Airport groups: large revenue increases for Groupe ADP in 2019

Groupe ADP, which operates the two main Paris airports, as well as associated infrastructure in the French capital and airports and terminals around the world, reported a very positive FY2019, with revenue increasing by 17.3% (mainly as a result of acquisitions) and EBITDA by 5.5%.

Revenues increased across the board - from all sources apart from airport safety and security and, intriguingly, from car parking. Given the impact of the 'flight shame' movement in Europe, Groupe ADP will expect there to be an increase in public transport usage.

International divisions made a major contribution to the result, but revenues for the consulting arm ADP Ingénierie decreased slightly, by -1.2%; it has a backlog of work and its role within the group is expected to increase rather than diminish.

Groupe ADP is to be privatised, with organisations such as VINCI Airports looking to increase a current minority shareholding. Together, the two groups, with TAV, would become potentially the largest in the world.

The outcome still remains dependent on a 'shared referendum' on blocking it, which was launched in Jun-2019. (The referendum has reached approximately 22% of votes required to do that, with around one month remaining until the deadline.)