SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the
month of July 2017
RYANAIR HOLDINGS PLC
(Translation
of registrant's name into English)
c/o Ryanair Ltd Corporate Head Office
Dublin
Airport
County Dublin Ireland
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file
annual
reports
under cover Form 20-F or Form 40-F.
Form
20-F..X.. Form 40-F
Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities
Exchange
Act of
1934.
Yes
No ..X..
If
"Yes" is marked, indicate below the file number assigned to the
registrant
in
connection with Rule 12g3-2(b): 82- ________
RYANAIR Q1 PROFITS RISE
55%
TO €
397
M DUE
TO
STRONG EASTER BUT NO CHANGE TO FY GUIDANCE
Ryanair,
Europe's No. 1 airline, today (July 24) reported a 55% rise in Q1
profit to €397m. This result is distorted by the timing of
Easter in Q1 with no holiday period in the prior year
comparative. Traffic grew 12% to 35m as Ryanair's lower fares
and "Always Getting Better" (AGB) programme delivered a record 96%
load factor.
|
Q1 (IFRS)
|
June 30, 2016
|
June 30, 2017
|
% Change
|
|
Customers
(m)
|
31.2
|
35.0
|
+12%
|
|
Revenue
(m)
|
€1,687
|
€1,910
|
+13%
|
|
Profit
after Tax (m)
|
€256
|
€397
|
+55%
|
|
Net
Margin
|
15%
|
21%
|
+6%
|
|
Basic
EPS (euro cent)
|
20.01
|
32.66
|
+63%
|
Ryanair's CEO Michael O'Leary said:
"We are
pleased to report this 55% increase in PAT to €397m but
caution that the outcome is distorted by the absence of Easter in
the prior year Q1. While Q1 ave. fares rose by 1% to just over
€40, this was due to a strong April (boosted by Easter)
offset by adverse sterling, lower bag revenue as more customers
switch to our 2 free carry-on bag policy, and yield stimulation
following a series of security events in Manchester and London. Q1
highlights include:
-
Traffic up 12% to 35m (LF +2% to 96%)
-
Ave. fare up 1% to €40.30
-
Unit costs down 6% (ex-fuel -3%)
-
10 additional B737-MAX-200 "
Game
Changers
" ordered (now 110 firm & 100
options)
-
Over €200m returned to shareholders via share
buybacks
-
397 B737's in fleet at end of Q1
New Routes, Bases & Fleet:
We took
delivery of 14 new B737's in Q1, ahead of the peak summer period.
Our new bases in Frankfurt Main (opened in March) and Naples
(April) are performing well with strong advance bookings at low
fares. The Frankfurt Main base will increase from 2 to 7 aircraft
in Sept. We will launch 2 new bases in Memmingen (Munich) &
Poznan in the autumn and open 170 new routes for winter '17.
We continue to see significant growth opportunities for Ryanair
across Europe as competitors close bases or move capacity and
legacy airlines restructure.
In June
we ordered 10 more B737-MAX-200 "
Game Changer
" aircraft. Five of these
will be delivered in spring 2019 and 5 more in spring 2020. In
addition, we recently agreed extensions of 10 operating leases
which will provide us with 3 more aircraft for S.18 and 10 for
S.19. This addresses a temporary capacity shortage in S.19 (before
our Boeing MAX deliveries accelerate in Sept. '19) and allows us to
maintain consistent growth through FY20.
AGB & Labs:
Year 4 of AGB is under way. In May we launched flight connections
at Rome Fiumicino, and in July extended it to Milan Bergamo. We
have started selling Air Europa long-haul flights from Madrid on
our website and have become the exclusive airline partner of the EU
Erasmus Student Network. This partnership will enable Erasmus
students to benefit from exclusive flight discounts to suit their
budget and will be available from Aug. From June, our
customers who purchase reserved seats now enjoy a 60-day check-in
window. On Ryanair Rooms, we added a 5
th
partner, increasing both choice and value for our
customers. Ryanair Holidays continues to roll out across our
network and went live in Italy and Spain in Q1.
We continue to invest heavily in Travel Labs, and recently opened
our 3
rd
Lab facility in Madrid which will see us hire up
to 250 highly skilled digital professionals in Spain over the next
2 years. This follows on from the doubling in size of the
team in Travel Labs Poland to almost 200 IT professionals earlier
this year.
Our
industry leading on-time performance improved in Q1 to 89%.
We work hard to ensure that our customers enjoy punctual flights
and we continue to campaign with our partners in A4E (Airlines for
Europe) to encourage the EC to take action to ameliorate the impact
of ATC strikes on overflights in Europe.
|
Punctuality
|
Apr.
|
May
|
Jun.
|
Q1
|
|
FY17
|
91%
|
89%
|
81%
|
87%
|
|
FY18
|
91%
|
90%
|
88%
|
89%
|
Costs:
The
cost gap between Ryanair and competitor airlines continues to
widen. We delivered a 6% unit cost reduction in Q1 as our
fuel bill fell despite a 12% increase in traffic. Ex-fuel
unit costs, helped by weaker sterling (which will, we believe, be
reversed in H2 due to more difficult y-o-y comparisons), fell by 3%
as we delivered unit cost reductions across nearly all cost
lines. We remain on-track to deliver our previously guided
ex-fuel unit cost reduction of 1% in FY18.
Our
FY18 fuel is 90% hedged at approx. $49pbl and will deliver
significant savings this year. We took advantage of recent
price dips to increase our H1 FY19 hedging to approx. 45% at
$48pbl. We expect these fuel savings will be passed back to
Ryanair customers through lower fares.
Brexit:
We
remain concerned at the uncertainty which surrounds the terms of
the UK's departure from the EU in March '19. While we continue to
campaign for the UK to remain in the EU Open Skies agreement, we
caution that should the UK leave, there may not be sufficient time,
or goodwill on both sides, to negotiate a timely replacement
bilateral which could result in a disruption of flights between the
UK and Europe for a period of time from April '19 onwards.
We, like all airlines, seek clarity on this issue before we publish
our summer 2019 schedule in the second quarter of 2018. If we
do not have certainty about the legal basis for the operation of
flights between the UK and the EU by autumn 2018, we may be forced
to cancel flights and move some, or all, of our UK based aircraft
to Continental Europe from April '19 onwards. We have
contingency plans in place and will, as always, adapt to changed
circumstances in the best interests of our customers and
shareholders.
Balance Sheet & Shareholder Returns:
Ryanair's
balance sheet remains one of the strongest in our industry.
In May the Board approved a €600m ordinary share buyback
programme. In Q1 we spent €165m under this buyback at
an ave. price of €18.20. We also purchased €39m worth
of ADR's under the €150m "Evergreen" ADR buyback programme
launched last Feb. Despite this cumulative spend of over
€200m on buybacks and capex of almost €400m in Q1, we
reduced net debt by €150m from €244m at Mar. 31 to
€94m at Jun. 30.
Outlook:
As
previously guided, Q1 results were substantially boosted by the
presence of Easter in April but not in the prior year
comparable. While the H1 outcome remains dependent on
close-in Q2 summer bookings, we continue to guide H1 ave. fares
down approx. 5% as we grow H1 traffic by almost 11% and
checked bag revenue continues to steeply decline. Thanks to
the higher Q1 load factors and the completion of our winter '17
schedule, we are raising our FY18 traffic target to 131m (up 1m on
previous guidance). After a difficult winter last year, we
expect the pricing environment to remain very competitive into H2
where we will grow traffic by approx. 7%. Yield visibility
into H2 is zero and we see no reason at this time to alter our H2
ave. fare guidance of an 8% decline.
Ex-fuel
unit costs are on track to deliver a 1% reduction this year, and
our fuel hedging should deliver savings of approx. €70m, when
adjusted for volume growth, which is being passed on to customers
in lower fares. Ancillary revenue continues to grow in line
with traffic as we discount pricing to drive penetration in
products such as Ryanair Rooms, Ryanair Holidays and the PLUS
bundles (which are reported in scheduled
revenue).
Based
on the above, we continue to guide FY18 PAT in a range of
€1.40bn to €1.45bn. This guidance remains heavily
dependent on close-in summer bookings, H2 ave. fares, and the
absence of any further security events, ATC strikes or negative
Brexit developments."
ENDS.
|
For
further information
|
Neil
Sorahan
|
Piaras
Kelly
|
|
please
contact:
|
Ryanair
Holdings plc
|
Edelman
|
|
www.ryanair.com
|
Tel: 353-1-9451212
|
Tel: 353-1-6789333
|
Ryanair is Europe's favourite airline, carrying 131m customers p.a.
on more than 2,200 daily flights from 86 bases, connecting over 210
destinations in 33 countries on a fleet of over 400, new, Boeing
737 aircraft, with a further 270 B737's on order, which will enable
Ryanair to lower fares and grow traffic to 200m p.a. by FY24. These
modern aircraft are among the quietest and most fuel efficient in
operation, making Ryanair one of the greenest, cleanest airline
operations in Europe. Ryanair's team of over 13,000 highly skilled
aviation professionals deliver Europe's No.1 on-time performance,
and an industry leading 32 year safety record.
Certain
of the information included in this release is forward looking and
is subject to important risks and uncertainties that could cause
actual results to differ materially. It is not reasonably
possible to itemise all of the many factors and specific events
that could affect the outlook and results of an airline operating
in the European economy. Among the factors that are subject
to change and could significantly impact Ryanair's expected results
are the airline pricing environment, fuel costs, competition from
new and existing carriers, market prices for the replacement
aircraft, costs associated with environmental, safety and security
measures, actions of the Irish, U.K., European Union ("EU") and
other governments and their respective regulatory agencies,
uncertainties surrounding Brexit, weather related disruptions,
fluctuations in currency exchange rates and interest rates, airport
access and charges, labour relations, the economic environment of
the airline industry, the general economic environment in Ireland,
the UK and Continental Europe, the general willingness of
passengers to travel and other economics, social and political
factors and unforeseen security events.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Balance Sheet as at June 30, 2017
(unaudited)
|
|
|
At Jun 30,
|
At Mar 31,
|
|
|
|
2017
|
2017
|
|
|
Note
|
€M
|
€M
|
|
Non-current assets
|
|
|
|
|
Property,
plant and equipment
|
10
|
7,467.5
|
7,213.8
|
|
Intangible
assets
|
|
46.8
|
46.8
|
|
Derivative
financial instruments
|
|
12.1
|
23.0
|
|
Total non-current assets
|
|
7,526.4
|
7,283.6
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
Inventories
|
|
3.3
|
3.1
|
|
Other
assets
|
|
197.2
|
222.1
|
|
Trade
receivables
|
|
61.2
|
54.3
|
|
Derivative
financial instruments
|
|
41.7
|
286.3
|
|
Restricted
cash
|
|
11.8
|
11.8
|
|
Financial
assets: cash > 3 months
|
|
3,140.6
|
2,904.5
|
|
Cash
and cash equivalents
|
|
1,034.3
|
1,224.0
|
|
Total current assets
|
|
4,490.1
|
4,706.1
|
|
|
|
|
|
|
Total assets
|
|
12,016.5
|
11,989.7
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Trade
payables
|
|
324.0
|
294.1
|
|
Accrued
expenses and other liabilities
|
|
2,351.9
|
2,257.2
|
|
Current
maturities of debt
|
|
450.1
|
455.9
|
|
Derivative
financial instruments
|
|
84.1
|
1.7
|
|
Current
tax
|
|
46.9
|
2.9
|
|
Total current liabilities
|
|
3,257.0
|
3,011.8
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
Provisions
|
|
142.6
|
138.2
|
|
Derivative
financial
instruments
|
|
84.9
|
2.6
|
|
Deferred
tax
|
|
426.0
|
473.1
|
|
Other
creditors
|
|
7.4
|
12.4
|
|
Non-current
maturities of debt
|
|
3,830.8
|
3,928.6
|
|
Total non-current liabilities
|
|
4,491.7
|
4,554.9
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
Issued
share capital
|
12
|
7.2
|
7.3
|
|
Share
premium account
|
|
719.4
|
719.4
|
|
Other
undenominated capital
|
12
|
2.7
|
2.7
|
|
Retained
earnings
|
12
|
3,649.8
|
3,456.8
|
|
Other
reserves
|
|
(111.3)
|
236.8
|
|
Shareholders' equity
|
|
4,267.8
|
4,423.0
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
12,016.5
|
11,989.7
|
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Income Statement for the quarter
ended June 30, 2017 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
Quarter
Ended
|
|
|
|
|
|
Jun 30,
|
Jun 30,
|
|
|
|
|
Change
|
2017
|
2016
|
|
|
|
Note
|
%
|
€M
|
€M
|
|
Operating revenues
|
|
|
|
|
|
|
Scheduled
revenues
|
|
+13%
|
1,409.3
|
1,244.0
|
|
|
Ancillary
revenues
|
|
+13%
|
501.0
|
443.4
|
|
Total operating revenues - continuing operations
|
|
+13%
|
1,910.3
|
1,687.4
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
Fuel and oil
|
|
-1%
|
513.0
|
518.4
|
|
|
Airport and handling charges
|
|
+11%
|
267.0
|
241.4
|
|
|
Route charges
|
|
+7%
|
191.0
|
177.9
|
|
|
Staff costs
|
|
+10%
|
182.4
|
165.8
|
|
|
Depreciation
|
|
+11%
|
139.0
|
125.6
|
|
|
Marketing, distribution and other
|
|
+15%
|
100.6
|
87.6
|
|
|
Maintenance, materials and repairs
|
|
-13%
|
35.9
|
41.3
|
|
|
Aircraft rentals
|
|
-6%
|
21.2
|
22.6
|
|
Total operating expenses
|
|
+5%
|
1,450.1
|
1,380.6
|
|
|
|
|
|
|
|
|
Operating profit - continuing operations
|
|
+50%
|
460.2
|
306.8
|
|
|
|
|
|
|
|
Other (expense)/income
|
|
|
|
|
|
|
Finance expense
|
|
-15%
|
(17.8)
|
(21.0)
|
|
|
Finance income
|
|
-56%
|
0.6
|
1.3
|
|
|
Foreign exchange gain/(loss)
|
|
-232%
|
0.7
|
(0.6)
|
|
Total other (expense)/income
|
|
-19%
|
(16.5)
|
(20.3)
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
+55%
|
443.7
|
286.5
|
|
|
|
|
|
|
|
|
|
Tax expense on profit
|
4
|
+51%
|
(46.6)
|
(31.0)
|
|
|
|
|
|
|
|
|
Profit for the quarter - all attributable to equity holders of
parent
|
|
+55%
|
397.1
|
255.5
|
|
|
|
|
|
|
|
|
|
Earnings per ordinary share (in € cent)
|
|
|
|
|
|
|
Basic
|
9
|
+63%
|
32.66
|
20.01
|
|
|
Diluted
|
9
|
+63%
|
32.38
|
19.90
|
|
|
Weighted
average no. of ordinary shares (in Ms)
|
|
|
|
|
|
|
Basic
|
9
|
|
1,216.0
|
1,276.8
|
|
|
Diluted
|
9
|
|
1,226.4
|
1,284.2
|
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim
Statement of Comprehensive Income for the quarter ended June 30,
2017 (unaudited
)
|
|
Quarter
|
Quarter
|
|
|
Ended
|
Ended
|
|
|
Jun 30,
|
Jun 30,
|
|
|
2017
|
2016
|
|
|
€M
|
€M
|
|
|
|
|
|
Profit for the quarter
|
397.1
|
255.5
|
|
|
|
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
Items that are or may be reclassified to profit or
loss:
|
|
|
|
Cash flow hedge reserve movements:
|
|
|
|
Net
movement in cash flow hedge reserve
|
(349.6)
|
348.4
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive (loss)/income for the quarter, net of income
tax
|
(349.6)
|
348.4
|
|
|
|
|
|
Total comprehensive income for the quarter - all attributable to
equity holders of parent
|
47.5
|
603.9
|
|
|
|
|
|
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Statement of Cash Flows for the
quarter ended June 30, 2017 (unaudited)
|
|
|
|
Quarter
|
Quarter
|
|
|
|
|
Ended
|
Ended
|
|
|
|
|
Jun 30,
|
Jun 30,
|
|
|
|
|
2017
|
2016
|
|
|
|
Note
|
€M
|
€M
|
|
Operating activities
|
|
|
|
|
|
Profit after tax
|
|
397.1
|
255.5
|
|
|
|
|
|
|
|
Adjustments to reconcile profit after tax to net cash provided by
operating activities
|
|
|
|
|
|
Depreciation
|
|
139.0
|
125.6
|
|
|
(Increase)/decrease in inventories
|
|
(0.2)
|
0.3
|
|
|
Tax expense on profit on ordinary activities
|
|
46.6
|
31.0
|
|
|
Share based payments
|
|
1.5
|
1.5
|
|
|
(Decrease)/increase in trade receivables
|
|
(6.9)
|
16.4
|
|
|
Decrease in other current assets
|
|
25.1
|
15.6
|
|
|
Increase in trade payables
|
|
29.9
|
49.2
|
|
|
Increase in accrued expenses
|
|
102.2
|
229.6
|
|
|
(Decrease) in other creditors
|
|
(5.0)
|
(5.1)
|
|
|
Increase/(decrease) in provisions
|
|
4.3
|
(4.6)
|
|
|
(Increase)/decrease in finance income
|
|
(0.1)
|
0.3
|
|
|
(Decrease) in finance expense
|
|
(7.4)
|
(8.5)
|
|
|
Income tax paid
|
|
-
|
(0.1)
|
|
Net cash provided by operating activities
|
|
726.1
|
706.7
|
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
|
Capital expenditure (purchase of property, plant and
equipment)
|
|
(392.6)
|
(381.4)
|
|
|
Decrease/(increase) in restricted cash
|
|
-
|
0.1
|
|
|
Decrease in financial assets: cash > 3 months
|
|
(236.1)
|
4.6
|
|
Net cash provided/(used in) investing activities
|
|
(628.7)
|
(376.7)
|
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
|
Shareholder returns
|
12
|
(204.1)
|
(467.5)
|
|
|
Repayments of long term borrowings
|
|
(83.0)
|
(88.5)
|
|
Net cash provided/(used in) financing activities
|
|
(287.1)
|
(556.0)
|
|
|
|
|
|
|
|
(Decrease)/increase in cash and cash equivalents
|
|
(189.7)
|
(226.0)
|
|
Cash and cash equivalents at beginning of the period
|
|
1,224.0
|
1,259.2
|
|
Cash and cash equivalents at end of the period
|
|
1,034.3
|
1,033.2
|
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Statement of Changes in
Shareholders' Equity for the quarter ended June 30, 2017
(unaudited)
|
|
|
|
|
|
|
|
Other Reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary
|
Issued
Share
|
Share
Premium
|
Retained
|
Other
Undenominated
|
|
|
Other
|
|
|
|
Shares
|
Capital
|
Account
|
Earnings
|
Capital
|
Treasury
|
Hedging
|
Reserves
|
Total
|
|
|
M
|
€M
|
€M
|
€M
|
€M
|
€M
|
€M
|
€M
|
€M
|
|
Balance at March 31, 2016
|
1,290.7
|
7.7
|
719.4
|
3,166.1
|
2.3
|
(7.3)
|
(300.6)
|
9.2
|
3,596.8
|
|
Profit for the year
|
-
|
-
|
-
|
1,315.9
|
-
|
-
|
-
|
-
|
1,315.9
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
Net
movements in cash flow reserve
|
-
|
-
|
-
|
-
|
-
|
-
|
522.5
|
-
|
522.5
|
|
Total other comprehensive income
|
-
|
-
|
-
|
-
|
-
|
-
|
522.5
|
-
|
522.5
|
|
Total comprehensive income
|
-
|
-
|
-
|
1,315.9
|
-
|
-
|
522.5
|
-
|
1,838.4
|
|
Transactions with owners of the Company recognised directly in
equity
|
|
|
|
|
|
|
|
|
|
|
Share-based payments
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
5.7
|
5.7
|
|
Repurchase of ordinary equity shares
|
-
|
-
|
|
(1,017.9)
|
-
|
-
|
-
|
-
|
(1,017.9)
|
|
Cancellation of repurchased ordinary shares
|
(72.3)
|
(0.4)
|
-
|
-
|
0.4
|
-
|
-
|
-
|
-
|
|
Treasury shares cancelled
|
(0.5)
|
-
|
-
|
(7.3)
|
-
|
7.3
|
-
|
-
|
-
|
|
Balance at March 31, 2017
|
1,217.9
|
7.3
|
719.4
|
3,456.8
|
2.7
|
-
|
221.9
|
14.9
|
4,423.0
|
|
Profit for the quarter
|
-
|
-
|
-
|
397.1
|
-
|
-
|
-
|
-
|
397.1
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
Net
movements in cash flow reserve
|
-
|
-
|
-
|
|
-
|
-
|
(349.6)
|
-
|
(349.6)
|
|
Total other comprehensive income
|
-
|
-
|
-
|
|
-
|
-
|
(349.6)
|
-
|
522.5
|
|
Total comprehensive income
|
-
|
-
|
-
|
397.1
|
-
|
-
|
(349.6)
|
-
|
47.5
|
|
Transactions with owners of the Company recognised directly in
equity
|
|
|
|
|
|
|
|
|
|
|
Share-based payments
|
-
|
-
|
-
|
|
-
|
-
|
-
|
1.5
|
1.5
|
|
Repurchase of ordinary equity shares
|
-
|
-
|
-
|
(204.1)
|
-
|
-
|
-
|
-
|
(204.1)
|
|
Cancellation of repurchased ordinary shares
|
(10.9)
|
(0.1)
|
-
|
-
|
0.4
|
-
|
-
|
-
|
-
|
|
Balance at June 30, 2017
|
1,207.0
|
7.2
|
719.4
|
3,649.8
|
2.7
|
-
|
(127.7
)
|
16.4
|
4,267.8
|
Ryanair Holdings plc and Subsidiaries
MD&A Quarter Ended June 30, 2017
Income Statement
Scheduled revenues:
Scheduled
revenues are up by
13% to
€1,409.3M
due to 12% traffic growth (to 35M) and a 1%
increase in average fare to over €40.
Ancillary revenues:
Ancillary
revenues increased by
13% to
€501.0M
as reserved seating, priority boarding and car
hire continue to improve offset by lower travel insurance and hotel
penetration.
Operating Expenses:
Fuel and oil:
Fuel
and oil fell by
1% to
€513.0M
due to lower hedged fuel prices offset by a
12% increase in block hours and a higher load factor (up 2 points
to 96%).
Airport and handling charges:
Airport
and handling charges are up by
11%
to €267.0M
due to 12% traffic growth offset by more
competitive airport deals and weaker sterling against the
euro.
Route
charges:
Route
charges rose
7% to
€191.0M
due to a 10% increase in sectors offset by
Eurocontrol price reductions in France, Germany and the UK (aided
by weaker sterling).
Staff
costs:
Staff
costs increased by
10% to
€182.4M,
lower than the 12% increase in traffic, due
to 10% more sectors and the impact of a 2% pay increase in April
2017 offset by weaker sterling against the euro.
Depreciation:
Depreciation
is
11% higher at
€139.0M
due to 50 (+16%) additional owned aircraft in
the fleet at period end (364 at June 30, 2017 compared to 314 at
June 30, 2016).
Marketing, distribution and other:
Marketing,
distribution and other are up by
15% to €100.6M
, due to increased
distribution costs related to stronger on-board sales and higher
EU261 passenger compensation claims.
Maintenance, materials and repairs:
Maintenance,
materials and repairs fell by
13%
to €35.9M
due to 8 lease handbacks over the past year
offset by the stronger US dollar against the euro.
Aircraft rentals:
Aircraft
rentals fell by
6% to
€21.2M
due to the handback of 8 leased aircraft over
the past year.
Ownership and maintenance:
During
the quarter ended June 30, 2017 ownership and maintenance costs
(depreciation, maintenance, aircraft rentals and financing costs)
increased by
2% to
€213.8M
, which is significantly lower than the 12%
increase in passenger numbers.
Unit costs fell by 6%, excluding fuel they were down 3%,
which compares favourably to the 12% increase in traffic in the
quarter
.
Other income/(expense):
Finance
expense:
Finance
expense decreased by
15% to
€17.8M
primarily due to lower interest
rates.
Finance
income:
Finance
income fell by
€0.7M
due to significantly lower deposit interest rates.
Balance sheet:
Gross
cash rose by €46.4M to €4,186.7M at June 30,
2017.
Gross
debt fell by €103.6M to €4,280.9M due to debt
repayments.
€726.1M
net cash was generated by operating activities. Net capital
expenditure was €392.6M, shareholder returns and debt
repayments amounted to €204.1M and €83.0M
respectively.
Net
debt was €94.2M at period end. (March 31, 2017: Net
debt €244.2M).
Shareholders'
equity:
Shareholders'
equity decreased by €155.2M to €4,267.8M in the quarter
due to IFRS hedge accounting treatment for derivatives of
€349.6M and €204.1M of shareholder returns, offset by
net profit after tax of €397.1M in the quarter.
Ryanair
Holdings plc and Subsidiaries
Notes
forming Part of the Condensed Consolidated
Interim Financial Statements
1.
Basis of preparation and significant accounting
policies
Ryanair
Holdings plc (the "Company") is a company domiciled in Ireland. The
unaudited condensed consolidated preliminary financial statements
of the Company for the quarter ended June 30, 2017 comprise the
Company and its subsidiaries (together referred to as the
"Group").
These
unaudited condensed consolidated interim financial statements ("the
interim financial statements"), which should be read in conjunction
with our 2016 Annual Report for the year ended March 31, 2016, have
been prepared in accordance with International Accounting Standard
No. 34 "
Interim Financial
Reporting
" as adopted by the EU ("IAS 34"). They do
not include all of the information required for full annual
financial statements, and should be read in conjunction with the
most recent published consolidated financial statements of the
Group. The consolidated financial statements of the Group as at and
for the year ended March 31, 2017, are available at
http://investor.ryanair.com/
.
The
June 30, 2017 figures and the June 30, 2016 comparative figures do
not constitute statutory financial statements of the Group within
the meaning of the Companies Act, 2014. The consolidated financial
statements of the Group for the year ended March 31, 2016, together
with the independent auditor's report thereon, were filed with the
Irish Registrar of Companies following the Company's Annual General
Meeting and are also available on the Company's Website. The
auditor's report on those financial statements was
unqualified. The consolidated financial statements of the
Group for the year ended March 31, 2017 will be filed with the
Irish Registrar of Companies following the Company's Annual General
Meeting and will be available to shareholders in due
course.
The
Audit Committee, upon delegation of authority by the Board of
Directors, approved the condensed consolidated preliminary
financial statements for the year ended March 31, 2017 on May 26,
2017.
Except
as stated otherwise below, this period's financial information has
been prepared in accordance with the accounting policies set out in
the Group's most recent published consolidated financial
statements, which were prepared in accordance with IFRS as adopted
by the EU and also in compliance with IFRS as issued by the
International Accounting Standards Board (IASB).
The
following new and amended standards, that have been issued by the
IASB, and which were effective for the first time for the current
financial year beginning on or after January 1, 2016, and have also
been endorsed by the EU, have been applied by the Group for the
first time in these condensed consolidated financial
statements;
●
Amendments to IFRS
11: "Accounting for Acquisitions of Interests in Joint Operations"
(effective for fiscal periods beginning on or after January 1,
2016)
●
Amendments to IAS 16 and IAS 38: "Clarification
of Acceptable Methods of Depreciation and Amortisation" (effective
for fiscal periods beginning on or after January 1,
2016)
●
Amendments to IAS
16 Property, Plant and Equipment and IAS 41 Bearer Plants
(effective for fiscal periods beginning on or after January 1,
2016)
●
Amendments to IAS
27 Equity method in Separate Financial Statements (effective for
fiscal periods beginning on or after January 1, 2016)
●
Amendments to IAS
1: "Disclosure Initiative" (effective for fiscal periods beginning
on or after January 1, 2016)
●
"Annual
Improvements to IFRSs" 2012-2014 Cycle (effective for fiscal
periods beginning on or after January 1, 2016)
●
Amendments to IFRS 10, IFRS 12 and IAS 28:
"Investment Entities - Exception to Consolidation" (effective for
fiscal periods beginning on or after January 1,
2016)
The adoption of these amended standards did not have a material
impact on our financial position or results from operations in the
year ended March 31, 2017.
The
following new or revised IFRS standards and IFRIC interpretations
will be adopted for purposes of the preparation of future financial
statements, where applicable. Those that are not as yet EU endorsed
are flagged below. While under review, we do not anticipate that
the adoption of these new or revised standards and interpretations
will have a material impact on our financial position or results
from operations:
●
Amendments to IAS
7: "Disclosure Initiative" (effective for fiscal periods beginning
on or after January 1, 2017)*
●
Amendments to IAS
12: "Recognition of Deferred Tax Assets for Unrealised Losses"
(effective for fiscal periods beginning on or after January 1,
2017)*
●
IFRS 15: "Revenue
from Contracts with Customers including Amendments to IFRS 15"
(effective for fiscal periods beginning on or after January 1,
2018)
●
IFRS 9: "Financial
Instruments" (effective for fiscal periods beginning on or after
January 1, 2018)
●
Clarifications to IFRS 15: "Revenue from
Contracts with Customers (effective for fiscal periods beginning on
or after January 1, 2018)*
●
Amendments to IFRS 2: "Classification and
Measurement of Share Based Payment Transactions" (effective for
fiscal periods beginning on or after January 1,
2018)*
●
Amendments to IFRS 4: Applying IFRS 9 "Financial
Instruments" with IFRS 4: "Insurance Contracts" (effective for
fiscal periods beginning on or after January 1,
2018)*
●
Annual Improvements to IFRS 2014-2016 Cycle
(effective for fiscal periods beginning on or after January 1,
2018)*
●
IFRIC Interpretation 22: "Foreign Currency
Transactions and Advance Consideration" (effective for fiscal
periods beginning on or after January 1, 2018)*
●
IFRS 16: "Leases"
(effective for fiscal periods beginning on or after January 1,
2019)
* These
standards or amendments to standards are not as yet EU
endorsed.
2.
Estimates
The
preparation of financial statements requires management to make
judgements, estimates and assumptions that affect the application
of accounting policies and the reported amounts of assets and
liabilities, income and expense. Actual results may differ
from these estimates.
In
preparing these condensed consolidated interim financial
statements, the significant judgements made by management in
applying the Group's accounting policies and the key sources of
estimation uncertainty were the same as those that applied in the
most recent published consolidated financial
statements.
3.
Seasonality of operations
The
Group's results of operations have varied significantly from
quarter to quarter, and management expects these variations to
continue. Among the factors causing these variations are the
airline industry's sensitivity to general economic conditions and
the seasonal nature of air travel. Accordingly the first
half-year typically results in higher revenues and
results.
4.
Income tax expense
The
Group's consolidated effective tax rate in respect of operations
for the quarter ended June 30, 2017 was 10.5% (June 30, 2016:
10.8%). The tax charge for the quarter ended June 30, 2017 of
€46.6M (June 30, 2016: €31.0M) comprises a current tax
charge of €43.7M and a deferred tax charge of €2.9M
relating to the temporary differences for property, plant and
equipment recognised in the income statement.
5.
Share based payments
The
terms and conditions of the share option programme are disclosed in
the most recent, published, consolidated financial statements. The
charge of €1.5M is the fair value of various share options
granted in prior periods, which are being recognised within the
income statement in accordance with employee services
rendered.
6.
Contingencies
The
Group is engaged in litigation arising in the ordinary course of
its business. The Group does not believe that any such
litigation will individually, or in aggregate, have a material
adverse effect on the financial condition of the Group.
Should the Group be unsuccessful in these litigation actions,
management believes the possible liabilities then arising cannot be
determined but are not expected to materially adversely affect the
Group's results of operations or financial position.
7.
Capital commitments
At June
30, 2017 Ryanair had an operating fleet of 397 (2016: 353) Boeing
737 aircraft. The Group agreed to purchase 183 new Boeing
737-800NG aircraft from the Boeing Corporation during the periods
FY15 to FY19 of which 11 aircraft were delivered in the year ended
March 31, 2015, 41 were delivered in the year ended March 31, 2016,
a further 52 were delivered in the year ended March 31, 2017 and 14
in the quarter ended June 30, 2017.
The
Group also agreed to purchase up to 210 (110 firm and 100 options)
Boeing 737 Max 200 aircraft from the Boeing Corporation during the
periods FY20 to FY24; these include 10 additional firm orders
announced in June 2017 which will see aircraft deliveries increase
by 5 in spring 2019 and 5 in spring 2020.
8.
Analysis of operating segment
The
Group is managed as a single business unit that provides low fares
airline-related activities, including scheduled services, car-hire,
internet income and related sales to third parties. The Group
operates a single fleet of aircraft that is deployed through a
single route scheduling system.
The
Group determines and presents operating segments based on the
information that internally is provided to the CEO, who is the
Group's Chief Operating Decision Maker (CODM). When making
resource allocation decisions the CODM evaluates route revenue and
yield data. However, resource allocation decisions are made based
on the entire route network and the deployment of the entire
aircraft fleet, which are uniform in type. The objective in
making resource allocation decisions is to maximise consolidated
financial results, rather than individual routes within the
network.
The
CODM assesses the performance of the business based on the adjusted
profit/(loss) after tax of the Group for the period. All
segment revenue is derived wholly from external customers and as
the Group has a single reportable segment, intersegment revenue is
zero.
The
Group's major revenue-generating asset comprises its aircraft
fleet, which is flexibly employed across the Group's integrated
route network and is directly attributable to its reportable
segment operations. In addition, as the Group is managed as a
single business unit, all other assets and liabilities have been
allocated to the Group's single reportable segment.
|
|
|
|
|
Reportable
segment information is presented as follows:
|
|
|
|
|
Quarter
|
Quarter
|
|
|
|
Ended
|
Ended
|
|
|
|
Jun 30,
|
Jun 30,
|
|
|
|
2017
|
2016
|
|
|
|
€M
|
€'M
|
|
|
External revenues
|
1,910.3
|
1,687.4
|
|
|
|
|
|
|
|
Reportable segment profit after income tax
|
397.1
|
255.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At Jun 30,
2017
€M
|
At Mar 31,
2017
€M
|
|
|
Reportable segment assets
|
12,016.5
|
11,989.7
|
|
|
|
|
|
|
|
Reportable segment liabilities
|
7,748.7
|
7,566.7
|
|
|
|
|
|
|
|
|
|
|
|
|
9.
Earnings per share
|
|
|
|
Quarter
|
Quarter
|
|
|
|
|
Ended
|
Ended
|
|
|
|
|
Jun 30,
|
Jun
30,
|
|
|
|
|
2017
|
2016
|
|
|
|
|
|
|
|
Basic earnings per ordinary share euro cent
|
|
|
32.66
|
20.01
|
|
Diluted earnings per ordinary share euro cent
|
|
|
32.38
|
19.90
|
|
Weighted average number of ordinary shares (in M's) -
basic
|
|
|
1,216.0
|
1,276.8
|
|
Weighted average number of ordinary shares (in M's) -
diluted
|
|
|
1,226.4
|
1,284.2
|
Diluted
earnings per share takes account of the potential future exercises
of share options granted under the Company's share option schemes
and the weighted average number of shares includes weighted average
share options assumed to be converted of 10.4M (2016:
7.4M).
10. Property,
plant and equipment
Acquisitions and disposals
Capital
expenditure in the quarter to June 30, 2017 amounted to
€392.6M and primarily relates to aircraft pre delivery
payments and 14 aircraft deliveries.
11.
Financial instruments and financial
risk management
The
Group is exposed to various financial risks arising in the normal
course of business. The Group's financial risk exposures are
predominantly related to commodity price, foreign exchange and
interest rate risks. The Group uses financial instruments to manage
exposures arising from these risks.
These
preliminary financial statements do not include all financial risk
management information and disclosures required in the annual
financial statements, and should be read in conjunction with the
2016 Annual Report. There have been no changes in our risk
management policies in the period.
Fair value hierarchy
Financial
instruments measured at fair value in the balance sheet are
categorised by the type of valuation method used. The different
valuation levels are defined as follows:
●
Level 1: quoted
prices (unadjusted) in active markets for identical assets or
liabilities that the Group can access at the measurement
date.
●
Level 2: inputs
other than quoted prices included within Level 1 that are
observable for that asset or liability, either directly or
indirectly.
●
Level 3:
significant unobservable inputs for the asset or
liability.
Fair value estimation
Fair
value is the price that would be received to sell an asset, or paid
to transfer a liability, in an orderly transaction between market
participants at the measurement date. The following methods and
assumptions were used to estimate the fair value of each material
class of the Group's financial instruments:
Financial instruments measured at fair value
●
Derivatives - interest rate swaps:
Discounted cash flow analyses have been used to determine the fair
value, taking into account current market inputs and rates. (Level
2)
●
Derivatives - currency forwards, aircraft fuel
contracts and carbon swaps:
A comparison of the contracted
rate to the market rate for contracts providing a similar risk
profile at March 31, 2017 has been used to establish fair value.
(Level 2)
The
Group policy is to recognise any transfers between levels of the
fair value hierarchy as of the end of the reporting period during
which the transfer occurred. During the quarter to June 30, 2017,
there were no reclassifications of financial instruments and no
transfers between levels of the fair value hierarchy used in
measuring the fair value of financial instruments.
Financial instruments disclosed at fair value
●
Fixed-rate long-term debt:
The
repayments which Ryanair is committed to make have been discounted
at the relevant market rates of interest applicable (including
credit spreads) at June 30, 2017 to arrive at a fair value
representing the amount payable to a third party to assume the
obligations.
There
were no significant changes in the business or economic
circumstances during the quarter to June 30, 2017 that affect the
fair value of our financial assets and financial
liabilities.
11.
Financial instruments and financial
risk management (continued)
The
fair value of financial assets and financial liabilities, together
with the carrying amounts in the condensed consolidated financial
balance sheet, are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At Jun 30,
|
At Jun 30,
|
At Mar 31,
|
At Mar 31,
|
|
|
2017
|
2017
|
2017
|
2017
|
|
|
Carrying
|
Fair
|
Carrying
|
Fair
|
|
|
Amount
|
Value
|
Amount
|
Value
|
|
Non-current financial assets
|
€M
|
€M
|
€M
|
€M
|
|
Derivative
financial instruments:-
|
|
|
|
|
|
- U.S.
dollar currency forward contracts
|
4.9
|
4.9
|
14.5
|
14.5
|
|
- Jet
fuel derivative contracts
|
4.7
|
4.7
|
-
|
-
|
|
-
Interest rate swaps
|
2.5
|
2.5
|
8.5
|
8.5
|
|
|
12.1
|
12.1
|
23.0
|
23.0
|
|
Current financial assets
|
|
|
|
|
|
Derivative
financial instruments:-
|
|
|
|
|
|
- U.S.
dollar currency forward contracts
|
40.8
|
40.8
|
224.9
|
224.9
|
|
- Jet
fuel derivative contracts
|
-
|
-
|
58.2
|
58.2
|
|
-
Interest rate swaps
|
0.9
|
0.9
|
3.2
|
3.2
|
|
|
41.7
|
41.7
|
286.3
|
286.3
|
|
Trade
receivables*
|
61.2
|
|
54.3
|
|
|
Cash
and cash equivalents*
|
1,034.3
|
|
1,224.0
|
|
|
Financial
asset: cash > 3 months*
|
3,140.6
|
|
2,904.5
|
|
|
Restricted
cash*
|
11.8
|
|
11.8
|
|
|
Other
assets*
|
1.0
|
|
1.0
|
|
|
|
4,290.6
|
41.7
|
4,481.9
|
286.3
|
|
Total
financial assets
|
4,302.7
|
53.8
|
4,504.9
|
309.3
|
11. Financial
instruments and financial risk management (continued)
|
|
At Jun 30,
|
At Jun 30,
|
At Mar 31,
|
At Mar 31,
|
|
|
2017
|
2017
|
2017
|
2017
|
|
|
Carrying
|
Fair
|
Carrying
|
Fair
|
|
|
Amount
|
Value
|
Amount
|
Value
|
|
Non-current
financial liabilities
|
€M
|
€M
|
€M
|
€M
|
|
Derivative
financial instruments:-
|
|
|
|
|
|
- U.S.
dollar currency forward contracts
|
83.2
|
83.2
|
0.4
|
0.4
|
|
-
Interest rate swaps
|
1.7
|
1.7
|
2.2
|
2.2
|
|
- Jet
fuel derivative contracts
|
-
|
-
|
-
|
-
|
|
|
84.9
|
84.9
|
2.6
|
2.6
|
|
Long-term
debt
|
1,392.1
|
1,426.9
|
1,489.9
|
1,519.4
|
|
Bonds
|
2,438.7
|
2,504.9
|
2,438.7
|
2,499.9
|
|
|
3,915.7
|
4,016.7
|
3,931.2
|
4,021.9
|
|
Current financial liabilities
|
|
|
|
|
|
Derivative
financial instruments:-
|
|
|
|
|
|
- U.S.
dollar currency forward contracts
|
57.2
|
57.2
|
0.1
|
0.1
|
|
-
Interest rate swaps
|
1.2
|
1.2
|
1.6
|
1.6
|
|
- Jet
fuel derivative contracts
|
25.7
|
25.7
|
-
|
-
|
|
|
84.1
|
84.1
|
1.7
|
1.7
|
|
Long-term
debt
|
450.1
|
450.1
|
455.9
|
455.9
|
|
Trade
payables*
|
324.0
|
|
294.1
|
|
|
Accrued
expenses*
|
362.5
|
|
348.0
|
|
|
|
1,220.7
|
534.6
|
1,099.7
|
457.6
|
|
Total
financial liabilities
|
5,136.4
|
4,550.9
|
5,030.9
|
4,479.5
|
*The fair value of these financial instruments approximate their
carrying values due to the short-term nature of the
instruments.
12.
Shareholder returns
In the
quarter ended June 30, 2017 the Company bought back 10.9M shares at
a total cost of €204.1M. This buy-back was equivalent
to approximately 0.9% of the Company's issued share capital at
March 31, 2017. All of these ordinary shares repurchased were
cancelled at June 30, 2017.
In FY17
the Company bought back 72.3M shares at a total cost of
approximately €1,018M, all of which were cancelled at March
31, 2017. The ordinary shares bought back equated to approximately
5.6% of the Company's issued share capital at March 31,
2016.
As a
result of the share buybacks in the quarter ended June 30, 2017,
share capital decreased by 10.9M ordinary shares (72.8M ordinary
shares in the year ended March 31, 2017) with a nominal value of
€0.1M (€0.4M in the year ended March 31, 2017) and the
other undenominated capital reserve increased by a corresponding
€0.1M (€0.4M in the year ended March 31, 2017). The
other undenominated capital reserve is required to be created under
Irish law to preserve permanent capital in the Parent
Company.
13.
Related party transactions
The
Company has related party relationships with its subsidiaries,
directors and senior key management personnel. All transactions
with subsidiaries eliminate on consolidation and are not
disclosed.
There
were no related party transactions in the quarter ended June 30,
2017 that materially affected the financial position or the
performance of the Company during that period and there were no
changes in the related party transactions described in the 2016
Annual Report that could have a material effect on the financial
position or performance of the Company in the same
period.
14.
Post balance sheet events
Between
July 1, 2017 and July 20, 2017 the Company bought back 5.2M
ordinary shares at a total cost of €95.2M under its
€600M share buyback programme which commenced in May 2017.
This was equivalent to 0.4% of the Company's issued share capital
at June 30, 2017.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf
by the undersigned, hereunto duly authorized.
Date: 24
July, 2017
|
|
By:___/s/
Juliusz Komorek____
|
|
|
|
|
|
Juliusz
Komorek
|
|
|
Company
Secretary
|
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