By Ed Frankl
Fraport AG shares fell Tuesday after the German airport operator’s first-quarter net loss widened, missing expectations on a write-down in connection with its stake in St. Petersburg’s Pulkovo Airport.
At 0750 GMT, shares were down 3.5%.
The operator of Frankfurt Airport said net loss was 118.2 million euros ($124.9 million) in the three months to the end of March, compared with a loss of EUR77.5 million a year earlier.
The bottom line was hit by the impact of a EUR48.2 million adjustment of a shareholder loan in connection with its minority-owned Pulkovo, mainly due to an increased risk of default, Fraport said.
Fraport had previously suspended its business activities in Russia because of the country’s invasion of Ukraine.
The loss was partially offset by a EUR20 million write-up of Xi’an Airport in China, following the agreed-upon divestiture of its 24.5% stake.
A rebound in passenger demand boosted revenue by 40.2% on year, to EUR539.6 million, the company said. Earnings before interest, taxes, depreciation and amortization grew by 75.9% to EUR70.7 million.
The net loss figure was weaker than consensus expectations of EUR59 million, while Ebitda was expected to be higher at EUR83 million, according to Stifel analysts in a research note.
However, cost performance was solid, with EUR64 million in cost savings maintained versus 1Q 2019 , despite general cost inflation, the analysts say.
The company maintained its outlook for 2022 of 39 million-46 million passengers, or 55%-65% of its prepandemic traffic in Frankfurt.
“For our home base Frankfurt Airport, we remain optimistic because of the positive booking figures for the coming summer travel season,” Chief Executive Stefan Schulte said.
Write to Ed Frankl at [email protected]
Credit: www.marketwatch.com /