- Despite the exchange rate effect and budgeted costs at BAA (security and the opening of T5)
- International business contributed 4,261 million euro of revenues (63% of the total)
- Consolidated net debt has been reduced by 1,561 million euro in 2008
- Gross consolidated capital expenditure amounted to 1,596 million euro, mainly in toll roads and airports
- Operating cash flow totalled over 1,000 million euro
- The Construction backlog grew due to an increase in international projects (almost 40% of the total)
Ferrovial recorded 6,734.8 million euro in revenues in the first half of 2008 due to a reduction in scope after the most recent divestments and to the appreciation of the euro against the pound sterling and the US dollar, which fell 15.2% and 15.7%, respectively. In like-for-like terms, net revenues expanded by 4% compared with 1H07.
Between January and June, Ferrovial obtained EBITDA of 1,284.2 million euro. Net income totalled 58.7 million euro, affected by the change in scope and appreciation of the euro, and by the greater impact of extraordinary net income in 2007 (705 million euro) compared with 2008 (213 million euro).
Operating cash flow in the first half of 2008 amounted to more than 1,000 million euro and was used to finance investment that will fuel the company's future growth. Consolidated gross capital expenditure in the first half of the year totalled 1,596 million euro and was allocated principally to the toll roads and airports divisions. In the period, Ferrovial acquired own shares worth 60 million euro and increased its stake in Cintra with an investment of 105 million euro.
In 1H08, international activities contributed 4,260.8 million euro to revenues (63% of the total). The remainder came from Spain (2,747 million euro). As a result of Ferrovial's diversification in the last few years, Airports, Services and Toll Roads account for 88% of EBITDA. Construction contributed 12%.
The first half of the year saw growth in the backlogs for Construction (9,217.5 million euro, 5.6% more than in 1H07) and Services (9.908 billion euro, 7% more). International projects account for a large portion of both backlogs: 40% of Construction and 50% of Services (excluding the Tube Lines project).
Net financial debt with recourse to the parent company (Ferrovial) was 2,201 million euro at the end of the half year. Net consolidated debt was reduced by 1,561 million euro to 28,702.6 million euro in the first half of the year.
Airports: revenues totalled 1.566 billion euro
In the Airports division, ADIL (the company through which BAA is held), contributed revenues of 1,566 million euro, EBITDA of 574.8 million euro and EBIT of 186.6 million euro in the first half of the year.
Revenues in the first half of the year were affected by the sterling/euro exchange rate, by the change in scope after the sale of various assets in 2007 and 2008, and by the budgeted increase in costs due to higher expenditure on security and the opening of Terminal 5 at Heathrow Airport.
Passenger numbers in the UK, BAA's core market, totalled 70.4 million euro in 1H08. The trend in traffic at BAA airports is an increase in international flights, which are more profitable and have higher occupancy levels.
In addition to the inauguration of T5 in Heathrow on 27 March, another noteworthy event in 1H08 was the publication by the Civil Aviation Authority of new tariffs for the next 5-year period, in force since 1 April.
Heathrow currently charges 12.80 pounds sterling per passenger, and is authorised to increase the tariff by 7.5% plus inflation during the next four years. Gatwick currently charges 6.79 pounds sterling per passenger, and is authorised to increase the tariff by 2.0% plus inflation during the next four years.
Toll roads and Car parks: EBITDA increased by 8%
Revenues from Toll Roads and Car Parks expanded by 7% in 1H08 to 515.7 million euro. EBITDA increased 8% to 346.6 million euro.
407 ETR in Canada, the biggest earner, increased net revenues by 5.4% to 167.4 million euro, while EBITDA increased 6.6% to 133 million euro. During this period, there was double-digit EBITDA growth at the Chilean toll roads (12.9%) and the M4-M6 in Ireland (15%).
Other significant events in the period include commencement of operations and tolling on the section of the Ionian Roads transferred by the Greek government on 10 January. The Greek toll road concession, of which Cintra owns 33.34%, contributed 8 million euro to consolidated revenues.
The main events in 1H08 were:
" Completion of financing of 407 ETR
" Financing the SH 130 in Texas (US)
" Ionian Roads (Greece) debt syndication
" Short-term refinancing of Autema's debt (Catalonia)
Car parks: revenues increased 5.2% to 71.2 million euro due to growth in the number of managed parking spaces (+6.1%). The portfolio as of June totalled 271,948 spaces.
Services: revenues of 2,282 million euro
The Services segment was affected in 1H08 by appreciation of the euro, as 60% of revenues are in currencies other than the euro. In this context, revenues rose 1.2% to 2,282.4 million euro; EBITDA totalled 220.8 million euro. This division's backlog increased 7% in the last six months to 9,908.3 million euro.
In 1H08, business outside Spain accounted for 66% of Ferrovial Services revenues and 51% of its EBITDA. UK subsidiary Amey increased revenues by 9.6% (in pounds sterling). Amey's backlog (excluding Tube Lines) increased 18% to 3,854 million pounds sterling.
Handling operator Swissport increased revenues to 570.5 million euro (+2%) and EBITDA expanded 31,0%. The company substantially improved its profitability: the EBIT margin increased 100%.
During the last few months, Swissport announced new activities, including: a license to operate in ten South African airports during the next five years (extendable by another five years ); an agreement with Virgin Atlantic to handle central load planning services; a cargo agreement with Vienna Airport; expansion of the services provided in Kiev; implementation of new services in Charles de Gaulle Airport (Paris); and new contracts in Athens Airport.
In Spain, the division's revenues increased 8.9% to 776.6 million euro. The backlog in Spain increased 12.2% to 4,954.2 million euro.
Construction: the international backlog grew by 40%
In 1H08, the Construction division registered revenues of 2,418.4 million euro. EBITDA amounted to 151.8 million euro. Profitability was similar to 1H07.
The division's backlog at the end of 1H08 was 9,217.5 million euro (+5.6%). This increase guarantees earnings visibility in the next few years. New contracts in various international markets account for 40% of activity. The backlog's international component has risen from 2,852 million euro to 3.521 billion euro (+23.5%) in the last 12 months.
Polish subsidiary Budimex increased sales by 15.3% to 437.4 million euro, and its backlog rose 15.4% to 924 million euro. In the US, Webber contributed 158.4 million euro in revenues and a backlog of 519.2 million euro (+8.2%). Revenues in Spain fell by 12.8% due to a decline in activity in the Spanish market compared with the previous year, when various projects were completed. The backlog totals 5,696.4 million euro.