TAV Airports announced EUR 560M first-half revenue
TAV Airports announced the financial and operational results of the group pertaining to the first half of 2023. The company served 39.3 million passengers in six months.
TAV Airports, a member of Groupe ADP, served 24.3 million international and 15 million domestic passengers in the first quarter of the year. The international traffic of the group increased by 42% compared to the same period last year.
TAV Airports Holding CEO Serkan Kaptan stated “Turkish tourism has remained very strong and highly demanded throughout the second quarter of 2023. In line with global trends, inflationary pressures are present in the tourism industry, but depreciation of Turkish Lira counteracts and Türkiye continues to offer impeccable quality and price in tourism.
Almost all of our source markets are materially above 2019 passenger levels except for Russian traffic, which is at 52% of 2019 level across our portfolio. Traffic with Germany is 24%, UK is 53%, UAE is 24%, Poland is 67% and France is 29% above 2019. We are also very pleased to welcome 117% more Kazakh travelers in our airports compared to 2019. We are looking forward to strengthening the close relations further between Kazakhstan and Türkiye with roots going back thousands of years.
While international cargo traffic has been exceptionally strong in Almaty since the second quarter of 2022 due to geopolitics and efficiency improvements, international passenger traffic has also grown significantly. Almaty passenger aircraft movements are 68% above the first half of 2022 and 13% above the first half of 2019. This growth in international passengers is unrelated to geopolitical reasons, stemming from an increase in both outbound and inbound tourism and business in Kazakhstan and hence expected to provide a cushion of stability for the future earnings outlook of Almaty. The opening of the new international terminal, which is expected in the second half of 2024, will support the strong ongoing growth in international traffic and commercial revenue through a wide assortment of best-in-class airport services that have become synonymous with the TAV brand globally.
With this strong operational backdrop we finished the first half with €147m of EBITDA which is 14% above 2022 and 26% above 2019. Throughout 2023 we’ve had a series of negative one-offs versus positive one-offs in 2022 so the strength in the operations has not yet been adequately reflected in the bottomline. Nevertheless, we have entered the high season for tourism in the third quarter where we earn most of our income throughout the year and we are reaffirming our guidance disclosed in the beginning of the year. We expect to reach or pass 2019 passenger levels with Turkish tourism running at all time high territory. We continue to expect a compound EBITDA growth of 12-18% for three consecutive years which should take TAV Airports to a new level of profitability. As we embark on this exciting journey, our major mid-term goal is to catch up with the all time high profitability levels attained in 2018 when our portfolio also included Istanbul Atatürk Airport.
Our employees who have built TAV have always been our primary asset in creating our proud global Turkish brand and they will make it possible to reach this goal too. We would like to thank them wholeheartedly for their invaluable efforts.”
KEY PERFORMANCE INDICATORS
EBITDA margin (%)
Number of passengers (m)
About TAV Airports
TAV Airports provides integrated services in all areas of airport operations, with a global footprint at 108 airports in 29 countries. A member of Groupe ADP, TAV Airports is part of the leading airport management platform globally. Through its subsidiaries, TAV is active in airport service businesses, including duty-free, food and beverage, ground handling, IT, private security and commercial area management. The company is quoted on Istanbul Stock Exchange.