BAA Results for the Three Months to June 30, 1999.LONDON--(BUSINESS WIRE)--August 2, 1999-- Passenger Traffic On Target Strength In UK Retail During First Quarter Post July 1 BAA Baa See BBB. Continues To Offer Tax-Free Prices & Passengers Carry On Shopping BAA plc, the UK-based airport company, today announced its results for the three months ended June 30, 1999. - UK airport passengers on course -- up by 4.4% - Full year passenger forecast increased to between 4.5% and 5.0% - UK net retail income up by 6.9% - Profit before tax up 9.9% - Heathrow express Heathrow Express is a train service from Heathrow Airport to Paddington in central London operated by the Heathrow Express Operating Authority—a wholly owned subsidiary of BAA. on target - (pound)14 million BAA McArthurGlen disposal profits - Growing passenger recognition of benefits of BAA continuing to sell at duty and tax free prices (Unaudited) 3 months to 3 months to Increase % June 30, 1999 June 30, 1998 $M(a) (pound)M (pound)M Passengers (millions) 29.8 28.6 4.4 Revenue including share of joint venture 940 585 483 21.1 Group revenue 890 554 483 14.7 Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. including share of joint venture 293 182 159 14.5 Group operating profit 267 166 158 5.1 Profit before tax 249 155 141 9.9 Profit after tax 190 118 111 6.3 Earnings per share 17.5(cent) 10.9p 10.4p 4.8 (a) US dollar equivalents are provided for reader convenience at the average rate for the period of (pound)1 = $1.6065. SIR JOHN EGAN JOHN EGAN John Egan may refer to:
"The first quarter of 1999/00 has seen us make a positive start to the year. Passenger growth and continued good performance of UK retailing, despite the strength of the pound, enabled the UK airports to grow profits as planned. Heathrow Express continues to justify our confidence in this major investment, total World Duty Free revenue increased by (pound)16 million, and BAA McArthurGlen has delivered a further (pound)14 million in disposal profits. "Duty free has ended within the EU and, for the first time in years, there is now a clearly defined environment in which we can develop our retail business. We are satisfied with initial trading since the introduction of the program of tax free prices without volume limitation and we have incorporated the permitted addition to the London airport There are several airports that may be referred to as "London Airport": London, United Kingdom
"Our plans to add another 15% of retail space at the long haul Long distance. Long haul implies traversing a state or a country. Contrast with short haul. terminals are now well advanced and the first significant expansion should be on stream by autumn, with duty paid arrivals facilities opening by September. "Passenger growth in the quarter and since then gives us considerable confidence that we can increase our full year passenger growth forecast to between 4.5% and 5.0%." FINANCIAL SUMMARY Profit before tax increased by 9.9% to (pound)155 million ($249 million) (1998: (pound)141 million). Earnings per share increased by 4.8% to 10.9 pence pence n. Chiefly British A plural of penny. pence Noun a plural of penny USAGE: Since the decimalization of British currency and the introduction of the abbreviation p, (17.5 cents) (1998: 10.4 pence), reflecting net interest payable which rose by (pound)11 million to (pound)28 million primarily as a result of the cessation cessation Vox populi The stopping of a thing. See Smoking cessation. of capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. of interest on Heathrow Express at the end of June 1998. Earnings per share before exceptionals increased by 1.9% to 10.6 pence (17.0 cents) (1998: 10.4 pence). UK AIRPORT PASSENGER TRAFFIC In the three months to June 30, 1999, passenger traffic grew by 4.4% to 29.8 million (1998: 28.6 million). In the first weeks of July traffic grew at around 6%, reinforcing the view that the low growth in May was an anomaly Abnormality or deviation. Pronounced "uh-nom-uh-lee," it is a favorite word among computer people when complex systems produce output that is inexplicable. See software conflict and anomaly detection. . UK OPERATING PROFIT BY AIRPORT UK airports' operating profits were up by 6.3% to (pound)153 million ($246 million) (1998: (pound)144 million). London fared well; Stansted up 40% to (pound)7 million, Gatwick up 11% to (pound)41 million, and Heathrow up 3% to (pound)90 million. All of these profit growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. were higher than the airports' passenger growth rates during the period. UK AIRPORT RETAILING Net retail income increased by 6.9% to (pound)128.7 million (1998: (pound)120.5 million), or by 2.3% to (pound)4.33 ((pound)4.23) on a per passenger basis. Duty and tax-free net retail income grew by 4.8% to (pound)65.6 million (1998: (pound)62.6 million). Significantly positive performances were delivered by all of the main duty paid categories, with specialist shops, bookshops, catering, bureaux de change and car parking all up by between 8% and 17%. AIRPORT TRAFFIC CHARGES UK airport charges were up by 5.8% to (pound)147.5 million. BAA LYNTON BAA Lynton's operating profit increased by (pound)4 million to (pound)12 million, and there was an exceptional profit of (pound)3 million on the disposal of an investment property. WORLD DUTY FREE World Duty Free includes the combined operations For the department of the British War Office during World War II, see . In the military, combined operations are operations conducted by forces of two or more allied nations acting together for the accomplishment of a single mission. See also
HEATHROW EXPRESS Heathrow Express has been performing well. Passenger numbers and fare revenue have been on budget, and marketing activity has been increased. The operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the quarter was (pound)1 million, in line with expectations. June passenger numbers reached daily averages comfortably above 13,000, nearly 5,000 per day more than at the start of operations last year. PERFORMANCE POST EU DUTY-FREE - Post Balance Sheet Note In the early days of the new regime, the strategy of maintaining tax-free prices has had an encouraging start. Sales of BAA's exclusive branded products have been exceptionally strong. BAA continues to project the net impact of the loss of EU duty-free at between (pound)30 million and (pound)40 million this year. BAA ordinary shares trade on the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. ; prices may be accessed on Bloomberg Bloomberg A major global provider of 24-hour financial news and information including real-time and historic price data, financials data, trading news and analyst coverage, as well as general news and sports. under the symbol BAA LN, on the Reuter Equities 2000 Service under BAA.L and on Quotron under BAANU.EU. BAA ADRs, each equal to one ordinary share, appear on the pink sheets under BAAPY. Additional information is available on BAA's home page: http://www.baa.co.uk. FOR TABULAR tab·u·lar adj. 1. Having a plane surface; flat. 2. Organized as a table or list. 3. Calculated by means of a table. tabular resembling a table. RESULTS, PLEASE CONTACT TAYLOR RAFFERTY ASSOCIATES AT 212-889-4350 |
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