See Search Box
lower down this column for searches of Finfacts news pages. Where there may be
the odd special character missing from an older page, it's a problem that
developed when Interactive Tools upgraded to a new content management system.
Welcome
Finfacts is Ireland's leading business information site and
you are in its business news section.
Ryanair announces full year profits to March 31 2010 of €319m after tax - - an increase of 204%; First dividend of €500m to be paid in October
By Finfacts Team
Jun 1, 2010 - 7:11:54 AM
Ryanair today announced full year profits to March 31 2010 of €319m after tax, an increase of 204% over last year's €105m profit. The airline also said it proposed to pay its first dividend of €500m (€0.34 per share) in October, subject to shareholder approval at its September AGM.
The low fares airline said it is proud of delivering a 200% increase in profits and traffic growth during a global recession when many of competitors have announced losses or cutbacks, while more have gone bankrupt including, Bluewings (Ger), Globespan (UK), My Air (Italy), Segal Air and Sky Europe (Slovakia). Revenues rose 2% to €2.99bn as air fares fell 13% while traffic grew 14% to 67m. Unit costs fell 19% due to lower fuel and rigorous cost control. Ancillary sales grew 11% to €664m slightly slower than traffic growth, and amounted to 22% of total revenues.
Fuel costs declined 29% to €894m as oil prices fell from $104 to $62 per barrel. The airline extended its hedging program to 90% for FY 2011 (at $730 per tonne), 50% of Q1 FY 2012 (at $750 per tonne) and 20% of Q2 FY 2012 (at $750 per tonne). Excluding fuel other unit costs fell by 3%.
Ryanair said capacity cuts by many European flag and non flag carriers caused traffic to fall at many major European airports. "We are inundated with offers from large and small airports competing with lower costs and efficient facilities to win Ryanair's growth. Our airport and handling unit costs fell by 9% despite steep increases at Dublin and Stansted. New routes and bases launched this year will ensure that despite a scandalous (up to) 40% increase in charges at Dublin airport, our airport and handling unit costs will decline again in FY11," the airline said.
It said the balance sheet has strengthened as cash has risen by €535m to €2.8bn. The airline said it took advantage of recent historically low rates to lock in many of the 2009/2010 deliveries at an all inclusive long term interest cost of under 4% pa. It is fully financed for the remaining 34 deliveries out to January 2011.
Ryanair said its long term dollar hedging strategy for capital expenditure (capex), which extends to the end of 2011, means that it will be purchasing aircraft in 2010/2011 at exceptionally low euro prices with a €/$ exchange rate of 1.46, significantly better than current rates.
Ryanair (Buy, Closing Price €3.38): FY10 Results First Glance-Guidance top end expectations; Goodbody's Eamonn Hughes commented -- "Ryanair is guiding passenger growth of 11% for FY11 to 73.5m pax, with yields up 5-10% for the year, which is reasonably strong guidance this early in the year for the company. However, it does state that Q1 will be adversely impacted by weaker yields in May and June, due to the volcano disruption and the partial inclusion of Easter in Q4 last year. Presently, we are forecasting yields up 8% for the year, so look to be in line with the updated guidance. However, the updated yield guidance is likely to be at the punchier end of forecasts.
On costs, Ryanair is indicating that it has now hedged out 90% of FY11 fuel at $730/mt and 50% of Q112, as well as 20% of Q212 (both at $750). It is guiding unit costs up 4% yoy (down 6% on a sector length adjusted basis). For FY11, management is guiding net profit of €350-375m, excluding exceptional costs from the volcano disruptions, which they estimate at c.€50m. Our pre-volcano figure at the moment sits at the top end of that range (€377m) and we get good comfort from this statement."
