ENAV: INTERIM FINANCIAL REPORT AT 31 MARCH 2024 APPROVED

Record air traffic in Italy and excellent quality of operational service

• En-route and terminal traffic up 8.7% and 10.5% YoY respectively, in terms of service units
• Revenues from operations at 187.2 million euro (+5.4% YoY)
• Consolidated Net revenue at 193.6 million euro (+9.5% YoY)
• Consolidated EBITDA up +69.7% YoY to 16.5 million euro and EBITDA margin of 8.5%
• Consolidated net result of -13.8 million euro, which improved by 8 million euro compared to Q1 2023, due to the typical seasonality of ENAV business

Rome, 14 May 2024 - ENAV S.p.A. Board of Directors, held today under the chairmanship of Alessandra Bruni, approved the Interim financial Report as of 31 March 2024. The first quarter of 2024, flight traffic volumes over Italy posted record level for both the en-route and terminal component (airport traffic). Italy, together with Spain and France, is the country with the highest growth rate in Europe.

The Chief Executive Officer Pasqualino Monti stated: "We were not surprised by the record number of flights in Italy. We’ve been working to attract traffic to our airspace by optimizing routes over national skies, allowing airlines to reduce flight time and save fuel. Due to the implementation of new procedures and technologies, carriers will save around 90 million kg of fuel this year, with a positive impact also on sustainability. The Group's economic and financial performance represent an excellent starting point for confirming our targets for 2024 both on the regulated and not-regulated businesses."

In the first quarter of 2024, en-route traffic grew by 8.7% in terms of service units compared to Q1 2023. In detail, international commercial traffic (flights departing from or arriving at a stopover on Italian territory) recorded a 17.2% increase, overflight traffic (flights crossing Italian airspace without a stopover) showed a 7.0% growth, while domestic traffic (flights departing from and arriving on Italian territory) recorded a slight decrease of 2.6%.

In the first quarter of 2024, terminal traffic grew by 10.5% in terms of service units vs. the first quarter of 2023, driven by the positive performance on all Italian airports.

FINANCIAL PERFORMANCE

As usual, Q1 2024 results are impacted by the typical seasonality of the Italian air transport sector, with a low level of air traffic volume, and therefore revenue, in the first quarter and significantly higher during the summer season, compared to costs relatively stable over the year. Total consolidated revenues amounted to 193.6 million euro, up 9.5% compared to Q1 2023, mainly due to the air traffic trend and the related increase of revenues from operations. In Q1 2024 the balance component impacted revenues by -1.8 million euro, with an improvement compared to Q1 2023 (-9.3 million euro).

Revenues from operations amounted to 187.2 million euro and increased by 9.7 million euro vs. Q1 2023, mainly due to the positive result achieved in the core business, as a result of the increased air traffic managed, and the growth of the Group's activities in the non-regulated market. 

Revenues from the non-regulated market amounted to 6.9 million euro, an increase of 18.6% vs. Q1 2023. The main projects performed in the non-regulated market included the modernisation and installation of systems at Libyan airports in Tripoli and Misurata, the supply of a new air traffic management system in Kosovo and Cambodia, the advancement of the project for the supply of new aeronautical information management systems for service providers in Taiwan and the Netherlands, and the control services of radio assistance systems at some airports in Kenya and Romania.

Operating costs accounted for 177.1 million euro in Q1 2024, up 6.0% compared to Q1 2023. This increase was mainly due to personnel costs, which amounted to 145 million euro, with an increase of 9 million euro (+6.7%) vs. Q1 2023. This trend is due to the higher fixed remuneration for 2.8 million euro, mainly as a result of the increase in the Group's workforce by an average of 75 employees, as well as the higher variable remuneration of 3.2 million euro, mainly related to the hourly flexibility allowance paid to operating personnel in order to allow them to better manage increasing traffic levels and not included in the comparison period. External costs amounted to 38.5 million euro, with an increase of about 1 million euro vs. Q1 2023.

Gross Operating Margin (EBITDA) stood at 16.5 million euro (+6.8 million euro compared to Q1 2023) with an EBITDA margin at 8.5%.

The Operating Result (EBIT) was negative at 10.3 million euro, with an improvement of 9.7 million euro compared to Q1 2023.

Net result is negative at 13.8 million euro, with an improvement compared to Q1 2023 when it was negative for 21.8 million euro. The result is in line with the first quarters of previous years as they were affected by the typical seasonality of the business, with a low level of revenue in the first quarter and significantly higher during the summer season, compared to costs relatively stable over the year.

Net financial debt at 31 March 2024 stood at 300.6 million euro, with an improvement of 21.7 million euro compared 31 December 2023.

2024 OUTLOOK

In view of the results achieved in the first quarter, the outlook for 2024 is confirmed as announced in 2023 results.