Aena launches tender for its duty free shops; €18 B revenues estimated for duration of contract

aenasedeAena launches tender for its Duty Free Shops

Bankinter | On Thursday, Aena called for bids for what is considered to be the most important tender for duty free shops in the world, with revenues estimated at some 18 billion euros for the contract’s 15 years duration, including the 3 year extension. The Spanish airports operator’s goals are to end Dufry’s monopoly, maximise revenues and extend what’s on offer. It estimates that this way it will more than exceed 400 million euros of annual income, which compares with 382 million in 2019, thanks to the increase in the commercial area and the expected rise in the number of passengers. We will know the result of the tender in July and the winners will start to exploit their contracts on 1 November 2023.

Bankinter analyst team’s view: Good news for Aena, although on the cards. We expect it will have a neutral impact on the share price. The fact the contract for the duty free shops was close to expiring was already known. In Aena’s Strategic Plan for 2022-2026 growth of 23% in commercial revenues with respect to 2019 was already forecast.

We maintain our Neutral recommendation, with a T. P. of 125,8 euros/share. The Strategic Plan 2022-2026 once again shows Aena’s vulnerability against a backdrop of high inflation. Tariffs will not rise at least until 2026 and capacity for cutting costs is very limited. The company’s aim is to recover the level of EBITDA registered in 2019 (before the pandemic) at the end of the plan. The main source of growth will be its international expansion, which implies greater risks and investments.

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