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TheMoodieReport.com: BAA posts solid retail performance in H1 but group results hit by security measures – 19/12/06
Source: ©The Moodie Report
By Dermot Davitt
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UK. Net retail income at BAA’s UK airports rose +3.1% to £333 million in the first half of the 2006/07 financial year (to 30 September) compared to the same period last year, the company said today. Net retail income per passenger declined -0.2% to £4.07.

But the company, now owned by a group led by Ferrovial of Spain, said that new security measures had had an impact on group performance in the period. Although revenues rose by +15.6% to £1,356 million, group pre-tax profits fell -2.5% to £358 million.

Revenues from World Duty Free rose +1.5% to £203 million, and the division posted an operating profit of £13 million, down -7.1% on last year. Net retail income from World Duty Free also rose +1.5% in the period, to £82 million, while airside specialist shops’ net retail income rose +5.2% to £35 million.

Landside shops and bookshops slipped -3.3% to £26 million in net retail income, while catering rose +6.4% to £31 million. Net retail income at bureaux de change outlets rose +9.9% to £29 million, advertising rose +0.9% to £17 million, and other retail rose +7.8% to £16 million.

The Group's operating costs grew +29.7% to £996 million. Staff costs were up £29 million (+10.9%) due to wage inflation, security costs and pension cost increases. The cost of retail goods sold was up £12 million (+13.5%) and rent, rates and utilities were up £15 million (+14.6%) due to price increases.

UK airport passenger traffic rose +3.1% to 82 million in the period. Naples Airport traffic was up +13.1% to 3.1 million passengers while Budapest Airport passenger traffic grew +5.1% to 4.9 million for the period. In separate news, the EU Commission today approved BAA’s sale of 75% of Budapest Airport to Hochtief.