Atlantia confirms its subsidiary Telepass is not seeking state-backed loans

Atlantia confirms its subsidiary Telepass is not seeking state-backed loans
Written by:
Wajeeh Khan
21st May, 10:59
Updated: 21st May, 11:48
  • Atlantia says its digital toll-road payment subsidiary, Telepass, is not seeking state-backed loans.
  • ADR and Autostrade per 1’Italia applied for £1.34 billion government support last month.
  • Atlantia posts a 54.1% decline in motorway and 97.7% decline in airports traffics last week.

The Italian infrastructure company, Atlantia (OTCMKTS: ATASF), announced on Wednesday that its digital toll-road payment subsidiary, Telepass, is not seeking state-backed loans. The local media had previously stirred speculation that the group needs financial support from Rome.

Atlantia also highlighted that ADR (airport operator) and Autostrade per 1’Italia (motorway unit) approached the government in April to apply for £1.34 billion in financial support. Italy’s Benetton family currently controls Atlantia. In April, the Italian holding company had estimated a £2.69 billion hit to sales due to the Coronavirus pandemic

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Shares of the company are currently posting a 2.5% intraday gain. At £12.35 per share, Atlantia is presently about 30% down year to date in the stock market. Learn more about the financial analysis of a company.

Atlantia posts a 54.1% decline in motorway traffic

The infrastructure group also said on Thursday that it saw a 54.1% decline in traffic on its motorway network last week as compared to the same period last year. In comparison, the company had recorded a 72.6% year over year decline in traffic on its motorway network at the start of May. The Spanish motorways that it operates, as per Atlantia, printed a 74.9% decline in traffic while a similar 74.8% drop in traffic was reported on the French highways in the first week of May.

Passengers traffic at Rome’s Ciampino and Fiumicino airports, it added, was 97.7% down last week on a year over year basis as compared to a 98.3% decline at the start of May. The group attributed the decline to the Coronavirus pandemic that has far infected just over a quarter-million people in Italy and caused more than 32,000 deaths.

Italy resorted to a nationwide lockdown on March 9th to minimize the fast spread of the flu-like virus. After more than a month of lockdown, the restrictions are now starting to ease as of this week.

Atlantia to start negotiations with the Treasury on Thursday

Atlantia is expected to begin negotiations with the Treasury over its application for £1.79 billion state-backed loans on Thursday, as per il Fatto Quotidiano.

The company dropped to as low as £8.8 per share in the stock market in the third week of March. Atlantia’s performance in 2019 remained reasonably upbeat with an annual gain of roughly 15%. The Italian holding company currently has a market cap of £10.17 billion and a price to earnings ratio of 78.54.

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