Performance in the fourth quarter of 2010

Revenue

Consolidated revenue for the fourth quarter amounted to € 1,488.1m, compared with € 1,361.5m in 2009, showing an increase of 9.3% (+5.0% at constant exchange rates).

Traffic trends continued to be more positive in the airport channel than the motorway channel; as a result, at constant exchange rates, the sales growth of Travel Retail & Duty-Free (+6.0%) outpaced that of Food & Beverage (+4.7).

EBITDA

Consolidated fourth-quarter EBITDA was € 131.2m, an increase of 9.6% with respect to the same period last year (€ 119.6m), or +4.2% at constant exchange rates.

EBITDA came to 8.8% of revenue, unchanged since the same period of the previous year.

Capital expenditure

Capex in the fourth quarter totalled € 104.0m, up from € 63.0m in 2009.

Food & Beverage

Revenue

Fourth quarter revenue amounted to € 1,068.9m, an increase of 9.7% with respect to the € 974.2m grossed in the last quarter of 2009 (+4.7% at constant exchange rates).

EBITDA

Fourth quarter EBITDA came to € 92.4m, compared with € 85.1m the previous year (+8.6% or +2.2% at constant exchange rates). The EBITDA margin was unchanged at 8.6% of sales.

Capital expenditure

In the fourth quarter, investments came to € 86.5m (€ 52.5m in the same period of the previous year).

HMSHost (North America and Pacific Region)

Revenue
Revenue for the fourth quarter of 2010 came to $ 766.9m, up from $ 728.0m in the same period of the previous year (+5.3%), thanks to a significant upturn in traffic growth in the US (+5.0% for the quarter compared with an average of +1.7% for full-year 2010). The Group confirmed its ability to outperform traffic, with sales up by 7.5% at US airports on a comparable basis. Sales in the motorway channel increased by 2.4% for the quarter, benefiting from a favourable comparison with the fourth quarter of 2009, when locations along the Delaware Turnpike were closed for enovations.

EBITDA
Fourth-quarter EBITDA amounted to $ 84.3m, +6.3% on the same period of previous year ($ 79.3m), and rose from 10.9% to 11.0% of sales. The higher EBITDA margin is explained by the increased sales during the period and the resulting improvement in operating leverage.

Capital expenditure
Fourth quarter capital expenditure totalled $ 53.4m ($ 43.1m in the same period of 2009) and went from 5.9% to 7.0% of sales.

Italy

Revenue
In the fourth quarter of 2010 revenue amounted to € 326.3m, compared with € 312.3m in the same period of the previous year (+4.5%), despite a decrease in lottery ticket sales and a less favourable calendar (no long weekend for the Immaculate Conception and fewer bank holidays during the Christmas break).

EBITDA
EBITDA for the fourth quarter was € 23.1m, a decrease of 15.0% on the same period of the previous year’s € 27.2m, and went from 8.7% to 7.1% of sales. The lower margin reflects the trends described for the full year: a less favourable sales mix, a higher incidence of personnel expense due to wage and salary increases mandated by the renewal of the collective employment contract, and a more intense programme of sales-boosting initiatives.

Capital expenditure
Fourth quarter capital expenditure totalled $ 22.6m ($ 10.2m in 2009) and rose from 3.3% to 6.9% of sales.

Other countries

Revenue
Sales in the final quarter grew from € 166.1m in 2009 to € 175.6m, an increase of 5.7% (+2.6% at constant exchange rates). The airport channel showed the best performance of the quarter, with revenue up by € 5.2m thanks to brisk sales at the Brussels and Zurich shops.

EBITDA
Fourth quarter EBITDA was € 7.2m, compared with € 4.5m in the same period of the previous year (+60.9%, or +48.2% at constant exchange rates). An important contributing factor was the classification under income tax, starting in the fourth quarter, of the French value added tax that was introduced in 2010 to replace the “taxe professionnelle”, which had been treated as an operating cost.

Capital expenditure
Capital expenditure in the fourth quarter came to € 22.8m (€ 12.0m in 2009).

Travel Retail & Duty-Free

Revenue

In the fourth quarter of 2010, sales in the Travel Retail & Duty-Free segment came to € 419.2m, an increase of 8.2% on the same period of previous year’s € 387.3m (+6.0% at constant exchange rates). Such progress was achieved despite the poor weather in the United Kingdom and the air traffic controllers’ strike in Spain, and the Group’s exit from contracts that in the fourth quarter of 2009 had produced revenue of around € 12.7m.

Sales at Spanish airports were up by 7.5%, from € 107.6m in the fourth quarter of 2009 to € 115.7m, against traffic growth of 4.3%. The final quarter upheld a steady growth trend for Madrid airport (+5.1%), while Barcelona (+25.0%) made further advances on its already excellent performance in the previous quarters. Although the final result remained negative (–2.4%), the other Spanish airports confirmed the signs of recovery that had begun to emerge during the  summer.

The inclement weather that struck the UK in December slowed sales growth to 4.0% (+£ 175.3m for the quarter), with Heathrow shops still in the lead (+8.1%) for the period.

In the fourth quarter of 2010, airports in other countries grossed € 87.9m, an increase of 11.8% on the same period of previous year (+14.4% at constant exchange rates). Results were excellent at most of the airports served.

EBITDA

Fourth quarter EBITDA came to € 49.1m, up from € 42.2m in 2009 (+16.2%), and rose from 10.9% to 11.7% of sales.
As stated for full-year 2010, the margin improved due to the higher volumes and better sales mix.

Capital expenditure

Capex in the fourth quarter came to € 14.5m (€ 3.5m on the same period of the previous year), amounting to 3.5% of sales. Shops at Spanish airports, including the new terminal in Malaga, received about half of all investment for the quarter.