Financial development
With traffic numbers slightly higher than expected, the overall result in the first half of the year exceeded the prior-year period. In the first six months, revenue as well as the consolidated result improved over the prior-year period. Accordingly, these are the best half-year results in the company’s history.
Results trend
Aviation revenue
Spurred by the higher traffic volumes at Zurich Airport, flight operations charges rose by CHF 23.8 million or 10% to CHF 269.3 million in the first half of the year.
Aviation fees and other aviation revenue amounted to a total of CHF 44.2 million in the reporting period, equivalent to an increase of CHF 11.1 million over the prior-year period. The higher aviation fees are particularly attributable to the increase in user fees at the beginning of the year in connection with the refurbishment of the baggage sorting and handling system.
Total aviation revenue increased slightly more quickly than passenger numbers, rising from CHF 278.6 million to CHF 313.5 million (+13%). Among other things, this is due to the higher aviation fees. Aviation revenue was 99% of the figure reported in the first half of 2019.
Non-aviation revenue
Non-aviation revenue climbed by 7% to CHF 317.6 million in the reporting period, equivalent to around 117% of the figure achieved in the first half of 2019.
Total commercial and parking revenue increased over the prior-year period to CHF 133.8 million (+5%). The greatest growth was achieved with advertising media and promotion, reflecting passenger volumes, among other things.
Within real estate revenue, revenue from rental agreements continued to rise, accompanied by lower energy and utility cost allocations. The decline in energy and utility cost allocations, which had been expected, is mainly due to lower energy and waste costs that are passed on to tenants. Despite this, real estate revenue rose by a total of 1% to CHF 98.2 million in the first half of this year.
Revenue from services climbed by 14% to CHF 25.0 million in the reporting period, primarily as a result of higher passenger volumes.
The substantial increase in revenue from international business from CHF 51.5 million to CHF 60.6 million in the reporting period is due mainly to higher revenue from international airport concessions. For the most part, this reflects the integration of the new airport in Natal, Brazil, as well as the above-average development of Florianópolis Airport in Brazil. Factoring out the income statement-neutral revenue from construction projects (“concession accounting”), revenue in international business climbed by 20% or CHF 8.2 million.
Operating expenses
There was substantial cost pressure in the first half of 2024. All in all, operating expenses rose by 12% over the prior-year period to CHF 284.4 million. Adjusted operating expenses (excluding expenses from construction projects) were 14% up on the first half of 2019.
Personnel expenses increased by 15% to CHF 118.6 million in the reporting period, reflecting the increase in headcount and the inflation adjustment. Costs for police and security climbed by CHF 7.2 million over the prior-year period to CHF 63.7 million (+13%) due to higher passenger volumes. As expected at the beginning of the year, energy and waste costs declined to CHF 21.2 million (–11% compared to the first half of 2023), mainly due to lower heating, ventilation and air-conditioning costs.
Operating and consolidated result
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by CHF 23 million over the prior-year period to CHF 346.8 million (+7%). The EBITDA margin came to 55%. Compared with the first half of 2019, EBITDA was up by 14%.
Depreciation and amortisation rose slightly in the reporting period, reaching CHF 143.8 million (+1%). At CHF –8.6 million, the finance result remained at the same level as in the prior-year period.
The consolidated result for the first half of the year rose by 10% to CHF 151.8 million (prior-year period: CHF 138.1 million). This is roughly 6% higher than the previous record achieved in the first half of 2019.
Investments
In the reporting period, Zurich Airport Ltd. invested a total of CHF 275.4 million (prior-year period: CHF 162.9 million) in property, plant and equipment, projects in progress and airport operator projects, including CHF 117.0 million at the Zurich site (prior-year period: CHF 84.2 million).
The single biggest project at the Zurich site was the refurbishment and expansion of the baggage sorting system. Other major projects included work on preparing for the development of the main airport complex (new Dock A, tower and dock base etc.), the development of the landside passenger zones and the extension of the Zone West apron.
Assets and financial position
A large part of the high liquidity position held at the end of 2023 was used to repay the CHF 300 million debenture, which matured in May 2024, as well as for the dividend. As at mid-2024, cash and cash equivalents and fixed-term deposits (excluding noise-related funds) were valued at CHF 196.4 million.
Starting from cash flow from operating activities of CHF 273.9 million and investments in property, plant and equipment, projects in progress and airport operator projects totalling CHF 275.4 million, free cash flow for the reporting period came to CHF –1.5 million (prior-year period: CHF 153.4 million).