Original-Research: Flughafen Wien AG - from NuWays AG

Classification of NuWays AG to Flughafen Wien AG

Company Name: Flughafen Wien AG
ISIN: AT00000VIE62

Reason for the research: Upate
Recommendation: Halten
from: 17.05.2024
Target price: EUR 58.00
Target price on sight of: 12 months
Last rating change:
Analyst: Henry Wendisch

Q1 review: powerful take-off into 2024

FWAG released sound Q1 results, in line with our estimates. While top-line was driven by solid passenger growth, bottom-line benefitted from a positive financial result and grew disproportionately. In detail:

Upbeat winter travel grew top-line: Against last year's muted outlook, Q1 passengers numbers rose by 14% on group level (VIE: +11% yoy) thanks to a higher number of flights (+9% of movements). On top of that, the increase in airport charges (c. 41% of sales) of up to 9.7%, effective as of Jan'24, lead to overall sales growth of 17% yoy to € 210m (eNuW: € 211m).

Proportionate EBITDA growth: Material costs declined by 15% yoy thanks to (1) an increased contribution from FWAG's own PV power production, (2) a mild winter and (3) lower energy prices, which decreased the expenses for deicing liquids and energy. On the other hand, collective labour agreements and the increase in headcount pushed personnel expenses to € 89m, up 18% yoy, while other OPEX grew by 30% yoy. In sum, EBITDA expanded by 19% yoy to € 80m (eNuW: € 79m)

Disproportionate expansion of net income: With constant D&A (+3% yoy) and unchanged tax rate (26%) as well as a strong improvement of the financial result (€ 3.8m vs. -0.9m in Q1'23), net income grew disproportionately to sales by a staggering 49% yoy to € 37m (eNuW: € 36m).

Guidance increased: Due to the sound results, FWAG slightly raised its FY guidance to > € 1bn sales (old: c. € 980m), > € 400m EBITDA (old: > € 390m) and net profit before minorities of > € 220m (old: > € 210m) which is now in line with our estimates.

Solid cash generation: During Q1, FWAG generated a FCF of € 31m, despite a hefty increase in CAPEX (€ 38m, + 138% yoy) due the current southern expansion of Terminal 3. Consequently, net cash stands at € 393m, up 9% yoy (€ 449m excl. lease liabilities). Going forward, neither the upcoming dividend payment (€ 111m in Q2), nor the current CAPEX cycle should decrease net cash.

Bright outlook at cruising altitude: Current summer booking numbers are on the same level as the record of 2019, implying an overall passenger growth of 6% for this year, in line with our estimates.

Nonetheless, the solid operating performance seems reflected in the current valuation. Therefore, FWAG remains a HOLD with an unchanged PT of € 58.00, based on DCF.

You can download the research here:
http://www.more-ir.de/d/29793.pdf
For additional information visit our website www.nuways-ag.com/research.

Contact for questions
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag Adresse: Mittelweg 16-17, 20148 Hamburg, Germany ++++++++++
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