Grupo Aeroportuario del Centro Norte (OMAB) Q2 2024 earnings summary

Executive summary

• Passenger traffic reached 6.5 million in 2Q24, down 2.4% year-over-year, with domestic traffic declining 4.3% and international traffic rising 12.4%; LTM passenger traffic was 26.6 million as of June 2024 across 13 airports, 2 hotels, and 1 industrial park.

• International passenger traffic growth was driven by new and strengthened routes, especially from Monterrey.

• Non-aeronautical revenues grew 13.8% year-over-year, with strong performance in commercial activities, cargo, hotels, and diversification.

• Listed on BMV and Nasdaq, with a market cap of Ps. 62.0 billion ($3.4 billion) as of July 2024.

• Strong corporate governance with independent committees and a diverse board.

Financial highlights

• Aeronautical revenues decreased 2.5% year-over-year, while non-aeronautical revenues increased 13.8%.

• Total revenues (aero + non-aero) grew 1.1% to MXN 2.9 billion in 2Q24.

• Adjusted EBITDA was MXN 2.2 billion (margin 73.3%); excluding concession tax surplus, margin would be 76.3%.

• Net income was MXN 1.3 billion, up 1.5% year-over-year; EPS rose 1.2% to Ps.3.33.

• Cash at quarter-end was MXN 1.6 billion; net debt to adjusted EBITDA ratio stood at 1.0x.

Outlook and guidance

• Management projects a low single-digit decrease in traffic for the second half of 2024 due to ongoing engine recall impacts.

• Ongoing expansion projects at Monterrey, Culiacán, and Ciudad Juárez airports to increase capacity and commercial space by 2025.

• Committed investments of Ps. 15,601 million under the 2021-2025 Master Development Program.

• Non-aeronautical commercial revenue per passenger expected to increase at least with inflation and remain stable in real terms.

• No international expansion projects are currently being pursued.