ASUR ANNOUNCES 3Q24 RESULTS

Rhea-AI Summary

Grupo Aeroportuario del Sureste (NYSE: ASR) reported its 3Q24 results, showing 18.1% YoY revenue growth to Ps.7,483.3 million and a 12% increase in EBITDA to Ps.4,700.4 million. This growth occurred despite a 2.1% decline in total passenger traffic. Key highlights include:

- Mexico: 10.1% passenger traffic decline
- Puerto Rico: 4.6% passenger traffic increase
- Colombia: 15.5% passenger traffic increase
- Consolidated revenues per passenger up 7.2% to Ps.124.9
- Adjusted EBITDA Margin decreased to 68.3% from 69.6% in 3Q23
- Strong cash position of Ps.18,483.6 million with Debt to LTM Adjusted EBITDA at -0.3x

The company's performance varied across its operations, with Colombia showing the strongest growth in both revenue and passenger traffic.

Positive

• Total revenue increased by 18.1% YoY to Ps.7,483.3 million
• EBITDA grew by 12% YoY to Ps.4,700.4 million
• Consolidated revenues per passenger increased by 7.2% to Ps.124.9
• Colombia operations showed strong growth with 29.9% revenue increase and 15.5% passenger traffic increase
• Cash position strengthened to Ps.18,483.6 million, up 9.3% from previous year
• Net Income increased by 23.8% to Ps.3,474,554 million

Negative

• Total passenger traffic declined by 2.1% YoY
• Mexico operations saw a 10.1% decrease in passenger traffic
• Adjusted EBITDA Margin decreased to 68.3% from 69.6% in 3Q23

Insights

Financial Analyst

ASUR's Q3 2024 results show resilience in a challenging environment. Despite a 2.1% YoY decline in total passenger traffic, the company managed to increase total revenue by 18.1% to Ps.7,483.3 million. This growth was primarily driven by a 14.1% increase in non-construction revenues, indicating strong commercial performance.

Key highlights include:

• Consolidated EBITDA grew 12.0% YoY to Ps.4,700.4 million
• Commercial revenue per passenger increased 7.2% to Ps.124.9
• Net income rose 23.8% to Ps.3,474.6 million

The company's financial position remains strong with a cash position of Ps.18,483.6 million and a negative net debt to LTM Adjusted EBITDA ratio of 0.3x. This solid balance sheet provides flexibility for future investments and potential headwinds.

While Mexico saw a decline in traffic, growth in Puerto Rico and Colombia helped offset this weakness, demonstrating the benefits of ASUR's geographical diversification strategy. The significant increase in CAPEX (183.8% YoY) suggests ongoing investments in infrastructure, which could support future growth.

Market Research Analyst

ASUR's Q3 2024 results reveal interesting market dynamics across its three operating regions. In Mexico, the 10.1% decline in passenger traffic, particularly the 12.6% drop in international traffic, warrants attention. This could be indicative of broader economic pressures or shifts in tourism patterns affecting the Mexican market.

Conversely, Puerto Rico and Colombia showed positive growth trajectories. Puerto Rico's 4.6% increase, driven by a notable 20.7% rise in international traffic, suggests a robust recovery in tourism. Colombia's impressive 15.5% growth, with international traffic up 22.5%, points to strong economic activity and increasing global connectivity.

The 7.2% increase in consolidated commercial revenues per passenger to Ps.124.9 is particularly noteworthy. This improvement in monetization efficiency across all regions (Mexico 9.6%, San Juan 9.5%, Colombia 19.8%) indicates successful strategies in enhancing non-aeronautical revenues, a important factor for airport profitability.

These divergent regional trends highlight the importance of ASUR's diversified portfolio in mitigating market-specific risks and capitalizing on growth opportunities across different geographies.

Total Revenue and EBITDA Increased YoY by 18% and 12%, Respectively Despite 2% Decrease in Passenger Traffic

MEXICO CITY, Oct. 22, 2024 /PRNewswire/ -- Grupo Aeroportuario del Sureste, S.A.B. de C.V. (NYSE: ASR; BMV: ASUR) (ASUR), a leading international airport group with operations in Mexico, the U.S., and Colombia, today announced results for the three-and nine-month periods ended September 30, 2024.

3Q24 Highlights¹

• Total passenger traffic declined 2.1% year-over-year ("YoY"). By country of operations, passenger traffic presented the following YoY variations:
  • Mexico: declined 10.1%, reflecting decreases of 12.6% in international traffic and 8.0% in domestic traffic.
  • Puerto Rico (Aerostar): increased 4.6%, driven by growth of 2.5% and 20.7% in domestic and international traffic, respectively.
  • Colombia (Airplan): increased 15.5%, resulting from increases of 22.5% in international traffic and 13.6% in domestic traffic.
• Revenues increased 18.1% YoY to Ps.7,483.3 million. Excluding construction services, revenues increased 14.1% during the period.
• Consolidated revenues per Passenger increased 7.2% to Ps.124.9.
• Consolidated EBITDA increased 12.0% YoY to Ps.4,700.4 million.
• Adjusted EBITDA Margin (excluding IFRIC12) decreased to 68.3% from 69.6% in 3Q23.
• Cash position of Ps.18,483.6 million at quarter-end with Debt to LTM Adjusted EBITDA at negative 0.3x.

Table 1: Financial and Operating Highlights1
	Third Quarter		% Chg.
	2023	2024
Financial Highlights
Total Revenue	6,338,851	7,483,293	18.1
Mexico	4,598,604	5,386,401	17.1
San Juan	1,061,755	1,215,566	14.5
Colombia	678,492	881,326	29.9
Commercial Revenues per PAX	116.5	124.9	7.2
Mexico	135.9	149.0	9.6
San Juan	139.2	152.4	9.5
Colombia	43.4	52.0	19.8
EBITDA	4,198,452	4,700,373	12.0
Net Income	2,807,143	3,474,554	23.8
Majority Net Income	2,709,532	3,381,190	24.8
Earnings per Share (in pesos)	9.0318	11.2706	24.8
Earnings per ADS (in US$)	4.5977	5.7374	24.8
Capex	367,356	1,042,400	183.8
Cash & Cash Equivalents	16,917,191	18,483,601	9.3
Net Debt	(4,530,686)	(5,853,192)	29.2
Net Debt/ LTM EBITDA	(0.3)	(0.3)	18.3
Operational Highlights
Passenger Traffic
Mexico	10,710,221	9,624,910	(10.1)
San Juan	3,171,077	3,316,577	4.6
Colombia	3,736,301	4,314,938	15.5

3Q24 Earnings Call

Day: Wednesday, October 23, 2024, at 10:00 AM ET; 8:00 AM Mexico City time

Dial-in: 1-877-407-4018 (Toll-Free); 1-201-689-8471 (International)

Access Code: 13749410

Replay: Wednesday, October 23, 2024, at 2:00 PM ET, ending at 11:59 PM ET on Wednesday, October 30, 2024. Dial-in number: 1-844-512-2921 (Toll-Free); 1-412-317-6671 (International). Access Code: 13749410

¹ Unless otherwise stated, all financial figures discussed in this press release are unaudited, prepared in accordance with International Financial Reporting Standards (IFRS), and represent comparisons between the three- and nine-month periods ended September 30, 2024, and the equivalent three- and nine-month periods ended September 30, 2023. All figures in this report are expressed in Mexican pesos, unless otherwise noted. Tables state figures in thousands of Mexican pesos, unless otherwise noted. Passenger figures for Mexico and Colombia exclude transit and general aviation passengers, unless otherwise noted. Commercial revenues include revenues from non-permanent ground transportation and parking lots. All U.S. dollar figures are calculated at the exchange rate of US$1.00 = Mexican Ps.19.6440 (source: Diario Oficial de la Federación de México), while Colombian peso figures are calculated at the exchange rate of COP. 213.06200 = Mexican Ps.1.00 (source: Investing). Definitions for EBITDA, Adjusted EBITDA Margin, Majority Net Income can be found on page 17 of this report.

For a full version of ASUR's Third Quarter 2024 Earnings Release, please visit: https://www.asur.com.mx/informacion-financiera-page-0

Definitions

Concession Services Agreements (IFRIC 12 interpretation). In Mexico and Puerto Rico, ASUR is required by IFRIC 12 to include in its income statement an income line, "Construction Revenues," reflecting the revenue from construction of, or improvements to concessioned assets made during the relevant period. The same amount is recognized under the expense line "Construction Costs" because ASUR hires third parties to provide construction services. Because equal amounts of Construction Revenues and Construction Costs have been included in ASUR's income statement as a result of the application of IFRIC 12, the amount of Construction Revenues does not have an impact on EBITDA, but it does have an impact on EBITDA Margin. In Colombia, "Construction Revenues" include the recognition of the revenue to which the concessionaire is entitled for carrying out the infrastructure works in the development of the concession, while "Construction Costs" represents the actual costs incurred in the execution of such additions or improvements to the concessioned assets. 

Majority Net Income reflects ASUR's equity interests in each of its subsidiaries and therefore excludes the 40% interest in Aerostar that is owned by other shareholders. Other than Aerostar, ASUR owns (directly or indirectly) 100% of its subsidiaries.

EBITDA means net income before provision for taxes, deferred taxes, profit sharing, non-ordinary items, participation in the results of associates, comprehensive financing cost, and depreciation and amortization. EBITDA should not be considered as an alternative to net income, as an indicator of our operating performance, as an alternative to cash flow or as an indicator of liquidity. Our management believes that EBITDA provides a useful measure that is widely used by investors and analysts to evaluate our performance and compare it with other companies. EBITDA is not defined under U.S. GAAP or IFRS and may be calculated differently by different companies.

Adjusted EBITDA Margin is calculated by dividing EBITDA by total revenues excluding construction services revenues for Mexico, Puerto Rico, and Colombia and excludes the effect of IFRIC 12 with respect to the construction of, or improvements to concessioned assets. ASUR is required by IFRIC 12 to include in its income statement an income line reflecting the revenue from construction of, or improvements to concessioned assets made during the relevant period. The same amount is recognized under the expense line "Construction Costs" because ASUR hires third parties to provide construction services. In Mexico and Puerto Rico, because equal amounts of Construction Revenues and Construction Costs have been included in ASUR's income statement as a result of the application of IFRIC 12, the amount of Construction Revenues does not have an impact on EBITDA, but it does have an impact on EBITDA Margin, as the increase in revenues that relates to Construction Revenues does not result in a corresponding increase in EBITDA. In Colombia, construction revenues do have an impact on EBITDA, as construction revenues include a reasonable margin over the actual cost of construction. Like EBITDA Margin, Adjusted EBITDA Margin should not be considered as an indicator of our operating performance, as an alternative to cash flow or as an indicator of liquidity and is not defined under U.S. GAAP or IFRS and may be calculated differently by different companies.

About ASUR
Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASUR) is a leading international airport operator with a portfolio of concessions to operate, maintain, and develop 16 airports in the Americas. These comprise nine airports in southeast Mexico, including Cancun Airport, the most important tourist destination in Mexico, the Caribbean, and Latin America, and six airports in northern Colombia, including José María Córdova International Airport (Rionegro), the second busiest airport in Colombia. ASUR is also a 60% JV partner in Aerostar Airport Holdings, LLC, operator of the Luis Muñoz Marín International Airport serving the capital of Puerto Rico, San Juan. San Juan's Airport is the island's primary gateway for international and mainland-US destinations and was the first and currently the only major airport in the US to have successfully completed a public–private partnership under the FAA Pilot Program. Headquartered in Mexico, ASUR is listed both on the Mexican Bolsa, where it trades under the symbol ASUR, and on the NYSE in the U.S., where it trades under the symbol ASR. One ADS represents ten (10) series B shares. For more information, visit www.asur.com.mx

Analyst Coverage
In accordance with Article 4.033.01 of the Mexican Stock Exchange Internal Rules, ASUR reports that the stock is covered by the following broker-dealers: Actinver, Banorte, Barclays, BBVA, Bradesco, BTG Pactual, Citi Global Markets, GBM Grupo Bursatil, Goldman Sachs, HSBC Securities, Insight Investment Research, Intercam, Itau BBA Securities, Jefferies, JP Morgan, Punto Research, Santander, Scotiabank, Signum Research, UBS Casa de Bolsa and Vector.

Please note that any opinions, estimates or forecasts with respect to the performance of ASUR issued by these analysts reflect their own views, and therefore do not represent the opinions, estimates or forecasts of ASUR or its management. Although ASUR may refer to or distribute such statements, this does not imply that ASUR agrees with or endorses any information, conclusions or recommendations included therein.

Forward Looking Statements

Some of the statements contained in this press release discuss future expectations or state other forward-looking information. Those statements are subject to risks identified in this press release and in ASUR's filings with the SEC. Actual developments could differ significantly from those contemplated in these forward-looking statements. The forward-looking information is based on various factors and was derived using numerous assumptions. Our forward-looking statements speak only as of the date they are made and, except as may be required by applicable law, we do not have an obligation to update or revise them, whether as a result of new information, future or otherwise.

 

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SOURCE Grupo Aeroportuario del Sureste, S.A.B. de C.V.

FAQ

What was ASR's revenue growth in Q3 2024?

ASR reported an 18.1% year-over-year revenue growth to Ps.7,483.3 million in Q3 2024.

How did ASR's passenger traffic change in Q3 2024?

ASR's total passenger traffic declined by 2.1% year-over-year in Q3 2024, with variations across its operations: Mexico declined 10.1%, Puerto Rico increased 4.6%, and Colombia increased 15.5%.

What was ASR's EBITDA performance in Q3 2024?

ASR's consolidated EBITDA increased by 12.0% year-over-year to Ps.4,700.4 million in Q3 2024.

How did ASR's revenue per passenger change in Q3 2024?

ASR's consolidated revenue per passenger increased by 7.2% to Ps.124.9 in Q3 2024.