DAA plc 2008 Results and Outlook

 

TIDM50PU 
 
RNS Number : 1340R 
DAA Finance PLC 
24 April 2009 
 
DAA Finance plc 
 
 
EUR250,000,000 6.15 per cent. notes due 2011 of DAA Finance plc, 
guaranteed by Dublin Airport Authority plc (ISIN:XS0124714832) 
 
 
EUR600,000,000 6.5872 per cent. notes due 2018 of DAA Finance plc, 
guaranteed by Dublin Airport Authority plc (ISIN:XS0375220588) 
 
 
 
 
 
 
 
 
2008 Financial Results 
 
 
Dublin Airport Authority plc ("DAA") today published its financial results for 
the year ended 31 December 2008. DAA said it recorded a satisfactory performance 
during 2008 against the background of a much more difficult operating 
environment, particularly in the latter part of the year. 
 
 
Excluding net exceptional items, Group profit after tax was EUR78 million in 2008 
compared with EUR109 million in 2007, a decline of 28% from the previous year. 
Total Group profit after tax for the year (including exceptional items) was EUR47 
million compared with EUR348 million in 2007. Exceptional items comprised net 
losses of EUR31 million in 2008, primarily related to a once-off pension 
provision, and net gains of EUR239 million in 2007, primarily related to the 
profit on disposal of the Group's stake in Birmingham Airport. 
 
 
Total passenger numbers at DAA's three Irish airports (Dublin, Shannon and Cork) 
were 29.9 million, a decline of 0.6% on 2007 and the first annual decline since 
the 1991 Gulf War. Group turnover was EUR631 million, an increase of 1%. Group 
earnings before interest, taxation, depreciation and amortisation (EBITDA) were 
EUR155 million, a decline of 9%. 
 
 
Aer Rianta International ("ARI"), which manages the Group's overseas airport 
investments and international airport retail operations, contributed 
approximately EUR25 million or 32% of Group profit for the year (excluding 
exceptional items), a decrease of 13% compared to 2007. This decrease reflected 
the sale in 2007 of ARI's 24% shareholding in Birmingham Airport. On a 
like-for-like basis, profit at ARI increased by 6%. 
 
 
At 31 December 2008, the Group had capital commitments of EUR561 million. 
Liquidity at the same date was EUR1,379 million, comprising cash of EUR879 million 
and undrawn committed borrowing facilities of EUR500 million. Gross debt was 
EUR1,067 million at the year-end, while net debt was EUR188 million. 
 
 
The Group's Annual Report and Financial Statements for 2008 is available on 
DAA's corporate website http://www.dublinairportauthority.com and can be found 
in the Media Centre/Annual Reports section on 
http://www.dublinairportauthority.com/media-centre/annual-report/. 
 
 
 
 
Outlook 
 
 
Economic activity is a key driver of passenger volumes. Current Irish government 
estimates for 2009 are that the Irish economy will decline by 8%, on top of a 3% 
contraction in 2008, with a further, less severe, reduction expected in 2010. 
Latest Irish Central Bank estimates are that gross domestic product will fall by 
a further 3% in 2010. 
 
 
 
 
 
 
 
 
DAA currently estimates that passenger volumes at its airports will fall by 
circa 11% in 2009, to around 26.6 million, reflecting the continued impact of 
the global economic crisis, the weakness of the domestic economy, including the 
fall in consumer spending, and the reduction in airline capacity. Passenger 
numbers at Dublin Airport are expected to fall at a similar rate (circa 11%) to 
around 21 million in 2009, compared with 23.5 million in 2008. 
 
 
DAA expects minimal opportunity for passenger growth in 2010 or 2011, pending a 
recovery in the wider economy. 
 
 
The current very challenging environment is also expected to continue to impact 
on DAA's commercial activities. Turnover in retailing and car parking at the 
Irish airports has shown a marked decline on 2008 levels. Sharp reductions in 
both the number of airline passengers and passenger spending have also been 
recorded at overseas airports where ARI operates retailing concessions, in 
particular in Russia and the Ukraine. 
 
 
DAA's core airports business, comprising Dublin, Cork and Shannon airports, is 
expected to move into losses in 2009, with a continuation of present trends 
likely to result in a further significant deterioration in 2010. In light of 
these challenges, actions being taken by the Group include: 
  *  Introducing cost saving programmes across the Group. 
  *  Significantly reducing and/or deferring planned capital expenditure. 
  *  Seeking a more appropriate regulated price cap for airport charges at 
  Dublin Airport. DAA is currently participating in the regulatory price cap 
  review which is underway. 
 
 
 
DAA's financial position from 2010 onwards will, in addition to the pace of 
economic recovery, depend to a large extent upon the determination later this 
year of the Commission for Aviation Regulation. This will set the price cap for 
airport charges at Dublin Airport for the next five-year regulatory period 
commencing in 2010. 
 
 
 
 
 
 
 
 
24th April 2009 
 
 
 
 
Enquiries:    Ray Gray, Director-Finance, Dublin Airport Authority plc 
Telephone number: [phone] 
Email: [e-mail] 
 
 
Feargal O'Reilly, Director, DAA Finance plc 
Telephone number: [phone] 
Email: [e-mail] 
 
 
 
 
This announcement has been issued through the Companies Announcement Service of 
the Irish Stock Exchange. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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