UK. Manchester Airports Group (MAG) today (1 July) reported full-year results for the 12 months to 31 March, with income from retail concessions climbing +9% year-on-year to £327.9 million (US$451 million).
MAG welcomed 65 million passengers across its three airports, a +6% increase on the prior year, primarily from international travel, driven by increases at Manchester (+8%) and Stansted (+4.9%). This was due to higher volumes with Ryanair, Jet2.com, easyJet and SunExpress in particular.
The group – which owns and operates Manchester, London Stansted and East Midlands airports, as well as travel services business CAVU – posted revenues of £1.3 billion (US$1.8 billion), up +8.4% year-on-year with an adjusted EBITDA of £570.4 million (US$785 million), up +12.5%. Operating profit stood at £263.2 million (US$362 million) after accounting for one-offs, up +9.8%.
Within commercial activities, the group reported yield improvement for retail at all airports with East Midlands delivering the most significant year-on-year increase from retail, primarily from duty free and food & beverage. Yields for car parking also improved, largely driven by improvements by CAVU and the pre-booked market.
CAVU revenue increased +13.7% to £228.5 million (US$314 million) with its Marketplace division being the largest contributor to the year-on-year growth, supported by the acquisition of Parkos (a leading European parking comparison site) and the full-year benefit of its ParkVia acquisition. CAVU now has a presence in more than 308 airports across 48 countries.
The division also grew its lounge network this year, both in the UK and overseas. New airport lounges opened at Northwest Arkansas, Portland and Kansas City airports in the USA, and Cairns and Brisbane airports in Australia, meaning it now operates 28 lounges globally.
MAG continued to invest heavily during the period and will complete its ten-year Manchester Airport Transformation Programme later this year. It will spend a further £2.5 billion (US$3.4 billion) over the next five years at all three airports.
MAG CEO Ken O’Toole said, “This year’s record performance is a testament to the strength of our business and the dedication of our people. With more passengers choosing our airports than ever before, MAG continues to play a vital role in connecting the UK to the world.
“As the UK’s largest private investor in transport infrastructure outside London, we’re unlocking the full potential of our runways through ambitious capital programmes. These investments will help deliver the government’s Industrial Strategy and ensure prosperity is shared across the country.
“We’re also proud of the global success of CAVU, which has grown from a start-up into a major international business in just a few years.” ✈
