March 16, 2020 / 7:17 AM / 18 days ago

BRIEF-Groupe ADP: Updates On Coronavirus Hit, Considers Closing Areas

March 16 (Reuters) - Aeroports de Paris SA:

* REG-AEROPORTS DE PARIS SA: CORONAVIRUS GROUPE ADP ENGAGES AN OPERATIONAL AND FINANCIAL OPTIMIZATION PLAN

* BETWEEN 1(ST) AND 14(TH) OF MARCH, ESTIMATED DROP IN PASSENGER TRAFFIC AND AIRCRAFT MOVEMENTS HAS ACCELERATED ON PARISIAN PLATFORMS WITH AN ESTIMATED EVOLUTION OF -29% AND -10% RESPECTIVELY.

* GLOBAL IMPACT ON 2020 WILL DEPEND BOTH ON DURATION OF VIRAL EPISODE AND ITS CONSEQUENCES ON ECONOMY IN GENERAL AND ON HEALTH OF AIR TRANSPORT IN PARTICULAR.

* IT IS TOO EARLY TO ESTIMATE IMPACTS OF SITUATION ON CONNECT 2020 PLAN’S 2016-2020 GUIDANCES

* TO DATE, OUR 2020 TRAFFIC ASSUMPTIONS ARE NOT RELEVANT ANYMORE

* CONSIDERS THAT IT WILL NOT BE POSSIBLE TO REACH 2020 EBITDA TARGETS IF OBSERVED TREND ON FIRST 14 DAYS OF MARCH SHOULD CONTINUE

* TOO EARLY TO ESTIMATE IMPACTS OF SITUATION ON CONNECT 2020 PLAN’S 2016-2020 GUIDANCES.

* ENGAGES IN AN IMPORTANT SAVINGS PLAN WITH AIM OF REDUCING CURRENT OPERATING EXPENSES FOR 2020 BY 180 MEUR , OF WHICH 120 MEUR IN PARIS

* A SENSITIVITY ANALYSIS ON GROUP’S EBITDA HAS HOWEVER BEEN CONDUCTED

* ASSUMPTIONS OF THIS SENSITIVITY ANALYSIS ARE FOLLOWING: DROP IN TRAFFIC IN PARIS OF 25% ON ALL DESTINATIONS BETWEEN MONTHS OF MARCH AND JUNE

* SUSPENDS, AS OF TODAY, PARKING FEES FOR AIRCRAFTS IMMOBILIZED ON PARISIAN PLATFORMS BECAUSE OF CRISIS

* ASSUMPTION OF DECLINE IN TRAFFIC ON OTHER AIG AND TAV PLATFORMS OF 25% BETWEEN MONTHS OF MARCH AND JULY

* GIVEN PAST EVENTS, TRAFFIC RECOVERY LENGTH ASSUMPTION WOULD BE OF 3 MONTHS.

* ON BASIS OF THESE ASSUMPTIONS, LOSS IN GROUPE ADP’S EBITDA IN ABSOLUTE TERMS WOULD BE APPROXIMATELY OF 190 MILLION EUR

* RENTAL AND LEASING EXPENSES FOR PREMISES LOCATED IN CLOSED TERMINALS WILL NOT BE DUE FOR CLOSURE PERIOD OF THESE TERMINALS

* INCLUDES A DECREASE IN REVENUE OF PARISIAN SCOPE OF 300 MEUR FOR ITS AVIATION AND RETAIL ACTIVITIES

* ACCORDING TO THESE ASSUMPTIONS, EBITDA MARGIN RATE OF GROUPE ADP WOULD REMAIN STABLE OVERALL OR BE DOWN VERY SLIGHTLY

* GROUPE ADP ENGAGES AN IMPORTANT OPERATIONAL AND FINANCIAL OPTIMIZATION PLAN.

* PLAN NOTABLY AIMS TO REDUCE COSTS ENDURED BY GROUPE ADP BUT ALSO TO TAKE INTO ACCOUNT SITUATION OF ITS AIRLINES CUSTOMERS AND ITS PROVIDERS

* PLAN FIRSTLY TAKES FORM OF INFRASTRUCTURE CLOSURES ON OUR PARISIAN AND INTERNATIONAL PLATFORMS WHICH SHOULD OCCUR WITHIN NEXT FEW DAYS.

* AIM WOULD INDEED BE TO CONCENTRATE ACTIVITY IN SOME TERMINALS TO REDUCE GROUPE ADP AND AIRLINES OPERATING EXPENSES

* FOR PARIS-CHARLES DE GAULLE, CONSIDERED CLOSURES WOULD CONCERN SOME OF BOARDING AREAS OF HUB’S PERIMETER AND SOME OTHER TERMINALS

* FOR PARIS-ORLY, FIRST CONSIDERED CLOSURES WOULD BE AT ORLY 2.

* FOR INTERNATIONAL PLATFORMS OF GROUPE ADP, A COMPLETE CLOSURE OF AIRPORTS OF AMMAN IN JORDAN, OHRID IN MACEDONIA AND RIGA IN LATVIA.

* GROUP’S AIRPORTS IN TURKEY AND GEORGIA REMAIN OPEN AT THIS STAGE EVEN IF INFRASTRUCTURE OPTIMIZATIONS ARE CONSIDERED TO ACCOMPANY DECLINE IN TRAFFIC

* GROUPE ADP ENGAGES IN AN IMPORTANT SAVINGS PLAN WITH AIM OF REDUCING CURRENT OPERATING EXPENSES FOR 2020 BY 180 MILLION EUR , OF WHICH 120 MILLION EUR IN PARIS

* DISPOSES OF A SUFFICIENT TREASURY TO FACE ITS CURRENT OPERATING NEEDS Source text for Eikon: Further company coverage: (Gdynia Newsroom)

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