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Finavia Corporation Financial statement 2016

10.3.2017 at 09:47
Finavia Corporation published group's Financial Statement for 2016.

The year 2016

  • In 2016, the revenues of Finavia Group increased by 7.9 per cent from the previous year to EUR 380.9 million (353.1). The growth in revenues mainly came from sources other than air traffic revenues.
  • The operating result excluding non-recurring items was EUR 55.1 million (55.7). The operating result excluding non-recurring items was 14.5 per cent of revenues (15.8).
  • The result was EUR 28.3 million (40.0).
  • The result included non-recurring capital gains of EUR 1.9 million (14.4). Non-recurring items totalled EUR 14.6 million (13.7). These included the write-downs related to the corporatisation of the air navigation business and the Helsinki Airport development programme, and impacts from new and cancelled environmental provisions.
  • The consolidated balance sheet total stood at EUR 1,000.9 million (941.1), and the equity ratio was 58.9 per cent (60.5). The cash flow from operations was EUR 97.7 million (75.1).
  • The Board of Directors proposes to the General Meeting that no dividend be paid and the profit for the period, EUR 28,268,540.67 is transferred to retained earnings.

CEO Kari Savolainen:

The revenues and profitability of Finavia Group reached an all-time high in 2016. The Group’s revenues grew at a fast pace (+7.9%), reaching EUR 380.9 million (353.1). The company’s profitability continued to improve, as well. The company’s comparable operating margin without non-recurring items increased (+9.6%) to EUR 114.8 million (104.8). Operating result without non-recurring items was EUR 55.1 million (55.7), although the company’s investment programme increased depreciations (without non-recurring items) to EUR 59.7 million (49.1).

Passenger volumes at Finavia’s airports reached record numbers (+3.5%) in 2016, with a total of 20.8 million passengers during the year. Helsinki Airport was visited by 17.2 million passengers. In addition to the increase in air traffic, Finavia’s revenue was positively influenced by the success of the commercial services at Helsinki Airport as well as the business growth of subsidiaries, Airpro and LAK. The revenue growth accelerated during the last quarter of the year due to, among other things, the strong tourism season in Lapland.

The year was excellent, as Finavia’s profitability rose to an all-time high in 2016. The company’s strong investment in sales activities is reflected in the establishment of new flight routes in Finland and in the rapid growth of our revenues. At the same time, we have maintained tight cost control, which is evidenced by the greatly improved profitability of our business. We have been able to keep the prices we charge from airlines at a low level, which strongly supports the competitiveness of airlines operating in Finland. It can be said that our performance has been world-class while competition between airport companies has tightened.

From 2014 to 2016, Finavia has implemented an approximately EUR 100 million investment programme in its airport network. In addition, the extensive, EUR 900 million Helsinki Airport development programme, which started in 2014, has proceeded as planned. In 2016, Finavia’s investments increased to a total of EUR 182.8 million.

Major investments in Lapland Airports were timed perfectly, right before the tourism boom in the area swelled. The progress of the Helsinki Airport development programme is also critical to the continued competitiveness of air traffic in Finland. The strong result enables us to continue to develop our services systematically and improve our services to both airline and passenger customers. Passenger satisfaction in our services improved last year at Helsinki Airport as well as in the airport network.

Finavia is currently preparing the corporatisation of its air navigation business in line with the decision made by the Ministerial Committee on Economic Policy of the Finnish Government in December 2016.

Financial Statements 2016

Corporate Governance statement and remuneration statement is published separately from the report of the Board of  Directors.