Shares of Fraport have seen a significant increase after the release of the Q3 figures and are once again trading above the 50 Euro mark. In the last week, the share of the airport operator has risen by about 10 percent (as of November 7th, around 12.30 pm).

The Frankfurt-based company has impressed in terms of both revenue and profit development in the months of July to the end of September – Q3 was the most successful quarter in Fraport’s history. A bitter pill: CEO Stefan Schulte had no good news for investors regarding a dividend.

Fraport delivers very strong Q3 2023 Compared to the same period of the previous year, Fraport’s revenue in Q3 increased by 20 percent to 1.22 billion Euro. At the same time, EBITDA rose by about 14 percent to 478 million Euro – Q3 is thus the most profitable quarter in the company’s history. Even at the bottom line, there was more than double the profit of Q3 2022, with 236 million Euro.

The company confirmed its targets for the full year: the forecast ranges for EBITDA (1.04 to 1.20 billion Euro) and consolidated profit (300 to 420 million Euro) are expected to be in the upper half. That Fraport does not raise its forecast may come as a surprise, as after 9 months the MDAX company has already reached an EBITDA of almost 960 million Euro and a profit of 357 million Euro.

Fraport with records but no dividend With the strong Q3 behind them, Fraport is on a very good track for a successful 2023. The company is also making progress in terms of the number of passengers – it should be 10 to 15 percent fewer than in the record year 2019. Despite the encouraging profit development, Fraport has announced that there will be no dividend paid out for 2023 either.

The reason is clear: the company must use the profits to keep the debts, which have risen sharply during the Corona pandemic, under control. Net debt is currently around 7.4 billion Euro – and even compared to the end of 2022 it is still 5 percent higher.

Currently, the positive aspects of the Fraport share prevail due to the record figures in Q3 and the prospects for the coming quarters. Should the company exceed its own targets for 2023, this should also be beneficial for the share. Investors should, however, continue to keep an eye on the company’s debt, as Fraport still has a lot of work ahead of it.