March 16, 2017 / 3:28 PM / a year ago

Fraport sees core profit boost from Brazil airport concessions

FRANKFURT, March 16 (Reuters) - Germany’s Fraport said it expects Brazil’s Fortaleza and Porto Alegre airports to add an overall 350 million euros ($375.8 million) to its core earnings (EBITDA) in the first five years after it won the concession to operate them.

But due to the amortisation of concession payments, the two airports will reduce the group’s net profit by an overall medium to high double-digit million euro amount, Fraport said in a statement on Thursday.

Fraport beat out French group Vinci SA and Zurich Airport at a government auction, agreeing a concession price for Fortaleza Airport of around 1.51 billion reais ($485.7 million), plus a variable component.

The concession price for Porto Alegre was 382 million reais, also in addition to a variable component.

($1 = 0.9313 euros)

$1 = 3.1090 reais Reporting by Maria Sheahan; Editing by Christoph Steitz

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