Dnata's annual profit hits record $353m
Dubai-based air services provider dnata announced that 2017-18 was the most profitable year in its history, as profits crossed Dh1.3 billion ($353 million) for the first time.
Dnata, part of the Emirates Group, noted that revenue grew to Dh13.1 billion ($3.5 billion), up 7 per cent, with international business now accounting for 68 per cent of its revenue.
The strong performance was achieved through organic growth with key contract wins coupled with solid customer retention across its four business divisions, as well as the impact of acquisitions from previous year.
Dnata continued to lay the foundations for future growth by investing Dh600 million ($163.3 million) in new facilities and equipment, acquisitions, leading-edge technologies and people development.
In 2017-18, dnata’s operating costs increased accordingly by 8 per cent to Dh11.9 billion ($3.2 billion), reflecting the impact of organic growth across all lines of business coupled with integrating the newly acquired companies mainly across its international airport operations.
Revenue from dnata’s UAE Airport Operations, including ground and cargo handling, increased by 4 per cent to reach Dh3.2 billion ($871 million).
The number of aircraft movements handled by dnata in the UAE declined by 2 per cent to 211,000, impacted by the geopolitical situation in the region, whereas cargo handling increased by 2 per cent to 731,000 tonnes, supported by the strong overall air cargo market.
Dnata’s international airport operations division grew revenue by 14 per cent to Dh3.8 billion ($1.0 billion), on account of increasing business volumes, opening of new locations and winning new contracts.
International airport operations continue to represent the largest business segment in dnata by revenue contribution. The number of aircraft handled by the division further increased substantially by 10 per cent to 449,000, and cargo noted a substantial growth of 10 per cent to 2.4 million tonnes of handled goods.
Dnata continued to win over customers with its high-quality standards, inking over 90 contracts with new and existing customers during the year.
Dnata’s catering business accounted for Dh2.1 billion ($571.6 million) of its total revenue, up 7 per cent. The inflight catering business uplifted more than 55 million meals to airline customers.
Revenue from dnata’s Travel Services division has seen a turnaround after last year’s decline with an increase of 8 per cent to Dh3.4 billion ($925.4 million). The underlying total transaction value (TTV) of travel services sold increased by 6 per cent to Dh11.3 billion ($3.07 billion).
This solid performance was supported by dnata’s ability to tap on the upswing in both inbound and outbound tourism demand in the Middle East, and a healthy increase in long-haul travel and cruise bookings in Europe and Australia.
- TradeArabia News Service