The Ministry of Finance has recommended that Airports of Montenegro, in collaboration with the relevant ministry, competent authorities and the Government of Montenegro, promptly address issues related to cadastral records in accordance with applicable legal frameworks. This recommendation is outlined in the financial statement for the previous year, which includes the management report on operations and the independent auditor’s report for the 2023 financial statements of the Airports, approved during a government meeting on Thursday.
The independent auditor issued a qualified opinion, indicating that the financial statements accurately reflect the financial position of Airports of Montenegro as of December 31, 2023.
Inadequate records
The auditor noted an inability to confirm the status of property, facilities, and equipment due to inadequate records in the property titles. A significant portion of the assets listed in the company’s books as belonging to Airports of Montenegro is recorded in property titles as fully owned by the state of Montenegro, with the management rights attributed to the company.
Established in 1999, Airports of Montenegro has managed the Podgorica and Tivat airports since 2003, when they were previously owned by JAT.
Profit
The net profit for the previous year reached €9.5 million, a substantial increase from the €1.4 million reported in 2022. Business revenues totaled €35.7 million, marking a 36.6% rise compared to 2022, with the largest share coming from sales, which amounted to €28.9 million or 80.8% of total business income.
Business expenses for 2023 were €24.9 million, reflecting a 7.9% increase from the previous year. Salaries, compensations, and personal expenses represented the largest category of expenses, totaling €17.99 million, an increase of 9.3% due to a rise in the workforce.
In 2023, the upward trend in traffic continued, primarily driven by increased activity on strategic routes. The Montenegrin airports served 2.5 million passengers and managed 25,455 aircraft movements. The Podgorica airport handled 1.65 million passengers and 14,678 aircraft, while Tivat served 848,188 passengers and 10,777 aircraft.
A total of 35 airlines operated at the Airports of Montenegro in 2023, with ToMontenegro, Air Serbia, Wizz Air, Turkish Airlines, and Austrian Airlines accounting for 64% of total traffic. ToMontenegro led in passenger traffic, serving 477,124 travelers, which is 19.04% of total passenger numbers.
The airports were connected to 64 destinations during the year, with the highest traffic recorded on routes to Belgrade (26.5%), Istanbul (11.6%) and Vienna (5.7%).
Financial indicators demonstrate that the liquidity of the company is satisfactory. Furthermore, debt ratios suggest that both stability and debt coverage are at acceptable levels, indicating no risk in meeting obligations on due interest. The company’s asset and equity ratios remain low, suggesting solvency despite a high amount of total liabilities.
The executive director of Airports of Montenegro last year was Vladan Drašković, and Eldin Dobardžić served as the chair of the board.
