TAV Georgia's profits slump 90% in 2020

TAV Georgia's profits slump 90% in 2020

access_time2022-01-25 14:40:29

Civil aviation was one of the most affected sectors in the world economy due to the Covid-19 outbreak. Due to restrictions imposed by international and local aviation agencies, most airlines stopped operating at Tbilisi Airport that  affected TAV Urban Georgia's revenue, but still the company ended the year with a small profit.

the company reports that  its  revenues stood at GEL 64.8 million in 2020 that is GEL 195.8 million (75%) less than in 2019 (GEL 260.6 million).

the official document  says  that the profit from operating activities decreased by GEL 172 million and amounted to GEL 16.6 million in 2020 against  GEL 188.6 million in 2019.

Compared to 2019, in 2020 TAV Georgia's profit decreased by 90% and amounted to GEL 17.2 million. In 2019, the company's profit made  GEL 163.5 million. a significant decline in the company's revenues has been observed since April 2020.

TAV Urban Georgia's revenues of 64.8 million are distributed as follows:

Revenue from air services - GEL 35.9 million

Revenue from land services-  GEL 20.5 million

Concession fee for tax-free shops is - GEL 2.6 million

Revenue from space allocation-  GEL 2.1 million

Revenue from car parking services - GEL 0.7 million

Concession of food and beverage trade spaces

Commission fee - GEL 0.5 million

Revenue from lounge services - GEL 0.6 million

Other income is - GEL 1.636 million

The total value of the company's assets amounted to GEL 235 million in 2020.

In unison  with a decline in revenues and profits, in 2020 TAV Urban Georgia also reduced cut the staff. In the reporting period, the company employed a total of 744 people (December 31, 2019-  782 employees).

The report states that the company has no debts. Due to the excess funds, in 2020 the company allocated the funds in the amount of $ 7 million to  expand Batumi Airport Ltd. Terminal.

In 2020, the company paid  GEL 5.2 million in  profit tax.

In the prepared document we read that the biggest debtor of the company is the local airline. Georgian Airways's net receivables are GEL 8.8 million.

The company management believes that 2022 will be a transitional year before operating levels return to pre-pandemic levels, in 2023 the aviation industry and the company will return to pre-pandemic levels.

„TAV Havalimanlari Holding A.S.“ 80.0

„Aeroser International Holding (U.K.)“ 19.9%

“TAV Georgia ” is a daughter company of “TAV Airports Holding”. It started its operation in Georgia in 2005 year and will continue its activity until 2027 year as per the agreement in effect. As of 2020, the company owned by TAV Air Conditioning Holding A.S. 80.0%; Aeroser International Holding (U.K.) 19.9%; Nodar Kurtanidze 0.1%.


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