Promising financial results for Flughafen Wien AG with dividend increase forecast

Flughafen Wien AG (FWAG) yesterday presented its preliminary results for the 2023 financial year, surpassing expectations. Management proposed a nearly double dividend and provided cautious guidance for passenger numbers. Sales increased significantly, growing 26% year-on-year to €232 million in the fourth quarter, for an annual total of €932 million, an increase of 35% year-on-year. .

Robust growth in passenger numbers supported this performance, particularly notable in the Airport, Handling & Security, and Malta segments. Earnings before interest, taxes, depreciation and amortization (EBITDA) also exceeded expectations, increasing 53% in the quarter and 33% for the year. However, the company also saw an increase in operational expenses due to this passenger growth.

Flughafen Wien AG announced a substantial dividend increase to 1.32 euros per share, implying a dividend yield of 2.6%. The company's strong cash generation and strong net cash position are expected to continue to cover dividend payments and capital needs, while generating excess cash flow.

The company also reported an improved outlook for the year ahead, based on the latest booking data. The summer calendar shows up to 60 airlines serving around 190 destinations in 67 countries. This makes the current forecast of handling around 39 million passengers for fiscal 2024 conservatively conservative.