Grupo Aeroportuario del Sureste (ASURB) Q2 2024 earnings summary

Executive summary

• Passenger traffic reached a record 18 million in Q2 2024, up 2.8% year-on-year, with strong growth in Colombia (+20.9%) and Puerto Rico (+8.5%) offsetting a decline in Mexico (-4.7%).

• Net income rose 50% year-on-year to MXN 3.7 billion (Ps.3,779.4 million), driven by higher operating profit and a foreign exchange gain of nearly MXN 950 million (Ps.942.0 million).

• The company advanced ESG initiatives, including Scope 3 carbon emissions tracking, new social projects in Mexico, and major investments in sustainability such as solar panels and biodiversity conservation.

• Operates 16 airports across Mexico, Puerto Rico, and Colombia, with a strong track record of passenger growth and balanced international/domestic traffic.

• Cancun International Airport recognized as the best in Latin America for four consecutive years.

Financial highlights

• Total revenues increased nearly 20.1% year-on-year to MXN 7.4 billion in Q2 2024, with Colombia leading at 35% growth, Mexico at 19.5%, and Puerto Rico at 14.1%.

• Consolidated EBITDA rose 18% to MXN 5 billion (Ps.4,909.9 million); adjusted EBITDA margin remained stable at 69%.

• Commercial revenues per passenger increased 4.6% to Ps.127.9, outpacing passenger traffic, with per-passenger commercial revenue up 5%.

• Costs and expenses increased nearly 30% year-on-year, mainly due to higher concession fees and wages in Mexico.

• Earnings per share reached Ps.12.2452, up 50.3% year-on-year.

Outlook and guidance

• Domestic traffic in Mexico is expected to remain negative for the rest of the year due to Pratt & Whitney engine issues and reduced capacity at Mexico City Airport.

• Puerto Rico's traffic is expected to normalize after last year's surge, while Colombia should continue its recovery.

• US election rhetoric may negatively impact US-bound international traffic in Q4.

• Maximum tariff compliance is targeted at close to 99% for the year, supported by peso devaluation.

• Capital expenditure visibility through 2028, with Ps. 29,573M planned for 2024-2028, focusing on terminal expansions and infrastructure upgrades.