Grupo Aeroportuario del Pacifico(PAC) - 2025 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total passenger traffic reached 15.8 million, a 4.1% increase compared to the same quarter of 2024 [7] - Revenue generation excluding IFRIC 12 grew by 30.6% year over year, reaching ARS 8.2 billion, driven by a 26.4% increase in aeronautical revenues and a 41.8% increase in non-aeronautical revenues [11] - EBITDA increased by 31.1%, reaching ARS 5.5 billion, with an EBITDA margin of 67.1% excluding IFRIC 12 [13] - Net income increased by 17.9%, reflecting solid underlying fundamentals [14] - Cash and cash equivalents stood at ARS 9.7 billion as of June 30 [14] Business Line Data and Key Metrics Changes - Revenues from business lines operated directly by the company increased by 113%, driven by the consolidation of the cargo and bonded warehouse business [12] - Third-party operated business grew by 10.7%, with significant contributions from food and beverage, retail, duty-free, ground transportation, and timeshares [12] Market Data and Key Metrics Changes - The company added eight new routes this quarter, including seven domestic and one international, bringing the total to 21 new routes for the year [7] - Canada is becoming an increasingly relevant market, especially during the winter season [8] Company Strategy and Development Direction - The company is focused on strategic expansion opportunities, including the Turks and Caicos tender process and potential acquisition of CCR Airports assets [19] - The company aims to maintain its annual guidance despite potential impacts from U.S. migration policies [10] - Capital investments of about MXN 12.8 billion were executed in the first half of 2025, in line with annual plans [15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the impact of peso volatility and U.S. macroeconomic conditions on discretionary travel [16] - The company expects to maintain its initial annual guidance despite potential challenges [10] - Management noted that the traffic trends are changing day by day, particularly in relation to U.S. migration policies [37] Other Important Information - A dividend of MXN 16.84 per share was approved for payment throughout 2025, with the first tranche already distributed [17] - The company is actively managing liabilities and maintaining a healthy balance sheet with a net debt to EBITDA ratio of 1.8 times [15] Q&A Session Summary Question: Potential inorganic opportunities with Turks and Caicos and CCR - Management indicated that there are opportunities in Latin America and the Caribbean, but not all will yield the desired returns [22] Question: Status of the hotel in Guadalajara Airport - The hotel has achieved an average tariff of around 2,500 and an occupancy rate of approximately 80% in its first year of operation [24] Question: Tariff increases and airline negotiations - The first tariff increase was implemented in March, with another expected in January 2026, pending market conditions [30][31] Question: Traffic trends and demand stabilization - Management noted a potential improvement in traffic trends as passengers become more comfortable with migration policies [37] Question: Impact of U.S. Department of Transportation claims - Management stated that the impact on the company is uncertain, but they are more concerned about the broader bilateral relationship between the U.S. and Mexico [78]