Consolidating BAA for the first full year increased revenues by 18.4% to over 14bn. Businesses outside Spain contributed 64% of revenues
Net income amounted to 733.7m in a year with lower extraordinary results
The backlog increased by 13.8% in Construction to 9.13bn and by 12.7% in Services to 9.73bn
In 2007, Ferrovial obtained 3.04bn in EBITDA, an increase of 31% over 2006. It was the first full year in which BAA was consolidated. As a result, the Airports business increased considerably in importance and it now accounts for 50% of EBITDA (1.54 bn) and 26% of revenues (3.86bn).
Integrating BAA reinforces Ferrovial's strategy of focusing on highly cash-generative businesses, diversifying its activities and increasing its degree of internationalisation.
Good performance by the company's various divisions was reflected in an 18.4% increase in revenues in 2007 to 14.63bn. The United Kingdom became Ferrovial's largest single market in 2007. The UK accounted for 6.02bn in revenues, 41% of the total, compared with 5.30bn obtained in Spain (36%).
EBIT increased by 31% to 1.91bn, and the consolidated EBIT margin was 13.1%. This represents an increase on the 11.8% margin obtained in 2006, since BAA's margin is 21.6%.
Net income fell to 733.7m as a result of lower extraordinary gains compared with 2006, a year of major disposals, including real state, Europistas and Bristol Airport. The main assets sold in 2007 were Sydney and Budapest airports, as well as a minority stake in six Australian airports.
Excluding changes in consolidation scope and non-recurring earnings, net income would have increased by 12.2%.
The 2007 income statement includes provisions for the stock option plan (126m), the debt related to Habitat (35m) and BAA's restructuring plan (107m).
Consolidated net debt was reduced by 2.53bn in 2007, i.e. by 7.8%. Excluding infrastructure project debt that is without recourse to the parent company, the reduction was 36.8%: from 3.06bn to 1.94bn.
Airports: revenues increased by 88.6%
The Airports division consolidated BAA for the first full year in 2007. For that reason, revenues increased by 88.6% to 3.86bn, of which 3.82bn were provided by BAA.
Heathrow, the group's largest airport, contributed 47.3% of BAA's revenues, i.e. 1.81bn, and 813m in EBITDA. Gatwick ranked second in importance, contributing 596m in revenues and 222m in EBITDA.
A total of 155.7 million passengers used BAA's airports, 2% more than in 2006. Close to 150 million travellers used the Group's UK facilities in 2007. Passenger figures totalled 67.9 million at Heathrow, 35.2 million at Gatwick and 23.8 million at Stansted.
In 2007, Ferrovial sold Budapest Airport for ?1.31bn, 20% of Sydney Airport for 547m, and its stake in six Australian airports for 775 million Australian dollars. These divestments relate to BAA's strategy of shedding non-strategic assets outside the UK.
Toll Roads and Car Parks expanded by 17%
Cintra, the Ferrovial subsidiary that specialises in bidding for and managing toll roads and car parks, increased EBITDA by 17% in 2007 to 694m. Its revenues grew by 15.8% to 1,024.7m, primarily due to good traffic data, toll increases on some roads, and full-year consolidation of new concessions that had been added in 2006.
A number of major contracts were obtained in 2007, such as the construction and operation of the M-3 toll road in Ireland, the contract for segments 5 and 6 of SH-130 in Texas, and the Central Greece Motorway, measuring 231 kilometres, which will require 1.5bn in investment.
The car park portfolio expanded by 5.4% (13,782 units) to 266,805 parking spaces.
Services: strong organic growth in Spain and the UK
The Services division experienced robust growth in 2007, as its component companies stepped up commercial efforts and expanded the backlog by 12.7% to 9.73bn.
Services is Ferrovial's second-largest source of revenues: 4.62bn in 2007, 32% of the total. Revenues increased by 7.4% in 2007, while EBITDA rose by 8.2% to 471m.
The Spanish market (Cespa and the Infrastructure Maintenance and Upkeep business) continued to grow at a rapid pace. Revenues in Spain increased by 14.9% (to 1.47bn), and EBITDA by 11.9% (to 201m).
The Services division also made progress in the UK, a market which accounts for over 40% of its revenues (basically through Amey). The UK subsidiary obtained 1,998.5m in revenues, 3.4% more than in 2006, due to a higher level of activity and new infrastructure contracts, which offset lower facility management business and the fact that Tube Lines is entering a phase of lower investment and greater maintenance activity.
Amey's EBITDA increased by 7.4% to 212.3m, and its backlog amounted to 5.17m (+3.9%).
Handling operator Swissport contributed 1.15bn in revenues (+5.7%) and 58.4m in EBITDA (-0.2%). Swissport commenced operations in Spain, obtained new contracts in the UK and entered Asian markets including Japan and Korea.
Construction: backlog up 13.8%
The Construction division attained 5.20bn in revenues in a year characterised by a sustained level of activity. The backlog increased by 13.8% to 9.13bn, guaranteeing earnings visibility in the next few years. International activities now account for nearly 40% of the backlog, having increased by 45% in the last year.
Polish subsidiary Budimex increased sales by a notable 5.7% to 833.7m, and its backlog expanded by 33.1% to 915m, the largest figure in the last five years. The volume of contracts for tender in Poland is rising due to plans to hold the UEFA Euro 2012 soccer championship there. In the US, Webber contributed 311.5m in revenues and its backlog increased by 12.2% to a record 566m.