Intermoney | Aena (Hold, Target Price 140 euros/share) plans soon to put the management of its duty free shops out to tender, the daily Cinco Dias reports.
This tender is considered to be the largest of these characteristics in the airports industry, with 85 sale points and a global area of 55.000 m2, including Spain’s main airports. Aena’s current main tenant is Dufry, with whom the airports’ operator has been involved, along with others, in a bitter polemic over the damage produced by the pandemic. The current contract is up at end-2023, and there is the possibility of a two year extension, which is considered to be highly unlikely.
Valuation:
Aena’s duty free shops are part of its commercial activity which, unlike in the case of the legislation affecting Heathrow, is not regulated. So Aena is free to manage this activity as it likes, as long as it conforms with the Law of State Contracts.
In 2019, its commercial business generated 40% of EBITDA. And, unlike in the case of Aeronáutica, it does not need very significant investments. Before the pandemic, the duty free shops were responsible for almost 30% of the commercial activity’s revenues. During Q2’22 this business as a whole showed strong recovery, exceeding 2019’s revenues per passenger (4,74 euros).
We have recently raised our estimates for the whole of Aena in 2022e, with EBITDA of around 2 billion euros, already 72% of the 2019 figure. The airports operator will announce its Q3 figures on 26 October.
