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Retail

WH Smith confident as passenger growth lifts travel outlets

Good passenger traffic boosted international airport revenues

WH Smith Plc (LON:SMWH) posted flat interim profits as good growth in travel again offset a lower contribution from the high street.

Revenues from outlets at airports and rail stations rose by 7% with profits 5% higher.

READ: WH Smith sales fall as struggles at high street stores persist

Good passenger traffic boosted international revenues. Smith now has a presence in 48 airports in 27 countries.

On the high street, stationery did well said chief executive Stephen Clarke but there was no repeat of the boost from the surge in humour book sales in Christmas 2016.

Profits overall in the six months to February dropped 1% to £82mln with revenues unchanged at £643mln.

The dividend goes up by 10% though, which Clarke said reflected confidence for the remainder of the year.

Between 15-20 new travel outlets will open in the UK this year, while contracts for a further 26 international outlets have been signed.

Costs on the high street have been cut by £12mln so far, £3mln ahead of plans. Smith has 610 stores currently.

“While there is some uncertainty in the broader economic environment, we have made a good start to the second half of the financial year, increased the interim dividend by 10% and are confident in the outcome for the full year," said Clarke.

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