Growth continues at Copenhagen Airport

Revenue increased 2.5% to DKK 721.3 million. Profit before tax, when excluding one-off items, declined to DKK 162.4 million, which was primarily due to the divestment of CPH’s stake in a number of Mexican airports (ITA), the termination of a long-term rental contract with SAS Cargo in 2010 and higher net financing costs. In addition, costs were kept at a stable level. When excluding the effect of the divestment of ITA, the termination of the SAS Cargo contract and one-off items, the rate of underlying EBITDA growth was 6.2%.

In 2010, seven new intercontinental routes were opened at Copenhagen Airport, and this growth is continuing in 2011. Emirates has announced the opening of a new year-round service to Dubai on 1 August, and Gulf Air recently announced that they will open a new route to Bahrain on 1 July.

“We are pleased to see that the growth is continuing following our good performance in 2010. With respect to traffic revenue, we are now seeing the full-year effect of the many new routes opened last year, and sales in the shopping centre have increased as a result of higher spend per passenger. This was achieved, not least, after the implementation of our new strategy for the shopping centre, under which the range of shops has been widened through the opening of a number of new shows in a different price segment than previously seen at the airport, said Per Madsen, CFO for Copenhagen Airports A/S.

New shops increase sales
In the first quarter of 2011, Hamleys, Molo and Lagkagehuset were examples of the chains to open new outlets at Copenhagen Airport. Together with JOE & THE JUICE, Tiger, Pieces and Pandora, all of which opened in 2010, these new shops contributed to an overall increase in spend per passenger in the shopping centre.

Revenue from parking increased by 6.8% as a result of a number of campaigns featuring reduced rates for online bookings which mainly attracted the leisure market.

Better loan terms
In March 2011, CPH cancelled undrawn bank facilities equivalent to DKK 924.9 million maturing in March 2012. Concurrently, CPH established four five-year committed bilateral bank facilities totalling DKK 2.0 billion. The new facilities have resulted in significantly improved terms for CPH and further address all identified short- to medium-term refinancing risk. Moreover, the new facilities ensure that CPH will be able to meet its commitments under the charges agreement to invest DKK 2,625 million in the period from 1 October 2009 to 31 March 2015, whilst providing sufficient financial resources to fund additional investments.

New CEO
In late March 2011, CPH announced the appointment of Thomas Woldbye, former Group CEO of Norfolkline, (formerly AP Moeller Maersk) as CEO of Copenhagen Airports A/S, starting on 1 May 2011. Thomas Woldbye held a range of senior management positions whilst at Norfolkline, where he led a number of strategic change projects and has substantial experience in infrastructure development.

Outlook
Based on the expected traffic programme for 2011, the total number of passengers is expected to continue to increase. Operating costs are expected to be higher, primarily due to the forecast growth in passenger numbers, cost inflation and depreciation as a result of the higher level of investments. Overall, profit before tax is expected to be on a level with 2010 excluding one-off items.

Under the charges agreement, CPH is committed to investing an average of DKK 500 million annually supplemented by commercial investments for the benefit of airlines and passengers.