Annual General Meeting
Fraport Achieves Record Result for the 2016 Business Year, Despite Challenging Environment
Frankfurt (ots) - Growth momentum stimulated by expansion of the
Group's international portfolio - FRA's core hub-business to be
complemented by growing low-cost segment - Dividend proposed to
increase to EUR1.50 per share
At the 16th Annual General Meeting (AGM) held today at the
Jahrhunderthalle in Frankfurt, Fraport AG's executive board chairman
(CEO), Dr. Stefan Schulte and the company's shareholders looked back
on a volatile 2016 business year. The traffic slowdown during the
summer months at the Group's Frankfurt Airport home base could not be
entirely offset by strong passenger figures at the beginning of 2016
and towards the end of the year.
Group's international portfolio - FRA's core hub-business to be
complemented by growing low-cost segment - Dividend proposed to
increase to EUR1.50 per share
At the 16th Annual General Meeting (AGM) held today at the
Jahrhunderthalle in Frankfurt, Fraport AG's executive board chairman
(CEO), Dr. Stefan Schulte and the company's shareholders looked back
on a volatile 2016 business year. The traffic slowdown during the
summer months at the Group's Frankfurt Airport home base could not be
entirely offset by strong passenger figures at the beginning of 2016
and towards the end of the year.
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CEO Schulte explained: "The geopolitical situation and terror
risks in Europe were decisive factors contributing to fewer
passengers, particularly from Asia and the U.S. Moreover, Frankfurt
Airport's passenger traffic was also impacted by the strong growth of
low-cost carriers, especially at those airports within our catchment
area. We have initiated the necessary response to this development
by opening up Frankfurt Airport to the low-cost segment.
Nevertheless, our core business continues be the premium hub segment
and our partnership with Lufthansa as our main customer."
In 2016, passenger traffic at Frankfurt Airport (FRA) dipped
slightly by 0.4 percent to 60.79 million passengers, thus lagging
behind the general market trend - which was characterized by an
increasing impact of the low-cost segment. In contrast, FRA's cargo
volume rose by 1.8 percent to some 2.11 million metric tons in 2016.
Fraport AG's operating result or EBITDA (earnings before interest,
taxes, depreciation and amortization) markedly improved by 24.2
percent to EUR1,054 million in fiscal 2016, despite slightly
declining passenger traffic and the weaker retail business at FRA.
The strong result was driven by a compensation payment received in
connection with the Manila terminal project and the successful
partial sale of Fraport's stake in its St. Petersburg subsidiary.
Looking at the bottom line, Fraport achieved a Group result (net
profit) of EUR400 million.
Commenting on the company's positive performance, CEO Schulte
said: "This is the best result ever achieved by Fraport. We would
like to share this success with our shareholders and therefore
propose a dividend increase to EUR1.50 per share." In 2016, Fraport
AG paid a dividend of EUR1.35 per share.
To maintain Fraport's future competitiveness in the challenging
business environment, CEO Schulte emphasized that market changes
needed to be taken seriously and addressed properly: "Customers today
expect low-cost flight offers. The low-cost segment already accounts
risks in Europe were decisive factors contributing to fewer
passengers, particularly from Asia and the U.S. Moreover, Frankfurt
Airport's passenger traffic was also impacted by the strong growth of
low-cost carriers, especially at those airports within our catchment
area. We have initiated the necessary response to this development
by opening up Frankfurt Airport to the low-cost segment.
Nevertheless, our core business continues be the premium hub segment
and our partnership with Lufthansa as our main customer."
In 2016, passenger traffic at Frankfurt Airport (FRA) dipped
slightly by 0.4 percent to 60.79 million passengers, thus lagging
behind the general market trend - which was characterized by an
increasing impact of the low-cost segment. In contrast, FRA's cargo
volume rose by 1.8 percent to some 2.11 million metric tons in 2016.
Fraport AG's operating result or EBITDA (earnings before interest,
taxes, depreciation and amortization) markedly improved by 24.2
percent to EUR1,054 million in fiscal 2016, despite slightly
declining passenger traffic and the weaker retail business at FRA.
The strong result was driven by a compensation payment received in
connection with the Manila terminal project and the successful
partial sale of Fraport's stake in its St. Petersburg subsidiary.
Looking at the bottom line, Fraport achieved a Group result (net
profit) of EUR400 million.
Commenting on the company's positive performance, CEO Schulte
said: "This is the best result ever achieved by Fraport. We would
like to share this success with our shareholders and therefore
propose a dividend increase to EUR1.50 per share." In 2016, Fraport
AG paid a dividend of EUR1.35 per share.
To maintain Fraport's future competitiveness in the challenging
business environment, CEO Schulte emphasized that market changes
needed to be taken seriously and addressed properly: "Customers today
expect low-cost flight offers. The low-cost segment already accounts
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