Finavia Group revenue down 7.9%, operating profit down 17% in 1H2010

Finland's Finavia Group revenue down 7.9% - financial highlights for the six months ended 30-Jun-2010:

• Revenue: EUR152.1 million, -7.9% year-on-year;
  • Airport: n/a, -9.6%;
  • Air navigation services: -12.1%;
• Operating costs: EUR122.7 million, -0.3%;
• Operating profit (loss)*: EUR12.0 million, -16.7%;
  • Airport: EUR33.8 million, +25.7%;
  • Air navigation services: (EUR4.8 million), compared with a loss of EUR6.1 million in p-c-p;
• Profit before tax: EUR23.2 million, +101.7%;
• Operating cash flow: EUR31.4 million, -3.1%. [more]

*Excluding non-recurring items

Finavia Group: "The start of the year has been a story of two halves for Finavia's operations. On the one hand, the sector showed cautious signs of recovery, resulting in optimism in terms of the final half of the year. On the other hand, the ash crisis in April and the reduced price level that will burden the result for the whole year are eroding profitability. The increase in the level of expenses has been halted as a result of the productivity programme launched a year ago and the operating result for the first half of the year was clearly positive," Samuli Haapasalo, President and CEO. Source: Finavia, 25-Aug-2010.

Finavia: "Finavia has concluded the statutory labour negotiations that were initiated in May. The number of staff will be reduced by around 100 in 2010-2011 … the aim of the measures is to improve Finavia's cost effectiveness over the longer term. Since the staff reductions will be spread over two years, the cost savings will only be realised in full in 2012 … the group is prepared for a slow recovery in the demand for air traffic. The group's operations will focus on developing services and making the operations more effective by taking forward the savings programme. On the basis of the current improvement in air traffic, the group estimates that the operating result for the year will be positive," Company statement. Source: Finavia, 25-Aug-2010.