TAV Airports Holding (ISE: TAVHL, "TAV"), the leading regional airport operator of Turkey, announced a net profit of EUR20 million in first quarter of 2014, up by 28% compared to the previous year.
TAV Airports Holding President&CEO M. Sani Şener commented, "In the first quarter of 2014, our flagship, Istanbul Ataturk Airport was the second busiest airport in Europe. This is a well-deserved source of pride for us and just goes to show how far we have come both as a country and a company in less than two decades. With visionary macro policies and a very supportive environment for airport investments, we have changed the face of aviation in Turkey in close collaboration with the State Airports Authority (DHMI) and our airline clients led by Turkish Airlines. Turkey now boasts a top-tier aviation sector in the world with well respected brands and state of the art infrastructure.
What's even more encouraging is the outlook for the future. According to DHMI, the total passenger traffic in Turkey is poised to double in the next 10 years. Eurocontrol, on the other hand projects 7% CAGR for Turkey over the course of the next seven years while Airbus expects 7% CAGR in Middle Eastern traffic growth. We have come a long way in fourteen years and we have a long way to go in the years coming ahead.
In line with these projections, we achieved a good set of passenger results in the first quarter of 2014. Overall, passenger growth was 16% for TAV Airports, while Istanbul grew 12% in international passengers.
In the first quarter of 2014 our EBITDA grew 27% and reached EUR67m. Our net profit increased 28% and reached EUR20m. We achieved these results in an environment where shop renovation in the duty free at the departures area in Istanbul and weak Turkish Lira and Ruble have put significant pressure on our retail revenues.
At the end of 2013, we started implementing a turnaround strategy for Havas centered on better cost control, higher operational efficiency and revenue optimization. Based on this strategy, Havas financials visibly improved compared to 1Q13.
We completed the construction of the Izmir Adnan Menderes Domestic Terminal and opened it in March 2014. This terminal, being the largest domestic terminal in Turkey will serve the Aegean region well and boost tourism and business.
During the quarter, we won the tender for the lease of Milas-Bodrum airport and upon necessary approvals plan to operate it for 20 years.