Financial Data and Key Metrics Changes - Total revenues ex-IFRIC12 remained stable year-on-year despite lower passenger traffic, with aeronautical revenues up 3% driven by higher international passenger traffic in Italy, Uruguay, and Argentina [10][11] - Adjusted EBITDA ex-IFRIC12 declined 9% year-on-year to 136million,primarilyduetochallengesinArgentina,althoughItalyandUruguayshoweddouble−digitgrowthinadjustedEBITDA[12][14]−Totalcostandexpensesex−IFRIC12increased620.1, indicating effective adaptation to market dynamics [11] - Commercial revenues decreased 3% year-on-year, impacted by lower cargo and duty-free revenues in Argentina [11] - Cargo volumes increased in the mid-single digits year-on-year, but cargo revenues declined 13% due to lower revenues in Argentina [9] Market Data and Key Metrics Changes - Total passenger traffic declined 5% year-on-year, with a 15% contraction in domestic traffic in Argentina, while international traffic increased by 8% [5][7] - In Italy, passenger traffic grew 14% year-on-year, driven by a 17% rise in international traffic [6] - In Uruguay, traffic increased by 11% due to new routes and frequencies [6] Company Strategy and Development Direction - The company is negotiating a 400millionCapExplanwiththeArmeniangovernmentandseekingapprovalforanewmasterplanforFlorenceAirportinItaly[16]−Thecompanyisassessingexpansionprojectsacrossvariousgeographiestopursuevaluecreation[16]Management′sCommentsonOperatingEnvironmentandFutureOutlook−ManagementexpressedoptimismregardingthepositivedynamicsinUruguayandItalycontinuingthroughouttheyear,whiledomestictrafficinArgentinaisexpectedtoremainsoftduetorecession[17]−RecentopenskiesbilateralagreementsareexpectedtoenhanceflexibilityandstimulategrowthinArgentina′saeronauticalactivities[17]OtherImportantInformation−Thecompanyclosedthequarterwithatotalliquiditypositionof549 million, up $91 million from year-end 2023 [13] - The net leverage ratio improved to 1.1 times, down from 1.4 times at year-end [13] Q&A Session Summary Question: Update on discussions with airlines regarding new routes and higher frequency due to deregulation - Management is positive about the effects of deregulation and bilateral agreements on traffic growth, expecting significant long-term benefits [19][20] Question: Development of the cost base in Argentina for the rest of the year - Cost trends are expected to soften in the third quarter, with adjustments needed due to inflation [22] Question: Investment opportunities beyond Nigeria and Armenia - The company submitted a proposal for Luanda Airport in Angola and pre-qualification documents in Saudi Arabia, with other opportunities being explored [24] Question: Update on tariff discussions in Argentina - Domestic tariffs are expected to be adjusted soon, with a rebalancing of the economic equilibrium of the concession anticipated by the end of the year [28][30] Question: Update on the master plan discussion in Italy - The process is active, with a deadline for responses to questions set for October [29]
Corporacion America Airports(CAAP)2024-08-22 16:24