Okay. Ladies and gentlemen, Welcome To O ur Conference Call For The First Half Year of 2022 of Vienna Airport. Today's presentation, as usual, will be held by our board members, Mr. Günther Ofner and Mr. Julian Jäger. The presentation will be followed by a Q&A session where you will be given the opportunity to ask your questions. During the Q&A session, I would like to ask those of you having questions to unmute themselves, introduce themselves, and then ask their questions. Alternatively, you can also raise your virtual hand or write your questions into the chat window. If you are joining online, then you can easily unmute yourself by selecting the respective button in your menu. If you are joining by phone, please press star and six to unmute yourself.
In the Q&A session, we will give preference to sell-side analysts covering us, and only after their questions have been answered will we allow further questions. The call will be recorded and will be available on our website shortly after this call. The slides of the presentation that will be held now are also available on our website under presentations. Now I would like to hand over to our CFO, Mr. Ofner. Please go ahead, sir.
Yeah. Good afternoon and, welcome, to our conference call today. It's a very significant increase in passenger numbers and also in earnings, we can report today for the first six months. What you should have in mind is, that the first quarter, due to, travel restrictions in connection with, COVID have been relatively weak, but, we saw then a steadily improvement, throughout, the next, quarter. Now in, summertime, July, we are almost close, to 90% of, pre-crisis levels. If you look at the figures, you see that, we have improved all our main financial indicators through the board.
Revenues are up by 190% and after a loss of EUR 30 million in the same period last year, we have now positive net result of EUR 52.3 million. We can strongly confirm our improved guidance for 2022. If we look at booking numbers and the plans of the airlines and the overall framework and economic framework, I would even say that from today's perspective this improved guidance looks rather conservative. I would not rule out that results finally will be substantially above what we saw until now.
Always with the assumption that no new lockdowns or things like that will happen, and we would not see a significant deterioration of international tensions alongside the war of Russia against Ukraine. If we rule out that, I think we see a very positive, steady improvement of traffic numbers and also our cost management. If you look at the details, you will see that our EBITDA is up to EUR 143 million compared to EUR 25 million last year. Our earnings before interest and taxes, EBIT, is at EUR 75.8 versus -EUR 40 million last year.
The financial results improved from EUR -59 to EUR -4.3 this year, and they could further improve if we decide that a certain portion of our EIB loan will be repaid before maturity. Earnings before tax are at EUR 71 versus EUR -46 last year. Finally, net profit EUR 52 versus EUR -32 last year. The positive development also results in the fact that we are more or less debt-free. It's somehow a historic moment because the company now for almost 20 years had substantial debt. We are now more or less close to zero. That gives us a very strong position, especially in regard to future investments or even dividend improvements.
If you look at the cash flow, you see also a positive development, EUR 96 from operating activities versus EUR 9.4. CapEx is slightly above last year, but still very low with EUR 25.9 million. If we look at the expenses, you see that we are still very disciplined. What was a very wise decision was that our big PV plant could go in operation already end of May, and that we are now providing up to 40% of the needed electricity from our own production, which shields us substantially from the price hike on the energy sector. We also have bought electricity for this year and next year, already five years ago.
We have prices from 2017, 2018, 2019. Unfortunately, there was a split of the price zones of Germany and Austria, and therefore, we cannot fully exploit this price differential because there are very substantial additional costs for the transfer from Germany to Austria now, which was a really bad decision taken in 2018. Personnel and operating expenses are up, but not in the same rate as our revenue when revenues went up. Clearly you would ask what about wage inflation? We have already entered into a new collective agreement for next year, starting with the first of January, with an increase overall of 5.7%.
Beginning with first of May next year, we will have another round for the collective agreement. In this case, we will have to include inflation for the year 2022 into these negotiations. On the other hand, we are entitled by law that also our tariffs will be adapted with inflation rates. I mean, this will constitute a time lag of roughly one year, but we will be entitled to raise our tariffs alongside the very unfortunate development on the inflation side. If we go further on and look at the share price, you see that still we are substantially outperforming our peers.
If you look at the improved financial guidance and our last improvement was the second of August, it shows that we are also somehow optimistic for the rest of the year. I said before, if everything is going as it looks now, even this improved outlook is on the conservative side. You are aware that IFM Infrastructure Fund made a bid, a voluntary public offer to acquire 50% of our shares minus one share versus the actual possession of 40% plus nine shares. The management board of Flughafen Wien AG was giving its statement, which is obligatory by law. Just yesterday, in regard of this offer.
The complete text of our opinion, which was checked by the respective auditor and was unanimously also approved by our supervisory board. You can find the complete text on our homepage and on the link that is included in this chart. Giving you a short glimpse of it, after carefully considering the arguments in favor and against the acceptance of the offer, the management board and the supervisory board of the target company advise against accepting the offer, not least because of the expected further positive development of our company.
From our perspective, the price offered is not considered to be adequate in light of the positive business development, the sound financial position, factually debt-free of the company, and especially not if you compare it with previous airport transactions. Especially IFM paid, for example, 22x EBITDA for acquiring a stake in Sydney Airport recently. If you compare with the offer price for Vienna, it's below 10x EBITDA. On the other hand, we are afraid that the acceptance of the offer would threaten the stock exchange listing of our company, and such a delisting is not considered to be in the interest of the company or our main stakeholders.
The regulatory framework would force us to delist once the offer would be successful, because there are certain thresholds for a minimum free float. Otherwise, the trading of the stock would be more or less diminished. From our perspective, for the good of the company, we should be a listed company also in the future, and we would not like to see the free float absorbed by our current shareholders. All the details and a lot of more considerations you can find on the website and our complete report. We are very happy that we can be a CO2-neutral operating green airport starting from first of January 2023.
We already have significantly reduced our CO2 emissions in the last years. We did hundreds of measures throughout the whole company to come up to the point that reduced roughly 60,000 tons of CO2 emissions yearly. We will be one of the first major airports that can operate CO2 neutral. We are sure that this is a real milestone in the development of our company, and it will be followed by net zero as the next goal, maybe in 5-10 years from now. Our efforts will not stop with this milestone, but will continue. That's the presentation from my side, and I hand over to Julian Jäger.
Good afternoon, ladies and gentlemen. I would like to continue with the traffic development. I think the first half is not really indicative anymore. I think you know the figures more or less in the group. We were down 35% versus the pre-COVID levels of 2019, with close to 12 million passengers. The recovery is stronger in Kosice and Malta. Kosice is in the meantime already above the 2019 levels. I think this is mainly due to the new strategic location, which happened unfortunately now with the Ukraine war. Malta is doing like most Southern European airports, is doing extremely well now in summer. And in Vienna, traffic picked up a lot as well in July.
The development of the respective carriers in the first six months of this year, Austrian has a market share of 45%. Lufthansa Group in total 51%. Ryanair is number two with 21.7% market share, and Wizz Air with 7.2% market share. I think now with July, the picture has changed somewhat. Austrian has a market share of roughly 50%. Pretty constant now over the last weeks. Ryanair around 20-21% and Wizz Air around 6-7%. The market share of the low-cost carriers was reduced a bit, and Austrian's position here is now stronger than it used to be in the complete first six months of this year.
July is I think more indicative about the rest of the year. We had a really busy July. We were down 12% over 2019. 2.8 million passengers in July 2022 in Vienna as such, which is roughly double the amount of passengers we had in 2021. What is especially encouraging is the transfer traffic. We were down 5.7% over 2019. Local passengers down -14%, so this gives an indication that Austrian Airlines is doing really good business.
I think whoever has had a look at their Q2 results can see that they were positive in Q2, which indicates that Q3 should be really, really strong. I think overall the development of Austrian has been very, very good in recent months. What is positive as well is that the flight movements 23% below 2019 levels, which means we have a significant increase in the number of seats per aircraft and then very significant increase in the seat load factor. You can see here that the seat load factor is up 4.7 percentage points over 2019. This is a really high level.
Probably this is not sustainable forever, but it shows that all the airlines are doing really good business right now. Obviously, the low-cost carriers have even a higher load factor, around 90%. Overall, this is extremely encouraging. Cargo is essentially on the level of 2021 and 8% below the 2019 levels. To go into a bit more detail on traffic, I think this is important to get a bit of an idea about the future developments. What we can see here is that Europe is performing above average. Overall Europe -9.6% over 2019. Eastern Europe, not surprising with the war in Ukraine and the reduction in traffic from Ukraine, Belarus and then Russia, -14%.
Western Europe, -8%. Far East, still the market which is struggling, -71%. Middle East, even above, slightly above the 2019 levels. In North America and Africa, 5% below 2019 levels. Essentially this says that we have one major market, the Far East, which is performing significantly below the 2019 levels, and the rest is performing pretty well. If we have a look into our by far most important market, Europe, what we see here that there are mainly the Southern European markets which are performing significantly above the 2019 levels. Italy, Spain, Turkey, Greece, all performing extremely well. UAE performing very, very well. USA above the 2019 level.
There are a couple of markets, mainly Germany, U.K., France and Switzerland, which are performing significantly below the 2019 levels. Our biggest market, Germany, -35%. I would say there are mainly two reasons. One, we have significantly less capacity on Germany. There are many exclusive Lufthansa routes mainly operated by Austrian Airlines. Austrian Airlines is doing very, very well on Germany right now. Secondly, I think there are still some business traffic, although July is not a strong business traffic month anyway. Still I think we'll still see the effect of Zoom and Teams and so on. On the other hand, I think there's a lot of room for recovery in 2023 on Germany.
I'm sure there will be more capacity to Germany next year. Overall, I think the markets Germany, U.K., France, Switzerland will recover more in the coming months and definitely next year. This gives some positive outlook. I think the same applies for Far East. I would not be overly optimistic on China, but what we see from markets like India, Thailand, Taiwan, Japan, airlines want to come back. Airlines are seriously considering to putting in capacity. I think we will see some positive developments there next year as well. Yeah, just a few words on operations. I think we are doing.
Compared to most other airports in Europe, we are doing really, really well in terms of waiting time, in terms of punctuality, in terms of flight cancellations. Yeah, I think the operation really works very, very well. We hear this a lot from Austrian Airlines. I think Austrian Airlines is within Lufthansa Group, a top performer in terms of punctuality. I think Austrian is both from a financial perspective and from an operational perspective right now, really on a good track. We are happy that the effort of our employees has been recognized by Airports Council International, and we've received award Best Airport in Europe 2022 from ACI a couple of months ago. Yeah.
The outlook for this year is in Vienna, approximately 22 million passengers. In the group, 28 million passengers. I hope this is on the conservative side. This guidance or this forecast is not done under the assumption that we will be until the end of the year on a 90% recovery level. We believe when the really strong summer months are over that the percentage versus 2019 really will go down a bit. It might well be that we are above the 22 million.
On the other hand, this does not in any way cater for severe travel restrictions or anything of that sort, if a new COVID wave should happen. Our best guess today is that we will be around 22 million passengers. If the recovery remains as strong as it is today, we will probably have more passengers than this. Yeah. To finish off our presentation, a few words regarding our segments. As Günther said already, I think the most important development in the airport segment is the airport charges. We will increase our airport charges by roughly 5.7% with the first of January. This includes the inflation from July 2021 up to July 2022.
There is right now no formula involved. This is plain inflation according to law. Overall, I think the airport segment improved significantly its results in H1. EBIT was EUR 16.4 million, EBITDA EUR 56.9 million. The increases essentially across the board, passenger related fees, aircraft related fees and infrastructure related fees. Overall, I think the performance is good and will be even better now over the summer months. Overall, I think the development is good. We intend to increase our net revenues next year, so we will, on the one hand, increase our gross charges.
On the other hand, we have done some changes in our incentive scheme, so we assume that we will pay less out of our incentive scheme next year, and the net revenue should be above the 2022, and significantly above the 2019 levels. To carry on with the handling and security, a slight profit, EUR 0.2 million, after EUR 9 million loss in H1 2021. Therefore we want to increase our unit prices in the future as well. This might take a bit longer because we have contracts running on a longer level. There are some fixed prices. Other big contracts, we can increase our revenues by 75% of inflation.
There is inflation covered as well. Overall the outlook for H2 is obviously even better than what we've seen in H1, where the first 4 or 5 months were severely impacted still by COVID restrictions. Overall I would say a positive development as well. I think Retail and properties is doing very well as well. An EBIT of EUR 30 million versus EUR 9.2 million in H1 last year. EBITDA EUR 40 million versus EUR 18 million. Revenues are increasing everywhere except rentals. In rentals, what you can see here is a reduction in rental income from Austrian Airlines because Austrian Airlines had an office block 28 floors. Now they reduced it to 4 floors.
This still has to be rented out, so this is the reason why there's a reduction there.
We see very strong parking revenues. There was a lot of upselling going on, so this really works well. Center management and hospitality is doing well as well. They are mainly the duty-free shop is performing better than the passenger numbers would indicate. F&B is significantly above the passenger numbers, where we suffer is specialty retail, although this is just a small portion of the overall revenues. We see there that the Russian passengers, the Ukrainians, the East Asians are missing. This is an area where we will feel the change in the passenger mix. On the other hand, we see this change in the passenger mix in F&B. Overall, I would say a very positive development.
Finally, Malta, again, very positive. EBITDA EUR 23 million, EBIT EUR 16 million, versus EUR 2.4 and -EUR 4.2 million last year. Yeah, overall very positive development, close to the 2019 passenger numbers now over summer. We will still invest there in additional office space, conferencing, and hotel space. So overall, Malta is really doing very well. That's it from our side, and now we are happy to take your questions.
Yes. Thank you, gentlemen, for your presentation. I now would like to open the floor for questions. Please go ahead.
Yes, if I may start. Bernd speaking from Raiffeisen.
Hi, over. Yes.
Yes. 2 questions. First, regarding the CapEx plans. You had pre-COVID quite detailed CapEx plans with the targeted expansion of especially non-aviation facilities. Of course, everything was halted in light of COVID and the drop of passenger numbers. Now we are doing quite well. It's crucial timing for valuation of your company, and CapEx is an important factor for it. Please give us a hint here. Shall we go back to the former midterm CapEx guidance? That this is a valid assumption going forward. Has it to be increased by the rise of construction costs? Has it to be decreased because of changed plans?
What is in your agenda in the next 4-5 years for the maintenance, adaptation, and enlargement of the airport? Of course, all excluding preparations for the third runway.
Yeah.
This would be point one. Point number two, just one clarification. Günther Ofner, you said at the beginning that you see the updated guidance from today's perspective as conservative. Just here, question from my side. Also conservative, without any potential so-called extraordinary gains from the sale of real estate? Or would the conservative categorization by you include only the potential for book gains from real estate transactions?
No. I mean, we are not foreseeing real estate transactions yet for the second half of the year.
Okay.
I mean, not in the form of the sale of land.
Yeah.
I mean, this is a future perspective, and I think a very substantial one, but it's not the case for the rest of the year. I mean, conservative in my point of view, because what we saw for July and what are the expectations for the rest of the year could be above the figures that are now implemented.
Yeah.
For this forecast. I mean, given that we see no major external event that would calm down air traveling, everything looks that we could outperform even these assumptions. In regard of CapEx plans, I think that we cannot or you cannot simply take the plans from pre-COVID because many things now look different. For example, the Pier East renovation or maybe even a new building is not in the immediate foreseeable program anymore. What could be activated, and the decision thereof might even be taken in our supervisory board meeting in December, is the restart of the so-called south extension. I mean, everything in regard of maintenance will see some inflationary implications.
I mean, that's clear. On the other hand, as you might be aware, the strategy of our company in the last 10 years was that we insourced quite a lot of activities in the service sector, so that we are not in the same extent vulnerable to external price shocks as companies would be who simply rely on the foreign market. So in this aspect, I think we are a little bit shielded against extraordinary price hikes.
Yes, there will be some inflation impact also on our wage costs, clearly, but it will be in line with inflation, and I hope that we can keep it there and will not follow price hikes as you see it in some areas right now. I mean, material costs will be higher, definitely. Here again, in regard of energy, I think we are well positioned and we still are somehow shielded against the price hike that is currently underway. This will also be the case for 2023. Hopefully prices will come down somehow in 2024. I mean, nobody of us knows, and we have not the crystal ball to really predict it.
From the point of experience, I would say that the latest in 2024 we should see some relief there.
Okay. I understand the main from the projects you announced and scheduled CapEx projects VIE East rather not on the agenda for the-
No.
For the mid-term, South extension is to come and the other things are rather smaller.
Yes.
Yeah. Thank you very much.
Thank you. Are there any questions? Any other questions? Sorry.
Oh, can you
Yes, we can hear you, although a little bit quiet. Yes. Now I think we can hear you.
Yes, I would maybe elaborate little bit more on these previous questions. Regarding energy, I would like to know how big portion of your costs represent energy costs and how big portion of these costs are kind of protected against the current increases and until when they are protected from these current price hikes. You mentioned that you are changing incentive schemes. Could you maybe a little bit more elaborate what is the estimated impact just to quantify it.
Sorry, I did not get your last question. Can you repeat?
I will take the last question. It's about.
Okay, Julian. Good.
I mean, it's difficult to quantify on an incentive per incentive method, but I think it's the main aim is to increase the net revenue per passenger. What we are doing, we've reduced some incentives which incentivize a higher frequency of flights, let's say, to Eastern Europe and the Middle East. These were ongoing incentives which gave a reduction to airlines where we think it's not necessary to attract them to Vienna. What we are going to do, we skip these incentives. We have skipped all the purely on growth incentives.
What we are doing in the future, we will incentivize destinations, so new destinations, but only for one year, and maybe underserved markets, but just for one year as well. We will do in the future, we will incentivize transfer traffic. We will incentivize volume, but not growth per se, just on a destination by destination basis. Overall, the revenue per passenger should grow next year. This year, obviously, we will be roughly on the lines of last year, I would say. We should be significantly above 2019 levels.
Yeah. I mean, in regard of energy costs, we can maybe give you the full detail a little bit later. In general, we have two different types or three different types of energy consuming tasks. One is electricity. The second one is district heating, and district heating is gas price related. The third one are fuels for our vehicles. The price effects are different for each of these means. The highest increase is gas price. The second one electricity price and on the lower end, fuel prices. For electricity, we have already bought a substantial amounts of electricity 4 and 5 years ago on the EEX in Leipzig.
The problem there is that unfortunately, due to the fact that the common price zone between Germany and Austria was abolished 2018. The electricity bought at a fixed price cannot simply be transferred from Germany to Austria. There is a specific extra cost in regard of that. We cannot exactly calculate what this will be. It started with 3 or 4 euros per megawatt hour. It was last year around 30 euros per megawatt hour, and it went up on a daily basis to the maximum of 200 euros per megawatt hour on certain days this year. This is complicating a full visibility.
That's the good part of the story. Fortunately we have a natural hedge for that issue, and this natural hedge is our own production. What we spend on the supply side, more or less we earn on the production side. Therefore overall we are well shielded this year and also next year from the enormous price hikes on the electricity side. We are not shielded against the gas price increases. Unfortunately not, but that's the factor or the means from which district heating finally is produced. We are not hedged or we are not shielded against the prices on the fuel side.
All together it's roughly around EUR 20 million per year, but we can give you a more accurate figure. It's a substantial sum, but it's not substantially influencing our total cost position as you see in the costs for the first half of this year. You will see also for the full year.
If I may come in here, Vladimir. I just rechecked for the first half year of 2022, and there the energy costs were EUR 8.7 million. That compares to the total costs for material and other things of EUR 19.4 million.
Yeah.
Below 50%, but close, I would say between 40% and 50% if I see this.
Yeah. For the full year.
Yeah.
It will be somewhere at EUR 20 million.
Okay.
Plus minus.
Thank you very much. Thank you.
Are there any other questions? Are there any Analysts in the call that have additional questions? If not, then I would like to open the floor for any other questions that still might be there. Please come forward and ask your question. This is the final round in that sense. Anybody left? Doesn't look like it. Thank you very much for joining our call this time again. We wish you a nice remaining summer. Enjoy your time, and we're looking forward to you joining us the next time for our next call. Thank you and bye-bye.
Thank you. Bye.
Thank you.