Corporacion America Airports(US:CAAP)2024-05-23 16:10Financial Data and Key Metrics Changes - Total revenues excluding IFRIC increased by 12.4% year-on-year, significantly outpacing the 4.3% growth in passenger traffic [56] - Adjusted EBITDA reached $163 million, up 16.4% year-on-year, with a margin expansion of 1.5 percentage points to 41.7% [8][34] - Net debt decreased to $821 million from $964 million at year-end 2023, resulting in a net leverage ratio reduction to 1.2 times from 1.4 times [9] Business Line Data and Key Metrics Changes - Aeronautical revenues increased by 19.4% year-on-year, driven by higher international passenger traffic in Argentina and tariff increases in Uruguay [56] - Cargo volumes were up in the low single-digits year-on-year, with cargo revenues increasing by 6% across all countries of operation [6][8] Market Data and Key Metrics Changes - Passenger traffic in Italy rose nearly 14% year-on-year, primarily due to a 17% increase in international traffic [3] - Uruguay experienced a 29% increase in traffic, benefiting from new routes and frequencies [4] - Traffic in Brazil declined nearly 2% year-on-year, impacted by financial constraints at local airlines [5] Company Strategy and Development Direction - The company is focused on expanding its airport network and has secured a 10-year extension of the concession agreement for Punta del Este Airport in Uruguay [18] - Ongoing discussions regarding CAPEX plans in Italy and Armenia aim to support growth initiatives [12][50] Management's Comments on Operating Environment and Future Outlook - Management remains positive about international traffic growth, particularly in Argentina, Uruguay, and Italy, despite challenges in the Brazilian market [49] - The company is actively engaging with local governments to secure necessary approvals for expansion projects [12][50] Other Important Information - The company reported a strong cash flow position with total liquidity of $545 million, up $87 million from year-end 2023 [9] - The ICSID Arbitral Court awarded $91 million to the consortium related to Chinchero International Airport in Peru, in which the company holds a 50% interest [18] Q&A Session Summary Question: Evolution of international traffic into Argentina - Management is optimistic about international traffic growth into Argentina, supported by discussions with airlines and the implementation of open sky agreements [49] Question: Balancing growth, investment, and cash return to shareholders - The company is focused on growing its portfolio and is in discussions regarding CAPEX that will primarily require local leverage rather than equity from shareholders [50] Question: Timing for tariff adjustments in Argentina - Management is awaiting engagement with the newly appointed control agency to gain better visibility on tariff provisions and necessary adjustments [52]