TAV Airports increases net profit 90%

TAV Airports Holding (BIST: TAVHL, "TAV"), a global player in airport operations, announced its First Half 2017 EBITDA of EUR202 million and revenue of EUR511 million. The company posted a net profit of EUR 60 million with a 90% increase.

TAV Airports Holding Executive Board Member & CEO Sani Sener stated "Although 2017 started weak in our Turkish airports, we returned to a growth trajectory in the second quarter. International origin and destination (O&D) passenger volume in Ataturk Airport turned positive in April after 18 months and grew 3% in the second quarter. Transfer passengers grew 12% in the same period. The number of tourists visiting Turkey started increasing after 20 months in April which reflected positively on our passenger numbers. Hence, despite a weak first quarter, we finished the first half with 2% passenger growth and served 51 million passengers.

Consolidated revenue also increased 2% and reached €511 million. Since most of our cash opex is in Turkish Lira, due to depreciation of Turkish Lira, EBITDAR grew 5% in the first half. Istanbul Ataturk's rent is paid in fixed US Dollars. This rent in Euros was higher due to depreciation of the US Dollar. Also, our grace period of two years where we paid half the amount of rent in Medinah came to an end. Therefore, with the increase in concession and rent expenses, EBITDA grew 4%. Due to lower finance expenses, net profit increased 90%. We continue to expect significant net profit growth for the full year.

We distributed 247 million TL of dividends as per our 50% dividend distribution policy. Since 2016, we invested €44 million in Tbilisi Airport and the extraordinary growth in this airport attests to the merits of this investment.

With the social and intellectual capital we amassed in 20 years we are researching new investment opportunities around the world. We signed an agreement with the Saudi Civil Aviation Authority (GACA) to take over Yanbu, Qassim and Hail airports. We want to repeat the success we had in Medinah airport at these new Saudi airports as well.

The share purchase of Aeroports de Paris from Akfen Holding, our founding shareholder is a solid sign of ADP's confidence in the future of Turkish aviation which opens up more growth opportunities for TAV Airports.

I would like to thank all our shareholders, business partners and employees for their trust and efforts to make TAV what it is today."

KEY PERFORMANCE INDICATORS*

*Adjusted for IFRIC 12 except net profit.