^ Original-Research: Flughafen Wien AG - from NuWays AG

21.08.2024 / 09:02 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.

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Classification of NuWays AG to Flughafen Wien AG

Company Name: Flughafen Wien AG ISIN: AT00000VIE62

Reason for the research: Update Recommendation: HOLD from: 21.08.2024 Target price: EUR 59.00 Last rating change: Analyst: Henry Wendisch

Q2 review: sound results and upbeat cash generation

Topic: Yesterday, FWAG released sound Q2 results in which sales growth and cash generation remained upbeat while EBITDA margins have reached cruising altitude.In detail:

Sales came in at EUR 278m, +12% yoy (eNuW: EUR 273m; eCons: EUR 277m) mostly driven by airport charges (+15% yoy; 43% of sales) but also by a strong contribution of Malta (+12% yoy; 14% of sales).

EBITDA arrived in line with expectations at EUR 125m (eNuW: EUR 125m; eCons: EUR 124m), up 13% yoy with an almost constant margin of 45.1%, +0.5pp yoy, due to low operating leverage. On a positive note, the segment 'Handling & Security Services' surprised positively with a better than expected EBITDA of EUR 4.7m (vs. eNuW: EUR 0.7m) due to a more favorable shift towards cargo (YTD cargo volume: +18% yoy). - see p. 2 for details

FCF arrived better than expected at EUR 68m (eNuW: EUR 44m; H1'24: EUR 99m) implying 25% FCF margin, thanks to a strong CFO of EUR 110m (eNuW: EUR 112m) and lower than expected, but still expanded CAPEX of EUR 42m (+222% yoy; eNuW: EUR 68m) due to the terminal 3 expansion. Given that FWAG expects > EUR 200m in CAPEX for FY'24e (H1'24: EUR 79m), the second half of the year should see higher CAPEX (eNuW: EUR 131m in H2) and thus a lower FCF (eNuW: EUR 52m in H2). Nevertheless, as of H1'24, net liquidity grew by 42% yoy to EUR 349m (eNuW: EUR 353m), showing that despite (1) a dividend payment of EUR 118m in Q2'24, (2) complete debt repayment in Q4'23 and (3) the new CAPEX cycle, FWAG can nonetheless expand its already strong net cash position.

Furterhmore, July passenger numbers were released and amounted to 4.4m (+7.7% yoy) on group level, exceeding our expectation of 4.3m and implying a YTD growth of +10% yoy which is on a similar level to European peers (see p. 2). Consequently, FWAG slightly raised its passenger guidance from 'around' 39m (3% yoy) to 'more than' 39m on group level (eNuW: 40.7m, +7% yoy), but left the financial guidance unchanged which remains in line with our estimates.

All in all, solid release. FWAG remains a highly cash generative, monopolistic business with a healthy balance sheet, providing stable and slightly growing dividends for mid- and longterm investors. Nevertheless, we do not see share price triggers in the near-term and reiterate our HOLD recommendation with unchanged PT of EUR 59.00, based on DCF. Get in touch with management

You can download the research here: http://www.more-ir.de/d/30577.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 ++++++++++ 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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1971881 21.08.2024 CET/CEST

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Quelle: dpa-Afx