Grupo Aeroportuario del Centro Norte(US:OMAB)2024-04-25 19:27Financial Data and Key Metrics Changes - In Q1 2024, OMA's adjusted EBITDA increased by 3% to Ps.2 billion, with an adjusted EBITDA margin of 74.6% [5][21] - Aeronautical revenues rose by 5.3% compared to Q1 2023, driven by higher aeronautical yields and increased international passenger traffic [7][42] - Non-aeronautical revenues increased by 13.3%, with commercial revenues up by 11.6% [7][42] - Total debt at the end of the quarter was Ps.10.7 billion, with a net debt to adjusted EBITDA ratio of 0.8 times [21] Business Line Data and Key Metrics Changes - Passenger traffic reached 5.9 million, a decrease of 1.5% year-on-year, primarily due to the impact of Hurricane Otis on Acapulco airport [13] - OMA cargo increased by 2%, mainly due to rising revenue from import cargo services [5] - Car rental revenues rose by 25.4%, while restaurant revenues increased by 18.6% [45][42] - Construction revenues amounted to Ps.1.01 million, reflecting a 53% increase due to higher MVP investment execution [8] Market Data and Key Metrics Changes - International passenger traffic grew by 10% compared to Q1 2023, supported by airlines expanding capacity and international routes [3] - Domestic traffic, excluding Acapulco, saw a decline of 1.2%, attributed to a 9.1% decrease in domestic seat capacity [13] - The occupancy rate for commercial space was 95.3% at the end of the quarter [15] Company Strategy and Development Direction - The company is focusing on diversifying revenues, with a 20.6% increase in diversification activities, mainly from hotel services [18] - OMA is working closely with VINCI to develop extra aeronautical revenues and renegotiate commercial packages [28] - The company is also investing in major maintenance and strategic projects, including the expansion of the Monterey airport terminal [43] Management's Comments on Operating Environment and Future Outlook - Management expects traffic performance in 2024 to be flat compared to last year, influenced by the recovery of the Pratt & Whitney engine issue [23][51] - The company remains optimistic about future traffic growth, citing strong fundamentals despite current challenges [76] - Management is closely monitoring the impact of slot reductions in Mexico City on traffic distribution among airports [35] Other Important Information - A cash dividend of Ps.4.25 billion is to be voted on by shareholders [6] - The concession tax increased by 87% to Ps.223 million due to a rate change from 5% to 9% [19] Q&A Session Summary Question: Traffic outlook for 2024 - Management indicated expectations of flat traffic performance in 2024, contingent on the recovery from aircraft groundings [23] Question: National tour performance context - Management explained the increase in national tour performance is related to inflationary adjustments and a favorable comparison to last year's decline [27] Question: Technical assistance expenses - Management confirmed that technical assistance fees remain at 3% of EBITDA generated by airport concessions [31] Question: Impact of slot reductions in Mexico City - Management anticipates traffic will shift from Mexico City to alternative airports, with no immediate medium-term impact expected [35] Question: Updates on MVP negotiations - Management stated it is too early to provide guidance on tariffs and margins for the next MDP [38] Question: Concession fee impact on profitability - Management noted that cash flow benefits from tariff negotiations will offset the increased concession tax impact [70][72]