Operating growth was driven by traffic performance, entry into operation of toll roads in Spain and the US, improved margins, and expansion in the car park business
EBIT increased by 37.3% to 132.8 million euro
Revenues increased by 49.7% to 321.7 million euro
Growing international footprint: 71% of EBIT and 63.4% of revenues came from other countries
Cintra, a company specialised in bidding for and managing toll roads and car parks, attained 51.3 million euro of consolidated net profit in the first half of 2005, 490.2% more than in the same period of 2004. Adjusted net profit, not counting the sale of 5% of Ausol and the release of the provision at Autopista del Maipo (Chile), would have increased by 38.6%.
EBIT increased by 37.3% to 132.8 million euro. EBITDA rose by 38.8% to 212.4 million euro, and the EBITDA margin reached 66%; 71% of EBITDA was generated outside Spain.
Net sales amounted to 321.7 million euro in 1H05, 49.7% more than in 1H04.
This growth in operating figures was due primarily to good traffic performance on the main toll roads, higher tolls on 407 ETR (7.2% higher since 8 February), the entry into service of the R-4 in Spain and the Chicago Skyway in the US, and the consolidation of the car park business as a result of the restructuring that preceded the IPO in October 2004.
Foreign revenues increased by 23.3% to 203.9 million euro and accounted for 63.4% of the total. Revenues from activities in Spain increased by 138.5% to 117.8 million euro.
The 1H05 accounts include the effect of the ownership restructuring in October 2004 prior to the initial public offering. Accordingly, the 1H05 accounts differ from 1H04 in the following respects: addition of the car park business; reduction of the stake in Canadian toll road 407 ETR from 67.10% to 53.23% (a difference of 13.87%); acquisition of 50% of Sociedad Inversora de Autopistas de Levante, S.L., which owns 100% of the company that holds the concession for the Ocaña-La Roda toll road.
Toll roads: traffic increased and operation of the first toll road in the USA commenced
Cintra´s toll road division, which currently has 18 concessions, increased revenues by 22.3% to 262.9 million euro.
EBITDA grew by 25.5% to 192 million euro in the first half of 2005. Canadian toll road 407 ETR made a notable contribution to this result (39% of the total), and its EBITDA increased by 21.8% due to a reduction in billing expenses.
The EBITDA margin in the toll roads business increased by 100 basis points to 74.4% due mainly to improvements at 407 ETR, Ausol II (Estepona-Guadiaro) and Autema (Terrassa-Manresa).
Traffic increased considerably on the main corridors in 1H05:
· Canada - 407 ETR registered 276,455 daily trips (six-monthly average), a 5.8% increase, and vehicle kilometres travelled (VKT) rose 7.1% to 975.4 million. The daily traffic record was beaten three times in June (absolute record of 413,687 vehicles on 30 June);
· USA Chicago Skyway attained an average daily traffic (ADT) of 43,834 in the first half of 2005;
· Spain - Ausol I attained an average daily traffic of 18,463 vehicles, and Ausol II registered 16,961, a 12.8% increase; Autema increased ADT by 6.6% to 19,659, and the R-4 attained 6,082;
· Portugal - Scut Algarve registered a 4.2% increase in ADT to 16,970 vehicles.
Highlights of the toll road division in the period:
- Selection by Ireland´s National Roads Authority (NRA) to negotiate a 45-year concession for the M3 toll road between Clonee and North Kells (projected investment: 600 million euro);
- Award in July of the concession to build and operate the M-203 toll road in Madrid;
- Entry into service of the new electronic toll system on the Chicago Skyway;
- Sale of 5% of Ausol to Unicaja. Cintra currently owns 80% of Ausol;
- Increase in the stake in Chilean toll road Talca-Chillán to 67.61%.
Car parks: the number of managed parking spaces grew by 8.1%, maintaining Cintra´s leading position
Cintra´s car park business reported 58.8 million euro in revenues, 20.4 million euro in EBITDA and 13.8 million euro in EBIT in the first half of 2005. A comparison with the first half of 2004, when this area was not part of Cintra, reveals significant growth: 23.9% in revenues, 34.5% in EBITDA and 50.5% in EBIT.
At the end of 1H05, Cintra managed 214,218 parking spaces, i.e. 8.1% more than in 1H04, reinforcing its position as Spain"s leading car park operator. Cintra manages 48,294 off-street spaces (22.5% of the total); on-street spaces increased by 8.1% to 141,154 (65.9% of the total); and private parking spaces increased by 25.2% (24,770 spaces), representing 11.6% of the total.
Cintra Aparcamientos was awarded the concession to operate the municipal car park at Avenida Francesc Maciá in Sant Cugat del Vallés, while subsidiary Dornier obtained on-street parking management contracts in the towns of O Barco de Valdeorras, Illescas and Villanueva de la Serena, as well as an extension to the on-street parking management concessions in Yecla and Sitges.
NOTE: Adoption of International Financial Reporting Standards (IFRS)
The financial information for the two half-yearly periods being compared has been drafted in accordance with the new EU accounting regulations for Listed Consolidated Groups.
Concession companies are awaiting the publication of a final interpretation on the specific method applicable to depreciation and amortisation
The draft interpretation that has been published allows companies to use the general IFRS method until the final interpretation is issued
Cintra has presented its 1H05 results under IFRS by adopting the following approaches: non-capitalisation of financial expenses on operating assets, and non-application of the IFRIC"s interpretations regarding the two proposed models (intangible asset and financial asset).