BAA Limited expecting 15.2% rise in adjusted EBITDA for 2011

UK's BAA Airports Limited announced (16-Dec-2010) owner of London Heathrow and London Stansted airports, BAA (SP) Limited's recent financial performance has continued the robust trends reported at the time of its 3Q2010 results. As a result, it is now expected that Adjusted EBITDA for the year ending 31-Dec-2010 will exceed the GBP972 million figure contained in its most recent formal forecast which itself was above the original budget Adjusted EBITDA for the year of GBP956 million. BAA Limited also expects passenger numbers for the full year to total 84.8 million, including 66.3 million at Heathrow and 18.5 million at Stansted. The recent strong performance is also expected to continue in 2011 as illustrated by the following highlights for the year:

• Revenue: GBP2,297 million, +10.7%;
  • reflecting primarily increased passenger numbers and aeronautical tariffs supported by further growth in retail income per passenger;
• Adjusted EBITDA: GBP1,120 million, +15.2%;
• Passenger traffic: 88.0 million, +3.7% year-on-year;
  • driven by a continuation of the recent strong performance at Heathrow which is forecast to exceed 70 million passengers in a year for the first time in its history.

The increasing cash flow will assist in financing Heathrow's significant investment programme. Heathrow expects to spend well over GBP1 billion on its capital investment programme during 2011, reflecting particularly accelerating activity on construction of the new Terminal 2. [more]