Grupo Aeroportuario del Sureste(ASR) - 2025 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenues increased by 5% year on year to 7,400,000,000 pesos, reflecting growth across operations, particularly in Puerto Rico and Colombia [8][9] - Consolidated EBITDA rose slightly by 2% year on year, reaching 5,000,000 pesos, with a notable decline in Mexico's EBITDA by 1.6% [12] - The adjusted EBITDA margin, excluding construction revenue, stood at nearly 68%, down from 69% in the same quarter last year [12] Business Line Data and Key Metrics Changes - Mexico, accounting for 72% of total revenues, posted a low single-digit increase of 0.7% [9] - Puerto Rico contributed 17.7% of total revenues with high teens growth, while Colombia accounted for 12% of total revenues with 15.4% growth [9] - Commercial revenue per passenger reached nearly 140 pesos, representing mid-single-digit year-on-year growth, with Colombia leading at a 22% increase [10] Market Data and Key Metrics Changes - Passenger traffic remained largely flat year on year at 17,700,000, with Puerto Rico showing 3% growth, while Mexico reported a decline of nearly 2% [5][6] - International travel in Mexico saw declines from all regions, with Europe down 4.7% and the US down 5.3% [6] - A significant portion of the decline in international traffic (38%) was attributed to the new airport in Tulum [6] Company Strategy and Development Direction - The company continues to invest in infrastructure and expand commercial offerings, having opened 47 new commercial spaces over the last twelve months [9][10] - The management emphasized the importance of maintaining a strong cash position and planned to pay dividends while evaluating future capital allocation [14][72] - The company is attentive to evolving global macroeconomic conditions and believes its financial position will help mitigate potential risks [16] Management's Comments on Operating Environment and Future Outlook - Management expects traffic in Mexico to gradually stabilize over the next year as operational issues are resolved [7] - The company does not anticipate a material impact from potential US Department of Transportation restrictions on Mexican carriers [7] - Management expressed cautious optimism regarding the normalization of domestic traffic and the potential for increased operations in Mexico City [40][41] Other Important Information - The company reported a foreign exchange loss of 1,200,000,000 pesos due to the depreciation of the Mexican peso against the US dollar [13] - Capital expenditures in the quarter totaled 1,400,000,000 pesos, primarily directed towards modernization and expansion projects [14][15] - The board of directors now comprises 57% independent members, with female representation increased to 36% [16] Q&A Session Summary Question: What drove the sequential decline in non-air revenues? - Management indicated that exchange rates and a slight difference in passenger mix contributed to the decline [22] Question: What impact would lifting capacity restrictions in Mexico City have? - Management noted that an increase in operations could benefit overall passenger traffic, but expressed doubts about significant changes occurring soon [24] Question: Is charter traffic still the primary traffic type at Tulum? - Management confirmed that most traffic at Tulum is now commercial flights, primarily from the US [31] Question: What is the outlook for traffic growth in the second half of the year? - Management expects some normalization in traffic, with potential single-digit growth anticipated [36] Question: What is the expected impact of foreign exchange on commercial revenues? - Management explained that the exchange rate and duty-free sales affected commercial revenues, leading to a soft performance [41] Question: What is the rationale behind the new debt? - Management stated that the new debt was necessary to maintain cash reserves for future expenses and dividends [72] Question: What are the dynamics of international traffic in Puerto Rico and Colombia? - Management attributed growth in Puerto Rico to events and concerts, while Colombia's growth is linked to US traffic [106]