Grupo Aeroportuario del Sureste(ASR) - 2025 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenues increased by 14% year-on-year to MXN 8.2 billion, supported by solid increases across all operations [10] - Consolidated EBITDA rose 12% year-on-year to MXN 5.7 billion, with an adjusted EBITDA margin of 70% compared to 71.4% a year ago [16] - Net majority income increased by 14% to MXN 3.5 billion [26] Business Line Data and Key Metrics Changes - Aeronautical revenues were up 9%, with commercial revenues per passenger reaching nearly MXN 147, reflecting a strong year-on-year growth in the high teens [10][14] - Puerto Rico contributed 15% of total revenues, with growth in the high 20s, while Colombia accounted for 12% of total revenues, posting growth in the low 30s [11][12] - Commercial revenues in Mexico showed a low single-digit increase, marking a positive shift from previous trends [13] Market Data and Key Metrics Changes - Passenger traffic across operations was largely flat, with Puerto Rico seeing an increase of nearly 11%, while Mexico experienced a decline of nearly 5% [4][6] - Traffic from Europe decreased by 0.8%, from the U.S. by 10.5%, and from South America by 2.8%, while traffic from Canada remained unchanged [7] - Domestic traffic in Mexico was affected by capacity limitations at Mexico City Airport, expected to be lifted in the second half of the year [8] Company Strategy and Development Direction - The company is focused on expanding commercial offerings, having opened 40 new commercial spaces over the last 12 months [12] - Significant capital expenditures are planned for infrastructure projects, including the expansion of Cancun Airport's Terminal 1, expected to be completed by 2026 [20] - The company anticipates a gradual increase in CapEx as it moves forward with strategic infrastructure projects [20] Management's Comments on Operating Environment and Future Outlook - Management expects traffic in Mexico to stabilize next year as the impact of Pratt & Whitney engine issues fades [9] - The global macro situation is described as fluid and unpredictable, but disruptions related to U.S. travel to Mexico are expected to be short-lived [10] - Management remains cautious about potential macro challenges but is optimistic about the remainder of 2025 [26] Other Important Information - The company proposed a total cash dividend of MXN 24 billion, to be paid in three tranches, reflecting solid financial performance [21] - Sustainability efforts include expanding social investment programs and building alliances for biodiversity preservation [23][24] Q&A Session Summary Question: Drivers of strong commercial revenue - Management attributed strong commercial revenue growth to positive exchange rates and passenger mix, particularly in Puerto Rico and Colombia [33] Question: CapEx impact on operating expenses - Management acknowledged that costs will increase once new infrastructure is operational, particularly with the remodeling of Terminal 1 [35] Question: Interest in CCR's airport assets - Management is analyzing CCR's airport asset offering but indicated that the proposed dividend reflects current cash reserves [41] Question: Impact of airline frequency reductions - Management stated it is too early to see any effects from U.S. airlines reducing frequencies, attributing current traffic declines mainly to Tulum Airport's ramp-up [44] Question: Mexico City Airport restrictions - Management expects capacity restrictions at Mexico City Airport to be lifted by the end of Q3, which is crucial for domestic traffic [52] Question: Tariff pricing in Mexico - Management confirmed that the maximum tariff compliance was 99% last year and that current revenues align with maximum rates [60] Question: CapEx expectations for the year - Management expects CapEx to reach approximately MXN 7 billion for Mexico, with seasonal deployment patterns [66] Question: International expansion opportunities - No updates were provided on the Aeropuerto de Bavaro investment, as it remains in the legal process [92] Question: U.S. recession impact on traffic - Management noted resilience in international traffic during past U.S. recessions and is monitoring current trends closely [98]