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 EUR 210m (eNuW: EUR 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 EUR 89m, up 18%
yoy, while other OPEX grew by 30% yoy. In sum, EBITDA expanded by 19% yoy
to EUR 80m (eNuW: EUR 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 (EUR 3.8m vs. -0.9m in Q1'23), net income grew disproportionately to
sales by a staggering 49% yoy to EUR 37m (eNuW: EUR 36m).
Guidance increased: Due to the sound results, FWAG slightly raised its FY
guidance to > EUR 1bn sales (old: c. EUR 980m), > EUR 400m EBITDA (old: > EUR 390m)
and net profit before minorities of > EUR 220m (old: > EUR 210m) which is now
in line with our estimates.
Solid cash generation: During Q1, FWAG generated a FCF of EUR 31m, despite a
hefty increase in CAPEX (EUR 38m, + 138% yoy) due the current southern
expansion of Terminal 3. Consequently, net cash stands at EUR 393m, up 9% yoy
(EUR 449m excl. lease liabilities). Going forward, neither the upcoming
dividend payment (EUR 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 EUR 58.00,
based on DCF.

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Web: www.nuways-ag.com
Email: research@nuways-ag.com
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