Economic results 2017

The year 2017 has developed in a macroeconomic context, characterized by sustained growth for the fourth consecutive year, which has stood at 3.1% of GDP, and which we can describe as significant and which has allowed, in general, to improve the level of services provided, occupations and visitors to the facilities, in the set of activities managed by BSM.

The unfortunate and serious events of August and the turbulent political situation that has occurred throughout the last quarter of the year, have affected unequally the various activities managed by BSM.

In this context, the services related to mobility present a positive evolution of the activity in Parking, Bicing and Zone BUS and negative in AREA and CRANES, in relation to the services of leisure, the evolution is positive in Parks and Olympic Ring, and negative at the Zoo, affected by the major improvement works that are being carried out.

INVESTMENTS

The execution of investments financed by BSM has amounted to 9.2 million euros, and those executed commissioned and financed by the City Council, amounting to 2.2 million euros, resulting in a total investment executed of 11.5 million euros.

Balance sheet and individual income statement of B:SM

EVOLUTION OF INCOME

The evolution of income, in thousands of euros, by activity is as follows:

In 2017, there was an increase in total income of 0.9% compared to 2016.

Revenues from the operation of car parks have increased by 5.4%, as a result of the increase in revenues in all its modes of rotation and wardship.

The income of the Municipal Service of AREA decreases by 3.2%, as a result of the decrease of places of 5% in Blue Zone and reduction in the occupation of the Blue Zone Tourism.

The Municipal Crane Service shows a decrease of 0.5%, given the reduction in the number of vehicles charged with 2.9% and increases in revenue for detachments, scrap sales...

In both municipal services it is necessary to indicate the evolution of the rate of rates that present / display a freezing of rates in the AREA from 2009 to 2017, excepting in 2012 and, in the case of the rates of CRANE, a freezing in the same period with the exception of a decrease in rates of 2% in 2012.

Revenues generated by the activity of Bus Station have increased by 1.8%, given the increase in regular shipments billed in all sections. The number of coaches using the Park Güell Logistics Platform is also increasing.

The individualized public transport service by bicycle (Bicing) is owned by Barcelona City Council and is managed by BSM through a management assignment.

In 2017, the income of users of the individualized public transport service by bicycle (Bicing) was 6,259 thousand euros (5,862 thousand in 2016), which represents 6.8%, mainly for the income of the Bicing-Mechanic , and to a lesser extent, the Bicing-Electric being in 2016 the first full activity year.

Zoo revenue has declined by 9.4%. During 2017, 870,370 people visited the Zoo, 13.6% less than the previous year, basically due to the state of the works and the events mentioned. The number of Zoo Club members has dropped by 19.9%.

The level of income from the Olympic Ring has decreased compared to the previous year, by 14.4%, given that there has been less activity in the two most important facilities, the Olympic Stadium and the Palau Sant Jordi, given the exceptional activity of the 2016 financial year, as well as the unforeseen cancellation of some concerts.

Revenues from the management of the monumental area of ​​Park Güell have increased by 3.8%, given the increase in visitors by 5.5%. In 2017, a total of 2,988,616 paid visitors entered, compared to 2,802,414 in 2016.

In the Parc Fòrum and Parc Montjuïc, revenues have decreased by 9.2%, as more discounts have been made on the most important events and fewer films have been made in the spaces of the Parc Fòrum

BSM Group

At the end of 2017, the Company managed other municipal services and activities indirectly, through participation in other companies. The details of the companies inside and outside the scope of consolidation can be consulted here.

Consolidation has been carried out using the global integration method on companies that are within the scope of consolidation and has a majority shareholding, ie a shareholding of more than 50%. And for associates (participation of more than 20% and less than 50%), the equity method has been applied.

Balance sheet and consolidated income statement of B:SM and subsidiaries

PREDICTABLE EVOLUTION OF SOCIETY

In the macroeconomic context and given the strong growth of 2017, it is expected that 2018 will present a slight moderation of growth that will continue to improve the level of services provided, occupations of facilities and visitors, as a whole of activities managed by BSM, although with unequal expectations according to the different activities.

In terms of costs, they are expected to increase, compared to 2017, given the expected cost of actions to improve and conserve the architectural heritage and in the surroundings of Park Güell, as well as other maintenance and improvement repairs and higher staff costs.

As a result of the evolution indicated in income and expenses, it is expected that the 2018 result in all the activities managed will decrease with respect to this 2017 financial year.

The total investment action budgeted for 2018 amounts to 33.1 million euros. BSM’s own investment is expected to be a total of 24.8 million, of which 10.6 million euros correspond to the activity of the AREA for the renewal of parking meters. The City Council is expected to invest a total of 3.3 million euros, of which 1.1 million euros corresponds to the Comprehensive Reform of the Zoo and 2.2 million euros to the gardens of Menéndez Pelayo. And, a total of 4.8 million euros of works will go as an expense, among which stands out the continuation of the remodeling of the surroundings of the Park Güell for an amount of 2.9 million euros.