ADP released a Q1 sales update above market expectations. The company expects a 50% recovery in traffic over the summer, to be supported by the recovery in primarily domestic, EU, and North American traffic.
Companies: Aeroports de Paris (ADP:EPA)Aeroports de Paris SA (ADP:PAR)
ADP’s results were below market expectations. While the group managed its opex well, net income was impacted by higher impairments, a more prominant loss from equity-accounted assets, and higher financial expenses due to an increase in gross debt. The group will not pay any dividend this year and, most likely, not even next year. The group is also reviewing its investment plans and needs flexibility to manage its expenditures; thus, we don’t expect a new regulated agreement anytime soon.
Companies: Aeroports de Paris SA
ADP has released its 9m revenue figure which was below consensus and our expectations, mainly owing to lower revenues in the retail business. Management is now focusing on summer FY21 and planning for a profitable next year (e.g. rapid testing). ADP has also lowered its traffic expectations and announced an additional opex savings target. We will be revising our numbers downwards.
ADP’s H1 results were mixed, with the top line and EBITDA above expectations while impairments drove operating profit below the street’s expectation. The recovery in traffic is likely to be slower than previously thought, but the scaling down of capex as well the positive implementation of cost containment measures should offset part of this effect. No change in opinion.
ADP released its Q1 sales update, with a first flavour of what is lying ahead, namely close to zero activity in both April and May in terms of passenger traffic. Resumption might start by June, with a slow recovery depending on travel restrictions lifting.
ADP has announced the acquisition of a 49% stake in GRM Airport, for an EV/EBITDA multiple between 16x and 21x. We view this deal as constructive for ADP, though having a limited positive impact in the short term in the accounts.
The ADP publication was in line with market expectations, and the proposed dividend was stable yoy despite the declining net result. The company is preparing itself for another year of growth, with the focus on retail and international expansion. The Coronavirus situation still has to be monitored, although the current impact has not been significant.
ADP has released its 9m revenue which was, overall, in line with the estimates. The good traffic orientation remained the main driver for the group, both for the Parisian airports which enjoyed resilient stronger traffic growth than the group’s average, as well as for International which continues to progress on the back of international traffic. The company remains on track to achieve its FY19 guidance, but currently speculation is in pause mode.
ADP has published strong results, overall sustained by the good traffic mix at its Parisian airports. The company has upgraded its FY19 EBITDA guidance (excluding TAV and IAG). All in all, this is a good publication, but no real surprises, especially since the group’s EBITDA guidance has not been lifted.
ADP published sound Q1 19 results, allowing management to upgrade its traffic guidance for the year. Management has, however, chosen to remain cautious on its EBITDA outlook, waiting for further visibility, leaving unchanged the rest of its guidance. Negotiations regarding Ataturk Airport’s early termination are underway, with a proposal expected by this summer.
ADP has presented its operating guidelines for the period from 2018 to 2025, targeting a 5.5% increase in both revenues and EBITDA. The strategy of the company is clearly oriented towards international development as well as the upscaling of its retail business. The company will also accelerate the development of its large real estate stock. However, the main current hot topic, namely the privatisation, was not tackled that much during the day.
Key facts for 2018
Group ADP traffic’s: +7.6% at 281.4 million passengers
Revenues are up yoy by +24% to €4.48bn, in the higher range of the consensus
EBITDA was sharply up by +25% yoy to €1.96bn, in the higher range of the consensus
EBIT was €1.24bn, up 20% yoy
Net result was €610m, up 6.9% yoy and the company maintained a 60% payout ratio
ADP anticipates traffic to grow by +2% to +2.5% in 2019
Consolidated EBITDA should be down by 10% yoy to €1.76bn
Excluding TAV Airport
Over the first 9 months, ADP’s revenues were up by +29.2% to €3.353bn, thanks to the full integration of TAV Airports and Airport International Group (AIG). On a standalone basis, revenues were up by +3.6% to €2.335 bn.
Groupe ADP’s passenger traffic progressed by +8.8% to 217.6 million passengers compared with 200 million passengers over the same period in 2017. Traffic benefited from a strong international dynamic with TAV Airport traffic increasing by +12.9% over the first 9 months, Amman’s
ADP reported strong figures in H1, boosted by the integration of TAV airports and AIG, representing about 30% of revenues. Including the Air France-KLM strikes, Paris Aéroport showed weaker results (traffic grew by 3% vs 4.6% excluding the strikes). Excluding the impact of the recent integrations, EBITDA decreased by 6.3% yoy. The group has revised its guidance thanks to the impact of the recent acquisitions. But, excluding these, the guidance remains unchanged.
ADP released a mixed set of full-year results, marked by TAV Airports’ robust performance, strong growth in Paris Aéroport traffic and relatively weak Retail & Services due to stagnating sales per pax. The group announced a set of 2018 objectives broadly in line with our expectations and proposed a €3.46 dividend.
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