PRESS RELEASE

from Flughafen Wien AG (isin : AT0000911805)

Original-Research: Flughafen Wien AG (von NuWays AG): HOLD

Original-Research: Flughafen Wien AG - from NuWays AG

13.08.2024 / 09:06 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this research. The result of this research does not constitute investment advice or an invitation to conclude certain stock exchange transactions.


Classification of NuWays AG to Flughafen Wien AG

Company Name:Flughafen Wien AG
ISIN:AT00000VIE62
 
Reason for the research:Update
Recommendation:HOLD
from:13.08.2024
Target price:EUR 59.00
Last rating change:
Analyst:Henry Wendisch

Q2 preview: Record top line and proportionate EBITDA growth

Topic: On Tueday, 20th Aug. 2024, FWAG will release Q2 results, which we expect to come in strong and mark new records, showing a strong demand for air travel in 2024 thus far.

Sales growth driven by price and pax inrease: Based on a rising demand for air travel (Q2 group passengers: +8% yoy) coupled with the statutory increase in airport charges (c. 40% of sales) of up to 9.7% yoy as of 1st Jan. 2024, we consequently expect group sales to grow by 10.4% yoy to € 273m (eCons: € 277m). In detail, we expect the segment 'Airport' to grow sales by 14% yoy driven by the effects mentioned above, followed by 'Malta' (eNuW: +12% yoy to € 39m) driven by Q2 solid passenger growth in Malta of   14% yoy   and  'Retail and Properties' (eNuW: €  52m, + 9%  yoy) which should have capitalized on Vienna's passenger growth of 6% yoy in Q2. 

EBITDA expansion to new records: Due to FWAG's business model with relatively low operating leverage, we an expect an increase in OPEX (eNuW: + 8% yoy) largely in line with sales growth. Here, the largest cost item should be personnel expenses (eNuW: + 12% yoy to € 103m) driven by a seasonal increase of employees (eNuW: +6%) as well as wage inflation (eNuW: +6%), but also material expenses (eNuW: +12% yoy to 12.6m)  like energy, materials and third-party services. Consequently, Q2 EBITDA should grow proportionately to sales by 13% yoy to € 125m (eCons: € 124m), which should mark another Q2 record. Here, the segments 'Airport' (eNuW: € 60m), 'Retail and Properties' (eNuW: € 29m) and 'Malta' (eNuW: € 27m) should be the main EBITDA drivers. 

D&A higher due to CAPEX cycle: Following last year's start of the terminal 3 southern expansion, we expect a slight rise in D&A by 9% to € 36m. Consequently, EBIT is seen at € 89m, +14% yoy.

Upbeat cash generation: Despite elevated CAPEX (eNuW: € 68m in Q2), FCF should remain strong at € 44m for Q2 (i.e., € 75m in H1; 37% FCF/EBITDA), according to our estimates. This highlights FWAG's strong ability to generate cash even after CAPEX and dividends (€ 111m; paid in Q2). Thus, we expect the net liquidity to come in at € 353m (vs. € 362m per Y/E'23).

In sum, FWAG's remains an attractive stock to HOLD on, as its monopolistic nature with continuous cash flows allows for steady and slightly growing dividends going forward. But with only 14% upside to our PT of € 59.00 (based on DCF), we do not expect substantial share price reactions in the near-term.

You can download the research here: http://www.more-ir.de/d/30439.pdf
For additional information visit our website: www.nuways-ag.com/research

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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1966371  13.08.2024 CET/CEST

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