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.
- Record Heathrow passenger traffic through third quarter of 2010
- Passenger traffic of 64.0 million with underlying growth of 1.3% including 3.1% at Heathrow
- Strong retail momentum continues with net retail income per passenger up 10.1%
- Revenue up 4.4% in the nine months with 8.3% growth in the third quarter
- Adjusted EBITDA up 8.4% in the nine months with 21.8% growth in the third quarter
- Reduced pre-tax loss due to lower exceptional items and fair value adjustments
- BAA's overall capital structure enhanced by utilising £1 billion of investment grade debt raised at BAA (SP) to repay part of holding company's more expensive subordinated debt
- Good progress on final stage of subordinated debt refinancing
- Improved outlook for 2010 Adjusted EBITDA with strong prospects for 2011
At or for nine months ended 30 September (figures in £m unless otherwise stated) | 2010 | 2009 | Change (%) |
|---|---|---|---|
Revenues (1) | 1,545.5 | 1,480.1 | 4.4 |
Adjusted EBITDA (1)(2) | 719.0 | 663.0 | 8.4 |
Cash generated from operations (1) | 690.1 | 643.5 | 7.2 |
Adjusted pre-tax loss (3) | (156.9) | (86.0) | 82.4 |
Pre-tax loss | (192.6) | (784.7) | (75.5) |
Net debt (4)(5)(6) | 9,740.1 | 8,579.0 | 13.5 |
Regulatory Asset Base (6) | 12,463.3 | 11,730.5 | 6.2 |
Passengers (m) (7) | 64.0 | 65.4 | (2.1) |
Net retail income per passenger (7)(8) | £5.11 | £4.64 | 10.1 |
(1) Figures are for continuing operations only, i.e. excluding Gatwick airport
(2) Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation and exceptional items
(3)Adjusted pre-tax loss is before exceptional items, fair value adjustments and gain/loss on disposal of Gatwick airport
(4) Increased net debt primarily due to utilising £1 billion of debt raised by the Group to repay holding company subordinated debt
(5) Nominal value of net debt excluding intra-BAA group loans and including index-linked accretion
(6) 2009 net debt and regulatory asset base figures are as at 31 December 2009 with net debt excluding restricted cash
(7) Change in passengers and net retail income per passenger are calculated using unrounded data
See section 3.2.2.2 for calculation of net retail income per passenger
Colin Matthews, Chief Executive Officer of BAA, said:
"BAA has delivered good results and we have strengthened our financial position through refinancing of nearly £2 billion of debt. Passenger growth at Heathrow is encouraging and improving customer service has contributed to strong commercial revenue.
The outlook for the remaining months of the year is positive and we will continue to focus on raising customer service standards. Our capital investment programme remains one of the largest of its kind in Europe, and will support the UK economy as the pressure on public sector spending increases."
Download BAA (SP) Limited Q3 results annoucement (570KB PDF)
For further information please contact: -
BAA Media enquiries: Malcolm Robertson or Andrew Teacher Tel. 020 8745 7224
Investor enquiries: Andrew Efiong Tel. 020 8745 2742
Finsbury
Andrew Mitchell, Don Hunter or Kirsty Flockhart Tel. 020 7251 3801
The conference call to discuss the results of BAA (SP) Limited for the nine months ended 30 September 2010 will be held at 11.00 am (UK time) on Wednesday 27 October.
Dial-in details for the call are: Conference ID: 16596693; UK free phone: 0800 694 0257; UK local/standard international: 44 (0)1452 555566. It will also be possible to view online the presentation as it is used during the call at:
https://webconnect.webex.com/webconnect/onstage/g.php?t=a&d=666758755
