Lithuanian Airports Granted 70% More Dividends to the State
Lithuanian Airports, which are among the fastest growing airports in Europe, also have excellent financial indicators. According to audited data, in 2016 the income as well as the profit received by the company was growing several times faster than passenger flows, in comparison with the previous year. In addition, the company that includes the three airports in the country paid the state more than EUR 1.7 million as dividends, i.e. 70% more that in 2015.
“Operational efficiency and return to the state are one of the main goals that the state sets for Lithuanian Airports. To implement these goals, several years ago the three airports in the country were merged into one company, which has been achieving better and better activity results every year. This shows that we are moving in the right direction,” said Gediminas Almantas, the CEO at Lithuanian Airports.
Last year, the income of Lithuanian Airports increased by approximately 22% and amounted to almost EUR 30 million. The most significant income increase (comprising almost EUR 4 million, to EUR 19.4 million) was observed in aviation activity. However, the line of income from non-aviation activity in 2016 also increased by more than EUR 1 million.
According to audited data, the net profit of the company increased in 2016 by more than EUR 1.6 million, or 64%, and exceeded EUR 3.4 million. EBITDA of Lithuanian Airports, i.e. the profit before interest, taxes, depreciation and amortisation, increased by 22% in 2016, from EUR 8.3 million to EUR 10.1 million.
Excellent financial results of the company were caused by the increased number of handled flights and passengers as well as by the fact that Lithuanian Airports constantly does its best to increase the efficiency of processes.
According to G. Almantas, Lithuanian Airports produce high added value for the country’s economy. The planned increase in the number of passengers in 2016-2019 is 1.8 higher than the growth of GDP. Meanwhile, global trends show that the average passenger growth amounts to 1.4 times of a country’s GDP.
“Such forecasts show that the Lithuanian market is very viable, and the residents of the country are becoming significantly more mobile,” states G. Almantas.
The improving activity results of Lithuanian Airports produce higher value for the state as well. For 2016, the company will pay the state more than EUR 1.7 million as dividends. This amount, in comparison with 2015, increased by 70% – from slightly more than EUR 1 million. In addition, the state received more than EUR 400,000 from Lithuanian Airports in the form of the owners' equity tax in 2016.
The head of Lithuanian Airports is convinced that the amount of dividends paid to the state will continue to increase in the future. “The incentive for future growth is caused by several anticipated projects. Such as the runway reconstruction in Vilnius Airport that will take place in summer, the upgrade of the passenger terminal in Vilnius Airport that will begin next year and will allow increasing the annual number of passengers at the largest airport in the country from 3.5 to 4.5 million. Further development of the company will be appreciated by the passengers as well as the state, in the form of dividends,” says G. Almantas.