TAV disclosed EUR 45M in net profits in 2021
TAV Airports had positive bottom line in 2021, following pandemic-related losses of the previous year.
A member of Groupe ADP, TAV Airports served 52 million passengers in 2021, with an increase of 92% compared to the previous year. During the same period, TAV’s revenue reached 522 million euros.
TAV Airports Holding Executive Board Member & CEO Sani Sener stated “2021, for us, was a year of significant passenger recovery, massive inorganic growth and value creating corporate actions.
We have communicated for a while that the industry has expected the global passenger recovery to be two-pronged where leisure and short haul destinations recover the fastest. In line with these expectations, TAV Airports’ passenger recovery towards 2019 levels has been significantly faster than most peers.
International travel has been gradually normalizing for the last two quarters as COVID-19 vaccine documentation has become mostly sufficient for cross-border mobility. There are still many exceptions to this rule of thumb but the exceptions are decreasing as time passes. Thanks to gradual normalization, in the third quarter, we reached the highest levels of passenger recovery since the beginning of the pandemic. The recovery then accelerated during the fourth quarter as more unhindered international mobility became possible.
With accelerating recovery and contribution of Almaty, we managed to recover 100% of revenue compared to the fourth quarter of 2019. Revenue recovery in the second half of 2021 vs the second half of 2019 was 89%.
Through substantial help from Turkish state, we achieved extensive reductions in our operating expenses(*). On a like for like basis, without Almaty, our operating expenses were 37% below 2019. The total amount of like for like savings in operating expenses that we achieved to make in the last two years reached 363 million euros.
As a result of accelerating international passenger recovery, ongoing cost control and contribution of Almaty, EBITDA recovery in the second half of the year reached 77% vs 2019 during which we generated significant operational cash. Thus, we can say that we had an excellent recovery in the second half of the year both operationally and financially.
Thanks to substantial improvement in EBITDA and one-off income from Tunisian debt restructuring, we ended the year with net profit of 45 million euros.
In addition to achieving very high levels of recovery, 2021 was also a year of achieving massive inorganic growth.
During the year we added Almaty to our portfolio which has generated 19% of consolidated EBITDA(**) in the eight months following its addition in May and has already recovered 68% of pre-pandemic EBITDA. We are working hard on increasing Almaty’s connectivity and streamlining the operations for improved efficiency. We have also closed the debt financing of Almaty from IFC and EBRD in the first quarter of 2022 and started to draw down on the loan.
Besides Almaty, we also added another 25 years of Antalya operations to our portfolio in 2021. After our present concession ends in 2026, we will continue to operate Antalya with a new concession that lasts until the end of 2051. The new concession will have higher rent but it will also have higher revenues and we expect a significantly better retail profile mostly due to increased retail area. Antalya lies at the heart of Turkish tourism and offers world-class quality of service. With a great offering, Antalya recovered 92% of international passengers in the fourth quarter versus 2019 and is preparing for a great season in 2022. In 2022, Turkish Association of Tourism Agents expects tourist arrivals to reach 2019 level. Antalya’s international traffic, which was growing at 8% per year(***) before the pandemic, offers significant growth potential for the long term as well.
2021 was also a year of significant value creation for us, where we received two year time extensions and rent deferrals for our Turkish airports from DHMI and where we booked a one-off gain of 109.0 million euros as a result of Tunisia debt restructuring. During the year, we also extended Madinah for up to eight years depending on its speed of recovery.
As a result of the inorganic growth and time extensions, our average EBITDA weighted concession duration which was 8 years at the beginning of the year increased to 30 years at year end. With the recovery we witnessed, the acquisitions we completed and the value we generated, we have created the TAV of the future in 2021. The current portfolio that we have developed in 2021 will continue to produce value for us well into the future.
Our first priority during the pandemic has always been to protect the health of our employees and our guests. I believe that we have achieved this goal with best practice precautions and remote work. I would like to thank all our employees, shareholders and business partners for their dedicated efforts and continuous support for the TAV brand.“
(*) Cash operating expenses before depreciation, amortization and impairment
(**) Almaty EBITDA adjusted for acquisition costs
(***) 2015-2019 Antalya international passenger CAGR
KEY PERFORMANCE INDICATORS
(in EURm) | 2020 | 2021 | Chg% |
Revenue | 301.4 | 522.1 | 73% |
EBITDA | 22.6 | 149.5 | 561% |
EBITDA margin (%) | 7.5% | 28.6% | 21.1 ppt |
Net Profit | (284.9) | 44.7 | nm |
Number of passengers (m) | 27.0 | 52.0 | 92% |
- International | 12.6 | 28.4 | 125% |
- Domestic | 14.4 | 23.5 | 63% |
About TAV Airports
TAV Airports provides integrated services in all areas of airport operations, with a global footprint at 87 airports in 27 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.
For further information: Erhan Ustundag, +90 212 463 30 00/2097 and +90 530 228 80 59, erhan.ustundag@tav.aero