TAV Havalimanlari (TAVHL) Q3 2024 earnings summary

Executive summary

• Served 83 million passengers in the first nine months of 2024, up 12% year-over-year, with international traffic up 13% despite a -3% impact from geopolitics in Q3.

• Revenue for the nine months ended 30 September 2024 reached €1,231.5 million, up 25% year-over-year, with EBITDA up 28% to €411 million and net income up 5% to €185 million.

• Free cash flow reached €121 million, reflecting strong cash generation during a period of heavy investment.

• Major investments in Almaty, Antalya, and Ankara airports are progressing, with new terminals and infrastructure nearing completion.

• Solar panel projects initiated at Bodrum, Izmir, and Ankara, targeting 30% of electricity needs for these airports.

Financial highlights

• EBITDA margin held at 33% for nine months, supported by diversified revenue streams and international exposure.

• Net debt stood at €1.6 billion, with net debt to EBITDA at 3.4x as of Q3 2024.

• CapEx for the first nine months was €165 million, mainly for Ankara and Almaty projects.

• Duty free spend per passenger rose 6% to €9.5.

• Cash and cash equivalents increased to €603.5 million from €538.9 million at year-end 2023.

Outlook and guidance

• 2024 guidance for revenue, passenger numbers, EBITDA, and net debt to EBITDA maintained; CapEx guidance for 2025 raised to €140–160 million due to growth investments.

• 2025 guidance includes new Ankara concession, with 14–18% CAGR in revenue and 10–14% CAGR in passenger volume expected (2022–2025).

• Net debt to EBITDA guidance for 2025 is 2.5–3x, subject to revision based on final CapEx plans.

• Guidance assumes no mobility restrictions, force majeure, or abnormal FX volatility.

• No dividend was distributed in 2024, in line with the Group's dividend policy.