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30.03.2004 – 10:00

Fraport AG

Fraport Fiscal Year 2003: Financial Results Exceed Forecasts - EUR115 Million Surplus - EUR0.44 Per Share Dividend Payment Recommended

Frankfurt (ots)

In fiscal 2003, Fraport AG Frankfurt Airport
Services Worldwide (FSE: FRA) achieved considerably higher revenues
and earnings.  The airport management  company recorded an EBITDA
(earnings before interest, tax, depreciation and amortization) of
EUR503.4 million. Thus, despite the difficult market environment, the
company slightly surpassed the previous year's figure after adjusting
for the Manila write-down. Consolidated net income climbed by eight
percent to EUR115.2 million. Fraport AG's executive board and
supervisory board recommend a dividend payment of EUR0.44 per share.
Despite the impact of the Iraq war, the SARS (severe acute
respiratory syndrome) disease, and the weak global economy, sales of
the Fraport Group rose by 1.7 percent to EUR1,834.3 million. A major
factor contributing to this growth included, in particular,
additional profits from security services.  At the beginning of the
reporting year,  an increase in airport charges by an average of two
percent at the company's Frankfurt home base also had a boosting
The total number of passengers at the Fraport Group's airports
rose by 1.9 percent to 70.6 million in 2003.  At the Group's
Frankfurt (FRA) and Antalya (AYT) airports, a noticeable recovery in
demand in the second half of 2003 nearly offset the drop in
passengers during the first half of the year, when both airports had
been extremely affected by the Iraq conflict and SARS.  For the total
year, passenger volume at Frankfurt fell only 0.2 percent short of
the previous year's level.  Excellently positioned for the low-cost
aviation market, the Group's Frankfurt-Hahn Airport (HHN) served 2.4
million passengers and again recorded above-average growth of 67.3
With an EBITDA of EUR503.4 million, Fraport exceeded the previous
year's figure of EUR502.5 million, which was adjusted for the
complete write-down of the company's project in the Philippines.  In
addition to the steady increase in revenues, this growth was
attributable to the moderate rise in operating expenditures.  As a
result of strict cost management - which also allowed for a strong
reduction in costs for consultancy services - non-staff expenses
decreased by 4.4. percent to EUR503.5 million.  In contrast,
personnel expenditures rose 8.6 percent to EUR933.9 million, mainly
because of an increase in personnel for security.
Furthermore, the EBITDA reflects higher investment income than in
the previous year.  Especially the EUR17.6 million in dividends from
Antalya made a positive showing.  With 27.4 percent, the EBITDA
margin remained at about the same level as in the previous year.
Fraport posted a consolidated net income of EUR115.2 million in
fiscal 2003.  This represents an 8.0 percent increase compared to
EUR106.7 million in fiscal 2002.  Earnings per share, as set out in
the IFRS (International Financial Reporting Standards), amounted to
At Fraport's AGM (annual general meeting) on June 2, 2004, both
the executive board and supervisory board will recommend to declare a
dividend of EUR0.44 per share - a 10-percent increase compared to
2001.  In terms of the EUR22.80 closing price of the Fraport share at
year-end 2003, this represents a dividend yield of 1.9 percent.
the most
important investment project for Fraport AG - executive board
chairman Dr. Bender said: "We are working hard to maintain the
ambitious schedule for building and inaugurating the planned new
landing runway northwest of the airport, despite the threat of delays
in the approval process.  However, it requires a cooperative effort
between politics, business and society to achieve this timeline." 
Despite the most complicated approval processes in the world,
Frankfurt Airport must be expanded within a reasonable timeframe to
secure its international competitiveness.  Capacity requirements will
determine the realization of Terminal 3, which will be built in
various phases when the airport land currently used by the U.S. air
base is returned to Fraport.
Fraport expects air traffic volume to increase considerably in
fiscal 2004.  Consequently, revenues and the EBITDA will also improve
over the previous year.  "We expect rebounding intercontinental
traffic to give essential impetus for growth. With our Frankfurt home
base - the leading European air transportation hub - we are
excellently positioned for intercontinental traffic," Bender said. 
In terms of intercontinental traffic, Frankfurt Airport accounts for
some 77 percent of the German market. At Frankfurt alone Fraport's
chairman expects passenger figures to rise by between 3.5 and 4.5
percent to over 50 million passengers - "thus returning to a
long-term growth path."
ots Original Text Service: Fraport AG
For More Information, Please Contact:
Fraport AG Frankfurt Airport Services Worldwide
Robert A. Payne - Manager International Press/PR
60547 Frankfurt am Main, Germany
Tel.: +49 69.690.78547; Fax: +49.69.690.60548; 
Internet: (click on "Press Lounge")

Original content of: Fraport AG, transmitted by news aktuell

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