EANS-News: Business Results in 2018: Record Growth Leads to Significant Earnings Increase of the Flughafen Wien Group CNE

Tuesday, 26. February 2019 08:00
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Financial Figures/Balance Sheet/Preliminary financial results

Vienna International Airport -

* 2018 results: REVENUE INCREASE to EUR 799.7 million (+6.2%)
* NET PROFIT FOR THE PERIOD[1] up substantially to EUR 151.9 million (+19.7%)
* DIVIDEND RISE proposed for 2018 to EUR 0.89 per share (+30.9%)
* Earnings and traffic outlook for 2019: Net earnings up to at least EUR 165
  million, passenger growth of 8-10% in the Group and 10% at Vienna Airport
* Vienna Airport is the most attractive employer in Austria - threshold of
  25,000 employees to be reached in 2019
* Less energy consumption (-26.7%) and CO2 reduction per traffic unit (-65.6%)
  compared to 2012 despite growth

[1] Net profit for the period before non-controlling interests

"The passenger record in 2018 served as the basis for the rise of about 20% in
the net profit for the period to EUR 151.9 million. For this reason, we will
propose to the Annual General Meeting that an increased dividend of EUR 0.89 per
share, up 30.9% year-on-year, should be distributed. Prospects for 2019 continue
to be good. We expect further growth in earnings and passenger volume. The
successful reduction in net debt in recent years (down from about EUR 700
million to EUR 143 million at present) enables us to launch an investment drive.
The airport as a real estate location is developing superbly. Office Park 4 will
open in May 2020. It will not only give the Airport City a new look but is
destined to become a centre for innovative start-ups in the eastern region of
Austria. The positive development of the company has also been accompanied by
increases in energy efficiency and the reduction of CO2 emissions. The latest
IFES study confirms that Austrians consider Vienna Airport to be the most
attractive employer", says Günther Ofner, Member of the Management Board of
Flughafen Wien AG.

"The Flughafen Wien Group achieved an all-time high in 2018, transporting more
than 34 million passengers. Shopping & food and beverage also benefitted from
this development, showing revenue growth of 6.0%. F&B in particular increased
substantially by 10%. 2019 will also be a year of growth. Passenger volumes from
long-haul flights will likely increase by 20%: new airlines such as ANA, Air
Canada and China Southern as well as the expansion of existing flight
connections will provide additional impetus. Short-haul and medium-haul routes,
the low-cost segment and established carriers at the airport will develop
positively as well. For this reason, we expect passenger numbers to rise by
about 10% to approximately 30 million in Vienna and 8-10% for the Flughafen Wien
Group as a whole", explains Julian Jäger, Member of the Management Board of
Flughafen Wien AG.

Significant rise in earnings to EUR 151.9 million.

The record number of passengers handled by the Flughafen Wien Group served as
the basis for a 6.2% rise in revenue to EUR 799.7 million. EBITDA also climbed
by 7.3% to EUR 350.4 million, and EBIT was up 15.1% to EUR 220.8 million. The
net profit for the period showed substantial growth, climbing 19.7% to EUR 151.9
million (EUR 137.3 million after non-controlling interests, up 19.6%).

Dividend proposal: +30.9% to EUR 0.89 per share

The Management Board will propose a 30.9% increase in the dividend to EUR 0.89
per share (2017: EUR 0.68), or a total of EUR 74.76 million to the Annual
General Meeting scheduled for May 3, 2019. Through the employee foundation which
holds 10% of the shares, all Flughafen Wien AG employees will benefit from the
higher dividends, which comprise more than 80% of a monthly salary and which is
also the result of their successful work. Accordingly, the dividend yield for
the 2018 financial year equals about 2.6%, the payout ratio is approximately 55%
and should climb to 60% in 2019.

Revenue and earnings development in the segments

Revenue in the Airport Segment rose by 6.5% year-on-year to EUR 392.3 million in
2018. Segment EBIT improved by 26.6% to EUR 103.4 million. The Handling and
Security Services Segment registered a 3.3% rise in revenue to EUR 166.1
million. Particularly as a consequence of higher personnel expenses and after
deducting depreciation and amortisation, EBIT generated by the Handling and
Security Services Segment amounted to EUR 3.1 million, down 70.9%. This segment
also includes the security services of VIAS as well as the handling services
provided by Vienna Aircraft Handling (VAH) and Vienna Passenger Handling
Services (VPHS). The Retail & Properties Segment reported a 5.4% rise in revenue
to EUR 132.9 million. Segment EBIT totalled EUR 68.6 million, up 25.6%. Revenue
of the Malta Segment climbed 11.9% in 2018 to EUR 92.2 million and segment EBIT
equalled EUR 44.0 million, comprising an increase of 8.5%. Revenue of the Other
Segments was up 2.6% in 2018 to EUR 16.2 million, whereas segment EBIT fell
62.6% to EUR 1.6 million.

2018: Investments of EUR 165.7 million - 2019: Increase to approximately EUR 220
million

Total investments in many ongoing projects in 2018 such as terminal development,
Office Park 4 and the Environmental Fund as well as Malta Airport amounted to
EUR 165.7 million. Investments of approx. EUR 220 million are planned in the
year 2019.

Traffic development in 2018: New passenger record at Vienna Airport

In 2018, Vienna Airport surpassed the threshold of 27 million passengers for the
first time in its history (27,037,292 passengers). This corresponds to an
increase of 10.8% compared to the previous year. The Flughafen Wien Group
including its strategic foreign investments in Malta Airport and Kosice Airport
handled a total of 34.4 million passengers, up 11.3% year-on-year. Cargo volume
rose 2.6% to 295,427 tonnes. Vienna Airport was regularly served by 74 airlines
in 2018, flying to 205 destinations in 71 countries.

Good passenger development is continuing: Passenger growth in January 2019

The year 2019 has also begun favourably. The Flughafen Wien Group including its
strategic foreign investments in Malta and Kosice Airport continued its good
passenger development, registering a 20.0% rise in passenger volume to a total
of 2.2 million. Vienna Airport handled about 1.8 million travellers in January
2019, up 24.4% from the prior-year period.

Forecast for passenger and earnings development in 2019:

Flughafen Wien Group: 8-10% passenger growth and earnings increase to EUR 165
mill.

The Flughafen Wien Group, including its strategic foreign investments in Malta
and Kosice Airports, anticipates passenger growth of 8-10% in 2019. Accordingly,
the earnings guidance for 2019 will also show a positive development. Revenue in
2019 is expected to rise to more than EUR 820 million, and EBITDA exceeding EUR
370 million is expected. From today's perspective, the consolidated net profit
after taxes should reach a level of at least EUR 165 million. The net debt of
the company is to be further reduced below EUR 150 million.

Passenger volume to rise about 10% at Vienna Airport

Flughafen Wien AG expects a rise in passenger volume of about 10% in 2019. From
today's perspective, initial impetus to growth will be provided by the
inauguration of flight service on new routes i.e. by Austrian Airlines to
Montreal, Air Canada to Toronto, All Nippon Airways (ANA) to Tokyo-Haneda and
China Southern to Guangzhou via Urumqi. The short-haul and medium-haul offering
will be expanded by new destinations served by Austrian Airlines, Vueling, Wizz
Air, Laudamotion, LEVEL, Royal Air Maroc and Volotea.

Preliminary Consolidated Financial Statements for 2018
(All financial indicators refer to the preliminary results of Flughafen Wien
Group for 2018.)

Income Statement

 ______________________________________________________________________________
|in_EUR_million____|_______________2018|_______________2017|________Change_in_%|
|Revenue___________|______________799.7|______________753.2|_______________+6.2|
|Other operating   |               12.3|               10.5|              +17.2|
|income____________|___________________|___________________|___________________|
|Operating_income__|______________812.0|______________763.7|_______________+6.3|
|__________________|___________________|___________________|___________________|
|Expenses for      |                   |                   |                   |
|consumables and   |              -42.1|              -38.3|              +10.1|
|services_used_____|___________________|___________________|___________________|
|Personnel_expenses|_____________-301.5|_____________-282.7|_______________+6.6|
|Other operating   |             -121.5|             -119.0|               +2.1|
|expenses__________|___________________|___________________|___________________|
|Proportional share|                   |                   |                   |
|of income from    |                3.6|                2.9|              +24.7|
|companies recorded|                   |                   |                   |
|at_equity_________|___________________|___________________|___________________|
|Earnings before   |                   |                   |                   |
|interest, taxes,  |                   |                   |                   |
|depreciation and  |              350.4|              326.5|               +7.3|
|amortisation      |                   |                   |                   |
|(EBITDA)__________|___________________|___________________|___________________|
|Depreciation and  |             -129.6|             -132.4|               -2.1|
|amortisation______|___________________|___________________|___________________|
|Impairment________|________________0.0|_______________-2.3|_____________-100.0|
|Earnings before   |                   |                   |                   |
|interest and taxes|              220.8|              191.8|              +15.1|
|(EBIT)____________|___________________|___________________|___________________|
|__________________|___________________|___________________|___________________|
|Income from       |                   |                   |                   |
|investments,      |                   |                   |                   |
|excluding         |                0.3|                0.5|              -38.3|
|companies recorded|                   |                   |                   |
|at_equity_________|___________________|___________________|___________________|
|Interest_income___|________________2.0|________________1.6|______________+28.0|
|Interest_expense__|______________-15.9|______________-20.9|______________-24.3|
|Other financial   |                1.0|                0.4|               n.a.|
|result____________|___________________|___________________|___________________|
|Financial_result__|______________-12.5|______________-18.4|______________+32.1|
|__________________|___________________|___________________|___________________|
|Earnings before   |              208.3|              173.4|              +20.1|
|taxes_(EBT)_______|___________________|___________________|___________________|
|__________________|___________________|___________________|___________________|
|Income_taxes______|______________-56.4|______________-46.5|______________+21.3|
|Net profit for the|              151.9|              126.9|              +19.7|
|period____________|___________________|___________________|___________________|
|__________________|___________________|___________________|___________________|
|Thereof           |                   |                   |                   |
|attributable_to:__|___________________|___________________|___________________|
|Equity holders of |              137.3|              114.7|              +19.6|
|the_parent________|___________________|___________________|___________________|
|Non-controlling   |               14.6|               12.2|              +20.0|
|interests_________|___________________|___________________|___________________|
|__________________|___________________|___________________|___________________|
|Earnings per share|                   |                   |                   |
|(in EUR, basic =  |               1.63|               1.37|              +19.6|
|diluted)__________|___________________|___________________|___________________|


Balance Sheet Indicators

 ______________________________________________________________________________
|in_EUR_million____|_________31.12.2018|_________31.12.2017|_________Change_in%|
|ASSETS:___________|___________________|___________________|___________________|
|Non-current_assets|____________1,957.2|____________1,870.9|_______________+4.6|
|Current_assets____|______________200.9|______________192.1|_______________+4.6|
|LIABILITIES:______|___________________|___________________|___________________|
|Equity____________|____________1,297.0|____________1,211.0|_______________+7.1|
|Non-current       |              549.3|              601.3|               -8.6|
|liabilities_______|___________________|___________________|___________________|
|Current           |              311.8|              250.7|              +24.4|
|liabilities_______|___________________|___________________|___________________|
|Total_assets______|____________2,158.1|____________2,063.0|_______________+4.6|
|__________________|___________________|___________________|___________________|
|Net_debt__________|______________142.5|______________227.0|______________-37.2|
|Gearing_(in%)_____|_______________11.0|_______________18.7|_____________-7.8p%|


Cash Flow Statement

 ______________________________________________________________________________
|in_EUR_million____|_______________2018|_______________2017|____Change_in%_____|
|Net cash flow from|                   |                   |                   |
|- operating       |              291.2|              277.9|               +4.8|
|activities________|___________________|___________________|___________________|
|- investing       |             -198.8|             -156.9|              +26.7|
|activities________|___________________|___________________|___________________|
|- financing       |             -110.2|             -116.5|               -5.4|
|activities________|___________________|___________________|___________________|
|Free_cash_flow____|_______________92.4|______________121.0|______________-23.7|
|CAPEX_(1)_________|______________165.7|______________103.6|______________+60.0|


(1) Excluding financial assets and business acquisitions

The Annual Report by Flughafen Wien AG for 2018, from January 1 to December
      31,2018, will be available to the general public on the Internet at
http://viennaairport.com/en/company/investor_relations/publications_and_reports
                            as of early April 2019.

Vienna Airport,
February 26, 2019
The Management Board

Further inquiry note:
Flughafen Wien AG
Investor Relations
+43 1 7007-23126
investor-relations@viennaairport.com

end of announcement                         euro adhoc
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issuer:       Flughafen Wien AG
              Postfach  1
              A-1300 Wien-Flughafen
phone:        +43 1 7007 - 23126
FAX:          +43 1 7007 - 23806
mail:         investor-relations@viennaairport.com
WWW:          http://viennaairport.com/unternehmen/investor_relations
ISIN:         AT00000VIE62
indexes:      
stockmarkets: Wien
language:     English

EAX0005    2019-02-26/08:00

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