ENAV delivers margins boost on traffic growth

Italy’s ENAV, the only air navigation service provider to be quoted on a stock exchange, has posted an upbeat set of results following its July flotation.

“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,” said ENAV CEO Roberta Neri.

Strong traffic trends witnessed over the summer are encouraging, she said and represented a good launch point for ENAV and a positive indicator for the industry.

En-route traffic, in terms of service units, was up 0.7 per cent over the same period of the previous year mainly driven by the positive trend of international air traffic (+2.6 per cent).

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 per cent increase over the first half of 2015, also driven by the international traffic component, which grew 5.9 per cent. 

If the current growth trend continues, ENAV said it would expect a better 2016 performance compared to last year.

ENAV completed the first half of 2016 with a net profit of €22.2 million, 41.1 per cent more than the €15.73 million recorded in the first half of last year, mainly due to services provided in foreign markets, particularly in the technical and operational consulting activities in Saudi Arabia and Malaysia.

“In our non-regulated activities, our results are in line with our expectations and we continue to focus on the growth of this business,” said Neri.

Consolidated revenues increased by 4.3 per cent yoy to €408.9 million, a group EBITDA growth to €103.4 million (an increase of 14 per cent compared to June 2015). The operating result (EBIT) for the first half 2016 increased by 90.1 per cent to €34.6 million compared to €18.2 million in the first half of 2015.

This solid performance was driven by a 1.3 per cent increase in revenue from operations, which reached €370.5 million. This result was positively affected by the growth of both en-route and terminal revenues, which increased respectively by €5.4 million and €7.6 million.

In the first half of 2016, non-regulated revenues grew to €6.6 million compared to €4.5 million in the first half of 2015.

ENAV shares began trading on the Milan Stock Exchange in July. The initial public offering was successfully completed with the placement of an initial number of 230 million shares, amounting to 42.5 per cent of the share capital, of which 207 million shares (90 per cent of the global offer) reserved for Italian and international institutional investors, and 23 million shares (10 per cent of the global offer for sale) for Italian retail investors and ENAV employees.

In August the green-shoe option for 22.6 million shares was exercised, equal to 4.172 per cent of ENAV share capital, which increased the listed part of the share capital to 46.627 per cent. The remaining 53.373 per cent of the share capital, worth €289,144,385, is held by the Italian finance ministry.

On the costs front, ENAV’s Neri said the second half of 2016 will see higher costs related to the company’s IPO process.

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