Heathrow forecasts adjusted EBITDA increase of 11% in 2014, decline of 0.7% in 2015

Heathrow issued (12-Dec-2014) a forecast that adjusted EBITDA for 2014 will increase by 10.9% year-on-year to GBP1.576 billion. Adjusted earnings in 2015 are expected to decline by 0.7% to GBP1.565 billion. Heathrow said: " This forecast reduction of around £10 million principally reflects the non-recurrence of £50 million revenue recovery in 2014 and the incremental cost of operating an additional terminal for the whole year, largely offset by underlying improvements". Traffic is expected to grow 1% in 2015 to 73.9 million passengers, driving underlying revenue growth together with a rise in non-aeronautical revenue. Heathrow expects to invest nearly GBP700 million and around GBP580 million in 2014 and 2015 respectively on projects to sustain and improve the passenger experience together with maintenance and compliance projects. Heathrow said: "The plan focuses on delivering a noticeably better passenger experience, ensuring a continued focus on improved resilience and delivering a competitive cost of operation. To date cost efficiencies secured and revenue initiatives implemented are projected to contribute £380 million benefit over the period to the end of 2018." [more - original PR]