Italy’s ENAV getting in shape ahead of flotation

Cost-cutting efforts and a recovery in international traffic allowed Italian air traffic control to deliver an improved first-quarter performance.

The air navigation service provider which is due to be privatised when it floats on the Italian stock market in July saw en-route traffic over Italy enjoying a 0.3% year on year increase on 360,702 flights managed.

There was a 2.4% increase in the number of service units which takes into account the weight of the aircraft and, in the case of the en-route traffic, also the distance travelled, to 1,587,750.

The growth was driven in particular by international flights which increased by 5.1%. Terminal traffic demonstrated a similar positive trend in terms of flights managed, which reached 166,912, a 1.4% on the first quarter of 2015, and in terms of service units, a 4.6% increase to 188,800.

Total consolidated revenues for the first quarter reached €177.4 million, increasing by 5.3% from €168.4 million – helped by a mechanism that allows ENAV to recover any difference between the planned air traffic, as defined in the performance plan, and the actual traffic recorded (€11.5 million).

En-route and terminal revenues increased respectively by €4.8 million and €3.7 million. EBITDA increased by 34% to €28.0 million, compared to €20.9 million recorded in the same period of the previous year.

ENAV said it continued to deliver on its efficiency plan with a decrease in external operating costs of 3.8%; despite an increase in employee costs and certain public events.

ENAV closed the first quarter of 2016 with a net loss of €8.8 million, with an improvement of over €2 million compared with the net loss last time of €10.8 million. “It is worth noting that the first quarter is influenced by the typical negative seasonal effect on air traffic, coupled with a linear costs profile,” ENAV said.

The consolidated net financial position as of March 31, 2016, is negative for €159.3 million, improving by €29.2 million, compared to €188.5 million as of December 31, 2015, primarily driven by an improvement in net working capital

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