Swissport has posted increases in revenue and EBITDA for the first half of 2019 and announced plans to refinance some of its outstanding debt.
The ground handler says results were driven by organic volume growth, by its acquisition of Aerocare in March 2018, as well as a strong de-icing season in the first three months of 2019 and continued growth in the Middle East in the three months ending June 30, 2019. Selected exits from businesses, which had been loss-making for an extended period, contributed to the improved operating EBITDA result, too.
The preliminary results show Swissport’s revenue for the second quarter ending June 30, 2019 increased to EUR 776.5 million compared to EUR 753.7 million for the second quarter 2018 (or EUR 769.3 million on a constant currency basis).
This means revenue for the first half of the year increased to EUR 1,526.0 million compared to EUR 1,437.9 million for the same period last year (or EUR 1,472.4 million on a constant currency basis). This represents an increase of 6.1% year on year (or 3.6% on a constant currency basis).
Swissport’s operating EBITDA (IFRS 16 adjusted) increased to EUR 121.9 million for the first half of the year compared to EUR 113.7 million in 2018 (or EUR 116.5 million on a constant currency basis), representing an increase of 7.3% year on year (or 4.6% on a constant currency basis). Without IFRS, 16 adjustments operating EBITDA amounted to EUR 191.4 million for the first half of 2019.
Swissport Group S.à r.l. (together with its subsidiaries, "Swissport"), an indirect parent company of Swissport International AG, Swissport Financing S.à r.l. and Swissport Investments S.A., intends to refinance some of Swissport's outstanding debt with new senior credit facilities and new notes. The anticipated proceeds are expected to be used to repay and redeem existing debt and some of Swissport's currently outstanding notes, respectively.
The refinancing is subject to a number of factors, including market conditions, negotiation and execution of definitive documents and satisfaction of customary closing conditions.
In 2018, Swissport International AG provided airport ground services for some 282 million airline passengers and handled roughly 4.8 million tons of air freight in 115 cargo warehouses worldwide. It has 66,000 employees and achieved consolidated operating revenue of EUR 2.99 billion in 2018. At the end of June 2019, Swissport was active at 310 airports in 49 countries on six continents.
