Why is Enav in the red?
All the numbers for the first quarter of 2024 from Enav, the flight assistance company controlled by the Ministry of Economy
Enav is suffering today on Piazza Affari after closing the first quarter at a loss.
Yesterday the Enav board of directors, meeting under the chairmanship of the lawyer Alessandra Bruni, approved the interim management report as of 31 March 2024. The company controlled by the Treasury which provides flight assistance closed the first quarter of 2024 with a loss of 13.8 million euros, an improvement of 8 million compared to the loss of 21.8 million euros a year ago, “due to the typical seasonality of the business, with revenues reduced in the first quarter and significantly higher in the summer , against generally linear costs throughout the year" indicates the company note .
At 11.45am the stock lost 3.75% on Piazza Affari.
The company confirmed the 2024 guidance already communicated when the 2023 results were published.
All the details in the Enav quarterly.
ENAV'S REVENUES
As of March 30, 2024, total consolidated revenues stood at 193.6 million euros, an increase of 9.5% compared to the first quarter of 2023, thanks mainly to the performance of air traffic and the related increase in turnover from operating activities. The balance component, in the first quarter of 2024, negatively affects revenues by 1.8 million euros, an improvement compared to the 9.3 million euros of the first quarter of last year, the company indicates.
Revenues from the unregulated market amounted to 6.9 million euros, an increase of 18.6% compared to the same period of the previous year, especially for the modernization and installation of systems in the Libyan airports of Tripoli and Misurata, the supply of a new air traffic management system in Kosovo and Cambodia, the advancement of the project relating to the supply of new aeronautical information management systems for service providers in Taiwan and the Netherlands and control services for radio assistance systems on some airports in Kenya and Romania.
HOW COSTS ARE RISE
At the same time, operating costs recorded growth of 6.0% compared to the corresponding period of 2023, amounting to 177.1 million euros. This increase is mainly due to personnel costs of 145 million euros with an increase of 9 million euros (+6.7%) compared to the first quarter of last year, explains the ENAV note, adding that this "trend is due the growth in fixed remuneration for 2.8 million euros mainly due to the increase in the Group's workforce by 75 average units, and in variable remuneration for 3.2 million euros, essentially attributable to the hourly flexibility allowance granted to the operational personnel in order to allow better management of the growing levels of traffic and not present in the period under comparison. External costs stood at 38.5 million euros, an increase of approximately 1 million euros compared to the first quarter of 2023.”
RESULT AT A LOSS
As already mentioned, the company closed the first quarter of 2024 with a loss of 13.8 million euros, however an improvement of 8 million compared to a year earlier, "due to the seasonality of the business". The Operating Result (Ebit) was negative by 10.3 million euros, an improvement of 9.7 million euros compared to the first quarter of 2023.
THE EFFECT ON MARGINS
The Gross Operating Margin (Ebitda) amounted to 16.5 million euros, an increase of 6.8 million euros, Ebitda margin of 8.5%.
IMPROVES DEBT
Net debt, however, presents an improvement compared to the end of 2023, with a balance of 300.6 million euros, down by 21.7 million euros.
AIR TRAFFIC VOLUMES ARE GROWING IN OUR COUNTRY
In the first three months of 2024, air traffic volumes over Italy recorded record numbers for both the route component (+8.7%) and the terminal component (airport traffic, +10.5%). Italy, together with Spain and France, is the country with the highest growth rate in Europe. In detail, international commercial traffic (flights departing or arriving in an airport on Italian territory) recorded an increase of 17.2%, overflight traffic (flights crossing Italian airspace without stopping) showed a growth of 7%, while national traffic (flights departing and arriving in Italy) recorded a slight decline of 2.6%.
THE CEO'S COMMENT
“The record increase in flights to Italy did not take us by surprise. We have worked – commented Enav CEO Pasqualino Monti (in the photo) – to attract traffic to our airspace by making routes on national skies increasingly efficient, allowing airlines to reduce travel times and fuel. This year, in fact, thanks to the implementation of new procedures and technologies, carriers will save around 90 million kg of fuel with a consequent positive impact also in terms of environmental sustainability. The Group's economic and financial performances represent an excellent starting point for confirming our expectations for 2024 both on regulated activities and on the unregulated market".
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/perche-enav-e-in-rosso/ on Wed, 15 May 2024 10:29:47 +0000.