Grupo Aeroportuario del Sureste (ASURB) Q3 2024 earnings summary

Executive summary

• Passenger traffic declined 2% year-on-year to just over 77 million, with strong growth in Colombia and Puerto Rico nearly offsetting weakness in Mexico.

• Colombia led with a 16% increase in passenger traffic, while Puerto Rico saw a 5% rise; Mexico experienced a 10% decline.

• Net income rose 28% year-on-year to MXN 3.4 billion, aided by a significant foreign exchange gain.

• Operates 16 airports across Mexico, Puerto Rico, and Colombia, with a record 70.6M passengers in 2023, up 6.4% year-over-year.

• Strong focus on sustainability, with significant ESG achievements and certifications.

Financial highlights

• Total revenues (excluding construction) increased 14% year-on-year to nearly MXN 7 billion, with Colombia up 30%, and Mexico and Puerto Rico in the low teens.

• Aeronautical revenues in Mexico grew 19% due to tariff adjustments; non-aeronautical revenues were flat.

• Consolidated EBITDA rose 12% year-on-year to MXN 4.7 billion; adjusted EBITDA margin declined 130 bps to 68.3%.

• Commercial revenues increased 5% overall, with Colombia up 38%, Puerto Rico up 15%, and Mexico down 2%.

• Earnings per share rose 24.8% YoY to Ps.11.2706; earnings per ADS in USD up 24.8% YoY to $5.7374.

Outlook and guidance

• Recovery in Colombia expected to continue through year-end and normalize by mid-Q1 next year.

• Pratt & Whitney engine issues and Mexico City Airport capacity reductions to persist until at least Q2 2025.

• Objectives include further commercial business development, passenger volume growth, world-class service, and capital structure improvement.

• Visibility on capital expenditure requirements through 2028, with Ps. 29,573M committed for 2024-2028.

• Management notes forward-looking statements are subject to risks and actual results may differ significantly.