Airport group ADP profit beats, though shares fall on weak outlook

French airport operator ADP said on Thursday that it expects profit to return to pre-pandemic levels a year earlier than anticipated, but its outlook for Paris passenger traffic disappointed, sending its shares sharply lower. The operator of airports in France, central Asia, India and elsewhere, posted annual earnings that beat expectations as traffic recovered and it saw stronger activity in its retail and services business. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in at E1.70b, against an estimate of E1.63b in a company-provided poll. Despite the market-beating results, investors were disappointed by the company’s outlook. Analysts at JPMorgan said guidance was “underwhelming”, citing updated traffic expectations for Paris of between 87% and 93% of 2019 levels, compared to a previous forecast that pegged the figures at 85% to 95%. At a results presentation, ADP Chairman and CEO Augustin de Romanet, said pent up demand will likely continue to offset rising inflation in the near term, while the key Chinese travel market will progressively return. He sees weekly flights from China likely increasing to around 28 in June from 6 currently. “I hope it will be more,” de Romanet said, noting that negotiations between French and Chinese authorities were ongoing, but that the return to pre-COVID-19 levels was not “super simple”.<br/>