According to confirmed and audited data, the operating revenue of the state-owned Tallinn Airport Group totalled 46.8 million euros last year. The Group’s turnover totalled 36.9 million euros and net profit 6.2 million euros. Sales revenue increased by 7.3 per cent and the Group’s profit grew by a fifth.
Aviation revenue comprised 36 per cent of turnover and 64 per cent was generated by non-aviation revenue. Aviation revenue totalled 13.2 million euros and non-aviation revenue amounted to 23.7 million euros. Non-aviation revenue increased primarily as a result of improved sales of advertising, revenue from serving business clients and income from the de-icing service provided by the subsidiary Tallinn Airport GH.
CEO of Tallinn Airport Piret Mürk-Dubout said that last year’s record number of passenger was also reflected in the company’s performance results. “Growth in the number of passengers leads to a significant increase in the company’s income, but also increases its expenses,” said Mürk-Dubout. “Thus, the main challenge for the management board of the airport is the cost-effective and safe operation of the Tallinn Airport, so we can greet new passenger records with peace of mind.”
Although the Group’s aviation revenue decreased somewhat last year, the volume of non-aviation revenue has grown strongly. “This shows that we are on the right path with our search for additional sources of revenue and new business opportunities, because any significant increase in aviation revenue in the future is unlikely due to the tough international competition,” added Mürk-Dubout. “We are also implementing the biggest development project in the airport’s history, which will cost more than 130 million euros over period of four years.” The annual report of Tallinn Airport is accessible on the company’s website at https://www.tallinn-airport.ee/ettevottest/aastaaruanded/.
Other operating revenue increased by one per cent in 2016 to 9.9 million euros. The government grant received from the state for covering aviation security and rescue expenses remained the same as the year before and amounted to 4.1 million euros, 3.6 million of which was used to cover operating expenses and 0.5 for investments.
The Group’s total revenue was 46.8 million euros, increasing by 3.2 million or 7.3 per cent in comparison with the previous year. Sales comprised 79 per cent of revenue and other operating revenue represented 21 per cent
The Group’s expenses totalled 40.5 million euros, increasing by 5.9 per cent over the year. Staff costs increased by 1.5 million euros or 10.7 per cent. The 9.8 per cent increase in the depreciation of fixed assets was the most significant factor in the increase of operating expenses. As a result of the reconstruction of the southern part of the air traffic area and passenger terminal, the value of these fixed assets was reviewed and the necessary write-offs were made in terms of the residual value and government grant expenses of the fixed assets.
Operating profit before depreciation of fixed assets and EBITDA was 13.7 million euros, increasing by 1.4 million euros over the year.
The Group’s balance sheet total amounted to 155.5 million euros by the end of 2016 and increased by 12.9 million euros or 8.5 per cent. The Group repaid loans in the total amount of 4.6 million euros last year. The loan balance as at the end of 2016 was 16.8 million euros, including the NIB loan in the amount of 3.6 million euros, Pohjola loan in the amount of 5.7 million euros and bonds 7.5 million euros.
The Group entered into two loan agreements in December: 30 million euros will be borrowed from the European Investment Bank and 24 million from the Nordic Investment Bank. The loans will be used to finance the expansion and renovation of the air traffic area of the Tallinn Airport.
The Tallinn Airport Group invested 25.6 million euros last year, including 25.3 million euros by the Tallinn Airport and regional airports (regional airports invested 0.7 million euros) and 0.3 million euros by Tallinn Airport GH.
The most important project of the Tallinn Airport was the expansion of the air traffic area in the eastern and southern directions, which started in 2016, in which the company invested 16.6 million euros. The financing provided for the project by the Cohesion Fund amounted to 8.3 million euros. The project will continue in 2017 and the estimated investment is 20.7 million euros, 10.3 million euros of which is financing from the Cohesion Fund.
The Tallinn Airport Group operates the Lennart Meri Tallinn Airport, Kärdla Airport, Kuressaare Airport, Tartu Airport, Pärnu Airport, Ruhnu Airport and Kihnu Airport. The subsidiary AS Tallinn Airport GH, which provides ground handling services to airlines, belongs to the Tallinn Airport Group.