Aeroflot net profit to IFRS plummets 98% in H1 to $7 mln, below forecast
MOSCOW. Sept 5 (Interfax) - Net profit at Aeroflot plummeted 98.1% year-on-year in H1 2012 to $7.1 million from $376 million, the airline said in a statement.
This was below the $11 million that analysts predicted in a consensus forecast for Interfax.
Revenue grew 54% to $3.614 billion thanks to increased operations and the consolidation of the Rossiya, Sakhalin and Orenburg airlines and Vladivostok-Avia from November 15, 2011. The analysts forecast $3.485 billion.
Earnings before taxes, depreciation and amortization (EBITDA) fell 25% year-on-year to $247.5 million. The analysts forecast $330 million.
" Operating costs soared 64% to $3.516 billion, again due to a heavier work load and the consolidation of assets. Operating profit was $98.1 million in the half.
Aeroflot also said it paid senior management $14.1 million for the half, up 37% from $10.3 million in the same period of last year, not including payroll insurance deductions. Spending on options was an estimated $1.1 million.
Management at Aeroflot, in the framework of the option program for 2012 and 2013, might purchase almost 1% stakes, or 10.9 million shares, annually in the company. Aeroflot in 2010 set 3% of its shares aside for a e three-year options program.
Aeroflot has 1,110,616,000 issued shares, par value 1 ruble each.
Aeroflot CEO Vitaly Savelyev owns 0.1485% o the airline's shares, deputy head for legal and property issues, Dmitry Saprykin, owns 0.044%, deputy head of operations Vadim Zingman - 0.094%, and deputy head for commerce and trade, Andrei Kalmykov - 0.042%.
