MAY 27TH, 2015
Wizz Air Holdings plc | Audited Results for the full year ended 31 March 2015
Geneva, 27 May 2015: Wizz Air Holdings Plc (“Wizz Air”), the largest low-cost airline in Central and Eastern Europe, today announces its audited results for the full year ended 31 March 2015.
Record profitability and margin expansion in F15
· Total revenues increased by 21% to €1,227 million. Ticket revenues increased by 20% to €794 million, ancillary revenues increased by 23% to €434 million.
· Reported net profit was €183 million, an increase of 109%.
· Reported net profit margin of 14.9%, an increase of 6.2 percentage points.
· Underlying net profit* was a record €146 million, an increase of 67%.
· Underlying net profit margin* of 11.9%, an increase of 3.3 percentage points.
Progress in Q4
· Revenue growth of 19% to reach €235 million.
· Q4 reported net profit of €5 million compared to a loss of €22 million in Q4 F14.
· Q4 underlying net loss of €11 million halved from an underlying net loss of €22 million in Q4 F14.
· Seat capacity growth was 20%, load factor increased by 2.2 percentage points to 83.6%.
Increasing our cost advantage
· In financial year 2015 unit costs fell 3.0% to €3.61 cents per ASK**, ex-fuel unit costs increased by 0.5% to €2.26 cents.
· Fleet growth of nine additional aircraft to 55 Airbus A320s, the average age of the fleet is 3.8 years and remains one the youngest of any major European airline.
· Aircraft utilization rose 1.3% to 12.6 block hours, one of the highest of any major European airline.
· All aircraft deliveries between November 2015 and December 2017 have been converted to the larger Airbus A321 to serve the higher density routes.
· Load factor increased by 1.0 percentage point to 86.7 per cent, one of the highest in the industry.
Building on our strong market position in Central and Eastern Europe
· Passengers carried increased 18% to 16.5 million passengers, further consolidating Wizz Air’s position as the leading low cost carrier in CEE.
· Network has continued to grow and diversify, with the opening of 2 new bases and 63 new routes. The Company now offers over 380 routes to 38 countries from 22 bases.
· Brand refresh launched on May 19 as Wizz Air embarks on its second decade of growth.
· Fully allocated seating on all services from the same date.
· Wizz Discount Club membership has increased to over 580,000 members, growth of 30%.
· Digital investments ensure user friendly access to wizzair.com and a hassle free travel experience.
Strong balance sheet and ROCE
· Strong operational cash flow and IPO proceeds contribute to year end cash and equivalents of €449 million versus €186 million at the end of March 2014.
· Return on Capital Employed improved by 4.9 percentage points year-on-year to 21.5%.
With the continued expansion of our network, management expects to grow capacity by around 17% in the 2016 financial year. This growth will be broadly split 18% and 16% in H1 and H2, respectively. Management continues to believe that there will be no earnings benefit from the decline in fuel prices as lower fuel prices feed through to lower air fares. Nonetheless, we currently expect a further significant rise in Group post tax profit in the 2016 financial year to a range of between €165 million and €175 million. (see page 7 for more details)
So far in 2016 trading has been robust as we progress into the all important summer season for the financial year 2016.
Commenting on the results, Josef Varadi, Wizz Air Chief Executive said:
“The last 12 months have been an exciting period for Wizz Air. Having successfully listed on the London Stock Exchange, we have continued to grow our network and increase our passenger numbers throughout the period while maintaining an industry leading, ultra low cost base. Today we are pleased to announce a record set of results for the full year with a strong performance against all key operating and financial performance measures.
We continue to deliver against our ambition to make safe, reliable, affordable air travel available to everyone in Central and Eastern Europe. Our ultra-low cost model gives us a clear cost advantage versus most of our rivals, including many other low cost airlines, and as a result we are able to offer our passengers low fares and sustain a relatively high growth rate compared to other carriers. Last year alone we carried 2.6 million more passengers than in the previous year and we look forward to driving traffic growth further in the year ahead.
We will continue to expand on our route network, drive efficiency in our operating model, and enhance our compelling customer proposition to sustain growth and drive returns for shareholders.”