Heathrow in 2018 made 58.8% of total revenue from aeronautical; 24% from retail (which includes 4.24% – £126 million – from car parking)
Heathrow has reported a retail revenue increase of 8.6% to £716 million in the year ended 31 December 2018 compared to a year earlier. Total revenue in the period rose 3% to £2,970 million. Retail is 24.1% of that. It was 22.9% in 2017 and 22% in 2016). Retail revenue per passenger was £8.94 (up 5.8% from £8.45 in 2017, which was up 4.5% on 2016. Heathrow says growth in retail income was due to increased passenger traffic in the period to 80.1 million (up 2.7% from 78 million in 2017, which was up 3.1% on 2016) and Heathrow’s new “call to gate initiative – which increases passenger dwell time in the departure lounge.” The amount of income from car parking, which is included in retail, was £126 million in 2018, (up 5% on the £120 million in 2017, which was itself up 5.3% on 2016.) Car parking made up 17.6% of total retail income in 2018, and 18% in 2017). Car parking income was £114 million in 2016 and £107 million in 2015. Heathrow made £128 million in 2018 from “other retail” which “reflects a significant increase in advertising income from improved utilisation of advertising spaces.”That was up 17.4% from £109 in 2017, and £110 million in 2016. Aeronautical income was £1,745 million in 2018, 1.7% up from £1,716m in 2016. Aeronautical income was 58.75% of total revenue in 2018, and was 60.53% of total revenue in 2016 when it was £1,699 million.
See figures for 2016 and 2017 from the
Heathrow (SP) Limited Results for the year ended 31 December 2017
Below are two of the tables (Page 11)
and the equivalent figures from the 2018 results at
A few notes from the Results document:
Retail revenue growth was strong across all revenue streams with retail concession reflecting higher passenger numbers as well as our call to gate initiative which increases passenger dwell time in the departure lounge. Retail concessions were additionally boosted by the roll out of new digital capability on Heathrow boutique, allowing customers to reserve and collect their shopping, with 52 brands now offering this service. Catering also benefitted from the call to gate initiative, and strong performance in the year was further enhanced by refurbishments in Terminals 3 and 5, as well as “Grab & Go” offerings for passengers to take meals on flights. Other retail reflects a significant increase in advertising income from improved utilisation of advertising spaces. Retail revenue per passenger rose 5.8% to £8.94 (2017: £8.45).
The tax charge for the period, before certain remeasurements, was £58 million (2017: £48 million) resulting in an effective tax rate of 21.7% (2017: 22.1%), compared to the UK statutory rate of 19% (2017: 19.25%). The effective tax rate being higher than the statutory rate reflects the fact that a substantial proportion of Heathrow’s capital expenditure does not qualify for tax relief. The total tax charge for the year was £89 million (2017: £95 million). For the period ended 31 December 2018, the Group paid £70 million (2017: £53 million) in corporation tax.
Heathrow’s shareholders get £500m as profits rise (including income of £126m from car parking)
IAG, the owner of British Airways, is angry that Heathrow has paid out £500 million in dividends to its foreign investors while charging its airline customers more. IAG says the dividend payments – now totalling £3.5 billion since 2012 – make Heathrow more costly for airline passengers (so slightly deterring them from flying perhaps). Heathrow said “It is right that our shareholders receive returns in record years and it will ensure we expand whilst keeping airport charges close to 2016 levels.” Heathrow’s top shareholders include the Qatar Investment Authority, Singapore’s GIC and the China Investment Corporation. Its largest single investor is Spain’s Ferrovial. The only UK shareholder is the Universities Superannuation Scheme (USS) with a 10% stake. Heathrow’s figures out last week show revenue growth of 3% to £2.97 billion in 2018 with 80.1 million passengers (up 2.7% from 78 million). Car parking income was £126 million (up 5% from £120 million in 2017). Retail revenue per passenger was £8.94 (up 5.8% from £8.45 in 2017). Total retail income was £716 million (up 8.6% from £659 million in 2017). Heathrow paid £70 million (2017: £53 million) in corporation tax.
See earlier, the year before:
Heathrow retail is 23% of total revenue, up 7.7% in 2017 (cf. 2016) – car parking is 18% of retail income
Heathrow has reported a retail revenue increase of 7.7% to £659 million in the year ended 31 December 2017 compared to a year earlier. (Aeronautical revenue rose by just 1%. Total revenue in the period rose 2.7% to £2.9 billion. Retail is almost 23% of that. It was 22% in 2016). Retail revenue per passenger grew 4.5% to £8.45 in 2017 compared to £8.09 in 2016. Heathrow says growth in retail income was due to increased passenger traffic in the period to 78 million (+3.1%) combined with more spending airside (up 2% compared to 2016.) Retail concessions grew 10.5%, with growth in business by duty and tax free and airside speciality shops. This reflects the depreciation of Sterling since June 2016, making products cheaper for foreigners. The redevelopment of Terminal Four’s luxury retail offering completed in late 2016, also contributed to this growth. There is also a new Gucci store.Retail concessions made up 46% of retail income, at £304 million in 2017. The amount of income from car parking, which is included in retail, was £120 million in 2017 (up 5.3% and making up 18% of total retail income), £114 million in 2016 and £107 million in 2015. Heathrow says: “Car parking rose 5.3% driven by increased passenger numbers and a more 12 dynamic pricing strategy. Higher car rental revenue from a change in arriving passenger mix and increased volumes in VIP services drove other services income up 9.4%.”
Heathrow retail revenue in 2015 around 20-21% of total, at £568 million (£7.58 per passenger)
Heathrow Airport reported a retail revenue increase for the year ending 31st December 2016 of +8.4% in 2015 to £568 million. The revenue per passenger rose by +6.2% above the level in 2014, to reach £7.58. (The Moodie report said the figure was about £7.14 in 2014, £6.21 in 2012, £5.95 in 2011, and £5.64 in 2010). Over the year, Heathrow had an overall growth in revenue of +2.7% to £2,765 million in 2015. EBITDA was £1,605 million, up +3.0%. Heathrow also announced a +2.2% increase in passenger traffic in 2015 to 75 million. For the figures for the first 6 months of 2016 Heathrow said its retail revenue had risen by 7.7% year-on-year, to £280 million – and retail revenue per passenger rose +7.1% to £7.84. Of this, duty and tax free shops contributed £62 million, a +3.3% increase. Heathrow said that for the first 6 months of 2016, it made £62 million from duty and tax-free; £51 million from airside specialist shops; £24 million from bureaux de change; £22 million from catering; £55 million from car parking – with total retail revenue at £280 million. i.e. of total retail revenue 19 – 20% was car parking. Income from parking was £99 million in 2014 and £107 million in 2015. For the first half of 2016 the retail (including car parking) income was about 21% of total revenue.