BAA (SP) Limited owns BAA’s two London airports of Heathrow and Stansted. Throughout this document, BAA (SP) Limited and its subsidiaries are referred to as the Group. BAA (SH) plc is the parent company of BAA (SP) Limited.
- Continued growth in Heathrow traffic.
- Group passenger traffic of 18.7 million with 2.5% growth at Heathrow.
- Revenue up 5.6% supported by continued strong retail performance.
- Adjusted EBITDA up 15.4% reflecting revenue growth combined with lower costs.
- Improved service standards including better punctuality.
- Heathrow’s current regulatory period extended by one year to March 2014.
- Heathrow transformation continues with Terminal 2 construction progressing and Terminal 5C opening imminently.
| At or for three months ended 31 March (figures in £m unless otherwise stated) | 2011 | 2010 | Change (%) |
|---|---|---|---|
| Revenue | 481.5 | 456.1 | 5.6 |
| Adjusted EBITDA(1) | 200.9 | 174.1 | 15.4 |
| Cash generated from operations(2) | 231.8 | 209.1 | 10.9 |
| Adjusted pre-tax loss(3) | (107.7) | (125.9) | (14.5) |
| Pre-tax loss | (211.5) | (195.5) | 8.2 |
| BAA (SP) Limited consolidated net debt(4)(5) | 9,928.5 | 9,921.2 | 0.1 |
| BAA (SH) plc consolidated net debt(4)(5) | 10,428.2 | 10.401.1 | 0.3 |
| Regulatory Asset Base(5) | 13,121.9 | 12,776.0 | 2.7 |
| Passengers (m)(6) | 18.7 | 18.6 | 0.6 |
| Net retail income per passenger(6)(7) | £5.51 | £5.15 | 7.0 |
(1) Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation and exceptional items.
(2) Cash generated from operations in 2009 restated from £199.6 million.
(3) Adjusted pre-tax loss is before exceptional items and fair value adjustments.
(4) Nominal net debt excluding intra-BAA group loans and including index-linked accretion.
(5) 2010 net debt and RAB figures are as at 31 December 2010.
(6) Change in passengers and net retail income per passenger are calculated using unrounded data.
(7) See section 2.2.2.2 for calculation of net retail income per passenger.
Colin Matthews, Chief Executive Officer of BAA, said:
"Our strong performance reflects growth in traffic, an improving international economic outlook and the efforts of everyone working at our airports to improve passengers’ journeys. During the first quarter, Heathrow achieved strong service standards including some of the best statistics for departure punctuality in recent years and passengers continue to compare Heathrow favourably with other European hub airports.
But we must do better, and that is why I have established a Heathrow partnership to ensure BAA, airlines and their partners work more closely together for the benefit of our passengers. Our £5 billion investment programme at Heathrow continues to improve passenger journeys and airline operations through more modern facilities. In the coming weeks, the opening of Terminal 5C will ensure more passengers have a smoother journey through Terminal 5 while we continue to make good progress in constructing the brand new Terminal 2.
As the UK’s only hub airport, Heathrow has a vital role to play in supporting the economic recovery. By keeping our focus on continuous improvement, I believe we can play our part in supporting business links with emerging markets and in ensuring that London continues to stand up to the threats from other hub airports in Amsterdam, Frankfurt, Madrid and Paris."
For further information please contact
BAA
Media enquiries Malcolm Robertson or Andrew Teacher: 020 8745 7224
Investor enquiries Andrew Efiong: 020 8745 2742
Finsbury
Andrew Dowler or Andrew Mitchell: 020 7251 3801
There will be a conference call today at 9.30 am (UK time) for bondholders and bank lenders to the Group and BAA (SH) plc and credit analysts to discuss the results for the three months ended 31 March 2011. The call will be hosted by Colin Matthews and Jose Leo, BAA’s Chief Executive Officer and Chief Financial Officer respectively. Dial-in details for the call are: Confirmation Code: 7323347; UK free phone: 0800 028 1243; UK local/standard international: +44 (0)20 7806 1953. It will also be possible to view online the presentation as it is used during the call.
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