Paris Airports Group (ADP) reported on Tuesday that its first-quarter revenue declined by 0.9% year-on-year to €1.47 billion, primarily impacted by the conflict in the Middle East. Despite this, the company's core aviation operations remained robust, allowing it to maintain its full-year financial targets.
International operations were notably affected, while the Paris aviation segment demonstrated growth. The Group's international and airport development division saw a 6% drop in revenue to €424 million. Revenue from the commercial and services division fell by 1% to €484 million, partly due to unfavorable currency exchange rates.
In contrast, aviation activities in the Paris region performed strongly, with revenue increasing by 5% to €504 million, supported by higher passenger traffic and increased airport charges. The Group's total global passenger traffic reached 83.9 million, a 2.3% increase compared to the same period last year. Passenger traffic at Paris airports specifically rose by 2.6% to 23.6 million.
The Group's CEO stated in an announcement, "The current geopolitical and economic environment has deteriorated sharply, putting pressure on commercial and international operations." He also mentioned that the company is closely monitoring the situation and its potential impact on air transport.
Full-year targets remain unchanged. Although first-quarter revenue fell short of market expectations of €1.55 billion, the Group reaffirmed its annual financial objectives. Assuming the geopolitical conflict causes only "short-term disruptions," it forecasts passenger traffic growth at Paris airports of between 1.5% and 2.5%, recurring EBITDA exceeding €2.35 billion, and a net debt-to-EBITDA ratio of no more than 3.7x.
A key metric for airport commercial revenue, Extime Paris, decreased by 5.7% to €31.5 in the first quarter, mainly due to currency fluctuations and a challenging retail environment.
Affected by the Middle East situation, TAV Airports, a subsidiary of ADP, also reported a 5% decline in first-quarter revenue to €360.6 million, with EBITDA falling by 14% to €90.1 million.
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