Schiphol posts growth and prepares for flotation

Tina Milton

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Schiphol Group registered 6.7% growth in concession revenues last year as the company prepares for a partial flotation

Dutch airport operator Schiphol Group reported a 6.7% rise in retail revenues to €128m ($154m) in 2005. Announcing its annual results, the company confirmed the Dutch government's plans to sell a minority interest in the group in the year ahead.

The group's annual report showed that Schiphol's consumer business division--responsible for airport shops, bars and food outlets, car parks and advertising and e-business--generated 21% of the group's revenues in 2005. Operating revenues in this division increased by €19m ($22m) in 2005. The group's total operating revenues grew by 17.4% to €311m ($374m).

Concession income from the See Buy Fly shops at Schiphol rose by 4.4% to €81.4m ($98m), driven by new outlets in departure lounge one, more competitive pricing and the Bye Bye marketing campaign. See Buy Fly concession per income per passenger increased slightly from €3.71 to €3.72

Investment in the consumer business division in 2005 totalled €16m ($19m), the majority of which was devoted to the new shops in departure lounge one.

Schiphol Group president and CEO Gerlach Cerfontaine commented: "We can look back on a successful year for Schiphol Group. Operationally, commercially and financially we performed better than in 2004. In 2006 we shall be building on these good results and it is likely that we shall see revenues of over €1bn [$1.2bn] for the first time. We expect passenger numbers at Amsterdam Airport Schiphol, our main business, to increase to 46m. We are preparing ourselves for the sale by the Dutch government of a minority interest in Schiphol Group, partially by means of a stock market flotation, partially with other shares being replaced privately with institutional investors."

In addition to flagship airport Schiphol, the group operates regional airports Rotterdam and Lelystad and owns a 51% share in Eindhoven airport. It also has shares in JFK IAT, which manages terminal four at New York's JFK airport and Brisbane airport.

Passenger numbers at Schiphol, Rotterdam and Eindhoven airports increased by 4% to 46.2m in 2005.