Stock Exchange Announcement 2020
The Board of Directors has today approved the interim report for the period 1 January –
Summary of the first three months of 2020
The coronavirus pandemic and its societal and economic consequences have evolved into a global economic crisis that has dramatically impacted the aviation industry. Many airlines and businesses involved in aviation are in a battle for survival. Before the pandemic, some 83,000 travellers passed through
As the spread of coronavirus continued and national borders across the world were closed in February and March, air traffic ground to a virtual halt during the last few weeks of the first quarter.
The standstill in March was so abrupt that CPH is reporting historically poor quarterly results despite near normal operations in January and February. Profit before tax, excluding one-off items, occurring in the first quarter was
With virtually no air traffic during the months of April and May and the extensive uncertainty as to when the world will reopen, CPH is unable to provide guidance for the near future. However, 2020 will be a challenging and difficult year for the aviation industry.
Substantial cost and investment cuts
CPH is currently rolling out a comprehensive plan intended to preserve cash by reducing operating costs and postpone investments otherwise planned for the rest of 2020 for up to
Being categorised as critical infrastructure, the airport has an obligation to remain in operation even if that implies large daily operating losses. To address that situation, CPH has established substantial credit facilities to ensure CPH remains in operation during the upcoming period.
In addition, CPH is making use of the Danish government’s financial support packages. Effective from the second quarter, CPH will receive compensation for about one third of its current wage and salary costs through the Wage and salary costs compensation scheme. As a result, CPH has so far avoided redundancies. Instead, 2,200 of its 2,600 employees have been temporarily furloughed in a rotation scheme. Fulfilling the ambition of avoiding redundancies during the coronavirus crisis will depend on the depth and duration of the crisis as well as on the support measures provided by the government.
It is a condition, that CPH has no capital outflow, including dividends, or share buyback, in the financial year 2020 and 2021, to receive compensation of more than
In terms of liquidity, CPH is well prepared for the coming period. In
CPH creates jobs and welfare
According to data from Copenhagen Economics, the aviation industry contributes jobs and wealth creation in
Green transition not forgotten
Despite the crisis,
CPH also intends, until further notice, to continue the climate strategy for
Highlights of results
- Passenger numbers at
Copenhagen Airport was 4.8 million in the first three months of 2020, which was 24.2% fewer than in the same period last year due to the coronavirus crisis. The number of locally departing passengers was 1.9 million (25.3% fewer than last year), and the number of transfer and transit passengers was 0.5 million (26.3% fewer than last year).
- Revenue amounted to
DKK 764.3 million (2019:DKK 971.8 million ), a 21.4% decline from last year, primarily due to the coronavirus crisis.
- The coronavirus crisis also had a major negative impact on EBITDA. EBITDA, excluding one-off items, amounted to
DKK 320.2 million (2019:DKK 509.0 million ), which was 37.1% less than last year. EBITDA amountedDKK 313.0 million (2019:DKK 506.8 million ), corresponding to a 38.2% decline from last year.
- EBIT, excluding one-off items, was down by 61.5% to
DKK 110.8 million (2019:DKK 287.5 million ). EBIT fell by 63.7% toDKK 103.6 million (2019:DKK 285.3 million ).
- Net financing costs increased by
DKK 2.3 million compared to the same period of last year.
- Profit before tax, excluding one-off items, decreased by 69.3% to
DKK 79.4 million (2019:DKK 258.4 million ). Profit before tax decreased by 71.8% toDKK 72.2 million (2019:DKK 256.2 million ).
- Capital investments were
DKK 489.1 million in the first three months of 2020 (2019:DKK 549.0 million ). Investments in the first quarter included the expansion of Terminal 3, the completion of Pier E, construction of a multi-storey car park, new baggage facilities, IT systems as well as miscellaneous improvement and maintenance work. All investments are now under review as noted above.
Outlook for 2020
Global aviation is under significant pressure from among other factors economic uncertainty, climate change and the recent coronavirus outbreak (COVID-19).
The coronavirus outbreak and its social and economic consequences have significantly reduced the number of flights - in terms of both holiday and business travel. Airlines have announced cancellations and have cut back on operations in line with declining demand.
Due to the extensive uncertainty the COVID-19 outbreak has caused for air travel in
The above is unchanged from the guidance provided in the publication of CPH's 2019 Annual Report on
P.O. Box 74
Lufthavnsboulevarden 6
2770 Kastrup,
Contact:
CFO
Tel.: +45 3231 3231
Email: cphweb@cph.dk
www.cph.dk
CVR no. 14 70 72 04
Attachment
- Q1 2020 Announcement to the
Copenhagen Stock Exchange
© OMX, source