Ladies and gentlemen, welcome to the Conference Call on the Financial Results of the First Three Quarters of the Business Year 2024-2025. I am Youssef, the call operator. I would like to remind you that all participants will be in listen-only mode and that the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference will not be recorded for publication or for podcast. At this time, it's my pleasure to hand over to Attila Dogudan, CEO. Please go ahead.
Thank you very much. Good afternoon, ladies and gentlemen in Europe. Good morning to the U.S. First of all, I have to apologize for the time change. This is simply because today DO & CO is in Harvard, a case which has two or three classes at the same time, and they wanted us to be part of this session. So this is the only reason. So you will see Johannes is in Vienna, Attila Junior is in Harvard, and me, I am in Bahrain because we have a meeting which came last minute. So we are split to three locations this time. But because we think we have good numbers, I hope you apologize this little change of time.
Before I go quickly through the presentation at the beginning, and then Johannes will take over with the numbers, maybe in general, obviously you have seen some of those results. We are very proud of having had the best nine months ever. When you go through the presentation, when you see the presentation, EUR 1.774 million in terms of revenue is 31% increase, EBITDA EUR 197 is 31%, EBIT EUR 139, and net result EUR 73 means that we had an incredible nine months, honestly the best ever we had. At the same time, what we always told you is we are focusing on margin, on sustainable quality, which differentiates DO & CO from the rest of the market.
So I hope you see that the whole management and the whole team of 15,000 and even more family members are focused on delivering something not anyone at this market can deliver, which we believe is an incredible case for the future too. So it's a good baseline to start for further growth. Is it possible to deliver every time 30% increase? No, obviously not, because we are in a luxury business, but you see that these numbers are not a kind of one-off. When you go to the three divisions, EUR 1.373 million in airline catering, EUR 270 million and EUR 130 million in hotel, restaurant, and lounges means roughly EUR 400 million non-airline, EUR 1.3 billion in airline with profitability in all areas, and all areas have increased their profitability means after the corona hit. I think we are really recovered now and we are ready to go for the next levels.
In the highlights in a nutshell, we will further focus on growth, but as we always say, on quality growth with bottom line growth in all divisions. The free cash flow of EUR 91.9 million and the solid net debt EBITDA ratio of 0.7 is something which we are really proud of. If you just remember where we come from just three years ago and where we are now, I think DO & CO is an incredible solid business, is an incredible solid company and ready to go for the next step, so to say. In airline catering, the focus on premium segment really pays back in terms of getting more and more clients who focus on this. Does this mean that every client fits to what we deliver? No, but I think there is still a big market which we can go for in the next couple of years.
The case is a great case. We have a lot of tenders going, regular tenders, so we are not talking about the hub tenders, so regular tenders. And I think we have a quite good winning rate, so to say, for the right clients with the right pricing. International Event Catering, Formula 1, another 10-year extension means after 33 years of partnership, this is a kind of incredible loyalty from our clients. And if you look at the last season, and I'm in Bahrain, so it will be very soon here, the first race, not the first one, but I think it's the third race where we go in the next level, so to say. All the races in the last nine months and especially last quarter were really super.
Austin, Mexico, Brazil, Las Vegas, Qatar, all of them, and Abu Dhabi, last but not least, are one of the biggest. This is one of the drivers of this business segment for sure. And restaurants, lounges, hotels, always little in size and not very profitable, completely has changed, I would say, the setup. So we have incredible margin improvement and we see that we start to learn what we promised to you in B2C better than we did in the past. So strong numbers looks like will continue for the next quarters as well. So in general, we have a high demand in all divisions and it looks honestly really great for the time being. And quickly through the three divisions, airline catering, I mentioned EUR 1.3 billion, 37% increase, EBITDA EUR 147, EUR 101 in EBIT is in line with the growth.
We had good news or we have good news from JetBlue. We have a contract extension with JetBlue in New York, which is one of the major clients we have on the US market. As you know, the U.S. market is something we'll focus more and more, and the other client portfolio is a who and who of the whole airline industry, starting with Turkey. Turkish Airlines, incredible business there, incredible management. Turkish Airlines is growing. Istanbul Airport is doing very well, and as long as people fly, and it looks like in these days, people fly a lot and eat a lot, so this is in these, let's say, months or years, hopefully in our favor, which was not the case when corona was on the floor, so Turkish Airlines is doing super well.
We are working very closely, 200,000-300,000 meals and even exceeding 300,000 meals is an incredible number for any location of the world. This is one of the biggest kitchens of the world. It's all about clients. So this is a client which we like very much because we talk, I would say, 80%-90%, how we can improve the customer experience, and this is exactly what DO & CO is for. We mentioned last time the gourmet kitchen in Istanbul is on track, so to say. Construction is starting now in a couple of weeks or months, but the planning is finished, so to say. It's on the final process of the tender. The other big client is British Airways, Iberia, as IAG Group. We are very happy that our client is very happy. We have everywhere fresh menus.
So the frozen stuff is, so to say, almost gone everywhere. Iberia won a PAX International Award for Outstanding Food Service by Carrier in Europe in 2024. It's an ambassador of Spanish gastronomy, so to say. And I think the same story you have in London. So we are very proud to have this kind of relationship at this level and hope to expand the business with those clients around the world in other stations as well. Delta, another strategic client. We have a lot of strategic clients now, serving them in various stations. As we have reported, we took over New York and maybe we were not as good as we hoped to be. So it's a big animal, so to say, which was there to take over. In the meantime, operation is fully stabilized. So we are fine with all deliveries, so to say.
There is no delay, no interruption. Financially, we are not there where we should be. So we are still bleeding. But although the fact or despite the fact that we are bleeding there, you see that the rest of the business is kind of carrying this for a time. And we believe that in the next couple of months, we'll reach somehow a better level. But the team is working very hard and all the new staff now is kind of used to what they do now. It's not easy if you take over such a big station in one time and get almost 1,000 people who do not know the regularity, so to say, and the operation. But now we are working on the fine-tuning to get it done. JetBlue, I mentioned, JetBlue is a valuable client because JetBlue focuses very much on the product too.
So this is one of the reasons why we like it very much. And then you see on the list various airlines who joined us recently to buy DO & CO services like Austrian in New York, Turkish in Miami, and Aeromexico , Lufthansa, Royal Jordanian in Detroit, which you already know anyway. On the next page, you see the new contracts, rest of the world. So All Nippon Airways getting more and more and more now in various stations. Vienna startup was very successful. Then we were getting more and more Eastern carriers. I think this is another good sign that we are considered as the one who can understand these cuisines and can deliver exactly the tailor-made product for China Eastern or China Southern, you name it, Ethiopian, a great airline as well, Gulf Air. I'm obviously in Bahrain.
I think there is a lot of potential for the future too. Hainan, Singapore, you see here all major Asian carriers, so to say, where once we get them in one location, hopefully make them happy and then go step by step to the next station. Swiss, we're proud in Korea, Vietnam, and WestJet as well. Coming to international event catering, revenue EUR 270 million, EBITDA EUR 32 million and EUR 26 million in EBIT, great numbers. I mentioned already Formula One, but if you see the portfolio below with UEFA, FIFA, Champions League, Bayern Munich, and ATP and so on, you see again the best events of the world where DO & CO is delivering this kind of services, so to say.
And it's not only the food, as you might know, it's getting more and more to a one-stop solution and one key solution where we deliver everything which is related to hospitality, from music to flowers, from furniture, decoration, whatever is needed, and obviously including F&B and all the services accompanying this kind of experience. Allianz Arena, we are proud of Bayern Munich and our operation in Munich. Additionally, we are very proud to have opened successfully, I think in last quarter, SAP Garden in Munich. SAP Garden is a multi-arena for basketball and ice hockey. So it's dual utilized, meaning that you have every week, almost every week, at least two events, sometimes three events, more events. And this is something which is really increasing efficiency on the location Munich and Germany, so to say. So that's very good news.
Restaurants, lounges, hotel. Quick update in a nutshell: EUR 130 million revenues, EUR 17 million EBITDA, and EUR 11 million EBIT. This means that we did some homework right by having the right product. This is, as you know, the R&D of the whole group. So if someone says, "Why you do this?" It's always the same answer. If we don't have the restaurants where we come from, we wouldn't get the event business and we wouldn't get any airline business at this level. So this is the area where we get all the know-how for this single dish, so to say, and the single experience, and then can scale in event and scale far more in the airline business. So this is a very pleasing development in all areas with the variety of brands which we use already now. If you see at the next page, Demel is doing super well.
When people travel, then they go to locations like Demel. Vienna is an incredible city. People fly in. Not maybe every airline on a short haul takes a lot of food, but I can tell you that they eat a lot of cakes and especially Kaiserschmarren, which is the Austrian way of pancake, which is kind of an iconic product now, is going up to 50% of sales when you look to the group of cakes. This is very good. Albertina, we did a redesign with a new 10-year contract. It's working very well too. Just opened in terms of after renovation a few weeks ago. DO & CO Hotels and restaurants all with a great utilization and load factor, so to say. Hotels are doing well. The room rates in Munich and Vienna are really good.
Airport gastronomy, obviously, if people fly, then they buy something. So all the today's setup is in our favor. We know it might not stay forever like this, but I think for the time being, people enjoy to fly around, not on the long haul. They use weekend trips or whatever, using airplanes for two-hour flights, which always brings us enough clientele to deliver. So this is in a nutshell where we are. Johannes is going to continue, I would say, and then we are ready for your Q&As. Thank you very much for listening.
Thank you. Good afternoon, everyone from Vienna, also from my side. Thank you for joining us today for the Q3 result presentation. Let's take a closer look to our financials. On page 25, I'm going to start with our income statement. So as you can see, after three quarters, we have almost reached the revenue of the entire previous financial year, which was slightly above EUR 1.8 billion. But more importantly, we were able to improve the EBIT margin again from 7.5% last year to 7.9%, as well as the net result from 3.9% to 4.1%.
That's a result of efficiency gains, contract management, and operational leverage in mostly all of our units. Please be in mind that the year-to-date results are also impacted by our U.S. startup costs, especially in Q1 and Q2. I would also like to highlight our significantly improved financial result performance as our group managed to decrease those expenses from minus EUR 22 million to minus EUR 11 million this year, driven by our high interest income. On the next page, number 26, we see the quarterly development with focus on our strong performance in Q3.
The revenue increase from Q2 to Q3 is mainly driven by Turkey, plus EUR 27 million, Formula 1, plus EUR 39 million, and restaurants, lounges, hotels, plus EUR 8 million. We achieved an EBIT margin of 8.7% compared to 7.7% in the previous year. If you compare Q2 to Q3, you can see another big improvement in margin from 8.1% to 8.7%. We did better than last quarter in all three areas, but international event catering and restaurants, lounges, and hotels did especially well. But let's have a closer look at our division results on the next Slide. On the next page, number 27, I would like to focus on our results and the divisions for our third quarter. In the airline industry, there has been and there still is significant growth, and we are benefiting from it due to higher load factors, new routes, and new clients.
The revenue increase compared to last quarter is mainly driven by our business in Turkey. We've also been working hard to improve the efficiency of all our catering units, which has led to an impressive EBIT margin of 8.1%, up from 6.5% last year, and if we look at the year so far, we're doing really well with an EBIT margin of 7.5% and an increase of 0.5 percentage points. In international event catering, the revenue in Q3 was slightly below last year, but only reduced by approximately EUR 4 million. We were able to compensate the lower revenue in Las Vegas with higher sales from other Formula 1 races, the opening of the SAP Garden in Munich, and strong business at Allianz Arena. We could nearly maintain last year's EBIT margin.
So in our third quarter, we had an EBIT margin of 11.1% in that division, which leads us to a margin of 9.9% year- to- date, which is slightly below last year. But please keep in mind that we had a one-off effect last year due to the World Cup, and that's why the margin last year- to- date was slightly higher than this year. I'm also delighted to tell you that the restaurants, lounges, hotels division has done incredibly well, as you can see from the EBIT margin. We achieved our best margin yet in Q3 at 9.7%, which is a huge improvement on last year's 7.3%. We are already delivering more than 8% year-to-date. So as you can see, every single unit has contributed to this success.
I would like to particularly highlight Demel in Vienna, our restaurants in Munich and Vienna, as well as our hotels, handwear shops, and lounges. The balance sheet on page number 28 shows an overall extension of 11.3%. This is an effect of a rise in property, plant and equipment of EUR 45.5 million, as we are still investing in our business and preparing for the future. The majority of these investments were made in the U.S., Turkey, and also Germany. The trade receivables increase of EUR 58.1 million is driven by the business growth and the cash position slightly decreased, but I'll talk about that in our cash flow slide in a moment. If we look at the other side of the balance sheet on page number 29, we first note an equity ratio of 32.3%, which is an increase from 27.4% last year due to bond conversions and higher profits.
Additionally, under the other financial liabilities line item, there has been a decrease of EUR 48.9 million, which is due to a repayment of a loan. Our cash flow statement on slide number 30 once again highlights our strong capital structure. In the first three quarters, we generated a cash flow from operating activities of EUR 135.1 million, slightly below last year's figures. One reason for that is a higher income tax payment of EUR 22 million due to our increased profits last year. Changes in working capital of minus EUR 27 million are a result of an increase in receivables and inventories and a reduction in liabilities and provisions. Please note that we had a very strong airline catering and event catering business in December, with outgoing invoices being settled in January 2025.
The free cash flow was EUR 91.9 million for the year-to-date, which is lower than last year due to tax payments and changes in working capital. For Q4, you can expect a higher free cash flow, which will bring us to a higher level compared to last year, excluding additional tax payments. As previously stated, EUR 66 million was repaid in loans, yet the cash balance remained consistent at EUR 270 million. Consequently, our objective of utilizing free cash flow for a loan repayment has been successfully achieved, as you can see. Finally, on page number 31, the net debt to EBITDA remains at 0.7 as last quarter.
If we take a closer look at our debt amounting to EUR 435.5 million, we can see that EUR 185 million of this is made up by loans, of which EUR 100 million will be repaid in March, and the remaining EUR 245 million is related to lease liabilities. Finally, I would like to thank all my colleagues worldwide for the support, and I'm really proud to be part of a great DO & CO team. Thank you for your attention. Now I would like to hand over again to Mr. Dogudan before we start the Q&A. Thank you.
So, as you heard, and I hope we could explain to you, I think it's looking better than ever, but always, obviously, we have to be careful that we can deliver. So I think what is the bottleneck? What are the risks of these kinds of growth? It's obvious that we deliver the expected innovation and quality level. So we will extremely focus and have started in training and education because it's all about delivering an experience others cannot deliver. That's the issue. So we see, yes, there is a price pressure everywhere, like everyone is doing it, but I think there is enough market to get good business with reasonable margins, and it's not like we have kind of stupid margins and stupid expenses. So we are not. What we are doing now is that we get at the same location more volumes and get better efficiencies. After the corona crisis, so to say, everything is getting smoother and calmer and getting better. We have started to hire good management. This is exactly what we need for the next step.
We are very confident for the current quarter, and we'll first time hit the threshold of EUR 2 billion significantly. For the further growth, at least for the time being, if you ask me, except the obvious risk of hygiene on one side and the other side of non-delivering or not good enough delivering innovation and quality, I think the business case looks very, very stable. Knowing these kinds of risks, we are exactly investing in these fields to make DO & CO stronger than ever. We'll grow in the next year in a good way, but I think it will not be a 330 or something like this. Still, as we said, we always look at the organic growth as a minimum growth of something like double-digit minimum 10%. This is where we go to, what we look for.
And in a nutshell, this is where we are. So we feel as a team very confident. The whole team feels confident in terms of product, as I said. And if we can manage to get the right people and train them, I think then DO & CO is getting more and more a great business case. So this was in a nutshell maybe for you. And now we're happy for your Q&As. Thank you again for listening.
Ladies and gentlemen, we'll now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their telephone. You will hear a tone to confirm that you have entered the question queue. If you wish to remove yourself from the queue, you may press star and two. Questioners on the phone are requested to disable the loudspeaker mode while asking a question. Anyone who has a question may press star and one at this time. The first question comes from the line of Julien Richer from Kepler Cheuvreux. Please go ahead.
Hi everyone. Thank you for taking my question and congratulations again for this very robust quarter three. One, if I may, the first one, if I can have your view on what you expect in Q4 based on the very solid performance in Q3. The initial guidance in terms of revenue, especially, seems to be a little bit low today. So happy to have your view in terms of trend and what you expect for Q4 this year and for next year also, 2025, 2026, if the basis is higher and you take into account the double-digit growth you just mentioned, what kind of situation in terms of revenue can you expect? The second question is about the utilization of cash.
So you are going to post probably something around EUR 120 million of free cash flow this year. Correct me if I'm wrong. And if it's the case, next year with another solid free cash flow generation, you will be net debt positive, net cash positive. So what is your plan in terms of cash utilization, cash allocation for the next 18 months? And the last one you mentioned, JFK, that is still bleeding. Could you please give us the impact of JFK on margin in Q3 and what is the base case margin situation for Q4 and next year? Thank you.
Johannes, are you starting?
Yes, I'm starting. Thank you Julien for your questions. So number one regarding guidance for this year, yes, you're right. Our guidance at the moment for this year is revenue between EUR 2.25 billion and EUR 2.3 billion with an EBIT margin, again, ranging from 7.5%-8%. I think we're confident as a team that our Q3 results once again demonstrate our ability to achieve this target despite the slight decline in Q1. For the upcoming year of business year, we are above EUR 2.4 billion, heading to EUR 2.5 billion, and we are setting a target of an EBIT margin of 8% or slightly higher. This is our guidance for this year and for that regarding Q4. As you know, Q4 is always our lowest quarter. We are missing two days, for example, in February. We are expecting approximately EUR 500 million in revenue this year for Q4. Okay. Now maybe from Julien?
Yeah, yeah. Please. I was just wondering why the margin will be at 8% if you have been able to post such a very robust margin in Q2 and Q3 this year. Is there any reason in terms of investment that you have to make because it was 8.1% in Q2, 8.7% in Q3? So for next year, just being at 8%, do you have some investment in mind?
You know that we are still, what we always tell you, we are still investing into our units, into people, innovation. So that's why we are quite prone to error if we talk about margin. But I think between 8% and 8.5% could be the next step after 7.5% last year. This year, hopefully, we're delivering 7.8% to 8% in EBIT margin next year, above 8%. I think that's a good approach to deal with the growth and to still be able to invest into our product and people and quality, and regarding margin in Q4, just one note, please take into consideration that also Q4 in event catering is very low because we have only one race this year, Shanghai, compared to last year. Last year, we had Bahrain and Saudi Arabia, two races. That's why you can expect lower revenue in Q4 in event catering, which again, with an EBIT margin of 10% approximately, has also an effect on the group margin. Please take this into consideration.
Got it.
Julien, I mean, you know us now for a long time, so we want to deliver what we promise, right? What we have always said is our goal for this year is 8% EBIT, and we hope we are close or we can touch this number. For next year, obviously, it's between 8%-8.5%. Hopefully, it's not 8%. If we touch this year 8%, it's hopefully 8.5%. Despite the fact that we are bleeding, as you said, I think we cannot disclose exactly the number how much we bleed, but even if we have locations where we do not perform like we should, you have to look at the group level. I think there is no surprise to expect for Q4. We're going to go ahead. I think you can expect, hopefully, that we hit the 8% EBIT, as we have said. In growth for next year, again, we are conservative.
So we always believe that natural growth of 10% is possible within the current frame. So then you can easily look at the numbers where we can go to. And this is always obvious, the fact that we do not get another hub, another location, or get a major contract, which is significant than the regular business, so to say. On the cash and free cash flow, yes, we are honestly, we are super happy about the net cash positive, which means that this company is in a completely different shape. And the shape means the next step means obviously then how can we grow in a smart and clever way. And if you have then this kind of financial standing, then you can think about M&A and acquisitions and see what happens on the market.
And if you do a comparison between us and all our competitors, I think we are one of the most healthy ones. Hopefully, the most healthy one means that if there's an opportunity, we'll go after that, definitely. But we will not go for revenues only. We will go for sustainable business, which fits in the portfolio of DO & CO. And the same way, I think the wording we used always was conservative, and it came up 30% plus. Is this always possible, as I said at the beginning? No. But is it something 10 plus? This is something we at least internally expect. So I hope this helps to give you some guidance on your questions.
Yes, thank you very much and congratulations again for the very solid Q3. Thank you.
Thank you very much.
Thank you Julian.
The next question comes from the line of Vladimíra Urbánková from Erste Group Bank. Please go ahead.
Yes, hello. Good afternoon. So I would have two or three basic questions. First one would be related to your profitability and capacity utilization. I assume that JFK, it's still sub-optimal. So what is the current capacity utilization? What is on average capacity utilization in the airline catering segment? And if the optimal capacity utilization at JFK will be achieved, what kind of EBIT margin we can expect in the airline catering segment? My next question would be related to your CapEx. If you could provide us, please, with current expectations for fiscal year 2024, 2025, and maybe for the next year, what would be your CapEx? And the third would be the dividend. I know it's still too early. Dividend proposal will be published in due time, but still, any thoughts about dividend and maybe compensation for the past years when no dividend was paid? Thank you.
Sure. Johannes, you, me.
Thank you. Yes, I will start. Regarding capacity, Vladimíra , at the moment, we're approximately at 80% capacity. All of our stations, so JFK, is slightly above now. But as we mentioned all the time, it's easy for us to extend the capacity because the bottleneck is not only the kitchen. It's more or less we might need more storage space, which is very CapEx light. It's easy for us to extend also the capacity with no big investments like in JFK. But overall, I would say it's 80%. Still room for growth there.
Regarding the EBIT margin in airline catering, of course, you can expect another increase next year because I think this year in event catering, we should achieve again the 10% approximately in our restaurant lounges, hotel division. I think we are also around 8%, something like that. So for next year, I think we have to make an improvement in airline catering to come to 8%-8.5% on a group level. Regarding CapEx, our guidance was always 2.5%-3%. But as we are still investing into our units, I think you can assume either 3% slightly higher for next year. So I would say between 3% and 3.5%, that's our forecast for next year, so slightly above our guidance so far.
May I add something to this, Vladimíra? The capacity in New York is currently packed with the volume. And as Johannes said, I think in general, we are 80%. New York is a special case. And what we are evaluating is getting additional locations with very reasonable CapEx to either sort out warehousing, which is, I'm not saying cheap, but very reasonable because you don't need a high infrastructure, or you do partially bring out your food production to another location. So as we said in the previous years, we are looking for central production units for regions where we then distribute dishes or components to our own kitchen. So we're not going to sell in phase I to a third party. So this is a concept we are working on that will help us for, let's say, in locations where we are sold out, so to say, to get additional capacity. What you need at the airport is the last mile.
So you need the trucks and the high loaders. You need your loading docks and these kinds of environments. And sometimes it's like the old style, everything is mixed in one building. So it might be more cleaner for the future. And this is a concept we are working on, which maybe in end of year, end of the next quarter, we can tell you more how we expand, especially on the U.S. market. On the dividends, as you know, we are a little bit limited, so to say, due to the corona subsidizing from countries. So we have to be careful, but we will definitely have, hopefully, good numbers, but we'll come back to you as soon as possible as we have evaluated. And this time is not a matter of money only. So we have to see that we do the right things.
Thank you.
The next question comes from the line of Marie-Therese Grubner from HAIB. Please go ahead.
Yes, good afternoon from my side, and also congrats on this amazing quarter. I have a question regarding, first of all, the US stadium opportunity in the U.S., which is obviously a huge opportunity for DO & CO. I know it's still a rather early stage for you, but if you could give us, number one, maybe an assessment of the total addressable market for you with your six locations and the CPUs you just mentioned and mobile kitchens. So more or less, what share of the pie and how big is that pie? And what share of the pie can you really go after? And when maybe could we expect first announcements on that front? So that would be my first question.
If I would know when the first announcement is there, I would tell you. So I don't know. But first of all, you're right. So I think we have two on the U.S. market now. We are consolidated. We have six locations, and people know us, and I think that's phase I. Phase II is the next big event, except Formula 1, which is in Austin, Miami, and Las Vegas. It's three big events. We have the FIFA World Cup next year, where the tender is now starting somehow, where we hope to get a chunk of it, whatever the chunk is. And as the performance we had in F1 in all over the countries, but especially in the U.S. as well, and the last FIFA in Qatar.
So I think we have good chances to get part of the business, which makes sense, which gives you the next visibility on the market that you can operate the stadium in U.S. or Stadia in U.S. So I think the next goal is what can we get for 2026? There is a Club World Championship in 2024, where I think it's not fixed, but I think we will have some visibility, but in numbers, not changing our life. So this is more, let's say, a marketing tool. But for 2026, it could be a significant number on a high double-digit number or even on a three-digit number. We don't know, but we'll see. So this is the stadium. And out of this experience, I'm pretty sure American stadium operators then will focus. So we got some who talk to us, but it's always a matter of pricing.
It's hand in hand. On one end, America's Stadia charge incredible money to their clients. On the other end, they are used to the sport event food, what they love and go for, the burgers and the wings and all this. I'm not saying this disrespectful, but I'm saying this is the way how they deal with sport events. I think we can trigger a little bit more on this, but that takes time. On the Central Production Unit and airline catering going to more airports and secondary hubs, if you always like have kind of good numbers, I think in the next three years, I think we can get another EUR 100 million-EUR 150 million additional revenue by going in these kind of modular kitchens, as you call it. This is what is possible from today's approach.
Finally, if we have managed to do two, three, four of the smaller ones, and once we know the recipe for scaling, I think then I would say you have another 10 cities, 15 cities where you can go to. So this is then a kind of network in the U.S. almost no one else has. And then don't forget, we have to learn, and we are learning, as you see in the numbers on the retail side and on the Demel side and these kind of things. If you ask us what we're going to do with this money, we're going to try to get more and more B2C. We have to be careful that we are not again only dependent from airline. So if people travel less, then everything goes down. So we need to get a better ratio of the non-airline business. This is one of the reasons why we act or we will act like this with the money we have.
Thank you very much. That was very clear. My second question, if I may, is regarding the MotoGP. I think the acquisition went through. Is there any chance you grab any of that business as well this year or next?
Marie-Therese, maybe you know more than we know. I think the acquisition in terms of I think both parties agreed, but it's waiting still for the approval of the European Commission. So this is a process which I think will last another few months. I heard something like early summer, something like this. But if this happens, can I prove that we get it? No. But if you make your client happy, obviously, you might have a chance to do more.
So we're looking very much forward that hopefully the EU Commission signs this off, and it really would make sense for the sport, for everyone. I don't understand why they don't do it already. Hopefully it happens. Once it happens, obviously, there's another chance for getting a series because they know us, we know them, everyone knows everyone. There might be a natural fit, hopefully, which then gives us this opportunity.
All right. Thank you very much.
You're welcome.
As a reminder, anyone who wishes to ask a question may press star and one. The next question comes from the line of Christoph Greulich Berenberg. Please go ahead.
Good afternoon, and thanks for taking my questions. Two from my side, please. The first one on the revenue growth in Q3. So, you mentioned already in the presentation there was a big contribution there from the Turkish business. So, it seems like your revenues in Turkey doubled year- over-year during the quarter. Could you break down that into the underlying drivers? How much of that doubling of revenues comes from more business with Turkish Airlines, more business with third-party airlines, and also from other factors such as currency or hyperinflation accounting? And then, secondly, just a follow-up on the CapEx outlook. You also mentioned that the new kitchen in Istanbul, the construction will start in the second half of this year. Yeah, could you let us know what is the total CapEx budget for that project and what's the CapEx phase in there?
Yes. Christoph, thank you for your question. Let me start with your first one regarding Turkey. Yes, you're right. We see an increase of EUR 90 million in revenue from Q3 last year to this year. But to be honest, Q3 last year was quite low for Turkey. So if you compare, for example, Q2 last year in Turkey was at EUR 149 million. To this year, you see an increase of EUR 40 million-EUR 45 million. So it's much lower. And as you're right, so most of the increase is coming from more passengers, higher flight numbers, but also third-party revenue.
So we also increased our business with third-party clients in Istanbul substantially, which also leads to a higher revenue there. And regarding hyperinflation, hyperinflation effect was EUR 23 million in Q3 only compared to last year. It's more or less on the same level. But yes, you're also right that the Lira is quite stable now. So I think in last year, Q3, we had a devaluation of 10%. This year it's quite stable. So this is also an effect of approximately EUR 15 million-EUR 20 million on the other side. And regarding CapEx, maybe I would like to hand over to Mr. Dogudan about the Turkey kitchen.
Yeah, maybe I want to add here something. I think one of the drivers is we have doubled our revenues for third-party clients. So this is one of the issues. Obviously, Turkish Airlines is doing super well and flying more and more. But this is the one part. And for the kitchen, we're talking that we only, as the joint venture, will invest in kitchen equipment. So this is the last phase of the building, as you might know. And we have reported this Turkish Airlines is taking over the whole building cost on their own.
So it's their infrastructure then, which is, I think, from the standpoint, from the point of view from the airline, the right decision because they own the building in their hub in Turkey. This is a couple of hundred million EUR, by the way. We will only invest in them jointly in two and a half years' time earlier. The next two years' balance sheet, you will not see any CapEx which is related to that. Then it will be something on today's money, maybe EUR 50 million, EUR 60 million, something like this. But we're talking in three years' time on this investment. It depends on exactly what kind of machinery we want it to go. Anything which is related to the building is already done by Turkish Airlines. This is just to clarify.
Yeah, that's very clear. Thank you.
You're welcome.
Ladies and gentlemen, there are no further questions at this time. I would now like to turn the conference back over to Attila Dogudan, CEO, for any closing remarks. Please go ahead.
So thank you very much for your time, as mentioned and have discussed. So I hope we can deliver good results, although it's not always 30% of growth. But I think you see that the business has stabilized and the product works, and there is a great opportunity. So we believe very much that we have reached a super starting baseline for further growth. So we're proud to be financially strong enough then to go for acquisitions, investments, and whatever is needed to make the business case of DO & CO solid and to continue what we have started many, many years ago. So I think the team is in a great shape.
We have a good vibe within the team. You feel that hopefully everywhere. And as I said, we are aware of the risks we have. So we will not continue businesses where we lose money end of the day. So we will only go for something which makes our client more happy and gives value. They cannot get anywhere else. So that's the reason why we do not want to join the commodity business just for the sake of revenue. And yeah, in a nutshell, thank you very much for listening.
Thank you that you do not have too many other questions because I have to go into the call of Harvard, which we are very proud of too, by the way. To have DO & CO as a Harvard case is a license, so to say, to get hopefully the next generation of managers. So that's the reason why we wanted to have this call earlier. Thank you that you joined us and hope to see and to hear you very soon. Thank you very much.
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