The highlights of the first half of the year were growth in traffic and the impairment of the investment in Adria Airways Tehnika d.d.
Aerodrom Ljubljana, d.d. recorded an increase in traffic during the first half of 2014. Total passenger numbers were up 3.7% on the first half of last year and cargo tonnage was up 7.6%, while the number of aircraft movements was down 3.3% as a result of the use of larger, heavier aircraft. EBIT was at the level of last year at EUR 2,797 thousand, significantly more than forecast in the plan, although this did not compensate for the impairment of the investment in Adria Airways Tehnika d.d., which has been performing worse than forecast this year.
Aerodrom Ljubljana is recording growth in traffic. In public transport, which accounts for the majority of traffic at the airport, passenger numbers were up 2.9% on the first half of last year (at 571,140). The domestic airline saw a rise of 1.7% in its passenger numbers, while foreign airlines’ passenger numbers were up 5.8%. The increase was largely attributable to a rise in passenger numbers on Adria Airways scheduled services, a rise in the number of flights by Turkish Airlines and thus in its passenger numbers, and the launch of a new scheduled service by Air Serbia. The number of aircraft movements was down 3.3% on the first half of last year (at 15,448), although this decline did not have a negative impact on the realised operating revenues as a result of the shift in aircraft use towards larger (and heavier) aircraft.
Passengers were served by nine scheduled airlines at Ljubljana Jože Pučnik Airport in the first half of 2014. An addition to the services compared with the same period last year was made by Air Serbia, which has operated a service between Ljubljana and Belgrade with increasing load factors since last December. Of the foreign scheduled airlines, there was a significant increase in traffic at Turkish Airlines, whose passenger numbers were up 17.9%. In the first half of this year public transport passengers were able to choose between 25 scheduled destinations (compared with 23 in the same period last year), services to Frankfurt, Istanbul, London, Munich, Zurich and Paris accounting for half of all passengers. Adria Airways added Warsaw and Prague to its network of routes in the summer timetable, and relaunched a service to Paris after an interruption of more than a year. The extensive range of services is increasingly attracting passengers from the neighbouring regions of Austria, for whom the establishment of a daily bus service between Klagenfurt and Brnik in March has been particularly welcome.
The cargo segment also recorded significant growth in the first half of the year: cargo tonnage was up 7.6% on the same period last year, as all categories of cargo recorded increases.
The company’s performance in the first half of the year was good. Operating revenues were up 2.7% on the same period last year at EUR 15,240 thousand, and up 0.8% on the forecast for the period. The increase was largely attributable to the rise in passenger numbers, the change in the use of aircraft, the increase in cargo tonnage and increased revenues from commercial services. Operating expenses amounted to EUR 12,442 thousand, up 3.4% on the same period last year, but down just under 5% on the forecast for the period. EBIT was similar to last year’s figure at EUR 2,797 thousand, up 36.8% on the forecast for the period.
The good performance and increase in finance income did not fully compensate for the negative impact on the operating result of the impairment of the investment in Adria Airways Tehnika d.d. Adria Airways Tehnika d.d., in which Aerodrom Ljubljana holds an interest of 47.67% (the remainder is owned by PDP, Posebna družba za podjetniško svetovanje d.d.) and whose business is conducted in a very demanding global environment in terms of market and competition, has been performing significantly worse than forecast since April 2014. Acting on the principle of prudence, and applying a conservative approach, the company decided to charge an impairment of EUR 2,736 thousand against the investment.
Without the impairment the pre-tax profit would have amounted to EUR 3,922 thousand (up 63.8% on the same period last year and up 19.7% on the forecast for the period), and the net profit to EUR 3,019 thousand (up 48.9% on the same period last year and up 7.8% on the forecast for the period). The actual pre-tax profit in the reporting period amounted to EUR 1,186 thousand, while net profit amounted to EUR 516 thousand, down on the same period last year and down on the forecast for the period.
Investments in infrastructure and equipment are following the business plan for the 2014 to 2020 period adopted in February 2014. Investments in infrastructure and equipment amounted to EUR 1,311 thousand in the first half of this year, of which EUR 390 thousand was for infrastructure, while the remainder was spent on airport equipment (EUR 886 thousand) and computer equipment (EUR 35 thousand). The investments were financed with internal resources. The most notable investments were the purchase of a fire-fighting truck and a conveyor belt comprising an elevator with an extendible roller transporter, and the construction of a sewage collector linking the airport zone to the public sewerage system of the municipality of Cerklje na Gorenjskem. In the first half of this year the company obtained general superficies valued at EUR 8.2 million for a period of 40 years (beginning 1 January 2014) for 248 hectares of land, for which the fee will be repaid in annual instalments.
Given the developments in physical traffic, the company’s performance in the first half of the year and its forecasts for the remainder of the year, EBIT is expected to be at the level forecast in the plan for 2014.
Zg. Brnik, 1 September 2014