Abertis Infraestructuras : 07/23/2014 Abertis reports 5% increase in net profit to €306Mn in the first half of 2014

Abertis ended the first half of 2014 with strong results in its key figures, namely, revenue (+5%), EBITDA (+11%) and net profit (+5%), against a backdrop of increased traffic worldwide and continuing the positive trend seen in Spain in recent months.

Net profit for the Group totalled €306Mn in the first six months of the year, up almost 5% compared to the same period the previous year. Recurrent net profit increased +9%.

The first-half results were affected by changes in the consolidation scope, the application of new accounting criteria and exchange rates, particularly the depreciation of the peso in Chile and Argentina and the real in Brazil. Stripping out the exchange rate effect, the Group's results would have seen an 11% increase in revenues and a 16% improvement in EBITDA.

The Group's ADT (average daily traffic) was up 3% in the first six months of the year, with significant increases in Chile (+4.3%), Brazil (+3.8%) and France (+3.4%), which grew more strongly than the company's forecasts.
The changing trend in Spain was confirmed, with positive figures from January to June. Traffic in this period was up 1.7%, making it the best first half since 2007.

Meanwhile, the Group's internationalisation process continued apace. The international portfolio represents now near two thirds of the consolidated total of the Group. France and Brazil together account for over 50% of the company's revenues.

The EBITDA margin improved in the period, standing at 64.3% compared to 61% in the same period in 2013, driven by the growing effect of the Group's efficiency programme, which is expected to generate total savings of more than €730Mn during the period 2011-2014.

Income statement

Abertis reported revenues of €2,306Mn in the first half of 2014, up 5% on the same period in 2013, mainly due to higher traffic volumes and the scope of consolidation.

Toll road activities generated 87% of total revenues, while the remaining 13% came from the telecommunications sector. Operating expenses were 4.1% less in the period, with operative efficiency plans and exchange rate effects offsetting increases resulting from changes to the scope of consolidation.

EBITDA totalled €1,483Mn (+11%), due to, inter alia, the strong operating performance and the full integration of Hispasat and Metropistas into the Group's accounts.

Debt structure and investments

Abertis' net debt totalled €13,597Mn in the first half of the year. Of this, 63% is secured with the company's own projects (i.e. non-recourse). 93% of debt is long-term, with 86% at fixed rates.

During this period Abertis was able to benefit from capital market conditions for both sovereign and corporate bond issues and continues working to optimise the maturities schedule and reduce the cost of its debt. In total, the Group carried out refinancing transactions for more than €1,000Mn.

 In March, the Group completed two bond issues for qualified investors totalling €350Mn. These 10- and 12-year bonds have an annual coupon of 3.125%. This is the first time the company has tapped long-term financing, yet another indication of its financial credibility.

It is also worth noting the 10-year corporate bond issue in June totalling €700Mn with an annual coupon of 2.5%, the lowest ever for a Spanish issue. At the same time the Group launched an offer to buy back €700Mn in bonds due in 2016 (annual coupon of 4.625%) and 2017 (annual coupon of 5.125%), which were exchanged for the new bonds issued.

The Group's investments in the period amounted to near €600Mn, of which more than €200Mn were invested in Spain. €370Mn corresponded to opex and capex. The main opex projects in the period related to improvements and lane expansions on toll roads in Brazil (€260Mn) and investment in the satellite business (€26Mn).

The Group also invested €214Mn in growth projects, including the acquisition of an additional 6% in Metropistas (€32Mn), the purchase of a further 8.59% in Infraestructura 2000 in Chile (€17Mn), the acquisition of 643 mobile telephone towers from Telefónica and Yoigo (€70Mn) and the acquisition of TowerCo in Italy, a tower operator (€95Mn).

Business performance 

Abertis' toll road business generated revenue of €2,004Mn (87%) and EBITDA of €1,330Mn (90%). Its toll road network recorded a comparable Average Daily Traffic (ADT) of 20,974 vehicles (+3%) in the first six months of 2014.

The telecommunications business generated revenues of €300Mn and EBITDA of €168Mn in the first half. The figures for the telecommunications business include revenues from the mobile telephone tower management business, which increased in size, in the terrestrial sphere. Figures for the satellite business include a larger proportional contribution from Hispasat due to the takeover following the increase in Abertis' stake to 57.05% in November 2013. Before that, Hispasat was consolidated by equity method.

New CSR Committee in the Board of Directors

The Board of Directors of Abertis, at the Appointments and Remuneration Committee's proposal, agreed in its last meeting to create a new specific Committee to analyse and resolve matters relative to corporate social responsibility. The new Commitee will be formed by Salvador Alemany (President),  María Teresa Costa, Susana Gallardo, Santiago Ramírez, Manuel Torreblanca y Juan Villar-Mir de Fuentes. Josep Maria Coronas will be Non-Executive Secretary.