Table 3.

2010 UK Tobacco Industry actual Profitability^* and Profits with Regulation

	Imperial	JTI	PMI	BAT	Total**
Market Share (%)	44.3	35.2	7.9	7.6	95.0
Revenue (£ million)	£911.0	£889.7	£162.4	£156.3	£2,119.4
Profit actually made (£ million)	£614.0	£345.0	£81.4	£48.2	£1,088.6
Profit rate actually achieved	0.674	0.388	0.501	0.308	0.514
Profit when capped at 20% of actual revenue (£ million)	£182.2	£177.9	£32.5	£31.3	£423.9
Implied reduction in profits from 2010 level (£ million)	£431.8	£167.1	£48.9	£16.9	£664.7
Profit when capped at 12% of actual revenue (£ million)	£109.3	£106.8	£19.5	£18.8	£254.3
Implied reduction in profits from 2010 level (£ million)	£504.7	£238.2	£61.9	£29.4	£834.2

Source: Authors’ calculations using various sources as outlined in the text.

^*Actual profit figures for Imperial, remaining profit figures are estimates as outline earlier in the article.

^**Total market share doesn’t sum to 100% since we are assuming that the profitability of the companies comprising the remainder of the market would not be affected by the imposition of price caps