Original-Research: Flughafen Wien AG (von NuWays AG): Hold

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Original-Research: Flughafen Wien AG - from NuWays AG

04.03.2025 / 09:00 CET/CEST

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Classification of NuWays AG to Flughafen Wien AG

Company Name: Flughafen Wien AG

ISIN: AT00000VIE62

Reason for the research: Update

Recommendation: Hold

Target price: EUR 60.00

Target price on sight of: 12 months

Last rating change:

Analyst: Henry Wendisch

FY'24 prelims out, solid dividend proposal; chg. est & PT

Topic: Yesterday, FWAG published detailed FY'24 prelims and proposed a 25%

dividend increase.

For the first time, the group surpassed the billion-threshold with EUR 1.05bn

in FY'24 revenues (eNuW: EUR 1.04bn), showing a solid 13% yoy growth. Main

sales drivers were the Airport segment (% yoy; 48% of sales), thanks to

the 9.7% increase in airport charges in combination with a 7% pax growth in

VIE, while the segment Retail & Properties grew by 11% yoy (19% of sales). A

similar, but slightly better picture was seen at MLA, as the Malta segment

increased sales by 21% yoy to EUR 143m (14% of sales), also mainly driven by

passenger growth (% yoy). - see p. 2 for details

EBITDA came in slightly better than expected and grew to EUR 442m (eNuW: EUR

429m) with a comfortable 42% EBITDA margin (-0.2pp yoy). EBIT stood at EUR

306m (eNuW: EUR 286m) and net income b.m. increased by 27% yoy to EUR 240m

(eNuW: EUR 224m). Consequently, FWAG proposed a DPS increase of 25% yoy to EUR

1.65 (eNuW: EUR 1.57), which corresponds to a payout ratio of 64% (eNuW: 65%)

and currently offers a 3.1% dividend yield.

Upbeat cash generation. FWAG reported a EUR 512m net cash position, which came

in much better than expected (eNuW: EUR 410m), thanks to a superb Q4 CFO of EUR

122m (eNuW: EUR 49m; FY'24: EUR 444m, 100% CFO/EBITDA cash conversion) and CAPEX

of EUR 66m in line with expectations (eNuW: EUR 66m). Against this backdrop, the

FY'24 FCF stood at EUR 254m (24% of sales) and more than covers the upcoming

dividend payment (EUR 138m, due in June '25) and even leaves room to store

cash in time deposits until a decision on the third runway project is

reached.

Outlook 2025. The 2025 travel season should come in similarly strong or

slightly better than last year, current booking data show. In particular in

Vienna, air travel remained the preferred choice of tourists (39% arrive by

plane). This is also reflected in FWAG's FY'25e financial guidance (see

bottom right), which 'could turn out to be conservative already' the CFO

commented in the earnings call, further stating that the 'approximately'

could now be read as an 'at least'.

(Geo)politics to shape newsflow. With Germany and Austria forming new

governments, pressure on the EU to improve air travel legislation could

mount up. Moreover, potential peace in Ukraine and/or Middle East could

revive air travel to those regions, ultimately increasing passenger numbers.

In sum, we remain positive about FWAG's operating performance, however

expect this to be priced in at current levels. Therefore, we reiterate our

HOLD recommendation with an unchanged PT of EUR 60.00, based on DCF.

You can download the research here: http://www.more-ir.de/d/31895.pdf

For additional information visit our website:

https://www.nuways-ag.com/research-feed

Contact for questions:

NuWays AG - Equity Research

Web: www.nuways-ag.com

Email: research@nuways-ag.com

LinkedIn: https://www.linkedin.com/company/nuwaysag

Adresse: Mittelweg 16-17, 20148 Hamburg, Germany

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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss

bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befinden sich in der vollständigen Analyse.

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2094707 04.03.2025 CET/CEST

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