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Key Czech Aeroholding Companies Attain Gross Operating Profit of CZK 3.6 Billion for 2014

Key companies under the Czech Aeroholding group (Český Aeroholding, a.s., Letiště Praha, a. s., Czech Airlines Handling, and Czech Airlines Technics) have attained a gross operating profit (EBITDA) of CZK 3.6 billion for 2014. The results stem from growing sales of CZK 9 billion, as well as from austerity measures put in place by the new leadership of Czech Aeroholding. The group’s financial health was also confirmed by its A3 rating with a stable outlook by Moody’s.

“Making the entire group more efficient has significantly contributed to its good results. The group was able to deal with the reduced performance of Czech Airlines and decrease its dependency overall on the Czech national carrier.  The group’s EBITDA primarily reflects the management of Letiště Praha, the key asset of the group, which benefitted from passenger growth and associated sales.Austerity measures, which reduced the operating and wage costs by CZK 136 million in 2014, also had a significant impact on the year-on-year growth in gross operating profit,” said Václav Řehoř, Chairman of the Board of Directors of Czech Aeroholding.

The group’s capital structure is stable. Its share of equity (CZK 29 billion) on total assets (CZK 43 billion) amounted to 67% by year end, evincing a low presence of foreign sources in the group’s assets. Czech Aeroholding’s overall debt, particularly consisting of a loan from the European Investment Bank to construct Terminal 2, dropped by CZK 2.5 billion and amounted to CZK 9.8 billion by the end of 2014.

The financial health of Czech Aeroholding was also confirmed by the rating it received. In May of this year, Moody’s evaluation was re-classified from A3 with a negative outlook to A3 with a stable outlook. 

Czech Aeroholding’s key business includes operating Vaclav Havel International Airport Prague and related services.  The gross operating profit of this key Czech Aeroholding asset increased by 16% year-on-year from CZK 1.5 billion to CZK 1.8 billion. Airport fee sales increased by CZK 235 million (6.6%) from CZK 3.6 billion to CZK 3.8 billion. Declines in passenger traffic from Russia and Ukraine and the decreases resulting from the continued restructuring of Czech Airlines were supplanted by increases in other destinations.

The group is also involved in non-aviation business and property rentals on airport grounds to external entities (including parking, commercial space in terminals, the rental of advertising space and the rental of buildings to external partners). Sales from these activities grew 1% over 2013. A significant part of this slow growth was attributable to the drop in the number of passengers from Russia.

Revenues from handling (passengers and aircraft) grew by CZK 19 million (2.8%) in spite of difficult climatic conditions that resulted in decreased revenues from de-icing services.  The growth resulted particularly from the successful entry of Czech Airlines Handling (CSAH) into the aircraft fuelling market and growth in the volume of handling services provided to external clients. 

The good results were also confirmed by the fact that Czech Airlines Handling was named Best 2014 Handling Provider by Lufthansa and Swiss airlines.

For the first time, year-on-year growth was traceable to Czech Airlines Technics (CSAT), whose EBITDA increased from CZK -10 million to CZK 60 million, which represents a CZK 70 million increase. CSAT successfully substituted for shortfalls in Czech Airline revenues resulting from restructuring. Simultaneously, the business strategy changed. For the first time the company secured long-term contracts with guaranteed volume.

Year-on-year, the EBITDA of the Czech Aeroholding group grew by CZK 383 million and attained CZK 3.6 billion in 2014: