FINANCIAL RELEASE AS OF
23 October 2020
Aéroports de
Consolidated revenue over the first 9 months of 2020
impacted by the crisis linked to the CoVid-19 epidemic
Consolidated revenue of Groupe ADP
Groupe ADP's traffic2: group's traffic over the first 9 months of 2020 is down by 61.8% at 72.3 million passengers compared to the same period in 2019 (excluding traffic at Istanbul Atatürk and GMR Airports' traffic in 2019)
Paris Aéroport traffic: (
Consolidated revenue down by 52.7%3 at €1,669 million over the first 9 months of 2020 compared to same period in 2019 due to the impact of crisis linked to the CoVid-19 pandemic on traffic
Groupe ADP revenue by segment for the 9 first months of 2020 compared to the 9 first months of 2019
(in millions of euro – unless otherwise stated) | 9M 2020(1) | 9M 2019(1) | 2020/2019 |
Revenue | 1,669 | 3,526 | -52.7% |
Aviation | 686 | 1,465 | -53.2% |
Retail and services | 509 | 1,070 | -52.4% |
of which Société de Distribution Aéroportuaire | 176 | 411 | -57.1% |
of which Relay@ADP | 17 | 55 | -68.5% |
Real estate | 213 | 211 | +1.1% |
International and airport developments | 334 | 838 | -60.1% |
of which TAV Airports | 227 | 582 | -60.9% |
of which AIG | 60 | 194 | -68.9% |
Other activities | 101 | 123 | -18.1% |
Inter-sector eliminations | -174 | -182 | -4.2% |
(1) These figures take into account the full consolidation of Société de Distribution Aéroportuaire and of Relay@ADP results since
"Over the first 9 months of 2020, the group's traffic fell by 61.8%, with a total of 72.3 million passengers, and that of Paris Aéroport by 66.3%, with 27.8 million passengers. The crisis linked to the CoVid-19 epidemic continues to affect the aviation sector and weight on the resumption of the traffic. The resurgence of the epidemic in
Update on the situation related to the CoVid-19 epidemic
Air transport was abruptly interrupted from April to June as a result of the containment measures and borders closures decided by most countries in the world to limit the spread of the CoVid-19 epidemic. The resumption of traffic has since been very gradual and depends on the lifting of the mobility restriction measures applicable in each country. Over the first 9 months of 2020, Groupe ADP passengers traffic was thus down by 61.8%4 compared to the same period in 2019.
Traffic at Paris Aéroport is down by 66.3% over the first 9 months of 2020 compared to the first 9 months of 2019, with 27.8 million passenger welcomed, compared with 82.7 million passengers. Aircraft movements at Paris Aéroport are down by 56.8% compared to the first 9 months of 2019. Between the 1 and
u Situation abroad
In the context of the CoVid-19 crisis, exceptional impairments on certain fully consolidated or equity-accounted international assets were recorded with an overall impact of €177 million in net result attributable to the Group as of
Regarding international assets, the decrease in traffic due to the CoVid-19 pandemic as well as its unfavorable economic consequences may require discussions with the concerned counterparties in order to guarantee the financial and operational sustainability of the asset in cause.
In particular, Groupe ADP, as a shareholder of AIG, concessionary company of
u Solid financial structure and strengthened liquidity
Groupe ADP had a cash position of €3.6 billion as of
Given its available cash, the group does not anticipate any short-term cash flow difficulties. Furthermore, given its long-term credit rating (A negative outlook by the Standard and Poor's agency since
u Trends for the group
To date, the traffic assumption at Paris Aéroport has been revised downwards by approximately - 63% to a range of between - 65% and - 70% for the year 2020 compared to 2019. Moreover, the group confirms that traffic for Paris Aéroport could return to the level reached in 2019 at the end of the period between 2024 and 2027.
Under these conditions, the impact on the group's consolidated revenue in 2020 would be around - 2.3 to -
Groupe ADP also reiterates that it has initiated an important operational and financial optimization plan with an objective of reducing the group's operating expenses for the year 2020 by approximately €5503 million in total: this objective has been revised upwards to a range of between €650 million and €700 million in total.
Regarding the financial debt, Groupe ADP confirms the objective6 of a net debt/EBITDA ratio between 6x and 7x by the end of 2022.
First 9 months of 2020 consolidated revenue – Analysis by segment
Aviation activities – Parisian platforms
(in millions of euros) | 9M 2020 | 9M 2019 | 2020/2019 |
Revenue | 686 | 1 465 | -53.2% |
Airport fees | 338 | 885 | -61.8% |
Passenger fees | 181 | 555 | -67.4% |
Landing fees | 93 | 199 | -53.2% |
Parking fees | 64 | 131 | -51.0% |
Ancillary fees | 71 | 188 | -62.1% |
Revenue from airport safety and security services | 253 | 366 | -31.0% |
Other income | 24 | 26 | -7.7% |
Over the first 9 months of 2020, revenue from the Aviation segment, which only includes Parisian aviation activities, is down by -53.2%, at €686 million. It does not vary in the same proportion as the passenger traffic over the same period (-66.3%), notably due to rigidity of revenue from airport safety and security.
Revenue from airport fees (passenger fees, landing fees and aircraft parking fees) is down by -61.8%, at €338 million, due to the effect of the decline in passenger traffic compared to the first 9 months of 2019.
The suspension of the parking fees, implemented on
Revenue from ancillary fees is down at €71 million due to the decline in passenger traffic.
Revenue from airport safety and security services is down at €253 million, due the decline in passenger traffic.
Other income mostly consists in re-invoicing the
Retail and services – Parisian platforms
(in millions of euros) | 9M 2020(1) | 9M 2019(1) | 2020/2019 |
Revenue | 509 | 1,070 | -52.4% |
Retail activities | 253 | 679 | -62.7% |
Société de Distribution Aéroportuaire | 176 | 411 | -57.1% |
Relay@ADP | 17 | 55 | -68.5% |
Other shops, bars and restaurants | 24 | 142 | -83.3% |
Advertising | 21 | 39 | -47.6% |
Others | 15 | 31 | -51.1% |
Car parks and access roads | 64 | 128 | -50.2% |
Industrial services revenue | 76 | 98 | -22.3% |
Rental income | 88 | 109 | -19.8% |
Other income | 28 | 56 | -50.1% |
(1) These figures take into account the full consolidation of Société de Distribution Aéroportuaire and of Relay@ADP results since
Over the first 9 months of 2020, revenue from Retail and services, which includes only Parisian activities, is down by -52.4%, at €509 million.
Revenue from retail activities7 consists in rents received from airside and landside shops, bars and restaurants, banking and foreign exchange activities, and car rental companies, as well as revenue from advertising.
Over the first 9 months of 2020, retail activities revenue stands at €253 million.
As a reminder, this figure takes into account the full consolidation since
Sales/Pax8 of airside shops reaches €18.6 € over the first 9 months of 2020, slightly down by 2.0% compared to the same period in 2019.
The revenue from car parks is down (-50.2 %), at €64 million.
Revenue from industrial services (supply of electricity and water) is down by -22.3 %, at €76 million.
Rental revenues (leasing of spaces within terminals) are down by -19.8 %, at €88 million.
Other revenues (primarily constituted of internal services) decrease by €28 million euros, at €28 million, notably due to a €16 million decrease on works for the project Société du Grand Paris.
Real Estate – Parisian platforms
(in millions of euros) | 9M 2020 | 9M 2019 | 2020/2019 |
Revenue | 213 | 211 | +1.1% |
External revenue | 177 | 175 | 0.8% |
Land | 89 | 88 | 1.6% |
Buildings | 51 | 51 | -0.3% |
Others | 37 | 37 | 0.2% |
Internal revenue | 36 | 35 | 2.8% |
Over the first 9 months of 2020, revenue from the Real estate segment, which only includes Parisian activities, was up by 1.1%, at €213 million.
External revenue9 was up by 0.8%, at €177 million.
International and airports developments
(in millions of euros) | 9M 2020(1) | 9M 2019(1) | 2020/2019 |
Revenue | 334 | 838 | -60.1% |
103 | 247 | -58.2% | |
of which AIG | 60 | 194 | -68.9% |
of which ADP Ingénierie and | 31 | 43 | -26.4% |
TAV Airports | 227 | 582 | -60.9% |
Société de Distribution Aéroportuaire Croatie | 4 | 9 | -61.6% |
(1) These data take into account the full integration of MZLZ-TRGOVINA D.o.o (Société de Distribution Aéroportuaire
Over the first 9 months of 2020, revenue from the International and airports developments segment stood at €334 million, up by 60.1% compared to the first 9 months of 2019 mainly due to:
- the decrease in revenue of AIG of €134 million, at €60 million, mainly explained by the decline in passengers fees for €89 million due to the drop in traffic at
Amman (-75.3%) and the decline in the revenues from airside shops (-€22 million); - the decrease in revenue of TAV Airports of €354 million, at €227 million, mainly explained by:
- the decrease in revenue of BTA (company specialized in bars and restaurants) of -€71 million and of TAV OS (company specialized in airport lounges management) of -€46 million, due to the impact of the crisis linked to the CoVid-19 on airport frequencies in which these two companies operate and also on Istanbul Atatürk Airport's closure in
April 2019 ; - the decrease in revenue of Havas (company specialized in the ground handling) of -€62 million, due to the decline of flights served (-47% compared to the first 9 months of 2019);
- the decrease in revenue of TAV Georgia (company operating the
Tbilisi and Batumi airports concessions) for - €57 million notably following the decline in traffic (-83% compared to the first 9 months of 2019) but also the air travel restrictions enforced to and fromGeorgia implemented byRussia sinceJuly 2019 .
- the decrease in revenue of BTA (company specialized in bars and restaurants) of -€71 million and of TAV OS (company specialized in airport lounges management) of -€46 million, due to the impact of the crisis linked to the CoVid-19 on airport frequencies in which these two companies operate and also on Istanbul Atatürk Airport's closure in
Over the first 9 months of 2020, the revenue of ADP Ingénierie is down by €11 million and stands at €31 million.
Other activities
(in millions of euros) | 9M 2020 | 9M 2019 | 2020/2019 |
Products | 101 | 123 | -18.1% |
98 | 111 | -11.8% |
Over the first 9 months of 2020, other activities segment products decreased by 18.1%, at €101 million, notably due the non-renewal of some surveys performed in 2019 for the CDG Express project (which are re-invoicing).
Main highlights since the publication of the 2020 half-year results, on
Change in passenger traffic over the first 9 months of 2020:
u Group traffic:
Information regarding the suspension of commercial flights and infrastructures closures | Status as of | Group traffic @100% (mPax) | Groupe ADP stake(1) | Stake-weighted traffic (mPax)(2) | 2020/ 2019 change(3) | |||
Paris Aéroport (CDG+ORY) | Paris-CDG : Continuation of domestic and international commercial flights (albeit with travel restrictions) Paris-Orly : Closure of the airport and suspension of the commercial flights | - Paris-CDG : Open to domestic and international commercial flights - Paris-Orly : Open to domestic and international commercial flights | 27.8 | @ 100% | 27.8 | -66.3% | ||
Borders closures to the non-European citizens since | Open to domestic and international commercial flights | 0.8 | @ 20.8% | 0.2 | -70.1% | |||
Jeddah-Hajj | Suspension of the international and the domestic commercial traffic since | Resumption of commercial traffic on | 1.4 | @ 5% | 0.1 | -75.9% | ||
Suspension of the commercial flights | Open to domestic commercial flights only Resumption of commercial traffic on | 1.7 | @ 51% | 1.7(@100%) | -75,3% | |||
Suspension of the international commercial traffic since | Resumption of commercial traffic on | 0.9 | @ 10% | 0.1 | -67.4% | |||
Total closure on | Open to domestic commercial flights only | 0.2 | @ 29% | 0.0 | -57.4% | |||
Suspension of the international flights on | Open to domestic commercial flights only | 6.9 | @ 45% | 3.1 | -63.3% | |||
Suspension of the commercial traffic on | Resumption of domestic traffic on | 0.2 | @ 35% | 0.1 | -75.6% | |||
- GMR Airports(4) | Suspension of the international traffic since Suspension of the domestic traffic | Open to domestic and international commercial flights | 8.9 | @ 31.4% | 4.3 (@49%) | N/A | ||
- GMR Airports(4) | Suspension of the international traffic since Suspension of the domestic traffic | Open to domestic and international commercial flights | 2.9 | @ 30.9% | 1.4 (@49%) | N/A | ||
Cebu - GMR Airports(4) | Continuation of domestic and international commercial flights (albeit with travel restrictions) | Open to domestic and international commercial flights | 0.5 | @ 19.6% | 0.1 (@19.6%) | N/A | ||
Antalya – TAV Airports | Suspension of the international flights on | Open to domestic and international commercial flights | 7.1 | @ 23.2% | 7.1 (@100%) | -75.7% | ||
Ankara Esenboga - TAV Airports | Suspension of the international flights on | Open to domestic and international commercial flights | 4.0 | @ 46.4% | 4.0 (@100%) | -62.4% | ||
- TAV Airports | Suspension of the international flights on | Open to domestic and international commercial flights | 4.2 | @ 46.4% | 4.2 (@100%) | -55.5% | ||
Other platforms - TAV Airports(5) | N/A | N/A | 5.6 | @ 46.4% | 5.6 (@100%) | -74.6% | ||
GROUP TOTAL (excl. Atatürk) | N/A | N/A | 72.3 | 59.8 | -65.0% | |||
GROUP TOTAL (incl. Atatürk) | N/A | N/A | 72.3 | 59.8 | -68.0% |
(1) Direct or indirect
(2) Stake-weighted total traffic is calculated using the following method: traffic at the airports that are fully integrated is recognized at 100%, while the traffic from the other airports is accounted for pro rata to Groupe ADP’s percentage holding. Traffic of all TAV Airports' airports is taken into account at 100% in accordance with TAV Airports' financial communication practices
(3) Change in 2020 stake-weighted traffic compared to 2019 stake-weighted traffic
(4) From
(5)
u Traffic at Paris Aéroport
Over the first 9 months of 2020, Paris Aéroport passenger traffic has seen the decrease of 66.3%, with a total of 27.8 million passengers.
- Geographical breakdown of traffic in
Paris is as follows:
- International traffic (excluding
Europe ) was down (-68.0%) driven by the decline in the following destinations:Asia-Pacific (-75.7%),North America (-76.8%), theMiddle East (-68.0%),Latin America (-66.3%),Africa (-64.5%), and the French Overseas Territories (-45.1%); - European traffic (excluding
France ) was down by -68.4%; - Traffic within
France decreased by -55.6%.
- International traffic (excluding
Geographic split at Paris Aéroport | 2020/2019 change | Share in total traffic |
-55.6% | 19.6% | |
-68.4% | 41.4% | |
Other International | -68.0% | 39.1% |
of which | ||
| -64.5% | 11.8% |
| -76.8% | 7.6% |
| -66.3% | 3.1% |
| -68.0% | 4.9% |
| -75.7% | 4.6% |
French Overseas Territories | -45.1% | 7.1% |
Total Paris Aéroport | -66.3% | 100.0% |
The number of connecting passengers decreased by 65.4%. The connecting rate stood at 23.4%, up by 0.9 point compared to the first 9 months of 2019. The aircraft load factor was down by 14.6 points, at 72.1%. The number of air traffic movements (236,433) was down by 56.8%.
Groupe ADP announces the extension of the HubLink alliance with
Aéroports de Paris and NV Luchthaven Schiphol (
The current context of uncertainty resulting from the crisis linked to CoVid-19 makes it necessary to postpone the decision on the future of this alliance.
Aéroports de Paris, after authorization from its Board of Directors, announces having soon to sign an amendment to extend this alliance for a duration of one year, until
Forecasts
2020 Forecasts
| 2020 forecasts as established on | 2020 forecasts on | 2020 forecasts on |
Group Traffic | Traffic growth assumption for Paris Aéroport: increase between +2% and +2.5% in 2020 vs 2019 Traffic growth assumption for TAV Airports between +3% and +5% between 2020 and 2019, calculated without Istanbul Atatürk in 2019 à Abandon on | Assumption of a drop in traffic of -63% over the year 2020 vs 2019 | Assumption of a drop in traffic of between -65% and -70% in 2020 vs 2019 |
Consolidated revenue | - | - | -€2.3bn to -€2.6bn compared to 2019 |
Group operating expenses reduction | - | €550m | €650m to €700m |
Consolidated EBITDA | Consolidated Group EBITDA growth 2020(1)(2)(3)(4) between +3.5% and +6.5% compared to 2019 Consolidated EBITDA growth excluding TAV Airports and AIG(3)(4) between +3% and +5% compared to 2019 à Abandon on | - | - |
Dividend | Proposed dividend(5) of €3.70 per share for 2019, stable compared to 2018 à Revision on | - | No interim dividend payment for the 2020 fiscal year |
- TAV Airports' EBITDA guidance for 2020, underlying Group's EBITDA guidance, is built on the assumption of the following exchange rate assumptions: EUR/TRY = 6.87 ; EUR/USD =1.12
- The IFRS 5 standard "Non-current assets held for sale and discontinued operations" is applying to TAV Istanbul's activities as of the termination of activities at Istanbul Atatürk airport on
6 April 2019 (see the press release from8 April 2019 ). The revenue and operating expenses of TAV Istanbul for 2018 and 2019 are therefore presented on a separate line on the income statement titled "net income from discontinued activities". Consolidated revenue, EBITDA and operating income of the Group don't take into account the activity of Istanbul Atatürk airport anymore. Furthermore, the line "net income from discontinued activities" includes as well the profit following the announcement by Turkish authorities of the compensation due to TAV Airports for the early closure of Atatürk airport, after taxes and the impact of corresponding assets disposal (for €31M before elimination of non-controlling interests)(see the press release from26 December 2019 ) - Takes into account the introduction, since 1st
April 2019 , of the mechanism charging Aéroports de Paris 6% of the costs hitherto fully covered by the airport tax, in accordance with Article 179 of Law No. 2018-1317 of28 December 2018 of finance - Excluding potential effects on ADP’s accounts related the sell by the State of the majority of ADP’s capital (according to the PACTE law provisions)
- Subject to the approval of the General Meeting of the Shareholder approving the 2019 accounts
- Approved by the General Meeting of the Shareholder approving the 2019 accounts on
12 May 2020
Agenda
A conference call will be held today at
- Live audiocast available on our website: Audiocast in English
- Live by phone
- From
France : + 33 (0) 1 70 37 71 66 - From
the United States : +1 212 999 6659 - From other countries: +44 (0) 20 3003 2666
- Password: ADP
- From
- Next traffic figures publication:
- Friday
16 November 2020 :October 2020 traffic figures
- Friday
- Next results publication:
- Wednesday
17 February 2021 (after market close): 2020 Full-year results
- Wednesday
Disclaimer
This presentation does not constitute an offer to purchase financial securities within
Forward-looking disclosures (including, if so, forecasts and objectives) are included in this press release. These forward-looking disclosures are based on data, assumptions and estimates deemed reasonable at the diffusion date of the present document but could be unprecise and are, either way, subject to risks. There are uncertainties about the realization of predicted events and the achievements of forecasted results. Detailed information about these potential risks and uncertainties that might trigger differences between considered results and obtained results are available in the registration document filed with the French financial markets authority on
Aéroports de Paris do not commit and shall not update forecasted information contained in the document to reflect facts and posterior circumstances to the presentation date.
Investor Relations contact
Press contact
Investor Relations:
Press contact:
Groupe ADP develops and manages airports, including
Registered office: 1, rue de
groupeadp.fr
1 This document is voluntarily made by Aéroports de Paris in compliance with the AMF recommendation. See AMF recommandation - Guide de l'information permanente et de la gestion de l'information privilégiée– DOC-2016-08
2 Group traffic @100%. Group traffic @100% does not take into account the traffic of Istanbul Atatürk Airport in 2019 and includes the traffic of
3 Unless otherwise stated, percentages are comparing the first 9 months of 2020 data to 2019 comparable data
4 Group traffic @100%. Group traffic @100% does not take into account the traffic of Istanbul Atatürk Airport in 2019 and includes the traffic of
5 Sources: TARMAC for the traffic of the period between 1 and
6 See the H1 2020 results financial release published on
7 See chapter 8 of the 2019 Universal Registration Document, filled on 23 March 2020
8 Sales in airside shops divided by the number of departing passengers (Sales/PAX)
9 Generated with third parties (outside the Group)
Attachment
- Aéroports de
Paris SA - 2020 9-month press release
© OMX, source