Fraport: shares muted after rather reserved guidance

(CercleFinance.com) - Fraport, the owner of the Frankfurt airport, gave a rather cautious outlook for 2019 on Tuesday, adding to the disappointment of a lower-than-expected operating result in 2018.


The company said it expects consolidated revenue to increase slightly to around 3.2 billion euros this year, compared to a consensus of 3.4 billion euros.

The 2018 operating result (Group EBITDA) climbed by 12.5% to over 1.1 billion euros, but this was 2% below the consensus.

The group said it will propose to shareholders a higher dividend of 2 euros per share for the 2018 fiscal year, from 1.50 euros in 2017, although investors were not fully reassured by this announcement.

Oddo analysts warn that there is a risk that prices will fall as from 2020.

In addition, the Paris-based broker warns that pending the opening of new hosting capacity in Frankfurt (end-2021), the group will continue to face operational problems.

However, Fraport shares are currently up 0.6% at 72.5 euros.

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