Corporación América Airports (CAAP) Q4 2023 earnings summary

Executive summary

• 4Q23 passenger traffic rose 13.1% YoY to 20.7M, reaching 99.1% of 4Q19; FY23 traffic rose 23.7% to 81.1M, or 96.4% of 2019 levels.

• Excluding IAS 29 and Natal, 4Q23 Adjusted EBITDA rose 29.4% to $161M; FY23 rose 40% to $635M.

• Results included a $166.5M Adjusted EBITDA contribution from the Natal concession termination; traffic recovery and commercial growth were partly offset by Argentina’s non-cash hyperinflation accounting impact.

Financial highlights

• 4Q23 reported revenue was $365.0M, down 5.5% YoY; excluding IAS 29, revenue was $454.6M, up 14.3%, and excluding construction services was $397.6M, up 18.9%.

• FY23 reported revenue was $1,400.0M, up 1.6%; excluding IAS 29, revenue was $1,741.5M, up 25.2%, and excluding construction services was $1,541.0M, up 25.1%.

• Adjusted EBITDA ex-IFRIC 12 was $298.8M in 4Q23, or $132.3M excluding Natal; FY23 was $671.3M, or $504.8M excluding Natal.

• 4Q23 attributable net income was $130.7M and EPS $0.81, versus $12.1M and $0.08; FY23 attributable net income was $239.5M and EPS $1.49.

• Net operating cash flow was $356.4M in FY23, versus $302.6M in FY22.

Outlook and guidance

• Cautiously optimistic on passenger traffic, with focus on demand recovery and continued operational execution across geographies.

• Yerevan expansion negotiations continued, with an expected ~$400M investment plan; Florence master plan approval work includes a longer runway and larger terminal, with €400M estimated investment, including €150M in government grants.

• Negotiations continued with Nigeria’s government on Abuja and Kano concessions, alongside selective airport-network expansion opportunities.