BAA sees sharply reduced losses in first 9 months of 2010

27.10.2010 (BBC)


Stansted Airport  

BAA is being forced to sell Stansted airport and one of Edinburgh and Glasgow
airports  

Airport operator BAA has reported a significant reduction in losses for the nine
months to the end of September and strong growth in passenger numbers.

Pre-tax losses came in at £192.6m, down from £784.7m in the same period a year
ago.   Revenue was up 4.4% at £1.55bn.

The company reported “record passenger traffic” between July and September.

Earlier this month, BAA lost an appeal hearing against a ruling that it must
sell Stansted airport, as well as either Glasgow or Edinburgh airport.

BAA has already sold Gatwick for £1.5bn to US-based investment fund, Global Infrastructure
Partners.

“BAA has delivered good results and we have strengthened our financial position
through refinancing of nearly £2bn of debt,” said chief executive Colin Matthews.

“The outlook for the remaining months of the year is positive.”

BAA – which is majority-owned by Spanish firm Ferrovial – operates the airports
at Heathrow, Southampton and Aberdeen, as well as Stansted, Glasgow and Edinburgh.

The company handles about one million flights and 110 million passengers each
year.

Earlier this week, owner Ferrovial said it was planning to sell a 10% stake in
BAA.

http://www.bbc.co.uk/news/business-11633534

 

 

see also

 

 

the BAA press release

BAA (SP) Limited Results for the nine months ended 30 September 2010

27 October 2010

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

(8)  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)

BAA (SP) Limited Results for the nine months ended 30 September 2010

 

see also

 

Retail momentum aids BAA results

27.10.2010 (Retail Gazette)

Owner of London’s Heathrow and Stansted airports BAA has reported strong growth
in retail revenue thanks to strong passenger traffic during the third quarter
of the year.

In results up until September 30th, net retail income per passenger totalled
£5.11, which was up from £4.64 in 2009 and a 10.1% increase.

Passenger traffic saw underlying growth of 1.3 per cent year-on-year totalling
£64 million, with Heathrow proving particularly popular during the quarter with
a traffic increase of 3.1 per cent.

Overall revenue for the company was up 4.4 per cent in the year so far and 8.3
per cent growth in Q3 alone.

Colin Matthews, CEO 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."

WHSmith has a strong presence in UK airports and reported sales rises in its
travel outlets earlier this month despite other stores in its portfolio struggling.

http://retailgazette.co.uk/articles/24211-retail-momentum-aids-baa-results

 
 
 
see also
 
 


Following repayment of £1,100 million of its subordinated debt* facility in September
2010, BAA is pleased to confirm plans for refinancing the remaining £465.8 million…


26 October 2010
 
 

* Subordinated debt means debt which ranks after other debts should a company fall
into receivership or be closed. The  debt providers (the lenders) have subordinate status in relationship
to the normal debt. Subordinated debt has a lower priority than other bonds of
the issuer in case of liquidation during
bankruptcy, below the liquidator, government tax authorities and senior debt holders in the hierarchy of creditors. Because subordinated debt is repayable after
other debts have been paid, they are more risky for the lender of the money. Subordinated
loans typically have a higher
rate of return than senior debt due to the increased inherent risk.