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Financial results over the first nine months of the year in line with plans

The Supervisory Board of Aerodrom Ljubljana, d.d. discussed the company’s report on its performance during the first three quarters of 2012. Despite a decrease in traffic and the resulting decline in revenues, the company ended the period in line with plans and without cash-flow or liquidity problems, primarily by adjusting expenses. Net profit totalled EUR 4,931 thousand, and exceeded planned net profit by 4%.

The company generated operating revenues of EUR 24,080 thousand over the first nine months of the year (equivalent to 74.5% of the forecast in the annual plan), which is 1.9% lower than planned and down 6.5% on the same period last year. The company responded to the decline in operating revenues by adjusting operating expenses, which totalled EUR 18,942 thousand, down 3.1% on the same period last year and 2.3% lower than forecast. All key categories of operating expenses were down on the planned amounts during the reporting period.
The company generated an operating profit (EBIT) of EUR 5,139 thousand from operating revenues and expenses (equivalent to 79.5% of the forecast in the annual plan), which is in line with the planned amount for the period, but down 17.3% on the same period last year. The company ended the period with a net profit of EUR 4,931 thousand (equivalent to 84% of the forecast in the annual plan), which is 3.7% higher than planned, despite the decrease in traffic.

In general, the economic and political situation in Slovenia and Europe overall is reflected in a decline in business and tourist travel. Despite the fact that Aerodrom Ljubljana is attempting to attract new carriers by adapting its pricing policy, through attractive offers of its services and by increasing activities aimed at attracting new markets, carriers are cautious in establishing new connections with Slovenia due to the high risk of low aircraft capacity rates. Moreover, it is not merely the prices and quality of the company’s services that are important to carriers; investment in promotional activities on foreign markets is also required to raise the profile of Slovenia, and thus interest in travelling there. Market appeal aside, the company succeeded in attracting the low-cost carrier Wizz Air following the end of the accounting period, with scheduled flights to and from London Luton and Brussels Charleroi airports. Initial aircraft capacity rates are good. Should they remain so, the carrier has expressed interest in adding new connections as early as next year.
The company discloses data regarding the volume of traffic served in the traffic category. The data are worse than planned because carriers did not fully meet their forecasts, which were the basis for planning: the domestic airline carried fewer passengers than planned, while the planned increase in traffic (e.g. a larger number of frequencies and the replacement of smaller aircraft with larger aircraft) on the foreign market was not fully realised. In addition, the scheduled flight to Prague was unexpectedly cancelled in June.

The airport served 956,291 passengers during the first nine months of this year (equivalent to 72.5% of the forecast in the annual plan), which is 8.6% lower than the forecast for the period and down 12.9% on the same period last year. A somewhat smaller drop was recorded in aircraft movements, which totalled 27,807 during the accounting period (equivalent to 72.7% of the forecast in the annual plan), down 6.6% on the planned amount for the period and down 11% on the same period last year. Air cargo tonnage over the first nine months of this year was slightly above the forecast and the tonnage achieved in the same period last year, while mail tonnage and truck cargo tonnage were down on the forecast and on the same period last year, the latter primarily as a result of a decline in the quantity of pharmaceutical products handled, and also as a result of a decline in the quantity of other products handled. Total cargo tonnage was down 7.6% on the forecast for the period at 12,269 tonnes.

Brnik, 26. 11. 2012