Corporación América Airports (CAAP) Q2 2024 earnings summary

Executive summary

• Revenues ex-IFRIC12 rose 0.2% year-on-year to $366.1M, despite a 7.8% decline in passenger traffic, with strong performances in Italy and Uruguay offsetting softness in Argentina.

• Adjusted EBITDA ex-IFRIC12 declined 8.8% year-on-year to $136.2M, mainly due to macroeconomic headwinds in Argentina, while Italy and Uruguay delivered robust growth.

• Revenue per passenger ex-IFRIC12 grew 9% year-on-year to $20.1, reflecting positive contributions across all segments.

• Net debt to LTM Adjusted EBITDA improved to 1.1x, reflecting strong cash generation and debt reduction.

• Strategic initiatives include a $400M CapEx plan in Armenia and awaiting approval for Florence airport's master plan.

Financial highlights

• Total revenues ex-IFRIC12 reached $366.1M in 2Q24, up 0.2% year-on-year; aeronautical revenue up 3.2%, non-aeronautical down 5.3%.

• Adjusted EBITDA ex-IFRIC12 was $136.2M, down 8.8% year-on-year; margin contracted to 37.2% from 40.9%.

• Net debt stood at $783M, with total liquidity at $549M as of June 30, 2024, up 20% from year-end 2023.

• Operating income was $92.9M, down 15.9% year-on-year; net income attributable to owners fell 28% to $50.2M.

• CapEx for 2Q24 was $57.0M, down 9.1% year-on-year, with Argentina and Uruguay accounting for 88% of spend.

Outlook and guidance

• Positive momentum in Italy and Uruguay is expected to continue throughout the year.

• Open skies agreements and regulatory reforms in Argentina are anticipated to drive long-term growth.

• Ongoing negotiations for a $400M CapEx plan in Armenia and master plan approval in Florence, Italy.

• Healthy balance sheet provides flexibility for global growth initiatives amid near-term challenges in Argentina and Brazil.