UK. A strong retail performance buoyed BAA (SP) Ltd’s results in the first nine months of 2009. BAA (SP) owns the three London airports of Heathrow, Gatwick and Stansted.
Net retail income per passenger for the period grew by +6.1% to £4.64, while passenger numbers in the nine months fell by -5.5% to 90.7 million.
Group revenues proved “resilient” said BAA, rising +7.6% to £1,846 million. Adjusted EBITDA (earnings before earnings, tax, depreciation and amortisation and exceptional items) rose by +16.8% to £804.6 million.
However pre-tax losses increased +51% to £784.7 million, which BAA said was due to an exceptional item relating to its pension deficit, an impairment loss relating to the planned sale of Gatwick and fair-value losses on financial instruments.
Last week BAA announced the sale of Gatwick to Global Infrastructure Partners for £1.51 billion. The net sale proceeds will be used to repay debt, including £1 billion that matures in March 2010.
BAA Chief Executive Colin Matthews said: “We have delivered a good performance in line with expectations for the first nine months of the year, helped by Heathrow’s continued resilience, higher retail spending by passengers and tight cost control. Our London airports are strongly cash generative and our debt and underlying interest costs are stable.
“We are pleased to have agreed the sale of Gatwick Airport and our focus for the rest of the year is on improving efficiency and service standards for our customers, and further reducing costs. The accounting losses we are reporting today reflect non-cash exceptional charges and do not reflect the strong underlying performance of the business.”
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