Building on its strong results in the previous year, dnata's revenue grew to Dh10.6 billion ($2.9 billion). Dnata's international business now accounts for more than 64 per cent of its revenue.
This substantial revenue increase of 16 per cent was achieved through organic growth and bolstered by the first full year of Stella Group operations which dnata Travel acquired in October 2014 of the previous financial year, and airport operations in Australia, which dnata fully acquired from its 50 per cent joint venture partner Toll in March 2015.
Building on last year's record levels of investment, dnata continued to lay the foundations for future growth by investing Dh585 million ($159 million) into developing its people, facilities, technology and new acquisitions.
Highlights during the 2015-16 financial year include the acquisition of new international businesses: Aviapartner's cargo business at Amsterdam Airport Schiphol; Ground Handling SPA in two airports in Milan; and RM Ground Services in Brazil, extending dnata's global footprint to the Americas for the first time.
Revenue from dnata's UAE airport operations, including aircraft and cargo handling, increased by 13 per cent to reach Dh2.9 billion ($777 million).
The number of aircraft handled by dnata in the UAE increased 12 per cent to 211,000, whereas cargo handling dropped by six per cent to 689,000 tonnes.
Dubai World Central now accounts for 24 per cent of dnata's cargo handling activities in Dubai. During the year, dnata began operations at DXB's new concourse D, with 3,000 staff trained to help customers transition to the new facilities.
Dnata's international airport operations division grew revenue by 32 per cent to Dh2.1 billion ($571 million), on account of increasing business volumes and newly acquired businesses in the Netherlands and Brazil.
The number of aircraft handled increased by 63 per cent to 178,000, and cargo noted a substantial growth of 46 per cent to 1.4 million tonnes of handled goods. These results speak to the benefits reaped from previous years' investments in new international cargo handling facilities, particularly in the UK.
Dnata's catering business accounted for Dh1.9 billion ($514 million) of its total revenue, down seven per cent mainly on account of a significant weakening of major currencies against the US dollar. The inflight catering business uplifted more than 57 million meals during the year, a marginal decline of one per cent on account of lower volumes in Italy.
Revenue from dnata's travel services division has seen a rise of 34 per cent to reach Dh3.3 billion ($901 million) and it now represents the largest business segment in dnata by revenue contribution. This is mainly attributed to business growth in the UK through the full-year impact of Stella Group, and the integration of the group's destination and leisure management activities in Dubai, and travel distribution unit Emquest.
The study takes into account premium office rents of Dubai International Financial Centre (DIFC) and Abu Dhabi Global Markets (ADGM)
Business2 days ago