a result, we experienced a 4.3% increase in the number of passengers travelling with foreign airlines compared to the first quarter of last year, and at the same time exceeded the plan’s forecast by 14.3%. On the basis of forecasts by our existing and new foreign airlines (both regular carriers and charter flights), we estimate that the trend of the growth of traffic handled by foreign airlines will continue.

Because the fall in traffic handled by the domestic airline was greater than expected, it could not be entirely made up for by foreign airlines. The total number of passengers was therefore 7.8% less than in the same period last year and 3.2% below the forecast for the period. In terms of aircraft movements, in comparison with the same period last year, we recorded a drop for both domestic and foreign airlines (5.6% total); however, the number of aircraft movements exceeded the forecast by 2.3%. In the cargo traffic segment, we experienced a drop of 14.4% in the weight of freight loaded and unloaded at the airport compared to the same period last year; this is the result of our plans to reduce the handling of ship and road break-bulk cargo.

The activities of the company are of a seasonal nature, which is why we are behind by a proportionate share in achieving the annual plan. The volume of traffic at the airport is greatest in the summer months from June to September, when charter routes operate and the number of regularly scheduled routes – as well as the occupancy rate of flights – increases.

In 2012, we forecast slightly less traffic than in 2011, taking into account the fact that we do not expect significant economic recovery in 2012 and the amount of traffic individual airlines expect. We therefore forecast a 3.7% drop in the number of passengers compared to the previous year, a 2.6% drop in the number of aircraft movements, and a 10.9% in cargo traffic due to the cessation of ship and road break-bulk cargo handling. The forecast decrease in traffic will make itself felt in the airport’s operating revenues, which we forecast to be €32.3 million, or 4.9% less than 2011. We will continue to implement cost controls and adapt operating expenses to our current needs while taking into account the volume of traffic and the current liquidity situation at the company. Our plan forecasts operating expenses in the amount of €25.9 million, which is 2.2% lower than the amount realised in 2011. We therefore forecast earnings before interest, taxes depreciation and amortisation (EBITDA) in the amount of €11.9 million and earnings before interest and taxes (EBIT) in the amount of €6.5 million; net earnings at year close are forecast in the amount of €5.9 million.

For more information:

- Report on operations for the period January-March 2012: http://www.lju-airport.si/o-podjetju/informacije-za-vlagatelje/javne-objave

- Brigita Zorec, Head of Corporate Communications, Tel.: +386 4 20 61 103, Email: brigita.zorec@lju-airport.si