CAAP - Earnings call transcript Q1 2024 | Corporación América Airports S.A.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Corporacion America Airports First Quarter 2024 Conference Call. A slide presentation accompanies today's webcast and is available in the Investors section of the Corporacion America Airports website. [Operator Instructions]. At this time, I would like to turn the call over to Patricio Inaki Esnaola, Head of Investor Relations. Patricio, please go ahead.

Patricio Esnaola

you. Thank and joining everyone, today. you thank morning, us for Good

Eurnekian, will Executive Chief Speaking call Martín Financial our our during today's Arruda, be Chief Jorge Officer; Officer. and

harbor to we the Before would like I following proceed, safe statement. make

or Today's or call I to with release forward-looking any circumstances. the update the earnings statements statements, changed SEC. section reflect our no recent forward-looking refer or obligation of to you statements and contain will forward-looking events and filings new We to assume revise

throughout excluding that references revenues, note all Please this we to costs, call, margin, and refer adjusted IFRICXX. EBITDA to figures

I will Martin call to Eurnekian. our now CEO, turn the over

Martin Francisco Eurnekian

Thank you, for in quarter's his will will open then start to will today's details first Inaki. presentation to we the provide call hand with additional it performance. quarter I off highlights welcome Jorge, first our XXXX some who financial earnings our I everyone, Hello, before call. overall questions. review and on

delivered new with I against the pleased We and double quarter low up the am quarter meeting to same digits growth. last good the with traffic in year revenues year. a passenger start positive

reaching Our high this commercial continued posting expand, is results quarter, revenues a focus per in to continued an execution with all-time XXXX IPO since passenger environment. our good in on $XX.X normalized

continue there the leverage. and we points execution increased $XXX million, in revenues on reaching per artificial demand, X.X reminder, XXXX margin to where Reflecting due resulting pandemic gain consistent up expanded percentage passenger travel quarters focus further a were As in year-on-year, adjusted reduced passenger X the figures while operational were as XX% to significantly healthy our EBITDA figures.

a the initiatives. a contribution flexibility geographies all Ecuador, leverage to growth exception commitment ratio of performance all-time support underscores with financial an robust country. our which while to to incurred the supported mandatory low, in strength This of sheet our ensuring providing Moreover, the at balance was with onetime security by

for Punta our review to that Please traffic an things, trends. from passenger amendment of among Noteworthy, other extension recently del XX-year a to the turn X includes, agreement agreement XXXX Este we for of signed a concession period concession Page term to XXXX. the

Our airports frequencies load flight by our benefited operations. underpinned and travel higher of factors in return sustained routes demand, the gradual a across from recovery and

On in traffic concession traffic Airport a increased excluding February, comparable basis, Natal remained international which was in by the exited and while Growth teens, mainly year-on-year. disclosed, low previously domestic which we flat. driven increased passenger X.X% passengers the as this

our market. Moving ITA X.X% from on and international to Argentina, main some reflecting increased a traffic. was Emirates. Which Mexico Airways Growth year-on-year nearly with increase delivered in traffic, color frequencies starting passenger weekly by by country, up XX%, underpinned

launch new JetSmart routes. of Paranair While and announced the

comprises generated trend year. in Domestic while and same Recall traffic traffic over traffic are The are traffic context challenging to passenger April by country, the in fully international macro backdrop. domestic of linked dollar. by XX% month passenger international continued fees into grew against last when X.X% U.S. traffic positive total of that XX% the of remained a flat the of use passenger

traffic performance Both resume traffic. driven passenger to nearly Florence yet up mainly destinations XX% growth Next, at good and have delivered by Italy, growth solid where year-on-year. in and traffic Pisa international This in Airport was Pisa XX% domestic increase domestic a while mid-single-digit traffic some was airport.

in [ continued positive May. April, into traffic addition and continued trend of strong also routes XX% by year-on-year. ] JetSmart announced and growth, passenger from trend This April Uruguay This traffic frequencies. new Sky into up the benefiting XX%, posted positive new while routes have grew when both starting

same traffic following relatively posted past total last In versus was performance Armenia, in year. couple years. over Ecuador the Brazil. the contrast, traffic the Armenia of significantly By of and weaker traffic month down April, was X% flat strong

In traffic Ecuador, more exit was domestic X%. last a driven year-on-year X% as increase a while local offset domestic in down October Traffic weaker by traffic. in X% up international weaker the than year, nearly international declined following traffic of airline traffic in X%, traffic April was

traffic dynamics remained impacted Brazil, This aircraft affected continued Natal at nearly into rising and in the together, airlines financial constraints which when local in Airport. year-on-year ticket decline Lastly, heavily April. environment of industry challenging by X% prices, demand resulting travel with excluding comparable some a

posted up single geographies were revenues the drivers were while turn on main Ecuador Cargo quarter, year-on-year digits of with improvements Cargo continued Armenia, declines. in Moving growth other operations. recover increased X. all to low the year-on-year. to and countries this the Slide volumes behind in in quarter Argentina Sky and the volume in cargo X%

now I the results. will Jorge, review Please, financial to off ahead. go our who will hand call

Jorge Arruda

you, day, and everyone. Thank Martin, good

from our and consistent aeronautical the of well Let's was positive both the This increased line in start on with top benefiting above quarter X. momentum commercial Total the passenger Slide year-on-year. revenue XX.X% traffic growth, for exits business. ex-Natal, X.X%

year-on-year, were revenues XX.X% Uruguay. in passenger increased Aeronautical Argentina mainly by higher in driven tariffs international and traffic up

across and double-digit revenue growth in the year-on-year growth which strong also performance quarter first Armenia, remained robust supported XXXX. in delivered the by Importantly, of board, aeronautical Italy, Ecuador

the by and benefits Commercial Argentina. driven We advertisement Italy, revenues. performance revenues strong carbon Uruguay a fee increased the higher Brazil majority while impact mainly in growth of of X.X% ES-XX year-on-year our in saw and from geographies in

offset of first by was increasing a in these revenue to and quarter, This Combined, fuel-related by in contributed revenues passenger partially revenues lower the per in by from DTC to this XXXX December quarter XXXX. XX% $XX.X factors Armenia. the evaluation lower impacted $XX.X period up Argentina,

structure, growth expenses and was to in below following revenue restatement fuel with experienced to XX.X% material average in increased due per depreciation, passenger Total generally our the coupled fees concession X.X% reductions Uruguay. year-on-year, decrease increased of OpEx mainly business with growth. rate but and costs was currency X. the higher by inflation partially in This Argentina, cost year-on-year in remain the salaries nonetheless, quarter. activity. This cost by lower ex-IFRICXX above higher sales Notably, local Turning a explained Slide Argentina line in in was streamlined Italy and our fuel in we the Armenia offset to

to Moving Slide on profitability X. on

maintained Our million, solid adjusted ex-IFRICXX operating we in adjusted a top margin in percentage our in to revenues. XX.X% drive expansion. Adjusted where business the traffic and EBITDA contributed up point with duty-free and adjusted performance $XXX in traffic margin EBIT expansion at totaled growth I continues XX.X% combined all year-on-year, EBITDA growth growth leverage Uruguay, growth EBITDA X.X% like achieving and that except would momentum increase the line solid Ecuador, and XX%, quarter. Moreover, quarter. in for driven above increased we by to traffic passenger tariffs, margin Natal. VIP to resulted to lounges This X.X countries strong exceptional EBITDA a of across the in growth in the expansion primarily well adjusted higher the exceeded passenger highlight

X, compared $XXX Slide positive subsidiaries with with our million, flow supported activities. million operating year-end to most to up the closed $XX Turning by from of generation, quarter liquidity position when reporting cash we ] our cash foreign strong flow XXXX, of a total [

year-end debt Total maintaining profile. We to profile to $X.X Moving and while billion, at robust XXXX. to debt maturity balanced $XXX end remain $XXX quarter decreased million was debt on net debt Slide committed and XX. at healthy a from our million the sheet

leverage have to contributed certain adjusted bringing in to debt I December further mentioned. reduction net highlight at it in levels X.Xx from X.Xx headwinds and despite EBITDA growth ratio would like our XXXX. Wrapping my Sustained reducing to a up side, down from also that

with passenger, EBITDA revenues per we portfolio. growth in delivered performance the expansion real any and I'm revenues, pleased on cost. Herein, margin our without of EBITDA our

to will hand I views provide who the now and Martin, our closing call discuss will year. the for back remarks

Martin Francisco Eurnekian

EBITDA the on solid turn a performance and positive and wrap We the record XX. operating growth and expansion low key leverage margin leverage financial started contributed to metrics. Now across footing, a year Slide drive net please to Higher ratio. operational up, to delivering sustained

our we quarter. two on this strategic Advancing priorities, met milestones

agreement obtained in we Airport XX-year Uruguay. Este extension the del our First, Punta concession of a of

advocation amount economic the the XX% Airport concerning pertaining Second, the arbitral in $XX procedure in interest. Peru been to a which we of to gross of International we of Chinchero consortium Peru. the recently by have a Court award to notified Republic final hold the million pay ICSID Demoing

the We the to across geographic projects to our of the At advance to different same [indiscernible]. network. connection airports negotiations related assess time, expand our expansion further expansion continue in to selectively with regions continue we airport

positive Brazilian market, EBITDA in We our challenges Uruguay growth. continue have dynamics contributing and challenging throughout to our successfully overall posting the this been in witness business Despite managed which growth. to cycle, we have facing Italy,

region. as we in closely the a We have the are dynamics Argentina, in and geopolitical as XX cargo successfully political environment [ ] the years macro well concession, managed for over monitoring

for strong in value delivering a our and for and continued your to confidence support committed Thank shareholders. remain We maintaining company. sheet balance you healthy creating results, the

remarks. This ends our prepared

take open ready questions. are your to please questions. for We the Operator, lines

Operator

[Operator Instructions]. Demichelis your Jefferies. from question And be at first will Alejandro

Alejandro Anibal Demichelis

Yes. follow-up. One question one and

some is to with year of thought having M&A you end are second one. And how on? level shareholders. into the the discussions at coming dividends Martin opportunities we the kind about of reserved first the balancing I the some being you record the then so through we The how That's the given think is, Argentina the and going of international cash to mentioned how you're think thinking and first be, this question those Jorge, seeing about or investment, think Can evolution both gearing that should low you're traffic given and airlines, point? you're return growth,

Jorge Arruda

here. Jorge How Alejandro, are Hi, you?

Alejandro Anibal Demichelis

Well. Thank you.

Jorge Arruda

question. very you for Thank your much Good.

most we across and Italy. So international speaking generally our notably in portfolio, with remain positive Argentina, connection traffic, Uruguay

I markets well, we that positive. and that have -- think are performed these are are performing

the we think within are put that in going Argentina, directions. several agreements Open forward, I seeing place. Sky in America traffic being Notably, are given In

positive. yes, remain So

of of is Regarding the as our all, for portfolio. think next have focus saying, your grow our couple question, main to second first been we I years

be will continue portfolio. grow So our main -- our to to objective

we We will the with leverage, reported, also primarily from the previously you as principle. those that we Italy And and discussions are at level. not in CapEx in connection in back But remind equity local CapEx. require shareholders Armenia in

are So mentioned. as I so our yes, objectives

Operator

Next Pedro be question will Latin at Securities. from Maulhardt

Pedro Maulhardt

projects in for quarter Argentina you concerning nowadays, the for or year or also key of tariff Abuja, master middle are throughout on I in year. the X to And main plan the Which events Armenia do want Florence, which results. ] Congratulations acquisition the the potential [ of and your the Nigeria. know any expect rest provisions Aeroporto when this are concession adjustments

Martin Francisco Eurnekian

Pedro, here. thank you question, for your Martin

decision control ago. in a terms that probably provisions makes of were Board The has know, been agency only the they talent weeks doing are the few Regarding just revision. a Argentina, just we as that filled you in named

tariff the provision nominated the in expect is also this in terms in we And leadership having come in that catch-up due and visibility pesos need needs new since So that us actually. the domestic to tariff do of with [ on engaging ] that of terms on is a year, catch-up. have we to start to better the and

early this in idea So clear a question. we to on we are on terms of will for else. in engagement, still stage I positive your pass to have are Jorge and follow-up a but very timing

Jorge Arruda

here. Pedro, Jorge

Tuscany, Italy is in So very the with active a the in which airport with fantastic a to in is and CapEx connection and Armenia of respective we terminal the with airport in in -- and runway premium in location needed. continue the discussions new In heart cetera. a a remind is Italy, new And everyone respective plans. et connection much Florence governments

to are approval. we forward that looking So really obtain

connection growth have the expansion months, we an many following XX, there enjoyed airport. a the aspects in the XX in in with of past of need And significant Armenia is

to precise with it's that view as And soon around the as a again, the as us we government the advanced to discussions timing, we much possible. for are make possible. are clock close to as but in with Obviously, this working happen difficult

Martin Francisco Eurnekian

Martin comment in on jumping here, Nigeria. And on your

either. the indication don't are timing, still not clear step on way gone We the signing been still have for other has delayed, the take we to it the but waiting of It's government next the a and towards contracts.

So waiting. we are

Operator

Instructions]. [Operator

Citi. Next Singh is Jay at

Stephen Trent

Steve actually is This Trent.

having my Sorry, trouble with phone.

my of side. kind on questions two Just

you're is, of process saw The I first CapEx believe, come. Armenia, beat in some negotiating something with, the higher I to

color Assuming in on your that maintenance annual years? next of you couple CapEx goes any have be should through, what the do

Martin Francisco Eurnekian

and but with have the we give it's think I us muted, second. problem line one a

Stephen Trent

problem. No

Patricio Esnaola

think we Inaki, Jorge trouble some line. Steve, I is with are this having

have of less terms that million CapEx, around number in company maintenance for kind In aggregate of is $XX the should the a on you consolidated mind or basis.

Stephen Trent

a guaranteed increases? I very have consider that to high for return one of operations. level you what another Thank just rather Great. much, AAXXXX Okay. is your other extension Argentine And than Inaki. going one tariff degree On possible for quick know you me. to it forward,

Martin Francisco Eurnekian

question. Martin for here. your Thanks Steve, Hello,

point -- CapEx still [ betas know, you is these As going are to It's of early generically, how turn or this and adjustments are these to full too in [ are kick going duration. to contracts the studies ] of ] not. and annotation say whether into a if

be of concession. that the the to at Remember IRR the has end achieved

that the end looking of into So forward the also on depends forecast the concession.

to think I So is say equilibrium in really order going too it's reach of the which pull early whether to to levy this concession. economic

on that industry probably easiest are government how understanding agency towards most the the way with towards positively what you the we the and achieved [ engaging also is But contra implementing, imagine, as overall. can direct -- impacts ] that be and

Operator

that would over Martin. further it to no the turn we you. appears have like call at Thank back this I And questions. time, to

Martin Francisco Eurnekian

everybody I the available wanted Enjoy of time our you inquiries engage that be us much. of thank our you have for you. further rest Thank any day. and to today with your taking company. remind to on doubts the very team to or Thank you any you with is if

Operator

this today's and you call. attending. that disconnect for Ladies again, at Once you lines. ask your thank conference indeed does we this conclude please do And gentlemen, time,

Corporación América Airports (CAAP) 23 May 242024 Q1 Earnings call transcript