Unlock stock picks and a broker-level newsfeed that powers Wall Street. Upgrade Now
Grupo Aeroportuario del Centro Norte SAB de CV (OMAB) Q2 2024 Earnings Call Highlights: ...

In This Article:

  • Passenger Traffic: 6.5 million, a decrease of 2.4% year-over-year.

  • Domestic Passenger Traffic: Decreased by 4.3%.

  • International Passenger Traffic: Increased by 12%.

  • Aeronautical Revenue: Decreased by 2.5%.

  • Non-Aeronautical Revenue: Increased by 13.8%.

  • Commercial Revenue: Increased by 12%.

  • Diversification Revenue: Increased by 27%.

  • Total Revenue: MXN2.9 billion, a growth of 1.1%.

  • Construction Revenue: MXN556 million, a decrease of 22%.

  • Adjusted EBITDA: MXN2.2 billion with a margin of 73.3%.

  • Net Income: MXN1.3 billion, an increase of 1.5% year-over-year.

  • Cash from Operating Activities: MXN1 billion.

  • Cash Position: MXN1.6 billion at the end of the quarter.

  • Total Debt: MXN10.9 billion.

  • Net Debt to Adjusted EBITDA Ratio: 1 times.

Release Date: July 29, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • International passenger traffic increased by 12% compared to the second quarter of last year, driven by strong performance at Monterrey Airport.

  • Non-aeronautical revenues grew by 13.8%, highlighting successful strategic projects and diversification efforts.

  • Commercial revenues increased by 12%, with significant contributions from VIP lounges, parking, and restaurants.

  • OMA Cargo saw a 35% increase in revenues, driven by new operations with Lufthansa Cargo and expansion plans in Monterrey.

  • Hotel services grew by 16%, with high occupancy rates and increased average room rates at both NH and Hilton Garden Inn hotels.

Negative Points

  • Overall passenger traffic decreased by 2.4% compared to the second quarter of last year, with domestic passenger traffic down by 4.3%.

  • Aeronautical revenue decreased by 2.5%, primarily due to lower domestic passenger traffic.

  • Construction revenues fell by 22% due to slower MDP investment execution.

  • Cost of services and G&A expenses increased by 16.5%, driven by expansion in operational areas and higher unit costs.

  • Concession tax increased by 71% due to a rate hike from 5% to 9%, impacting financial results.

Q & A Highlights

Q: Can you provide your expectations for traffic for the second half of the year in Mexico? A: We maintain our previous projection, expecting a low-single digit decrease in traffic due to the Pratt & Whitney issue. - Ricardo Duenas Espriu, CEO

Q: What is the potential for non-aeronautical revenue per passenger in the medium to long term? A: We expect commercial revenue per passenger to remain stable and increase with inflation. Diversification activities like cargo and hotel services are not directly correlated to passenger growth. - Ruffo Perez Pliego Del Castillo, CFO