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

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Original-Research: Flughafen Wien AG - from NuWays AG

Classification of NuWays AG to Flughafen Wien AG

Company Name: Flughafen Wien AG
ISIN: AT00000VIE62

Reason for the research: Update
Recommendation: Halten
from: 12.04.2024
Target price: EUR 58.00
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Henry Wendisch

Positive traffic results; guidance too conservative; chg. est.

Yesterday, FWAG released March '24 traffic results ahead of our estimates:

In March, group passenger numbers rose by 12% yoy to 2.88m (eNuW: 2.80m).
Vienna (VIE) grew by 8% yoy to 2.21m passengers (eNuW: 2.21m) despite the
strike by Austrian Airlines' employees at the end of the month. Malta grew
much stronger than expected, +30% yoy to 0.63m (eNuW: 0.54m) while Kosice
showed a slight yoy decline of 1.2% to 0.03m passengers (eNuW: 0.05m). (see
p. 2)

Looking at VIE only, the most important destination of Western Europe (35%
of VIE passengers) rose by 11% yoy, whereas the second most important
destination of Eastern Europe grew by 1.7%, followed by the long-haul
routes North America (+10% yoy), Africa (+13% yoy) and Far East (+5% yoy).

Thus, Q1'24 counted 7.58m group passengers, up +14% yoy, of which 78% in
Vienna, 21% in Malta and 1% in Kosice. This leads us to expect strong Q1
results, as the statutory 9.7% increase of airport charges (c. 40% of
sales) coupled with the passenger growth should lead to overall sales
growth of 17% yoy to EUR 212m in Q1'24e.

Further down the road, we expect Q2 & Q3'24e to come in even stronger due
to the busy summer months ahead. Q4 should show a seasonal decline (qoq).
Especially the current summer flight plan as well as airline booking data
indicate an outperformance of last year's summer.

Against this stellar start into the year, the FY'24 guidance issued in
January this year seems conservative already. As we expect passenger
growth rates converging to 3% over the course of the year, FY'24e group
passengers should grow by 5.7% yoy to 40.1m (vs. guidance of c. 39m
guidance, +3% yoy). This looks set to translate into EUR 1,010m sales (+8.5%
yoy; vs. guidance of c. EUR 970m) and EBITDA of EUR 417m (41.2% margin; vs.
guidance of 'above' EUR 390m) for FY'24e. (see p. 2 for details)

All in all, FWAG is well on track to record another record year as demand
for travel remains unbroken and supply of flight capacity by the airlines
is also expanding, leading to rising passenger numbers,ultimately
benefiting the airport operator. Nevertheless, this seems to be reflected
in its current valuation. Thus, we stick to our HOLD recommendation
(unchanged PT of EUR 58.00, based on DCF), despite the company's stellar
operating performance.

You can download the research here:
http://www.more-ir.de/d/29385.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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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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