– 79% of EBITDA is generated outside Spain
– At BAA, EBITDA growth reached 39.6% in local currency terms thanks to tariff increases and controlled operating costs.
– Of BAAs airports, Heathrow saw the smallest decline in total traffic during the first three months of 2009 (-6.4%). In addition, its commercial revenues per passenger increased 13%.
– Amey saw sales increase 5% in sterling terms and the company won new contracts worth more than EUR1,000m. The Services backlog grew 10.9% excluding the currency effect.
– The Toll Motorways and Car Parks division was awarded two new contracts, one in the USA and the other in Poland, and has refinanced all its debt maturing in 2009.
– Sales growth reached 13% at International Construction and EBITDA growth 30% in local currency terms.
– The net result reflects the negative accounting impact of marking derivatives contracts to market (interest rate and inflation hedges). Of special note was the absence of any capital gains derived from asset sales, compared with the EUR293m in the first quarter of 2008.
– In comparison with 2008, the results of the first quarter of 2009 were affected by exchange-rate movements (principally sterling). Taking this factor into account, sales remained stable and EBITDA increased 11.3%.
Ferrovials revenues reached EUR2,757.3m in the first quarter of 2009. Like-for-like with the same period last year, net revenues were flat (-0.4%), while EBITDA reached EUR522.1m, an increase of 0.8% (+11.3% like-for-like).
The results reflect a negative accounting impact of EUR95m due to marking derivatives/hedging contracts to market. This did not imply any cash outflow. Excluding this element, the net loss of EUR105m would shrink to EUR10m.
Net consolidated debt reached EUR21,943.6m, compared with EUR29,177m as of 30 March 2008. Excluding infrastructure projects, net debt amounts to EUR1,702.2m.
Ferrovials strategy of geographical and business diversification over the last few years is reflected in the profit and loss account. International revenue now accounts for EUR1,736.4m, or 63% of the total. By divisions, Airports contributes 44% of EBITDA, Toll Roads and Car Parks 29%, Services 15% and Construction 11%.
Airports: Like-for-like revenue and EBITDA growth in double digits
Revenues at BAAs airports reached EUR645.4m, or an increase of 14.8% in sterling terms to GBP580m. This was due to the combination of the tariff increase effective in April 2008 and the 10% fall in the number of passengers. EBITDA reached EUR235.3m, up 39.6% in like-for-like terms, thanks to good cost control.
BAA reported 30 million passengers in the first quarter. Domestic traffic weakness was more pronounced than international. Heathrow posted a notable performance, with commercial revenues per passenger increasing 13%. This asset accounts for 63% of the divisions revenues. In addition, the only hub airport in the UK has seen the smallest decline in total traffic in the first quarter of 2009 of all BAAs airports (-6.4%).
In March 2009, the UK Competition Commission published its final report, which forces BAA to sell Gatwick and Stansted airports, as well as either Glasgow or Edinburgh, giving a two-year period for these disposals to be completed.
Services: the backlog increased 10.9% excluding the currency effect
First quarter revenues at the Services division reached EUR900.5m. Revenues generated outside Spain accounted for 60% of the total.
The UK subsidiary Amey increased revenues by 5% in local currency to GBP234.6m. Note that Amey won new contracts during the quarter worth nearly EUR1,000m.
In the Spanish market, Services revenues were stable vs. the first quarter of 2008, with significant (+15.3%) growth in the backlog.
Toll Roads and Car Parks: all the debt maturing in 2009 has been refinanced
Like-for-like revenues were at very similar levels to the same period last year at EUR229.2m. The substantial increase in tariffs offset the fall in traffic on various toll roads.
Meanwhile, EBITDA was 1.6% higher in like-for-like terms. The notable events of the quarter include the refinancing of all EUR850m of the debt maturing in 2009, which is a reflection of the quality of these assets. Also, at the beginning of 2009 Cintra was awarded three new concessions worth a total of EUR5,700m: the A1 toll road in Poland, the North Tarrant Express and the IH-635 in Texas.
Construction: strong growth in international business
In the first quarter of 2009, the Construction division reported revenues of EUR998.8m. EBITDA reached EUR56.7m, while the backlog increased to EUR8,116m. International activity posted strong revenue growth of 13% excluding the currency effect.
EBITDA improved by 30%. International business represents 38% of revenues and 40% of the backlog. In Poland, revenues at Budimex reached EUR133.8m and the backlog EUR722.1m. In the USA, Webber increased revenues by 45.5% to EUR99.3m and lifted its backlog 19.2% to EUR664.8m.
In the domestic market, Ferrovial Agrománs revenues reached EUR624.4 and obtained backlog of EUR4,838.9m. The backlog fell for the first time in years (-11.5%), mainly as a reflection of fewer building contracts in 2008 and the strategy of prioritising profitability over volume.
Change in consolidation criteria: With effect from 1 January 2009, the company decided to modify the accounting principles applied to the consolidation of businesses where it has joint control, switching from the proportional integration method to the equity method. This change of criteria is in accordance with the alternative established in NIC 31. The main companies affected are: the Indiana Toll Road, the M45, the Greek motorways, together with Tube Lines and other Amey joint ventures in the Services division.
