OMAB - Earnings call transcript Q3 2020 | Grupo Aeroportuario del Centro Norte, S.A.B. de C.V.

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Operator

Good morning. My name is Emma and I will be your conference operator. All lines have been placed on mute to prevent any background noise. This is OMA’s Third Quarter 2020 Conference Call. There will be a question-and-answer session after the speakers’ opening remarks and instructions will be given at that time.

receive will please e-mail not department OMA’s did they and it you the contact report, IR If to you. this from not that only on. the note call investors recorded for Please and call and be questions taken, the be will media nor should is analysts OMA’s now would Camacho, turn Officer. over to the I Relations call to Emmanuel like Investor

Emmanuel Camacho

and on a earnings will you, that expectations subject over the maybe course which Ruffo actual factors during discussion this Chief to Dueñas. impact and are OMA’s welcome Emma. by standing beyond of and OMA’s beliefs Financial Chief number results Good Thank call Pliego, third current including control, be made Ricardo morning of Dueñas, management now quarter turn Pérez morning, XXXX that conference constitute today to are XXXX our may Officer, could for to and Executive joining that the our reminded to Ricardo and everyone. Please forward-looking of will risks statements uncertainties statements results. materially, cause COVID-XX. Officer discuss Thank you I be quarter call. the third differ certain will based includes OMA’s and which

Ricardo Dueñas

the I Emmanuel morning, us will good you and the review your challenging third and results impact during you, evolution that caused current and you, on family scenario and This for its quarter. everyone the today. our thank Thank and morning joining your hope by safe during our business I friends healthy. COVID-XX of are

third government. capacity compared airline the in reached determines a of a allowed clear evolution as of Total recovery XXXX, recovery also quarter economic health challenging, passenger sign operate. a increased of a X.X level quarter authorized the of traffic of the results type traffic XXXX. on and but gradual reactivation quarter increasing a Mexican XX% Beginning overall continue million to quarter be activities and second by to the June, XXXX. gradual third reflected versus of of which XXX% resulting in the of Our result traffic showing decline The quarter, authorities improved as by an passenger in the second of our the the region, the traffic in the activities Mexican is to system quarter versus alert light by established but

consequence, level and states a the of the As where yellow the in different of states X yellow. OMA operate. X sorry in operations, of we and June, X reactivation allowed orange status – X activities has economic each type the are Currently, in since are states in where and and

We airlines passenger evolve more increase of temporarily that XXXX will in routes expect positively through regions to in end their September end in to levels total in help the frequencies risk the currently as XXX. of continue Mexico and XXXX. suspended. traffic continue origin compared offered which and At the operation decrease September, and are lifted, to at of will the travel the operation more at routes is were of of a June routes operations number XX seats their destination reactivation XXX Today, are restrictions epidemiological XXX the end the

on today, air not As any Mexico issued of restrictions has travel.

we However, passenger spread may in the operations if COVID-XX a issued to the of government decrease counter additional our measures to our if traffic. significant or restrictions experience stricter, become

any order to health maintained health adopt authorities of terms and our additional close aeronautical have continuous protect a we In working our with passengers in to our in measures safety and communication and personnel and protocols, airports.

the passengers World accreditation benefit Tourism when from by airports and were our airport Council our their order granted of airport our Monterrey visiting airports. and the safe travel all International. customers, quarter, Travel the regarding standards Council of the of confidence was health In number our to third a implemented have in also certification and employees We given for Airport granted travel the safe increase

On maintain cost our to the strict expense we side, efforts control. continued cost with and

cleaning passenger security reduced have airports. consumption electricity our well costs and as the temporarily levels optimized on based traffic at as and We operations we current

September and and decision quarter, us bond was maturity about expect the cash levels of made will to to we allow billion, our quarter. refinance first the During during we XXX of organization. position to various all a of of headcount MXNX operating difficult positions reduce obligations which across investment our the XXXX the At meet XX,

reached quarter million of operation results, quarter, to passenger XXXX. third the down quarter in total XX% X.X compared third OMA’s passengers to third traffic Turning the

seats passenger due total margin Conversely, on experienced Monterrey and of that However, compared Culiacán in quarter. to recovery and on as reduction impact the the expense passenger our routes; airports activity which the offered relative a traffic. our positive terms perspective, traffic with by under Chihuahua quarter were of The our the our a performing optimize percentage its to route-by-route City, Culiacán, had the Mexico second in structure clear Acapulco, there in quarter XXXX, of number decline in airlines the flights third reflecting million Mazatlán, travel airports, routes Chihuahua to on MXNXXX the reached an lowest the third negative or grew suspensions Mexico of XX.X%, evolution City Cancun path is efforts the passengers and to EBITDA quarter, during of frequencies Ciudad XXX% EBITDA Júarez, air in control in quarter or Zacatecas. routes. and were and cost Adjusted Guadalajara greatest adjusted best of

quarter. parking, the of with rents. as space revenues restaurants, which front, with and main largest traffic where rate the XX% in was line rentals passenger fixed airports on generated XX% commercial for reductions from at or in decreased and our our were revenues at impact most retail, minimum decreased Occupancy car revenues commercial the the terminals On decreased end

a which applies December we and performance to passenger for July XX% mainly Diversification which based decreased lower revenues revenue implemented services. from from quarter, to the through hotel on support offer XXXX. tenants, traffic our due discount program During we

XXXX, – was third the at restarted strategic X, the rate while quarter X Airport, MDP occupancy in July of our Terminal during million. Total maintenance quarter quarter. Collection the major investments, during the operations of Hotel on XX%, Inn the an Monterrey and had including During were Garden rate investments quarter, the which Hotel the Hilton NH XX.X% occupancy of MXNXXX investments,

building; remodeling and projects terminal Monterrey underway I expansion of turn the expansion Ruffo C expansion quarter. remodeling building; call terminal Airport major of discuss like in to works highlights over and the in and the Pérez for would Our now Pliego include Terminal who Zihuatanejo Tampico A; and Terminal on modernization to platforms the runways, of Monterrey; airports. will taxiways aviation financial several our of

Ruffo Pérez Pliego

Ricardo. questions. everyone. call morning, the you, open for briefly Thank will review I our Good will your we results financial then and

revenues the traffic the decreased OMA’s results, from parking, XX.X%, The fixed revenues largest commercial Aeronautical average is revenues XX.X% result the was Diversification retail. hotel lower to and and impact. XX.X% compared largest financial decreased third XX% a XX.X%, quarter as Monterrey minimum driven declined Parking decreased Turning of XX.X%, at rentals revenues XX.X%, in as revenues recovery Non-aero decrease with respectively and decreased from XX.X%. mostly restaurants, were impact revenues XX% the as with by the or rents. decrease retail rentals Commercial slower car having generated with mostly car traffic. airports. revenues of decreased Restaurants, passenger most by driven our the other Airport revenue services. categories

required were MXNXXX non-aeronautical revenues a It to total assets. a result, applicable concessioned construction under is of is This XX.X%. million. to that and is aeronautical item equal As cost revenue standards. increased accounting Construction improvements non-cash

expense services X.X%. of earnings. The So, G&A impact it decreased has and no on cost airport

to quarter, areas the consequence a of terminal all temporary recorded and nonessential cost as electricity, on services maintenance of mainly our minor During reductions savings operational in our deferrals subcontracted of in works. buildings. XX.X% We decreased due

quarter, adjusted reached during expense EBITDA OMA’s XX.X%. severance MXNXX line related for recognized to EBITDA other the quarter was Additionally, and million in adjusted of MXNXXX the item million reduction margin third payments headcount. and the we the cost

generated our a at MXNXXX please million operational end the prepared lower the quarter to remarks. quarter the at During amounted net third financing questions. the for MXNXX MXNXXX the was Emma, quarter, million operating open Cash in million. of and due billion. concludes MXNX call mainly to stood from expense consolidated our result. Cash the was income activities This

Operator

Thank you.

your question question. Please We first Mauricio will ask now Instructions] company conduct a Q&A comes session. [Operator of from line and name state your Our the Martinez.

Mauricio Martinez

if bookings good sense morning. XXX would I may. to terms regarding and my on next for That that airlines question. understand for little bit the seats the active give capacity, total translate allocation the or advance how if question should you from capacity if you Well, months? in routes be quarter a into question hi, taking just advanced you can seeing the Thank recovery is you my for are mentioned I the I like us first how may. maybe fourth Hey, my and of will evolves

Ricardo Dueñas

difficult a because answer, affects routes, question a It’s variable Mauricio. that to of Hi, only number are seats.

seeing the number routes in What in XXXX are are of the We have for that for suspended still so we would calendar XXXX, frequencies the XXXX also now. decline estimate in below be overall is about above traffic XXXX but do now than year. XXXX existing year increased we we slightly can right whole versus expect that will You future. is levels, and a next whole the experiencing recovery what lower that to in XX% either be relative or as recovery XX% of their traffic routes

Mauricio Martinez

and of – more maybe has I question, the is the in is in mentioned be us the if on you this give or such the if the renegotiation, second date rate, there helpful? discount can change you And renegotiation, for can an you. for color going quarter us second government the the around give CapEx Thank at maybe expected there very with moment update outcome second any if been in how talks Perfect. you that would if that in MDP may, any a an if regarding

Ricardo Dueñas

as Sure, Mauricio. This program year. authorities you our delivered this the we MDP know, is in Ricardo. June to Yes,

is next too end We the billion We X the tell of we to original from previous MDP process. required It’s the years we the the for say, CapEx have are by MXNXX I adjust billion. end should already that mentioned where by MXNXX.X can early calls authorities. – December, still to we the in in approved our we up. you What will did

are we we with results. our in happy been the far, of the X our So with XX have – very visited been they already conversation airports has and They have good. have authority

traffic on years. are the for We working projections next XX still the

process. around as of discount months expecting previously rate next be the in mentioned We we couple some are still of this will XX% key and

Mauricio Martinez

you. Thank helpful. Very you. Thank

Operator

you. Thank

question your Ruben state next ask please go question. your from comes Lopez. name Our Ruben, Please ahead. and company

Ruben Lopez

Can hear you me?

Emmanuel Camacho

Yes.

Ruben Lopez

Hi, Okay, My discounts of perfect. commercial from the good the is you much were with magnitude quarter morning. passengers. any Commercial the line first I quarter? related Ruben mentioned, question upcoming discounts guess despite am for going more pretty second and much that Q in revenues Santander. I in revenues. but it’s idea forward give the us to the trends can of you the on

Ruffo Pérez Pliego

Sure.

main decline there that During three revenues. in commercial the are quarter, the third explain items

you As XX%. declined they saw,

mostly accounted the However, the decline total the quarter. revenue big component. was in the decline the was Parking of passenger of Monterrey in revenue at airport. XX% traffic decline level the line parking commercial with XX% for That

of that from discounts we of our contracts finally some about also in the fixed and The in We little sharing XX% sales mentioned, provide in have from for of of had decline. another tenants sales participation and accounted decline did for the we, through total rents several revenue the that accounted And reduction. of XX% as the retail some percentage restaurants.

up up of and XX% if revenue ‘XX. the fixed quarter revenues relative the total parking, add discounts, in to So, reduction they you three XQ of add lower items, to these rent about participations

Ruben Lopez

that XQ sense? of the there And about an – when think I be or mean, expect or discounts same part we we for improvement discounts for quarters, the should should the should in the upcoming

Ruffo Pérez Pliego

Part I the traffic the to of should an be decline. component related there discount think improvement. has

well. that extent the to as becomes reduced as XQ lower the the would expectation, the So, amount it traffic decline in of is discount be

we fixed in in So, relative expect to lower rents XQ would discounts XQ.

Ruben Lopez

in severance Prefect. or is this we should mentioned just that last were XQ? there you quarter, impact some in a another just expect costs the And one-off this one,

Ruffo Pérez Pliego

headcount we for a of our relative No, they are in and traffic the the one-off right-sized to recovery organization now months. following have the expectations

So to you another shouldn’t forward. similar this going expect charge one

Ruben Lopez

Thank you, Ruffo.

Operator

Ruben. you, Thank

and name your Our Zamacona. the next of question. question comes company from Alejandro ask Please line your state

Alejandro Zamacona

from Zamacona Alejandro Thank Suisse. Hi, This you. everyone. Credit is

that Just but expected in already in the fees? can for you the I CapEx of of I know a mentioned was follow-up question airport expected on outcome the the maybe fees? wondering expected what’s terms the about negotiation MDP, and rate, if airport outcome, the comment terms discount outcome you

Ricardo Dueñas

Thank you, Alejandro.

changed. It much in increase the we expect. slight hasn’t a expectation reasonable has Our pretty to – same would remained tariffs something believe is

As you will projections. know of projections the of result traffic this be CapEx, OpEx,

and We around remains our would there expectation to early positive. it’s are same, the land, too still where but somewhere in process and we the slightly confirm

Alejandro Zamacona

Okay, thank the make the I were may And participating you up M&A, just that in in you. Barbados of I question, if recall second airport. terms

airports. say bid going you. status could that the forward you on give if potential for fair further international So, to also of this current expect please it’s some we color Thank and if bids

Ricardo Dueñas

Alejandro. Thank you,

pre-qualified Barbados concession bidders the So, the yes, for airport. part are of in we process currently

one are next that’s diligence is The in yes, submission and bids know what of due options internationally. January we currently many. start far, That’s is – are expected of phase always June evaluating of the and to We toward so expected year. we

Alejandro Zamacona

Thank Ricardo. you,

Operator

Thank you, Alejandro.

question question. name full unmute remember asking ask company your yourselves and next before order XXX. Please question. your comes to Please to in from telephone your Our line state the ending name

Steve Trent

can Hello, me? Hello. you hear

Ricardo Dueñas

Yes.

Steve Trent

Hi.

Sorry much questions. very Trent about taking is you for Citi. my This from the confusion. Thank Steve

kind given about answer majeure MDP what issue thinking just of could this. this COVID-XX? memory, really the some missed with current Could a has of of Just kind happened side force year I me quickly, receive to if But rebalancing, what’s of some you sort and the kind protections? my MDP, you refresh degree forgive on your

Ricardo Dueñas

Sure, you Steve. that particular really with it the question. negotiating Thanks X%, table MDP Yes, apply are next a at doesn’t X there are to the we a as seated for the authorities. by much clause is In GDP already as rebalancing if subject for the case, decreases the our years.

– sitting at So seated at anyways. we the table are already

Steve Trent

just question, respect the with to to of pay any airlines, And or given structures on or any from some of perfect. carriers of airlines? requirements the in do Okay, your one state to special advance had other for has receivables OMA host deposits quick anything any

Ruffo Pérez Pliego

main the these have Managing they posted do airlines areas receivable today. credits our is certainly prepayment that portfolio of have and airlines typically guarantees the under with focus one us. to collateral of days provide that of are To extent only collaterals, We mechanisms. not adequate adequate

exposure our So to that we airlines creditworthy. aren’t those minimize

So airlines. that’s we manage how our receivables with

Steve Trent

guys Okay, all very stay helpful. That’s I had. Thanks healthy. much and very

Ruffo Pérez Pliego

Thank you.

You too.

Operator

Thank you.

Please your comes Our question. your next your company Rodolfo before before asking yourself Ramos. remember name question Please from question. unmute state asking to

Rodolfo Ramos

Sorry, you now? me hear can

Ricardo Dueñas

Yes.

Rodolfo Ramos

Perfect. Ramos Yes, this BBI. Bradesco Rodolfo from is

levels That’s this reset what higher year first quick for level? my contemplating it’s next a say, the something OpEx a Just have X staying am we let’s tell sorry seen I a, – of see we a If kind follow-up with years? or in on to but line what could question. Can here. here and just us about MDP, the are you for you

Ruffo Pérez Pliego

Rodolfo this is Ruffo, of the I reflective OpEx year is would this that situation. not long-term say,

made certain reduce the [indiscernible] the certainly, have you subcontracted negotiated of picks as demand level of areas our and will efforts that closer contract. in We be to XXXX. OpEx that services significant operational to we up, saw But

expectations, a pick-up would be there OpEx our forward. going in in So

Rodolfo Ramos

bookings can bit I airlines the is, the there? if And don’t seeing for us a anything know my are have is or of period far preview December know Perfect, any a next holiday. question you thank go anything you visibility give little conversation as that I you. that with or encouraging as with there don’t if the

Ruffo Pérez Pliego

We specific have data bookings. don’t on

largest they several intend of largest the do some December airlines, open in and to domestic with airlines talks in routes holiday are season. the We

system. from mean, that traffic But I So there the light have it the mentioned is we and domestic expectation we – so and far COVID is risk seeing that the positive, are obviously airlines. as we you these of

the will traffic economic the light – at people is mobility reactivated based and So on see of day, end we how government. that system form activity the by

Rodolfo Ramos

booked I may, that the dollar Perfect. expense Thank quarter, to And your balances? you if FX the that is related last one just you. in

Ruffo Pérez Pliego

That is correct.

We cash. million about $XX have in

the a in P&L. either rate the value that loss changes gain So to in or FX our of a the

Rodolfo Ramos

Those my thank Okay, were questions. you.

Operator

Rodolfo. you, Thank

next of asking the before unmute Our name your [indiscernible]. company question your question. ready. your state line Please if from Francisco comes Francisco, remember go are to before please asking Please question. you ahead, yourself

Francisco Suarez

Ricardo, the and break to relates you – liability carriers XX% for this you And management. Suarez have on I two Francisco account Currently, has curve yield you receivables Sorry below thank have Scotiabank between can [indiscernible] amount of the in call receivables, for Ruffo. from quick that tenants follow-up levels you terminals? the down mark. One, hosting that. It’s questions. a the Emmanuel, the question on to to overall current your second the go and

news is that so markets, us what that? the to can a you tell great debt on much. potential think Thank you I tap you for considering

Ruffo Pérez Pliego

is refinance This of have the Starting Once second to quarter MDP maturing known. question, year. first your this with committed Ruffo. the tariffs and in Francisco. intention Hi, CapEx we is debts our

So around receivables, and current market such customers. to is will to customers the have related we to type time [indiscernible]. short-term in another or airlines And refinance be what are I a whether of are related timing refinanced would expectation term and with it that. [indiscernible] it’s regarding will [indiscernible] And that based is as best say XX% inside the on XX% levels other and diversification we at financing, that question believe the see but that our to or that

Francisco Suarez

Thanks Fantastic. so guys. care, Take much.

Operator

Francisco. Thank you,

and ending go Please before on to full asking unmute yourself. you asking line Please name telephone the if before name your placed question. your your state yourself question. unmuting ahead next remember mute with Our have question after yourself comes XXX. question company Please from your

We Marco your the yourself mute question. placed Please Please XXX. on name for of line state from next will yourself remember from return later your Montanez. if the your have The company asking asking you comes the ending question. question before line to question unmute before

Marco Montanez

can hear you Hi, me now?

Ricardo Dueñas

Yes.

Ruffo Pérez Pliego

Yes.

Marco Montanez

Thank apologies. everybody. Marco call Please are with I safe my equipment. Thank you morning. hope and you. problem for accept you Good is the a This and from have the Hi I healthy. Vector. Montanez

the there absolute If quarter. is Thank saw third give effect understand more the if the about MXNXXX a decrease in But the follow-up to what we the for during per around a non-aeronautical to next I we about make me for of an to revenues number? you significant fixed great. quarter allow quarters you. And you MXNXXX That component the from compared terms passenger, almost be will can it. revenues. for should this expect color second

Ruffo Pérez Pliego

and at of XQ not is the this pax on a had is that per situation, to time, think recover. passenger low given looking starting very basis reflective in you XQ, base a I

tenants commercial profit, level revenue to line revenues, that performance the by sharing is expect absolute Monterrey of in think of larger as and see I that of revenue what would true to and some Q item some some is commercial lower per in in that of discounts. possible, a be the our reflective But We generation would the of soon we we performance. traffic XQ goal back XQ trend terms levels quarter first overall expect last revenue, parking mirrors pax. to as revenue our had definitely or of would

Marco Montanez

thank Ruffo. you Okay, very much,

Operator

you, Marco. Thank

Abdalla. you. of with the Please go line ahead Thank from company Fernando your name. next your after question stating question Our comes

Fernando Abdalla

Hi, JPMorgan. have I It’s Abdalla good actually morning with two Fernando questions. guys.

hear losses you bit my discuss idea but in COVID that the more Usually X% the to are of the is, be GDP incurring rebalance this and last first to back, that given due view, little a probably the concept clause word the the companies all The that can have. right. these gives will rebalance, months we brackets reduction reset the between of

of that make understand, this is or And I the guys you way if stop value if mechanism mean MDP rebalance work, net just kind will would way you and want eventually So the now these bleeding, have how sure right. to present zero. guys this I see the the clause

losses the months that in see how be you it? not the have will you all last the is So incurred with pandemic recovered, that

Ruffo Pérez Pliego

be program, to broadly look specificities just an agreement our table. that the significant very after tariffs But ends going mentioned that obviously we will parties as regime, negotiating a The GDP of clause year, particular going includes states authorities – lower like. Ricardo case, year. X% that the end there reflects not clause COVID-XX. will are it forward we the passenger and compensation we no a this the how the now do earlier, bad recovery with and at and the a not is is have that resulting that performance since traffic get that this decline But traffic right would In drafted, tariff of for CapEx forward backlog expect from MDP situation the the the our the there reduction, expect we that back committed would

Ricardo Dueñas

in your going And stops to mean – to It forward. bleeding expressed bleeding just actually I Fernando, that not stop does the going point, it up backwards. terms, as the add

So concessionaire. positive that That’s in seated because already MDP the for good lost news. works the the up adjust government the It’s our the this already the new for us at why for point it’s at next is it’s us the being compensates not negative, you good table, projections what to the reality or so a you negotiate years. once into it you we any that past, mechanism news coming exactly

Fernando Abdalla

backwards as That’s I sometimes sure Yes, make that forward And agree means right. how is impact, and a said, sets it I and I zero well. as thought pretty we but what rebalancing no, much new not is rebalancing hear because you XXX%. terms to want

to Just make sure wanted

Ricardo Dueñas

That’s correct.

Fernando Abdalla

and what you if VFR talk if leisure, I sense that Monterrey. idea recovery very obviously me on was greater between wrong, the of give all leisure, case Ricardo. second breakdown traffic And question have between international, of expectations could a be if business about I thanks. you is about that our domestic, give wondering you us am the is correct if would Okay, have in simple, exposure I could helpful? traffic us information to we between would some imagine you this just to a business. front business

Ricardo Dueñas

Sure.

give that. on Just background to some

Visiting quarter, since And traffic We most and domestic business. be XX%, most in expect that likely that with already I the pickup of it’s we will much that for – Relative, will Then, some are that’s Friends in leisure, seeing start of would then seeing VFR, actually in almost already we first this XX% faster than good of and faster airports. think the we international, you for our recovering domestic. OMA our recovering start of news traffic is that will the our of business can leisure be you seeing airports. than And some see mixture

We are already capacity in airports are compared have mid-XXs. which around airports which like Mazatlan an like, to operating for XX% example, the other Tampico some

Fernando Abdalla

look it? one, if if And a airport in last would you consider at quick becomes Tulum to perfect. reality, may, this one guys I Okay,

Ricardo Dueñas

in understanding, operators There there – that little we From military. that press intended seeing information no operated the very higher airport. is we’ve military to our by few that it’s and government what airport. by the is actually be the in intention it’s constructed been private What from know we to the regarding

Fernando Abdalla

day. good a Have thanks. Okay,

Operator

company you, return Thank question. name before [Operator asking Please line from now name will to Instructions] and the state the full question your ending Fernando. We your XXX.

un-mute can your you remember now on We before have mute, question. please hear to asking yourself yourself If placed you.

Andressa Varotto

hear you Can me?

Operator

Correct, can we you. hear

Andressa Varotto

Andressa is traffic. this from UBS. a Hi, previous the follow-up quick just good. I have regarding question Okay, on

rest seeing underperforming domestic ground. you that has As the airports underperforming your of and peers of Monterrey still some on are kind mentioned been OMA’s of traffic the we some

attribute do you it could or traffic I this to the for our business exposure more to example, So, mean mix, airlines. be

is on your what what going this and forward? expect view you So

Ricardo Dueñas

various a Monterrey industrial of Certainly is is heartland the it mix think I of build. things.

system. state level gone few recovering segment a that think pace lower states traffic at to is The been risk basically factor example. that other had yellow. the than of now to incidence of big And Nuevo quite as that light down code Leon lower a has have other is in VFR So opposed for orange the I for months has a

think a for eventually I that activities having allowed the So to or a be code Green economic Monterrey that recover. code yellow traffic that to by would the more are extent catalyst

Andressa Varotto

That’s very helpful. Thank you.

Operator

state our your next asking question. question company your name take line of Please will the before from Monsivais. We Pablo

Pablo Monsivais

you Can hear morning. me? good Hi,

Ricardo Dueñas

Yes.

Pablo Monsivais

Hi, from the from Pablo think previous Mexico you is City? breakdown. follow-up from can Mexico domestic, percentage do of a Barclays. I you. coming would What or have City-Monterrey from my Monsivais questions your that what is, traffic my for is on question. quick second you. I traffic question be Monterrey And first percentage know coming route, if that and that don’t estimate you purely market. VFR Thank leisure potentially provide That

Ricardo Dueñas

I think – Thank you, Pablo, questions. for your

XX% in our seen on the segments. is, that. to It’s we of What the would specific traffic of to routes in back around you X% the each to domestic, one that those currently of breakdown decrease know those the traffic. have City-Monterrey route around specific, we can focused you of you one It’s international. you XX% tell XX%, quarter mostly back as number composition is have breakdown have route. on think of I business Mexico of specifics come but it’s the traveler the The get that we what represents is of seen have XX% the we probably this I to that specific especially – XX%, total Monterrey.

Pablo Monsivais

Prefect. you. Thank

Operator

Pablo. you, Thank

questions. any for once question line the Our pause question [Operator your next Fernando with more from of Abdalla. will comes We Instructions] ahead further Fernando. Please go

Fernando Abdalla

you. Thank

I if questions follow-up two Just may.

these could more the the represented time or data, theory XX. the in I here returning should be to be all revenues. based on mistaken, airlines Interjet. XXXX are the exposure to is related strategy airlines, terms going just is ones know right. I’m one We that hearing growth the first keep forward. We Aeromexico your about not wondering XX% Chapter what The roughly seats was in and because on of impacted today If of Aeromexico Interjet

and outlook traffic the coming the regarding this the see you situation do how quarters? So for

Ricardo Dueñas

wise, what What cost we is seen, lost of XX% seeing represents has the Aeromexico capacity carriers. But the a that most by or capacity, low that lower year. percentage current captured Fernando. been from has around been been still the Sure, slightly have of last have either Aeromexico by Interjet we

So by in Volaris. Viva percentage we increase seen an terms have and

Just XX%. the at somewhere put of carriers this you XX%s, if perspective, in represented last the XX%, low of year, will quarter, around low to look And you the cost XX% see OMA. around in traffic

Fernando Abdalla

perfect. Okay,

So the mix will naturally change?

Ricardo Dueñas

Sorry.

Ruffo Pérez Pliego

Yes.

Fernando Abdalla

view, seeing say, trading reasons, keep could relevant myself still is mean, not could what this? to your EBITDA, clients, that second them reasonable little whatever fare. what be my the asking investors, we The discount discounts – to imagine P/E, naturally guys Thanks. eventually at in see keep on regularly multiples, question mind, conversations to sorry relative trying still I the the the your is least because peers. I we at with I more, look reasons discount a you OMA if you with be the theoretical to would see I you a how driving From speak discount, or on bit understand

Ricardo Dueñas

of locations of be could of say I also our to that hard traffic. of and we attributed airports, it’s believe specific mean where composition the have some and I Fernando them, the the of the portfolio composition So our

We’re – Mexico Mexico mostly City, in focused centered in operations.

something So explanation. don’t I Ruff, that you if some for else. be know have could used

Ruffo Pérez Pliego

international be other high, as might explanation, commercial compare exposure. but of mix without obviously we the traffic the clear given that airports there we the is not when much that have airports per Well, certainly passenger revenues to

perhaps think would the with fair we at I but agree So not certainly you Fernando is be – that all. those discount

Fernando Abdalla

lot. Okay, guys. a Thanks

Operator

Thank you, Fernando.

received We point. at questions further have any this not

I Thank now would Dueñas session. some over the like closing question-and-answer remarks. our call to for back concludes you. that to hand Ricardo So

Ricardo Dueñas

to just I this and and participating all have much. very soon. Emmanuel in you hope again call. answer you day. and questions you are we a good to to thank wanted see Not Thank your available of Ruffo, much for always I

Operator

the That concludes call. conference

disconnect. now may You

Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (OMAB) 22 Oct 202020 Q3 Earnings call transcript