Grupo Aeroportuario del Centro Norte(OMAB) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In Q4 2024, total passenger traffic increased by 4.6% compared to Q4 2023, with domestic traffic growing by 1.5% and international traffic surging by 26.4% [8][19][21] - For the full year 2024, domestic traffic declined by 3.5%, while international traffic increased by 15% compared to 2023 [9][10] - Adjusted EBITDA for Q4 2024 reached Ps.2.4 billion, with an adjusted EBITDA margin of 73.8% [36] - Consolidated net income for Q4 2024 was Ps.1.2 billion, a decrease of 5.9% compared to Q4 2023 [38] Business Line Data and Key Metrics Changes - Restaurant revenues grew by 22%, VIP lounge revenues increased by 51%, and parking revenues rose significantly, contributing to a record high commercial revenue per passenger of Ps.60 in 2024, a 17% increase from 2023 [11][14] - OMA Cargo business grew by 22% in 2024, driven by organizational changes aimed at improving efficiency and customer service [12] - Hotel services revenue increased by nearly 20% compared to 2023, while industrial service revenue grew by 61% for the full year [13][14] Market Data and Key Metrics Changes - The combination of operational restrictions at Mexico City Airport and limited aircraft availability reshaped traffic dynamics, leading to a shift in airline strategies towards international routes [6][7] - The demand for flights between Monterrey and Mexico City metropolitan area grew by 8.18% in 2024, despite overall domestic traffic decline [9] Company Strategy and Development Direction - The company is focusing on expanding its Monterrey Airport, with ongoing projects aimed at increasing passenger capacity to nearly 16 million annually by early 2026 [16][17] - The strategy includes enhancing international connectivity by launching new routes and strengthening the airport's position as a major hub in Northern Mexico [8][21] Management's Comments on Operating Environment and Future Outlook - Management noted a recovery in domestic capacity deployment by main carriers and expects mid-single-digit growth in passenger traffic for 2025 [43][44] - The company is optimistic about the development of Monterrey's route network and sees potential for further growth in international traffic [44][68] Other Important Information - All 13 OMA airports achieved Level 3 Optimization Certification on the Airport Carbon Accreditation Program, highlighting the company's commitment to sustainable airport management [27] - The concession tax increased by 97% to Ps.265 million due to a rate hike, impacting financial results [34] Q&A Session Summary Question: Traffic outlook for this year and Monterrey's route network development - Management expects mid-single-digit growth in passenger traffic for 2025, with opportunities to further develop Monterrey as a connecting hub [43][44] Question: MDP expectations and CapEx ramp-up - Management is working on an optimized CapEx plan to maximize net present value without putting unnecessary pressure on tariffs [45] Question: Timing for MDP announcement and cost pressures - The MDP plan will be presented by the end of June, with expectations of inflationary cost increases in 2025 [59][60] Question: Interest expense increase and future expectations - The increase in interest expense is related to adjustments in the major maintenance provision, which is sensitive to interest rate variations [72][73] Question: Traffic guidance for Monterrey - Monterrey is expected to drive growth, with traffic projections incorporating some macroeconomic volatility [94] Question: Strategy behind short-term loan - The short-term loan was aimed at strengthening working capital and is expected to be refinanced with long-term debt [112]