UK. Manchester Airports Group, which owns Manchester, London Stansted and East Midlands airports, today posted an +11.2% rise in retail revenues to £181.6 million (US$240.4 million) for the year ended 31 March 2018.
That growth outstripped a healthy +6.7% rise in passenger traffic year-on-year.
Car parking saw a +14.8% revenue rise to £187.2 million (US$247.8 million) and property revenues were up +4.7% to £44.4 million (US$58.8 million).
MAG noted that it had achieved a +4% increase in retail yield despite “challenging” conditions, particularly in duty free.
Overall the company posted its seventh consecutive year of growth in adjusted EBITDA (+5.8% to £358.8 million/US$475 millioni), driven principally by the traffic increase.
MAG also noted the development of its own technology and e-commerce business, MAG-O. This is focused on building a single online platform that will enable passengers to buy car parking, fast track, lounge and retail in one seamless online transaction, the company said.
The American business, MAG USA, has continued to grow, with four Escape Lounges now open, and a fifth recently announced at Greenville-Spartanburg Airport, North Carolina. The business is expecting to announce more airport partnerships in lounges and car parking in due course.
MAG CEO Charlie Cornish, said: “The world class connectivity that our airports are delivering will ensure that MAG continues to play a leading role in powering the UK economy. Manchester and London Stansted are the two largest UK airports with significant runway capacity and our investment will allow us to meet continued demand for aviation growth both in and out of the UK.
“The Government’s support for airports looking to make the best use of existing capacity provides a clear framework for growth, and it is critical that it now matches its backing for Heathrow expansion with specific and practical proposals to improve rail access and maximise the potential of airports like Manchester, London Stansted and East Midlands.
“As the UK prepares to leave the EU, we are confident that the UK Government and the EU recognise the importance of providing confidence to passengers and airlines, and we welcome the commitment from both sides to putting in place a framework that will enable air services to continue post Brexit.
“Looking forward, our resilient foundations, healthy financial position and attractiveness of our UK airports will ensure that the business is well-placed to respond to any challenges that may be felt by the UK economy in the future and we continue to take a positive long-term view of our prospects for growth.”
