Grupo Aeroportuario del Sureste(ASR) - 2024 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenues increased nearly 18% year-on-year to MXN7 billion in Q2 2024, with Colombia showing top line growth in the 30s [8][9] - Consolidated EBITDA rose 18% year-on-year to MXN5 billion, with an adjusted EBITDA margin remaining relatively unchanged at 69% [11][12] - Net majority income surged 50% year-on-year to MXN3.7 billion, benefiting from a foreign exchange gain of nearly MXN950 million [13][14] Business Line Data and Key Metrics Changes - Aeronautical services revenue in Mexico grew in the high 20s, while non-aeronautical revenues increased low single digits [9] - Commercial revenues increased 7%, with significant growth in Colombia at 40% and record high commercial revenues per passenger in Mexico at MXN154.5 [10][12] - Cost and expenses rose nearly 30% year-on-year, with total costs up 16%, slightly below revenue growth [11] Market Data and Key Metrics Changes - Passenger traffic was up 3% year-on-year to nearly 18 million, with Colombia experiencing a 21% increase, while traffic in Mexico declined close to 5% [6][7] - International traffic saw declines from all regions except Canada, with domestic traffic impacted by Pratt & Whitney engine issues and capacity reductions at Mexico City Airport [8] Company Strategy and Development Direction - The company is focused on expanding its commercial offerings, having opened 45 new commercial spaces over the past 12 months [10] - Key projects include expansions at Cancun Airport and Riohacha Airport, with ongoing project planning and bidding processes [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from Pratt & Whitney engine issues and reduced capacity at Mexico City Airport, which are expected to continue affecting traffic [14] - The company anticipates normalization in Puerto Rico traffic and a recovery in Colombia towards the end of the year [20][28] Other Important Information - The company maintains a healthy financial position with cash and cash equivalents of nearly MXN15 billion after dividend payments totaling MXN6.3 billion [12] - The company is in the final stages of establishing a strategic alliance with a non-governmental organization to prevent human trafficking [5] Q&A Session Summary Question: Update on Pratt & Whitney recall and its impact on traffic - Management expects the affected planes to return to production by the end of September, with stabilization anticipated by Q1 next year [16] Question: Insights on commercial revenues and future openings - Management noted strong performance in parking and car rental, with expectations for continued growth in commercial revenues [20] Question: Realized tariff and concerns about peso depreciation - Management confirmed a realized tariff of MXN326, representing around 95% of the maximum tariff, and indicated that peso depreciation could help achieve tariff objectives [22][23] Question: Traffic expectations for Cancun and U.S. market - Management expressed concerns about ongoing negative impacts on Cancun traffic due to domestic issues and potential U.S. election-related effects [34] Question: CapEx expectations and split between MDP and non-MDP - Management indicated that the MDP for the year is around MXN3.8 billion, with a slow start to spending due to project development timelines [31]