ASUR Reports 2Q23 Financial Results

Rhea-AI Summary

Grupo Aeroportuario del Sureste (ASUR) announced its results for the three- and six-month periods ended June 30, 2023. Total passenger traffic in 2Q23 increased by 3.5% compared to 2Q22. Revenues declined by 2.6% year-over-year to Ps.6,156.4 million. Consolidated EBITDA increased by 3.0% year-over-year to Ps.4,160.3 million. Cash position of Ps.14,474.0 million, with Net Debt to EBITDA LTM ratio of negative 0.1x.

Positive

• Total passenger traffic in 2Q23 increased by 3.5% YoY. Consolidated EBITDA increased by 3.0% YoY to Ps.4,160.3 million. Cash position of Ps.14,474.0 million.

Negative

• Revenues declined by 2.6% YoY to Ps.6,156.4 million. Net Debt to EBITDA LTM ratio is negative 0.1x.

Total passenger traffic in 2Q23 increased 3.5% YoY

MEXICO CITY, July 24, 2023 /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 six-month month periods ended June 30, 2023. 

2Q23 Highlights¹                               

• Total passenger traffic increased 3.5% compared to 2Q22. By country of operations, 2Q23 passenger traffic showed the following YoY variations:
• Mexico: increased by 9.0%, reflecting increases of 16.5% and 2.5% in domestic and international traffic, respectively.
• Puerto Rico (Aerostar): increased by 14.9%, resulting from increases of 12.1% and 44.1% in domestic and international traffic, respectively.
• Colombia (Airplan): decreased 17.5%, with declines of 20.3% and 3.5% in domestic and international traffic, respectively, mainly reflecting the suspension of operations of Viva Air and Ultra Air in 1Q23.
• Revenues declined 2.6% year-over-year to Ps.6,156.4 million. Excluding construction revenue, revenue increased 5.2% compared to 2Q22.
• Consolidated commercial revenue per passenger reached Ps.122.3 million.
• Consolidated EBITDA increased 3.0% year-over-year to Ps.4,160.3 million.
• Adjusted EBITDA margin (excluding the effect of IFRIC 12) declined to 69.1% from 70.5% in 2Q22.
• Cash position of Ps.14,474.0 million, with Net Debt to EBITDA LTM ratio of negative 0.1x.

Table 1: Financial & Operational Highlights 1

	Second Quarter		% Chg
	2022	2023
Financial Highlights
Total Revenue	6,319,709	6,156,443	(2.6)
Mexico	4,557,925	4,541,133	(0.4)
San Juan	1,065,470	1,036,616	(2.7)
Colombia	696,314	578,694	(16.9)
Commercial Revenues per PAX	119.6	122.3	2.3
Mexico	142.8	141.7	(0.8)
San Juan	159.0	146.4	(7.9)
Colombia	39.7	40.7	2.5
EBITDA	4,040,629	4,160,306	3.0
Net Income	2,844,469	2,649,413	(6.9)
Majority Net Income	2,661,548	2,444,711	(8.1)
Earnings per Share (in pesos)	8.8718	8.1490	(8.1)
Earnings per ADS (in US$)	5.1774	4.7556	(8.1)
Capex	436,865	152,927	(65.0)
Cash & Cash Equivalents	7,331,083	14,474,035	97.4
Net Debt	5,047,003	(1,326,708.00)	n/a
Net Debt/ LTM EBITDA	0.4	(0.1)	n/a
Operational Highlights
Passenger Traffic
Mexico	9,817,127	10,697,831	9.0
San Juan	2,783,495	3,198,859	14.9
Colombia	4,106,959	3,389,611	(17.5)

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 six-month periods ended June 30, 2023, and the equivalent three- and six-month periods ended June 30, 2022. 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. 17.1358 (source: Diario Oficial de la Federación de México), while Colombian peso figures are calculated at the exchange rate of COP243.4300 = Mexican Ps.1.00 (source: Investing). Definitions for EBITDA, Adjusted EBITDA Margin, Majority Net Income can be found on page 17 of this report.

2Q23 Earnings Call

Date & Time: Tuesday, July 25, 2023 at 10:00 AM US ET; 8:00 AM Mexico City Time 

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

Access Code: 13740169

Replay: Tuesday, July 25, 2023 at 1:00 PM US ET, ending at 11:59 PM US ET on Tuesday, August 1, 2023. Dial in: 1-844-512-2921 (Toll-Free) 1-412-317-6671 (International). Access Code: 13740169

For a full version of ASUR's Second Quarter 2023 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 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 or as an alternative to cash flow 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 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 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 or as an alternative to cash flow 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 Bancomer, Bradesco, BTG Pactual, Citi Global Markets, Credit Suisse, GBM Grupo Bursatil, Goldman Sachs, HSBC Securities, Insight Investment Research, Intercam, Itau BBA Securities, JP Morgan, Nau Securities, 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. In particular, the impact of the COVID-19 pandemic on global economic conditions and the travel industry, as well as on the business and results of operations of the Company in particular, is expected to be material, and, as conditions are changing rapidly, is difficult to predict. 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 the change in passenger traffic in 2Q23 compared to 2Q22?

Total passenger traffic in 2Q23 increased by 3.5% compared to 2Q22.

What was the change in revenues in 2Q23 compared to the previous year?

Revenues declined by 2.6% year-over-year to Ps.6,156.4 million.

What was the change in EBITDA in 2Q23 compared to the previous year?

Consolidated EBITDA increased by 3.0% year-over-year to Ps.4,160.3 million.

What is the cash position of Grupo Aeroportuario del Sureste?

The company has a cash position of Ps.14,474.0 million.

What is the Net Debt to EBITDA LTM ratio of the company?

The Net Debt to EBITDA LTM ratio is negative 0.1x.