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Net profit of more than €2 million despite impairments of investments

At 5th regular meeting the Supervisory Board of Aerodrom Ljubljana d.d. discussed the audited half-yearly report for 2013. Despite impairments of certain investments already identified in the audited half-yearly report published on 20 August 2013 as being potentially at risk of impairment, generated net profit exceeded €2 million. This is an increase on the first six months of last year and still exceeded the forecast by more than €0.5 million. The good performance is a reflection of significant growth in passenger and cargo traffic and measures to control operating expenses.

In the unaudited half-yearly report for 2013, published on 20 August 2013, which was studied by the Supervisory Board at its third regular meeting, Aerodrom Ljubljana highlighted the risk regarding the repayment of individual bank bonds and possible resulting impairment in the amount of €1,019,000. This was revealed in the document in the section on "Significant events following the end of the accounting period". Following the announcement on 6 September 2013 of the commencement of an orderly wind-down of Factor banka d.d. and Probanka d.d. by the Bank of Slovenia, the company subjected its investments in subordinated bonds of these two banks to impairment (reflected in a reduction of the company's net profit by €949,000). This resulted in the company's audited financial statements for the first six months of 2013 (the audit was carried out in the second half of September). This impairment also represents the sole change in comparison to the already published unaudited half-yearly report of 20 August 2013. Pursuant to the resolution of the 18th general meeting (of 16 September 2013), audit firm Deloitte revizija d.o.o. audited the financial statements of Aerodrom Ljubljana d.d. as at 30 June 2013.
Despite the impairments, and primarily as a result of the company's good performance, the pre-tax profit in the first half of the year in the amount of €2.4 million was only 3.6% down on the same period last year and still 37.7% over plan. Net profit of just over €2 million was up slightly in comparison to the first six months of last year and still exceeded the forecast by more than €0.5 million. The company's good performance in the first half of this year reflects favourable trends in traffic, while measures to control operating expenses have also had a positive effect on performance.
The number of passengers handled by the national airline and foreign carriers in the first six months of 2013 showed a significant increase. The growth in the number of passengers carried by the national airline, which began with the introduction of the summer timetable, reverses a two-year negative trend, and despite adverse economic conditions the airline has also carried more passengers in the charter segment. Alongside the increase at the national airline, the biggest contribution to the growth in passenger numbers came from the low-cost carrier Wizz Air, Turkish Airlines and Finnair. The total number of passengers carried in the first six months of this year was 575,463, up 7% on the same period last year and on the forecast for the period. The positive trends in traffic continued in the summer months. Passenger numbers at Ljubljana Jože Pučnik Airport from January to the end of August 2013 showed 7% growth over the same period last year and was 5% higher than the forecast for the period, with a total of 860,000 passengers handled.
Significant growth in cargo traffic was also recorded in the first six months of the year. The airport handled 8,910 tonnes of cargo, which is an increase of 9.3% compared to the same period last year and the forecast for the period (a result equivalent to 54.3% of the annual forecast). Forecasts were exceeded in all cargo categories.
More information is available in the audited Half-Yearly Report 2013, which may be consulted online at: http://www.lju-airport.si/en/investors/financial-reports/

Zg. Brnik, 7 November 2013