EBITDA amounted to 1,467 million euro, a 132.1% increase. The process of internationalization continues: 80% of EBITDA was obtained outside Spain
Integration of BAA has changed the company’s profile, reducing its exposure to the construction industry cycle in Spain
Ferrovial attained a sizeable increase in all income statement line items in the first half of 2007, basically as a result of integrating airport manager BAA, which has transformed the company’s profile.
Net profit in the first half of 2007 amounted to 756 million euro, 219% more than in the same period of 2006. This rapid growth was underpinned by recurring businesses and enhanced by capital gains on the sale of Sydney and Budapest airports.
EBITDA increased by 132.1% to 1,467 million euro. 80% of EBITDA was obtained in other countries, with only 20% coming from activities in Spain. The UK is Ferrovial’s second “domestic” market, having contributed 59% of EBITDA in the first half. BAA contributed 767.7 million euro in EBITDA, 52% of the total.
EBIT amounted to 916.8 million euro, a 112.4% increase.
Net sales totalled 7,099.8 million euro, 44.8% more, due to BAA’s contribution of 1,859.4 million euro. Revenues increased by 23.8% in Toll Roads and Car Parks, 9.7% in Services and 3.5% in Construction. The latter area is still the Group’s largest source of revenues: 2,514.9 million euro in the first half.
The international market contributed 63% of the company’s revenues, i.e. 4,490.9 million euro. The UK market (41% of the total) is now larger than the Spanish market (37%), and the other big contributors are Canada and the US (8%), the rest of Europe (Ireland, Switzerland, Italy and Portugal: 6%) and Poland (6%).
At the end of the period, Ferrovial’s net debt (excluding infrastructure project finance) was 1,786.4 million euro, 46.1% less than in the same period of 2006.
Construction: backlog increased by 12.4%
The Construction division attained 2,514.9 million euro in revenues (+3.5%) due to good performance by Budimex (+17.0%) and growth in Spain (+5.7%). EBITDA declined by 2.1% to 159.9 million euro. That slight reduction was due to start-up expenses in the UK and the smaller contribution from the international area.
The construction backlog amounted to 8,727.8 million euro at 30 June, 12.4% more than a year ago.
In Poland, Budimex reported 379.1 million euro in revenues. The Polish market is performing well, as public tenders increased by 9.8% in preparation for the UEFA European Football Championship in 2012. In the USA, Webber contributed 150.6 million euro in revenues and a backlog amounting to 480 million euro.
Airports: results boosted by the addition of BAA
In the Airports division, ADI (the company through which BAA is held) contributed 104.5 million euro in net profit, 767.7 million euro in EBITDA and 1,859.4 million euro in revenues.
Ferrovial sold two airports in the first half of 2007. Budapest airport, owned by BAA, was sold for approximately 1,950 million euro, contributing 1065.3 million euro to net profit. And the sale of the stake in Sydney airport generated 474.8 million euro in capital gains.
In the UK, BAA’s core market, passenger numbers totalled 70.77 million (+0.5%).
Toll roads and Car parks: revenues up 23.8%
Toll road revenues increased by 27.4% to 414.2 million euro, and EBITDA amounted to 294.4 million euro. This increase was due to consolidating the Indiana Toll Road, Ocaña-La Roda (Spain), Bosque and Talca-Chillán (both in Chile), and Norte-Litoral (Portugal), the euro’s strong appreciation against the Canadian dollar, (+6.5%) and growth in traffic.
Car park revenues increased by 5.4% to 67.6 million euro, as a result of increasing the number of parking spaces by 13,572 to 256,365.
Services: EBIT up 20.1%
The Services area is the group’s second-largest source of revenues: 32% of the total.
All the main line-items increased sharply in the first half of 2007, and the division reinforced its international footprint: business outside Spain accounted for 68% of revenues and 56% of EBITDA. Services revenues amounted to 2,255.6 million euro in the first half of 2007, a 9.7% increase, boosted by good business performance in Spain and the UK. EBIT amounted to 152.5 million euro, a 20.1% increase.
The Services backlog amounted to 9,256 million euro, 19.5% more than in June 2006. The backlog figure does not include the Tube Lines backlog (maintenance of three London Underground lines for 30 years), which amounts to an extra 14,038 million euro, approximately. The Services division is expanding in the UK through Amey. The UK market now represents 44% of this area’s total revenues (983.2 million euro), an 8.3% increase, and it contributed 76.3 million euro in EBIT (+25.9%). Amey’s backlog increased by 15.1% to 4,841 million euro.
Handling company Swissport contributed 559.2 million euro in revenues in the first half of 2007, i.e. 25% of the Services division’s total revenues. The company commenced operations in Spain, obtained new contracts in the UK, and is integrating the operations of its acquisitions in Japan and Korea.
In Spain, services revenues increased by 14.9% to 713.3 million euro, and EBITDA rose by 15.1% to 101.1 million euro.
