THE BOARD OF DIRECTORS OF ENAV APPROVES THE FIRST HALF 2016 RESULTS
Solid growth in revenue and EBITDA
- En-Route and terminal traffic grow 0.7% and 3.1% respectively vs. June 30, 2015
- Consolidated net revenue of 408.9 million euro (+4.3% YoY)
- Consolidated EBITDA grows 14.0% YoY to 103.4 million euro
- Consolidated net income up 41.1% YoY to 22.2 million euro
Enav S.p.A.’s Board of Directors, held today under the chairmanship of Franco Ferdinando Falco Beccalli, approved the first half 2016 financial report as of June 30, 2016.
Enav’s CEO Roberta Neri stated: The results of the first six months of the year confirm the positive trend of our business and Enav’s ability to grow its margins. We continue to target operational performance, quality of service and cost optimisation. In addition, the strong traffic trends witnessed over the summer are encouraging, and represent a good starting point for Enav and a positive indicator for the industry. Similarly, in our non-regulated activities, our results are in line with our expectations and we continue to focus on the growth of this business.
In the first half of 2016, Enav delivered a strong performance driven by growth in traffic in terms of service units (a conventional weighted measurement unit which takes into the aircraft weight at take-off and, in case of en-route traffic, the distance travelled in Italian airspace) and focus on cost control.
En-route traffic, in terms of service units, was up 0.7% over the same period of the previous year mainly driven by the positive trend of international air traffic (+2.6%).
Terminal traffic (i.e. take-off, approach and landing activities within a radius of 20 km from the runway), in terms of service units, saw a 3.1% increase over the first half of 2015, also driven by the international traffic component, which grew 5.9%.
Total consolidated net revenue at June 30, 2016 reached 408.9 million euro, up 4.3% versus
the revenue of 392.1 million euro recorded in the first half of 2015.
This solid performance was driven by a 1.3% increase in revenue from operations, which reached 370.5 million euro. This result was positively affected by the growth of both en-route and terminal revenues, which increased respectively by 5.4 million euro and 7.6 million euro.
In the first half of 2016, non-regulated revenues grew to 6.6 million euro compared to 4.5 million euro in the first half of 2015. This performance was mainly attributable to services provided in foreign markets, specifically technical and operational consulting in Saudi Arabia and Malaysia.
Total net revenue was also positively influenced by the increase in balance revenue (mechanism which enables ANSP’s to recover from, or return to carriers, the effects arising from the difference between planned air traffic volumes and actual traffic, as well as a total recovery of costs for services provided in minor airports), which reached 21.4 million euro, growing 12.3 million euro over the first half of 2015.
In the first six months of 2016, consolidated EBITDA grew 14.0% to 103.4 million euro versus 90.6 million euro recorded in the previous year. The EBITDA margin, at 30 June 2016, was equal to 25.3%, 2.2 percentage points above the level of the same period of the previous year. This result was mainly due to the solid revenue growth combined with a continued focus on cost efficiency. Other net costs fell 0.9% over the previous year on a reported basis and declined 4.4% on an underlying basis, excluding 2.8 million euro of IPO related costs. Personnel costs were up 1.6%, mainly as a result of normal wage inflation and an increase in the variable salary component, in part due to week holidays coinciding with national holidays. Personnel costs were also influenced by an increase in headcount of 12 units (dedicated to technical and operational tasks). The executive headcount as of June 30, 2016 was reduced from 79 units, in the first half of 2015, to 68 units, despite 4 new executive hirings during the period.
The consolidated EBIT in the first half of 2016 grew 90.1% to 34.6 million euro compared to 18.2 million euro recorded in the first half of 2015.
The consolidated net profit in the first six months grew 41.1% over the previous year’s level, to 22.2 million euro.
The net financial position as of June 30, 2016 was negative for 236.4 million euro, increasing by 47.9 million euro versus the level at December 31, 2015. The change is mainly attributable to the decrease in cash and equivalents as a result of the payment of dividends for year 2015 and the payment of corporate income taxes.
MAIN EVENTS AFTER THE END OF THE ACCOUNTING PERIOD
On July 26, 2016, Enav S.p.A. shares began trading on the Milan Stock Exchange. The initial public offering was successfully completed with the placement of an initial number of 230 million shares, amounting to 42.5% of the share capital, of which 207 million shares (90% of the global offer) reserved for Italian and international institutional investors, and 23 million shares (10% of the global offer for sale) for Italian retail investors and Enav employees.
On August 2 the Global Coordinators exercised in full the green-shoe option for 22.6 million shares, equal to 4.172% of Enav’s share capital, which increased the listed part of the share capital to 46.627%. The remaining 53.373% of the share capital, worth 289,144,385 euro, is held by the Italian Ministry of Economy and Finance.
The summer months have seen a growth in managed traffic volumes which, if confirmed in the remaining part of the year, could foreseeably lead to a higher growth rate in service units, for the full year, than that witnesses in the first half of the year. On the costs front, the second half of 2016 will see a higher incidence of costs related to the Company’s IPO process which was completed on July 26.
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.
The half-year Financial Report at June 30, 2016, as per art. 154-ter, par 2, of Legislative Decree no. 58 of 24 February 1998, and the audit report issued by the independent auditing firm – 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 authorised storage system “1info” (www.1info.it).