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13.05.2004 – 07:00

Fraport AG

Fraport Interim Report 1Q 2004: Fraport Achieves First Quarter Growth in Passengers and Revenues - Results Curbed by Special Effects

    Frankfurt, Germany (ots)

From January to March 2004, revenues at
Fraport AG Frankfurt Airport Services Worldwide (FSE: FRA) grew by
3.9 percent to EUR446.2 million.  Despite special effects, the
Group's EBITDA (earnings before interest, tax, depreciation and
amortization) reached EUR99.4 million, equaling the previous year's
    The increase in revenues was primarily attributable to the
noticeable growth in traffic. Group-wide, the number of passengers
reached 15.2 million, 9.8 percent more than in the same period last
year. Frankfurt Airport (FRA), the Group's most important location,
served 11.3 million passengers - 6.8 percent more than in the first
quarter of 2003. Antalya Airport (AYT) recorded 34.0 percent more
passengers and Frankfurt-Hahn Airport (HHN) 24.5 percent more.
Aircraft movements (takeoffs and landings) at FRA were similar to the
previous year's level due to the use of larger aircraft. In contrast,
Frankfurt's airfreight and airmail tonnage rose by 6.4 percent to
430,675 metric tons.
    At Frankfurt Airport, the company earned EUR9 million  more in
airport charges than in the comparable period last year, because of
this positive traffic development. Furthermore, revenues from
security services increased. However, revenue growth was depressed
by around EUR7 million due to special effects:  Because of a change
in accounting policies, noise abatement charges have not been shown
in the operating results since the third quarter of 2003, while first
quarter 2003 results still included these charges in the amount of
EUR4.7 million. Proceeds from military flight operations dropped by
EUR2.3 million.
    With the number of employees rising - particularly at Fraport's
ICTS Europe subsidiary, which specializes in security services - by
738 to 23,078 people, personnel expenditures grew by 5.8-percent to a
total of EUR240.2 million, especially because of an increase in
negotiated pay rates effective January 1. Material expenses rose by
6.1 percent to  EUR116.6 million, mainly because of maintenance
measures at Frankfurt Airport, such as the  renovation of Runway
North and the upgrading of Terminal 1 for  enhancing the retail
    With EUR99.4 million, the Group's EBITDA stagnated at the previous
year's level due to special effects which depressed revenue growth.
Adjusted for these special effects, the EBITDA in the first quarter
of 2004 would have been 6.6 percent higher than in the first quarter
of 2003.
    The financial result deteriorated from January to March by EUR15.2
million to minus EUR9.5 million. In the previous year, the first
quarter result was positively impacted by the one-time effect of
EUR8.5 million in dividends from Antalya for 2002 being recorded in
2003. Furthermore, the balance of foreign currency translations had
a negative impact, depressing results by EUR6.1 million. Special
factors affecting revenues and financial results contributed
substantially to the 26.7 percent or EUR6.9 million decrease in the
Group's quarterly earnings to EUR18.9 million. Earnings per share
according to IFRS (International Financial Reporting Standards)
dropped from EUR0.29 to EUR0.21.
    In view of the positive development of the operating business in
the first quarter and the prospect of further recovery in passenger
traffic during the rest of 2004, Fraport expects revenues to grow by
five percent and EBITDA to rise between five and ten percent for
fiscal year 2004. From today's point of view, Group profits will
also rise at an over-proportionate rate. These expectations are based
on the assumption that there will be no negative effects from
epidemics, terror acts or war.
ots Original Text Service: Fraport AG

For More Information, Please Contact: Fraport AG Frankfurt Airport Services Worldwide Robert A. Payne - Manager International Press/PR Press Office (UKM-PS), Corporate Communications, 60547 Frankfurt am Main, Germany Tel.: +49 69.690.78547; Fax: +49.69.690.60548; E-mail:;   Internet: (click on "Press Lounge")

Original content of: Fraport AG, transmitted by news aktuell