Grupo Aeroportuario del Pacifico(PAC)2024-10-23 17:47Financial Data and Key Metrics Changes - The company reported a 6% increase in overall revenue despite a 3.8% decline in aeronautical revenue due to lower passenger traffic and only reaching 94% of the maximum tariff [9][10] - Operational expenses increased by 21%, primarily due to the consolidation of the cargo facility, employee-related expenses, and inflationary pressures [10] - EBITDA margin, excluding IFRIC-12 effect, remained solid at 67%, reflecting strategic investments in infrastructure and services [10] Business Line Data and Key Metrics Changes - Non-aeronautical revenues saw a remarkable 39% increase driven by strategic expansions and business acquisitions, with non-aeronautical revenues per passenger reaching MXN120 [8][9] - The cargo facility consolidation contributed MXN354 million to non-aeronautical revenue, showcasing the effectiveness of the company's strategy [8] Market Data and Key Metrics Changes - Passenger traffic declined by 5.7% in the quarter, attributed to ongoing inspections of Pratt & Whitney engines, expected to continue until 2025 [6][7] - International traffic, particularly in leisure destinations like Los Cabos and Puerto Vallarta, saw a decrease of 11% compared to the previous year, primarily due to a reduction in available seats [19] Company Strategy and Development Direction - The company is focused on a Master Development Plan (MDP) for 2025-2029, committing MXN43.2 billion for infrastructure improvements across 12 airports, with significant investments in terminal buildings and security checkpoints [4][5] - The new tariff methodology will be gradually implemented over the next 15 months, with the intention to fully implement by January 2026 [6][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate market challenges and emphasized the importance of diversifying revenue streams for sustainable growth [3][11] - The company anticipates a 5% growth in passenger traffic for the next year, contingent on the return of grounded aircraft and new deliveries [14] Other Important Information - The company maintains a healthy balance sheet with cash and cash equivalents totaling MXN15.8 billion and a net debt-to-EBITDA ratio of 1.8 times [10][11] - The company is exploring additional opportunities for cargo terminal facilities and potential acquisitions to enhance its logistics capabilities [22][23] Q&A Session Summary Question: Details on the new tariff implementation - Management indicated that the new tariff will be gradually implemented, with changes expected in January and July of the upcoming years, aiming for full implementation by January 2026 [12][15] Question: Expectations on traffic recovery - Management expects to see an increase in passenger numbers starting summer 2025, as grounded planes return to service and new deliveries are added to airline fleets [16][14] Question: Impact of U.S. elections on international traffic - Management noted a decrease in leisure destination traffic but indicated that demand remains strong, with double-digit growth in business-related travel to Guadalajara [19][20] Question: Future of cargo business revenue - Management anticipates that the cargo business will maintain or improve revenue levels observed in the third quarter, with an EBITDA margin of 50-55% [17] Question: Changes in U.S. originated tourism due to currency fluctuations - Management stated it is too early to assess the impact of the Mexican peso's depreciation against the U.S. dollar on tourism and business travel [24] Question: Synergies from GWTC platform - Management confirmed that GWTC's EBITDA margin is around 55%, with expectations for significant revenue growth and cost control improvements [26][27]