TAV served 29.9 million passengers in the first half of 2022
TAV Airports disclosed EUR 31 million net profit for the first six months of the year. Passenger traffic increased by 129%, while international traffic jumped by 235% compared to the previous year, as the momentum of recovery picks up after the pandemic.
A member of Groupe ADP, TAV Airports announced a revenue of EUR 411.6 million in the first half of 2022, which constitutes an increase of 164% compared to the same period last year. In view of these results, TAV has revised its year-end guidance upwards for revenue and EBITDA.
TAV Airports Holding CEO Serkan Kaptan stated “Celebrating our 25th year in the industry, TAV operates 15 airports in 8 countries and is known as a leading brand in airport operations. Together with our service companies, our global footprint reaches 90 airports in 29 countries.
With our new management structure effective May 2022, we will continue to work on moving TAV forward to continuously improve our service quality, serve more passengers in our existing airports and add more airports and services to our portfolio with the same level of enthusiasm and motivation.
As promised, we managed to come out stronger from the pandemic, which caused the biggest crises in the history of aviation. Adding Almaty to our portfolio and extending our concession in Antalya to 2052 together with our partner Fraport during this period have been two crucial achievements for our long-term growth. With these achievements, we extended our average concession duration from eight years to thirty years. Thanks to our geographically balanced portfolio of airports, TAV continues to stay above of the global traffic recovery curve during 2022 1st half.
We are closely following new opportunities in our target regions of Middle East, Africa, Balkans and CIS countries. As a growth-oriented company, we plan to continue to add new airports to our portfolio when opportunities for profitable and sustainable growth arise.
With strong passenger recovery and contribution of Almaty, we managed to exceed our pre-pandemic level of profitability in the second quarter. Our second quarter revenue was 39%, EBITDA was 21% and net income was 40% above the second quarter of 2019. With this performance, we finished the first half with revenue of €412m, EBITDA of €129m and net income of €31m.
Almaty, which had a stellar second quarter due to increased traffic resulting from the geopolitical challenges was an important factor in our excellent results. However, we expect a more normalized financial performance from Almaty in the coming quarters.
Throughout the year, Russian traffic has improved materially, and the latest weekly recovery level is now at 49% for TAV and 55% for Antalya compared to 2019 levels. We have also observed that the loss of Russian and Ukrainian traffic has been partially compensated with very strong traffic from the UK, Germany, Poland, Kazakhstan, Israel and the rest of Europe. With these developments, Antalya reached 80% of 2019 international traffic level during the month of June.
Incorporating all the changes in passenger and business outlook that have occurred since we disclosed our 2022 guidance, we still expect the same level of passengers with significantly higher revenue, higher EBITDA and lower EBITDA margin mostly due to margin dilution from Havas, Almaty and service companies. We now expect an EBITDA between €252m and €291m and a net profit of at least €50m for 2022.
Our investments have been ongoing despite the challenges presented by the pandemic period.
We have started the construction of the new terminal in Almaty which will more than double the capacity of the airport to at least 14 million. With the new terminal we will significantly improve the service quality of the airport and provide a best-in-class user experience to our guests with top quality services and support functions. Investments to expand our flagship airport, Antalya, in preparation for our next concession term until 2052 are also ongoing.
We will continue to work to create the highest possible value for our stakeholders and to achieve persistent and sustainable growth. Our top priorities will remain as ensuring the happiness of our employees, increasing our passenger satisfaction and acting with responsibility for the environment. We strive to move our airports towards the net zero emissions goal.
We have redefined the airport business and pioneered the creation of a new industry when TAV was established back in 1997. Even though we are living in a very different world today, our main approach stayed intact. An airport can only be imagined by looking into the future. We are always looking ahead and shaping the future of airports.
As part of Groupe ADP, the largest airport management platform globally, we cherish a culture of collaboration and innovation within the group. We will boost synergies in areas of passenger experience, digitalization, operational efficiency and corporate social responsibility. I want to take this opportunity to thank our employees, shareholders and business partners once again, making it possible to execute our vision on the airports of the future.”
KEY PERFORMANCE INDICATORS
(in EURm) | 1H21 | 1H22 | Chg% |
Revenue | 155.9 | 411.6 | 164% |
EBITDA | 24.2 | 129.0 | 432% |
EBITDA margin (%) | 15.5% | 31.3% | 15.8 ppt |
Net Profit | 23.2 | 30.8 | 33% |
Number of passengers (m) | 13.1 | 29.9 | 129% |
- International | 5.1 | 17.0 | 235% |
- Domestic | 8.0 | 12.9 | 61% |
About TAV Airports
TAV Airports provides integrated services in all areas of airport operations, with a global footprint at 90 airports in 29 countries. A member of Groupe ADP, TAV Airports is part of the leading airport management platform globally. Through its subsidiaries, TAV is active in airport service businesses, including duty-free, food and beverage, ground handling, IT, private security and commercial area management. The company is quoted on Istanbul Stock Exchange.
For further information: Erhan Ustundag, +90 212 463 30 00/2097 and +90 530 228 80 59, erhan.ustundag@tav.aero