02/17/2017 | Press release | Distributed by Public on 02/17/2017 10:24
TAV Airports, serving 104 million passengers in 2016, increased its consolidated revenue by 1% to EUR 1,092.
TAV Airports Holding (BIST: TAVHL, 'TAV'), the leading global brand of Turkey in airport operations, provided service to 104 million passengers at 14 airports, operated in seven countries, in 2016.
TAV Airports Holding President and CEO Sani Şener stated: '2016 was a challenging year for the aviation sector, both in Turkey and abroad. Security-related concerns had a negative impact on the aviation industry. And yet, TAV achieved to increase the number of passengers served by 2 percent compared to 2015 thanks to its stable portfolio. Our consolidated revenue for the year was EUR 1,092 million, still 1 percent up compared to 2015; mainly thanks to other operating incomes particularly contributed by the newly created businesses.
EBITDAR declined by 4 percent, mainly due to high volume of low margin businesses and projects, as well as the change in passenger composition at Atatürk Airport. Meanwhile, the decrease in our net profit compared to 2015 was a result of the increase in leasing amounts paid to the state due to the increase in Euro. All in all, the decrease was also caused by the increased depreciation and leasing amounts, mainly stemming from Milas Bodrum International Terminal, and conversion of deferred tax asset of TAV Tunisia.
For 2017, the Board of Directors has resolved to submit a dividend of TRY 248 million to the approval of the General Assembly. Whilst this amount corresponds to a payout of 50 percent, which is the general approach; it is also a clear indicator of our 'smart growth' policy that balances the growth with the dividends. I find the social benefits that we create for our country, employees and clients as a company as equally important as our profitability. This year, we paid around TRY 1.5 billion to the state in the form of leasing amount, taxes and social security payments. In 2016, 23 percent of our combined revenue resulted from our international operations. Furthermore, TAV invested EUR 108 million to increase passenger comfort and create employment opportunities.
In 2017, we expect to see an increase by 4 to 5 percent in total number of passengers, a flat revenue & EBITDAR and a significant increase in net profit. Moreover, capital expenditure of approximately EUR 50 million is expected for 2017.
In 2016, TAV commenced works for the construction of new terminal building and runway rehabilitation projects at the Tbilisi Airport in Georgia. In the near future, TAV plans to close the transaction of acquiring 16.67 percent of the shares of Saudi Oger, TAV's concession partner at Madinah Airport, corresponding to half of the selling partner's shares. The most important development of the year, on the other hand, was the invitation of our consortium by the Cuban state for exclusive talks to operate Havana Jose Marti and San Antonio de los Banos airports. TAV is eager to start operating Cuban airports.
Our best-in-class intellectual capital embodied by our employees is our most important competitive advantage in the growth and expansion of our portfolio in the following periods. I would like to thank all our employees, shareholders, and stakeholders for their unwavering support and trust in the TAV brand'.