Zagreb Airport comments on financial results

NEWS FLASH


Zagreb Airport has issued a detailed explanation of its financial performance following media reports last week that it sustained a net loss of over five million euros in 2017 and a significant reduction in revenue. The airport said, "Total operating (business) income in 2016 includes revenues from the construction of the new passenger terminal to the amount of 768.359.000 kuna, which, according to the International Accounting Standards must be recognised during the construction period, both as income and expenses in an equal amount. Without them, the total operating income of the company for 2016 amounted to 398.796.000 kuna and represents the real business activity of the company. By the same logic, total operating income without construction income for 2017 amouned to 408.324.000 kuna. AS a result, it is clear that a 7.9% increase in the company's business income was recorded when compared to 2016".

Commenting on the airport's overall profit, it said, "Changing the trend from positive profit to a negative result is not related to revenues, because, as explained above, business revenues that exclude construction have increased. The main driver of the negative accounting results is the beginning of the depreciation of valuable long-term assets, i.e. the new passenger terminal and its opening in March 2017. The monthly depreciation cost that the company has for the property of the new terminal amounts to approximately 7.500.000 kuna". It added, "The financial cost of interest that is no longer capitalised after the expiration of the construction period is the second most important reason for the negative result of the company, and the third is that in 2017 many costs were related to the transfer from the old to the new terminal, its testing and preparation, training and new employment and procurement of specific airport equipment needed to manage a new terminal. Following the successful transfer of operations to the new terminal in 2017, we expect steady and continuous growth in traffic, operating profit (and consequently net profit with a certain time lag) in the coming years".

Zagreb Airport also noted that its ground handling unit, MZLZ Ground Handling has been operationally separated from its parent company MZLZ. As a result, airport operator MZLZ has since then stopped collecting revenues from ground handling services.

Comments

  1. That terminal really always looks stunning :)

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  2. Dakle koliko sam ja shvatio oni su fiktivno snizili dobit da ne bi platili koncesijsku naknadu. I tako ce svake godine da snizavaju dobit zbog "amortizacije" terminala. Lepo su zavrnuli vladu, aplauz.

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    1. Tvoje razumijevanje računovodstva je za aplauz. Sjedi jedan.

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    2. Cekam pojasnjenje racunovodstvene magije? Koliko je Hrvatska vlada dobila koncesijske naknade prosle godine, posto ocigledno tvrdis da je aerodrom u plusu?

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    3. Nema tu računovodstvene magije. Hrvatska vlada dobila je koncesijsku naknadu po planu i programu. Možda nije dobila porez na dobit ali to je rezultat normalne računovodstvene politike koju koriste sve druge firme. Stoga ti i rekoh, sjedi jedan!

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    4. Nadam se da ces tim otrcanim frazama uspeti da premostis cinjenicu da je koncesionar zavrnuo vladu, a samim tim i poreske obveznike - gradjane :D Bravo, pet!

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    5. Nadam se da ćeš otići u školu, nešto naučiti i prestati se sramotiti.

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  3. Ah, I get it! Should've thought of that... Of course, in 2016. the new terminal was still being intensely built and that was a huge source of the revenue, while the operations were still being conducted out of the old terminal - hence the profit.
    Thanks for the clarification.

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    1. I still don't get how airport construction was a massive source of revenue? That would mean others were paying the airport and not the other way around.

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    2. Aerodrom je tvrtka u koju je netko uložio novce, a ti novci su se onda potrošili na gradnju terminala. Taj netko će kasnije iz dobiti poslovanja naplatiti svoju inicijalnu investiciju. Eto kako.

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