Italian motorway management company Atlantia has had a difficult start to the year. During the first quarter of 2021, the group's activity is still impacted by the Covid-19 health crisis. The results posted by the group over the entire period reflect a drop in its activity.
During the period from January to the end of March 2021, the activity of Europe's number one motorway concession operator Atlantia showed a sharp decline. Over the past three months, the Italian group has posted a new net loss of 67 million euros compared to a loss of 10 million euros a year earlier.
However, the Roman firm has done better than the market forecast, which was for a loss of 243 million euros. On the other hand, in the first quarter of 2021, the Italian construction group recorded an Ebitda of 1.124 billion euros, down 12% compared to the same period last year.
It was slightly above analysts' expectations, who were targeting €1.018 billion. At this level, the company also did better thanks to depreciation and amortization, which increased by 7 percent. Ebit, on the other hand, fell by 60% to 141 million euros in the quarter.
Over the past three months, Atlantia's turnover amounted to 2.025 billion euros. It is down by 8% compared to the first quarter of 2020. Also, this turnover is slightly below the market's estimates, which were expecting €2.037 billion. Indeed, the effects of the coronavirus pandemic continued to impact the group's business during this period.
As a result, revenues from motorway concessions (which account for nearly 84% of the group's revenue) fell by 3% in Q1-2021. This decline is estimated at 9.8% and 20.1% in France and Spain respectively. In Latin America, on the other hand, the decline in revenues was less significant.
The decline is 3.2% in Chile. In Brazil and Mexico, the decline was 1.8%. In addition, the airports managed by Atlantia posted a 73% decline in revenues for the first quarter of 2021. This was due to an 83.9% decline in traffic at Rome's airports. It was also penalized by the 72.1% drop in traffic at Nice Côte d'Azur.
Atlantia's forecast for the remainder of the current financial year is to improve its operational performance, particularly in motorways and airports. To achieve this goal, the company is banking on the lifting of restrictions favoured by the vaccination campaigns.
However, the Italian construction group expects to record a 10% and 70% drop in motorway and airport traffic respectively, compared to levels two years ago (2019). Finally, the company expects revenues to reach €9.4 billion for the full year 2021.