Q3 2025 Fraport AG Earnings Call - Pre-Recorded
While certain regulatory approvals.
Stefan Schulte: One of the key highlights certainly was the regulatory approval of our major construction site Terminal 3 in Frankfurt. I'm on slide number three, so completely approved we are officially at least ready to start. It fills me and the entire frat port team with pride that Frankfurt Airport is now ready for future growth. I will come back on the remaining steps until the opening of the terminal in a minute, but let's focus on the other key areas of the past period first. In combination with the progress in Frankfurt, we also completed and opened the first phase of the new Lima terminal in June and added new terminal capacities in Antalya in April. Besides the CAPEX projects, we are also pleased with the last summer season.
Major construction site terminals Sui in Frankfurt I'm on slide number three.
So completely approved.
We are officially at least the way to start.
It fits me in their entire property with plant the Frankfurt Airport is now ready for future growth.
I will come back on the remaining steps until the opening of that terminal in a minute.
Let's focus on the other key areas of the past period first.
In combination with the progress in Frankfurt, We also completed and opened the first phase of the new Lima terminate in June and added new terminal capacities in Ontario in April.
Besides the Capex projects. We are also pleased with the last summer season.
Frankfurt Airport showed a solid growth rate of around 3%, while our passengers and airline customers at the same time to see better operational quality compared to the previous year.
Stefan Schulte: Frankfurt Airport showed a solid growth rate of around 3% while our passengers and airline customers at the same time perceived better operational quality compared to the previous year. During the summer season, key International Group airports also achieved record levels in Q3 and on a year to year basis. As a result of the operational growth, we recorded an all time high EBITDA in the third quarter and received record inflows. Consequently, free cash flow was the highest ever achieved by our company in the third quarter despite continued outflows for Terminal 3 and the new Lima terminal in the amount of around 150 million euros. Having said this, we are well on track to deliver on all our financial targets set for fiscal year 2025.
During the summer season key International group airports also achieved record levels in Q3 and on a year to year basis.
As a result of the operational growth.
That's an all time high EBITDA in the third quarter and received record inflows. Consequently free cash flow was the highest ever achieved by our company in the third quarter.
Despite continued outflows for tumors reenter newly Maher terminal and the amount of around $150 million.
Having said this we are well on track to deliver on all our financial targets set for fiscal year 2025.
Taking now and low corn at our key financial highlights for the third quarter on slide number four.
Stefan Schulte: Taking now a look on at our key financial highlights for the third quarter on slide number four, while headline revenues of 1.35 billion euro were flat on the previous year's level, revenues excluding for IFRIT 12 effect moved up strongly by 8% compared to Q3 last year. Reasons for the positive revenue development was the before mentioned traffic growth as well as increases in airport charges and other prices. From a segment perspective, our International division showed revenue growth of around 6% while the three Frankfurt segments were up even stronger by about 10%. Moving on the EBITDA here the increase was clearly higher compared to revenues at more than 20%. EBITDA therefore achieved an all time high figure of 590 million Euro.
While headline revenues of $1 35 billion, new who are flat.
Previous year's level.
Revenues, excluding 412, FX moved up strongly by 8% compared to Q3 last year.
Reasons for the positive revenue development was the before mentioned <unk> as well as increases in airport charges and other places.
From a segment perspective, our international Division showed revenue growth of around 6% was a sweet Frankfurt segments were up even swung out by about 10%.
Moving on the EBITDA increase was clearly higher compared to revenues at more than 20%.
EBITDA, therefore achieved an all time high figure of 519 million new.
By young.
Underlying strong business development. We also recorded a positive one off effect of roughly $50 million in Europe due to cash specs in connection with the supplementary pension plan.
Stefan Schulte: Beyond the underlying strong business development, we also recorded a positive one off effect of roughly 50 million Euro due to cashbacks in connection with the supplementary pension plan. Here, additional payments to close an expected funding gap were calculated wrongly which led to a reimbursement of contributions and supported our results. Adjusted for this one time effect, EBITDA nonetheless was up strongly by around 12% to 540 million euro. Bottom line, a group result of 350 million euro also marked an all time high despite the higher interest expenses and a slightly more negative result for Montalia. Our traffic performance in the third quarter shown on slide number 5, Frankfurt Airport showed a solid growth rate of just under 3%.
Here additional payments to close and expect that funding gap or calculated warmly.
Which led to a reimbursement of contributions and support at all or was that.
Adjusted for this one time effect.
EBITDA Nonetheless.
<unk> apps only by about 12% to $540 million.
Bottom line.
A group result of 350 million New also marked an all time high despite the higher interest expenses and a slightly more negative result for Montana.
Our traffic performance in the third quarter as shown on slide number five.
Frankfurt Airport showed a solid growth rate of just under 3%.
In addition to the positive.
In the third quarter.
Stefan Schulte: In addition to the positive development in the third quarter, we were also pleased to see even an even better traffic performance in October at a growth rate of just under 6%. All traffic regions so North America, Africa, Asia and Europe expect for Latin America recorded passenger growth. Frankfurt Airport therefore now stands at a year to date passenger growth of 2.3%, so we are on track to achieve our full year targets. Outside of Frankfurt. Growth continued in all our group airports in the third quarter. Harper, Greece recorded a similar growth rate to Frankfurt and reached another passenger record. In particular, the airport of Thessaloniki showed strong momentum of more than 8% while also the airports of Kofu and Kania showed growth good growth of more than 5% each. Lima Airport recorded a somewhat more moderate modest growth rate at around 2% in Q3.
We're also pleased to see even in <unk>.
Even better terrific performance in October.
At the lowest rate of just under 6% All classic region. So Northern America Africa, Asia, and Europe, I expect for Latin America, we call it a passenger growth.
Frankfurt Airport. Therefore, now stands at a year to date passenger growth of two 3%. So we are on track to achieve our full year targets.
Outside of Frankfurt goes continued in all of our airports since the third quarter corporate greed recorded a similar you also had to Frankfurt and reached another passenger vehicles.
Particular, the airport of Tesoro, Nicky showed strong momentum of more than 8%.
While also the airports of Copel in Kenya showed goes could close of more than 5% each.
He may have bought recorded a somewhat more moderate modest growth rate at one 2% in Q3 the airport in Lima was negatively impacted by the refurbishment of underwear.
Stefan Schulte: The airport in Lima was negatively impacted by the refurbishment of the Otranwer which started in September and strikes carried out in Cusco which had a negative impact on the tourist inflows to Machu Picchu. Brazil on the other side was positively impacted by the reopening of Porto Alegre Airport and doubled its passengers number compared to the last year. A solid recover to more than 90% of 2019. A very positive growth rate of 12% recorded in Ljubljana. Here numerous flights were added during the summer season and we expect continuation of this favorable trend for the upcoming winter season. Our two Bulgarian airports in Barnam Burgers also saw passenger growth of combined 6% at a recovery rate of 68%. The two airports however still lack the 2019 levels due to missing passengers from Eastern Europe as a result of the war in Ukraine.
And which started in September and <unk> carried out in Cusco, which had a negative impact on the tourist inflows to macro picture.
Brazil on the other side was positively impacted by the reopening of Porto Alegre Airport and double the passenger's number compared to the last year solar to recover to more than 90% of 2019.
Very positive goal set of 12% was recorded and it will be or not be in numerous slides were added during the summer season, and we expect a continuation of this favorable trend for the upcoming winter season.
Our <unk> gateway, but <unk> also saw passenger growth of combined 6%.
Our recovery rate of 68% or two airports, however, still lag so 2019 levels due to missing passengers from eastern Europe as a result of the war and new cleaning.
After a weak start of the year on Todd Yeah, but came back into the growth mode.
Stefan Schulte: After a weak start of the year, Antalya airport came back into the growth mode at plus 2%. The airport handled 5% more passengers compared to 2019, a solid result of our single biggest airport outside of Frankfurt. In total, the group airport Therefore handled about 6% more passengers in the third quarter compared to last year and are now fully recover to the pre pandemic level. Looking ahead, we just released a traffic outlook on the Frankfurt winter season. I'm on slide number six for the current winter season. We expect aircraft movements to grow by around 3% and seat capacities likewise to grow at roughly 3%. Growth will be mainly driven by capacity additions of Condor and EasyJet. The two carriers clearly increased services and started new routes last summer. This growth will now continue for the winter.
Plus 2% CFO tentative, 5% more passengers compared to 2019, a solid result of a single beaches biggest airport outside of Frankfurt.
In total for the group.
But therefore ended at about 6% more passengers since the third quarter compared to last year and are now fully recovered.
<unk> pandemic level.
Looking ahead.
We just released a terrific outlook on the Frankford winter season, I'm on slide number six.
For the current winter season, we expect aircraft movements to grow by around 3% in seat capacities likewise to grow at roughly 6%.
Those will be mainly driven by capacity additions of condo and easyjet. The two carriers clearly increased services and start to New awards last summer.
<unk> will now continue for the winter, but also laughter.
As background <unk> was to deliver release of some new will be 787.
Stefan Schulte: But also Lufthansa is back on growth with the deliveries of the new B787 following the winter season, we very much look forward to a new chapter for Frankfurt Airport, the reopening of Terminal 3. As we discussed before, Terminal 3 will open after the Easter holidays next year. In the meantime, we set a date for the first in a rail flight of our Terminal 3. April 23rd will be the first operational day. Until this day, we still have further tasks to do. The trials test to test the infrastructure started already with our own employees. In January, the test runs will commence with people from outside of the FRAPAT route. By the time of the opening, several thousands of people will have tested the new terminal processes simultaneously. Commercial operators will work on the completion of the new shop concepts and launches.
Following the winter season, we very much look forward to a new chapter for Frankfurt Airport, the reopening of terminal suite.
As we discussed before Timmins III.
Open after the Easter holidays next year and.
In the meantime.
We set a date for the first flight of our terminals suite.
<unk> 2000, <unk> would it be the first operational date on to this day, we still have further task to do the trial towards tests to test the infrastructure started already with our own employees and generally the test one.
The test once we will commence with people from outside of the court.
Time, I'll say opening several thousands of people would have tested the new terminal pulse systems <unk>.
Simultaneously commercial operators will work.
On the completion of the new shop concepts and launches the security checks are set up as well as all installations by the police customs and all of the items.
Stefan Schulte: The security checks are set up as well as all installations by the police, customs and all airlines. In addition to the terminal infrastructure, we also made significant progress in terms of climate protection. Since October 22nd. Sorry. Since October 22nd, our photovoltaic plant next to the takeoff Runway west has been operational. In Frankfurt, 37,000 vertical solar panels generate substantial green electricity, especially in the mornings and afternoons. The new plant is an ideal addition to the photovoltaic system installed on airport rooftops which reach their peak output at midday. From mid-2026 onwards, another substantial amount of green electricity will be supplied from our Wind park power purchase agreement with ENPW in the North Sea. This means that 100% of the electricity demand in Frankfurt will be covered by renewable resources from mid next year onwards. So 10% local photovoltaics and 90% wind energy.
In addition to the terminal infrastructure. We also made significant progress in terms of climate protection.
Since October.
22nd salary since October 22nd our photovoltaic plant next to take off along the way West has been operational in Frankfurt.
37000 vertical solar panels generate substantial green electricity, especially in the mornings and afternoons.
The new plant is an ideal addition to the photovoltaic system installed on Apple <unk> tops, which reached their peak output at mid day.
For mid 2026 onwards, another substantial amount of green electricity will be supplied from our wind power power purchase agreement with <unk> in the North Sea.
This means that 100% of electricity demand and frame for it will be covered by renewable sources from next year onwards, so 10% local photovoltaics, 90% wind energy and.
In absolute terms this will be more than 300 gigawatts per hour from wind energy and close to 30 Gigawatts of solar energy.
Stefan Schulte: In absolute terms, this will be more than 300 gigawatts per hour from wind energy and close to 30 gigawatts per hour from solar energy. Moving on to the development outside of Frankfurt, on slide number nine, the slide shows you the progress of the second terminal construction phase in Lima. As you can see, the second phase of phase 1B is well advanced. The long swing pier, which can be used for domestic and international services, is already fully completed. The other extensions of the terminal infrastructure are close to completion. With the second phase, we will increase the terminal capacity from 30 million passengers to 40 million passengers over the next few weeks. Also, the refurbishment of the old Runway is well underway and will be done by end of this year. So Lima is well underway. Antalya Airport, as you know from previous discussions, is also completed.
Moving on to the development outside of Frankfurt on slide number nine.
The slide shows you the progress of the second terminal construction phase in Lima.
As you can see the second phase of phase one b is well advanced.
The long swing peer, which can be used for domestic and international services is already fully completed.
The other extensions of the terminal infrastructure close to complete.
Sure.
The second phase, we will increase the terminal capacities from 30 million passengers to 40 million passengers over the next few.
A few weeks.
Also the refurbishment of the old one ways.
And it will be done by end of this year, So Lima is well underway.
Ontario Airport as you know from previous discussions must also completed two new capacities have been taking up whereby the market.
Stefan Schulte: The new capacities have been taken up well by the market following the settlement of the dispute with the former duty Free operator. We are also seeing further progress from the retail activities in Antalya. Further growth we also expect from the addition of Kalamata, our airport number 15 in Greece. Here the team is working closely with the Greek authorities on the concession commencement which will probably happen during the first quarter of 2026. Coming now to my last slide of the presentation, our group outlook on slide number 10. The outlook shows that we are well on track for the full year. While we narrowed the guidance in term of Frankfurt passengers to about 63 million, we continue to expect moderate growth in EBITDA in the single digit percentage rate range.
Following the settlement of the dispute with a former due to free operator, we are also seeing forgo further progress from the retail activities in Ontario.
Further goes we also expect from the addition of color matter our airport number of 15 increase here.
He has a team is working closely with the legal authorities on the concession commencement, which would probably be.
Can you go into first quarter of 2026.
Coming now to my last slide of the presentation, our group outlook on slide number 10.
The outlook shows.
We are well on track for the full year.
We narrowed the guidance in term of Greenfields passengers to about 63 million. We continue to expect moderate growth in EBITDA in the single digit percentage range.
Due to the.
Onetime effect, which are recorded in the past quarter. It is now increasingly likely that we will end up was in the high single digit percentage area.
Stefan Schulte: Due to the one time effect which recorded in the past quarter, it is now increasingly likely that we will end up rather in the high single digit percentage area on an underlying base. However, this shall be more in the mid single digit percentage area. As we guided before, our group result will develop at a more subdued pace. The main reasons are the absence of the positive one off effect from the sale of St. Petersburg last year and rising interest costs for the free cash flow. We continue to expect the free cash flow to be close to breakeven this year. The near to breakeven free cash flow is expected to have a slightly positive impact on the net financial debt to EBITDA ratio thanks to a growing ebitda.
On an underlying base. However, this share be more in the mid single digit percentage area.
As we guided before our group result will develop at a more subdued pace soon.
Main reasons are the absence of positive one off effect from the sale of some Peter spoke last year and rising interest costs.
For the free cash flow, we continue to expect the free cash flow to be close to breakeven this year.
The near to breakeven free cash flow is expected to have a slightly positive impact on the net financial debt to EBITDA ratio.
To grow EBITDA.
Regarding the dividend.
There is no official decision, taking but as we have communicated is often times before we see a very high <unk>.
Stefan Schulte: Regarding the dividend, there's no official decision taken, but as we have communicated this oftentimes before, we see a very high likelihood to resume dividend payments as early as this year to be distributed next year last year in connection with our full year result. So in March we will provide you the final outcome of these discussions. Having said this, I would like to hand over to Matthias now for more details on our financial development.
<unk> two assumed dividend payments as early as this year to be distributed next year.
Plus latest next year in connection with our full year result.
<unk>.
We will provide you with the final outcome of these discussions.
Having said this I.
I would like to enter over to materials now for more details on our financial developments.
Yeah. Thank you Stefan and the warm welcome also from my side on my first slide today Slide number 12, I would like to guide you through the cash flow development in the third quarter in our indebtedness at the end of September 25.
Matthias Zieschang: Thank you Stefan and a warm welcome also from my side on my first slide today, slide number 12. I would like to guide you through the cash flow development in the third quarter and our indebtedness at the end of September 25th. Starting on the left side of the bar chart you see a strong operating cash flow increasing by 27% year on year, which was driven by a good operational performance work and capital changes and by the one off effect in connection with the supplementary pension plan that Stefan has already talked about. However, even if adjusted for this one off item, the operational cash flow increased by some 90 million Euro or around 17%.
Starting on the left side of the Bar chart, you see a strong operating cash flow increasing by 27% year on year.
It was driven by a good operational performance and working capital changes and by the one off effect in connection with the supplementary pension plan that Stefan has already talked about.
However, even if adjusted for this one off item the operational cash flow increased by some 90 million or around 17%.
Focusing on the main capex programs and the group, you'll see a clear trend in Lima.
Matthias Zieschang: Focusing on the main CAPEX programs in the group, you see a clear trend in Lima where the new terminal has been opened and the investments are coming down quickly, only reaching 38 million Euro in the third quarter. As a comparison, last year in Q3 we still spent some 114 million Euro at the same time. As you heard from Stefan before we were able to complete construction on our Terminal 3 in Frankfurt where CAPEX in the last quarter amounted to some 119 million Euro. Also, this is still an elevated number. We already reduced capex through for T3 by almost 60 million Euro if compared to last year's Q3. This shows the reduction in investments also in Frankfurt as we are now coming to the end of the CAPEX program.
The new terminal has been opened and the investments are coming down quickly.
EMEA reached 38 million euro in the third quarter.
As a comparison last year in Q3, we still spend some $114 million.
And same time as you heard from Stefan before we were able to complete construction on our terminal three in Frankfurt, where <unk>.
Capex in the last quarter amounted to some 119 million euro.
Also this is still an elevated number we already reduced capex 43 by almost 60 million euro if compared to last year's Q3.
This shows the reduction in investments also in Frankfurt SVR now coming to the end of the Capex program.
While the remaining investments were only slightly higher than last year brick and mortar capex decreased significantly by 29%.
Matthias Zieschang: While the remaining investments were only slightly higher than last year, brick and mortar CAPEX decreased significantly by 29%. Additionally, dividends from Adequity consolidated companies, mainly from Antalya in the amount of 30 million Euro were supportive. Like this, we generated a record quarterly free cash flow of 373 million Euro. This reduced our net financial debt to less than 8.2 billion Euro. Correspondingly, we reached a leverage ratio of 5.8 times net debt to last 12 months EBITDA and also our gearing ratio improved by 14 percentage points to 159%. On my next slide number 13, I would like to give you further details on our indebtedness situation. As mentioned before, our net debt today stands at less than 8.2 billion euro, which is a net of our 12.1 billion gross debt and a cash balance of more than 3.9 billion euro.
Additionally, dividends from equity consolidated companies, mainly from anti <unk>.
In the amount of 30 million Euro will support them.
Like this we generated a record quarterly free cash flow of 373 million Euro.
This reduced our net financial debt to less than eight 2 billion euro.
Correspondingly, we reach a leverage ratio of five eight times net debt to last 12 months EBITDA.
And also our gearing ratio improved by 14 percentage points to 159%.
On my next slide number 13, I would like to give you further details on our indebtedness situation.
As mentioned before our net debt today.
<unk> at less than $8 2 billion Euro, which is the net of our $12 1 billion gross debt and a cash balance of more than $3 9 billion Euro.
If we add any residual unused project finance and committed credit lines.
Matthias Zieschang: If we add any residual unused project finance and committed credit lines, we even end up at a cash reserve of close to 4.6 billion Euro. At 3.3%. The average cost of debt remained unchanged to the second quarter despite regular refinancing activities and drawdowns from the Lima project financing. As you can see from the chart, around 200 million Euro are still reaching maturity this year in Frankfurt in the meantime. So since end of September to date, the refinancing of the majority of this has already been agreed on. Now coming from the group to our segment reporting, starting with the Q3 numbers in Aviation on slide number 14. After a good first half of the year, the positive trend in revenue generation continued in our operationally and financially most important third quarter, driven by pricing and volume effects at Frankfurt airport.
We even end up.
And a cash reserve of close to $4 6 billion.
At three 3%.
<unk> cost of debt remained unchanged to the second quarter, despite regular refinancing activities and drawdowns from the EMR project financing.
As you can see from the chart around 200 million Euro are still reaching maturity this year in Frankfurt.
In the meantime, so since end of September to date, the refinancing of the majority of this has already been agreed on.
Now coming from the group to our segment reporting starting with the Q3 numbers in aviation on slide number.
14.
After a good first half of the year the positive trend in revenue generation continued in our operationally and financially most important third quarter.
Driven by pricing and volume effects at Frankfurt Airport.
Therefore, total revenues increased by some 11% or 38 million euros.
Matthias Zieschang: Therefore, total revenues increased by some 11% or 38 million Euro, while aviation charges went up 9% which corresponds to 25 million Euro. The residual increase in revenues came from security charges which grew strongly by more than 20% due to the new reimbursement system based on cost coverage on a full year basis and not on a monthly basis like in the past years, as we mentioned before, we received an unscheduled one time refund in relation to our supplementary pension plan which reduced the staff cost in all of our four reporting segments. This refund was based on a new assessment by an insurance actuary which meant that we overpaid the pension plan in the past couple of years. Having said this, around 14 million positively impacted the staff cost in aviation. Therefore, personnel expenses decreased by 9 million Euro in the third quarter.
While aviation charges to wind up 9%, which corresponds to 25 million.
The residual increase in revenues came from security charters, which grew strongly by more than 20% due to the new reimbursement system based on cost coverage on a full year basis and not on a monthly basis like in the past years.
As we mentioned before we received an unscheduled onetime refund.
In relation to our supplementary pension plan.
Which reduces the staff cost in all of our four reporting segments.
This refund was based on a new assessment ban insurance actuary, which meant that the overpaid the pension plan in the past couple of years.
Having said this around 14 million positively impacted staff cost in aviation.
Therefore personnel expenses decreased by 9 million euro in the third quarter.
If adjusted for the one off item expenses increase by some 7%.
Matthias Zieschang: If adjusted for the one off item, expenses increased by some 7% as a result of the good operational growth and the one off item EBITDA increased to 162 million Euro or 25% and EBIT amounted to 125 million Euro, an increase of 37%. Adjusted for the one off in staff cost, underlying growth rate still stood at 14% and 22% respectively. Now jumping from aviation to non aviation, on my next slide, our retail and real estate segment in the third quarter we incurred a revenue increase of 3.4% of 5 million euro. Out of that, the retail business contributed about half of the growth, which corresponds to an increase of 4.2% over last year's third quarter. The positive development is based on the volume growth in Frankfurt on the one side and the increasing spend per passenger from €3.02 to €3 and $0.06 on the other side.
As a result of the good operational growth and the one off items EBITDA increased to 162 million euro or 25%.
And EBIT amounted to 125 million Euro an increase of 37%.
Adjusted for the one off in staff cost underlying growth rates still stood at 14% and 22% respectively.
Now jumping from aviation to non aviation on my next slide our retail and real estate segment.
In the third quarter, we incurred a revenue increase of three 4% of 5 million Euro.
Out of that the retail business contributed about half of the growth, which corresponds to an increase of four 2%.
Over last year's third quarter.
The positive development is based on the volume growth in Frankfurt on the one side and the increasing spend per passenger from three years and two <unk> to three <unk> and <unk> on the other side.
This development was primarily driven by higher advertising revenues in the quarter, which grew from 58 to <unk> 74 cents.
Matthias Zieschang: This development was primarily driven by higher advertising revenues in the quarter which grew from $0.58 to $0.74 on a per passenger basis, an increase of 28%. Details about the retail split can be found on my next slide. Also, parking showed a strong revenue increase again over the summer season, growing by more than 5%. The one off item from the supplementary pension plan reduced staff cost in retail and real estate by some 4 million euro which led to decreasing personnel expenses. Adjusted for the effect, staff cost increased by around 7. In addition to that, other OPECs benefited from a reimbursement of utilities, which is why also this line item decreased compared to the previous year's quarter. Based on those effects, EBITDA and EBIT ended up strongly at 113 and 89 million Euro respectively.
On a per passenger basis, an increase of 28%.
Details about the retail split can be found on my next slide.
Also parking showed a strong revenue increase again over the summer season growing by more than 5%.
The one off item from the supplementary pension plan reduce staff cost in retail and real estate by some 4 million Euro.
Which led to decreasing personnel expenses.
Adjusted for the effect staff costs increased by around 7%.
In addition to that other opex benefited from a reimbursement of utilities, which is why also this line item decreased compared to the previous year's quarter.
Based on those effects EBITDA and EBIT ended up strongly at $113 89 billion Euro respectively.
Moving on to our ground handling segment on slide number 17, and starting with a positive message here.
Matthias Zieschang: Moving on to our ground handling segment on slide number 17 and starting with a positive message here, as you can see on the slide, we changed our guidance for the ground handling segment and now expect to reach a positive EBITDA in 25 after a good Q2 and an even stronger Q3. But now looking at the main drivers of this development, as mentioned with our Q2 publication, there are several factors influencing the Positive revenue development. Besides growing traffic volumes and higher prices, we continue to record a higher market share due to the continued slow ramp up of swisspot. On the other side, of course, the ground handling benefited significantly from the reimbursement of the pension fund. Staff cost amounted to 128 million and therefore stayed on the previous year level despite an increase in FTE numbers and wage increases.
As you can see on the slide we changed our guidance for the ground handling segment and now expect to reach positive EBITDA in 'twenty five.
After a good Q2, and an even stronger Q3.
But now looking at the main drivers of this development.
As management with our Q2 publication.
There are several factors influencing the positive revenue development.
Besides growing traffic volumes and higher prices, we continue to record.
Higher market share.
Due to the continued slower ramp up of spot.
On the other side of the ground handling benefited significantly from the reimbursement of pension funds.
Staff costs amounted to $128 million and therefore stayed on the previous year level. Despite an increase in FTE numbers and wage increases.
If adjusted for the 16 million Euro one off effect.
Matthias Zieschang: If adjusted for the 16 million euro one off effect, personnel expenses increased by some 14% over last year's third quarter. As that compared to last year, our financials are still influenced by higher FTE numbers. However, if we compare Q3 with 2Q25, you see that our staff number decreased further in the meantime, over the last two quarters we reduced our ground handling personnel by more than 100 people. At the same time, we are becoming less dependent on third party providers by decreasing the amount of external personnel which is reflected in other OPECs that remained on previous year's level despite inflation. All in all, this led to a positive EBITDA of 37 million in Q3. If adjusted for the personnel one off, we generated an underlying EBITDA of some 21 million, so we more than doubled the result of Q3.
<unk> expenses increased by some 14%.
Over last year's third quarter.
Asset compared to last year.
Our financials are still influenced by higher FTE numbers.
However.
If we compare Q3 was the second quarter 25, you will see.
See let our staff number decreased further.
In the meantime over the last two quarters, we reduced our ground handling personnel by more than 100 people.
At the same time.
Are becoming less dependent on third party provide us by decreasing the amount of external person needle.
Which is reflected in other opex that remain remained on previous year's level despite inflation.
All in all this led to a positive EBITDA of $37 million in Q3.
If adjusted for the personnel one off we generated an underlying EBITDA of some 21 million. So we more than doubled the result of Q3 2020.
Now.
Matthias Zieschang: 24 now coming to the last slide of today's presentation, slide number two, concluding with our International Activities and Services segment. Looking at the top line effects, you see that the revenues overall decreased due to the fact that the IFRIC 12 related revenues came down by more than 100 million Euro again in Q3 due to the completion of the terminal in Lima. So more relevant of course is to consider the underlying revenues which performed nicely with an increase by around 30 million euro or 6%. Bearing in mind the headwinds from exchange rate developments, especially in Lima, Brazil and the us. On the cost side, the segment's performance was influenced by the Frankfurt services which benefited from the premium refund and decreased the staff cost to 83 million euro from 90 million last year.
Coming to slide of today's presentation slide number 18, concluding with our international activities and services segment.
Looking at the top line effects Youll see that the revenues overall decreased due to the effect that the <unk> 12 related revenues came down by more than 100 million Euro again in Q3 due to the completion of the terminal in Lima.
So more relevant of course is to consider the underlying revenues, which performed nicely with an increase by around 30 million euro 6% bearing in mind, the headwinds from exchange rate developments, especially Lima, Brazil, and the U S.
On the cost side, the segment's performance was influenced by the Frankfurt services.
Which benefited from the premium refunds and decrease the staff cost to 883 million from $90 million last year.
Adjusting for the 15 million Euro one off effect personnel expenses in increased by around 9% overall.
Matthias Zieschang: Adjusting for the 15 million euro one off effect, personnel expenses increased by around 9% overall. As a result, the segment's EBITDA increased by some 15% to 281 million Euro or by 9% if adjusted for the cost saving 1 of item. The increase in DNA to 72 million Euro was especially driven by the terminal in Lima and led to an EBIT of 209 million Euro. This translates into an increase of 9% or 2% if adjusted for positive one offs. With this I would like to conclude today's presentation and thank you for your attention. We look forward to the Q and A session this afternoon. Have a nice day and goodbye for now.
As a result, the segments EBITDA increased.
15% to 281 million euro or by 9% if adjusted for the cost savings and one off items.
The increase in DNA to 72 million Euro was especially driven by the terminal in Lima.
And led to an estimate of 209 million Euro.
This translates into an increase of 9% or 2% if adjusted for positive levels.
With this I would like to conclude today's presentation and thank you for your attention. We look forward to the Q&A session. This afternoon have a nice day and goodbye for now.
Yeah.