Growth in revenues and traffic and focus of cost control

• En-Route and terminal traffic grow 2.0% and 3.6% respectively YoY
• Consolidated revenues of 662.1 million euro (+3.1% YoY)
• Consolidated EBITDA grows 6.5% YoY to 208 million euro with an underlying growth, net of IPO costs, of 10.3%
• Consolidated net income up 11.7% to 70.4 million euro

Enav S.p.A.’s Board of Directors, held today under the chairmanship of Ferdinando Franco Falco Beccalli, approved the preliminary results at September 30, 2016.

The CEO Roberta Neri stated: the results of the third quarter confirm the Company’s positive trend – in terms of growth and efficiency – witnessed in the first half of the year. All our financial and operational results displayed further improvement over the previous year, as a result of our focus on cost efficiency and the strong recovery of air traffic in the summer season. Similarly, in our non-regulated business, our results were positive. We see further margins for improvement and are confident about this year’s closing results.

In the first nine months of 2016, Enav recorded a strong performance as driven by the substantial increase in traffic, in terms of service units (a conventional weighted measurement unit which takes in to the aircraft weight at take-off and, in case of en-route traffic, the distance travelled in Italian airspace), in particular in the summer season.

En-route traffic , in terms of service units, was up 2% vs. 30 September 2015, mainly due to the positive trend of international traffic (up 3.2% in terms of service units).

Terminal traffic (i.e. take-off, approach and landing activities within a radius of 20 km from runway) growth trends were in line with those seen for en-route, with a 3.6% increase in service units driven by the growth of 6.3% in the international traffic component.

FINANCIAL PERFORMANCE

Total consolidated net revenue at September 30, 2016 increased 3.1% YoY to 662.1 million euro from 642.0 million euro recorded in the first nine months of 2015.

Revenues from operations grew 3.5% vs. the first nine months of 2015 to 626.4 million euro. The performance was mainly the result of the revenue growth of en-route and terminal services, driven by traffic, which increased by 14.6 million euro and 12.5 million euro respectively. 

In the first nine months of 2016, non-regulated revenue grew to 9 million euro from 6.3 million euro in the first nine months of 2015. This positive performance was mainly due to services provided in foreign markets, specifically technical and operational consulting in Malaysia and Saudi Arabia.

In the first nine months of 2016, consolidated EBITDA grew 6.5% to 208.0 million euro, versus 195.2 million euro recorded in the first nine months of 2015. The EBITDA margin was equal to 31.4%, increasing 1 percentage point over the previous year, as a result of revenue growth combined with a continued focus on cost efficiency. In the first nine months of 2016 external costs increased 2% on a reported basis but, net of IPO related costs, of 7.4 million euro, declined by 4.2%. Personnel costs were up 1.5% mainly as a consequence of normal wage inflation and an increase in the variable salary component due to weekends coinciding with national holidays. The increase in personnel costs was also affected by a voluntary redundancy plan involving 21 employees as well as a headcount increase of 28 employees dedicated to technical and operational tasks. 

In the first nine months of 2016, consolidated EBIT grew 21% to 107.4 million euro vs. 88.8 in the same period of 2015.

In the nine months ended September 30, 2016, consolidated net profit rose 11.7% to 70.4 million euro vs. 63 million euro in the same period of the previous year.

The net financial position was negative for 148.9 million euro, improving by 39.5 million euro versus December 31, 2015, as result of a higher cash flow generated in the period.

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  Pursuant to art. 154-bis, par. 2 of the Consolidated Act on Finance (TUF), the manager in charge of drafting the company’s accounting records, Loredana Bottiglieri, hereby declares that the disclosures made in this release meet the accounting documents, books and records.

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  The first nine month Financial Report at September 30, 2016, are available to the general public at the Company’s registered office - Via Salaria 716, Rome, on the institutional website (www.enav.it), and with the authorized storage system “1info” (www.1info.it).