TAV IT

30
TAV Airports Holding Annual Report 2008
2008 at a glance
We are increasing our profitability and
expanding our sphere of influence.
Operational Performance
TAV Airports Holding had a net profit (*) of EUR 4.7 million
in the fiscal year ending December 31, 2008.
While analyzing the Company’s operational performance
below, construction income and expenses were excluded,
while guaranteed passenger income from airports operated
in Ankara and İzmir were included.
• The Turkish State Airports Authority (DHMİ) began
announcing passenger traffic figures inclusive of transfer
passengers. Consequently, 2008 figures are not comparable
to 2007 figures. According to passenger statistics inclusive
of transfer passengers announced by the Turkish State
Airports Authority (DHMİ), TAV Airports Holding is the
leading airport operator in Turkey in terms of total
passenger traffic as of 2008, with a 48% market share.
• As a result of the full consolidation of Havas (while Havas
was 60% consolidated until September 30, 2007, it has
been fully consolidated since the last quarter of 2007,
after the acquisition of the remaining 40% of shares)
and commencement of operation of the Tunisia Monastir
Airport under the TAV Airports corporate structure on
January 1, 2008, 2008 results are not directly comparable to
2007 results.
• The Company’s adjusted income, calculated by including
guaranteed passenger income from airports operated in
Ankara and İzmir, increased 24% in 2008 to EUR 627.3
million (EUR 597.7 million according to financial statements
prepared in accordance with the IFRS), up from EUR
507.5 million (EUR 479.0 million according to financial
statements prepared in accordance with the IFRS). This 4%
increase was due to organic growth. This increase in total
income was primarily due to increased ground handling and
aviation revenues. Growth reflects increased passenger
traffic at TAV-operated airports in Turkey (organic
growth), as well as income from the Monastir Airport that
commenced operation at the beginning of 2008, and the
full consolidation of Havas in 2008 (inorganic growth).
• In 2008, ground-handling revenues increased as a result
of the full consolidation of Havas, which in turn caused
the share of aviation income (including ground handling
income) to rise to 42%. Aviation income constituted 37%
of total income in 2007. Duty free services were the second
largest item in the Company’s total revenues, with a 35%
share, whereas other income constituted the remaining 23%.
• Adjusted EBITDA rose 83% in 2008 to EUR 140.8 million
(EBITDA margin: 22%), up from EUR 77.0 million in 2007.
• Adjusted EBITDAR increased 36% in 2008 to EUR 296.8
million, up from EUR 217.8 million in 2007. Despite inorganic
growth in employee benefit expenses, EBITDAR margin
grew from 42.9% in 2007 to 47.3% in 2008 as a result of
operational leverage.
• The Company turned a net profit of EUR 4.7 million in
2008, after registering a net loss of EUR 43.8 million
in 2007. While the net loss attributable to TAV Airports
Holding shareholders was EUR 43.7 million in 2007, there
was a net profit of EUR 4.1 million attributable to TAV
Airports in 2008, thanks to a high level of operating profit.
• The Company’s net debt reached EUR 785 million at
year-end December 2008, from EUR 678 million at year-end
December 2007.
• Free cash flow (net cash generated from operations/cash
used in investments) in 2008 was EUR 11.7 million, while it
was minus EUR 106.9 million in 2007.
2008 Financial Results
The Company’s adjusted income increased 24% in 2008 to
EUR 627.3 million (EUR 597.7 million according to financial
statements prepared in accordance with the IFRS), a rise
from EUR 507.5 million (EUR 479.0 million according to
financial statements prepared in accordance with the IFRS)
in 2007. This increase in total income was primarily due to
increased ground handling and aviation revenues.
Most of the Company’s revenue was collected in foreign
currency (Euros and US Dollars). In 2008, the Company’s
aviation income, including ground handling, constituted
42% of its total operating income, whereas non-aviation
income made up the remaining 58%. In 2007, aviation
income constituted 38% of the total income. Ground
handling revenue of the Company rose in 2008 as a result
of the full consolidation of Havas.
• Adjusted aviation income (excluding ground handling)
grew 25% in 2008, to EUR 158.7 million (EUR 129.1 million
according to financial statements prepared in accordance
with the IFRS), from EUR 127.4 million (EUR 98.9
million according to financial statements prepared in
accordance with the IFRS) in 2007. This increase resulted
* The financial results in this report are prepared in accordance with IFRS,
and in Euro, as well as audited by independent auditors.