Corporación América Airports S.A. (NYSE:CAAP), the largest private sector airport operator based on the number of airports under management and the tenth largest private sector airport operator worldwide based on passenger traffic, reported today its unaudited, consolidated results for the three- and six-month periods ended June 30, 2018. Financial results are expressed in millions of U.S. dollars and are prepared in conformity with International Accounting Standard 34 “Interim Financial Reporting” (“IAS 34”) as issued by the International Accounting Standards Board.
Second Quarter 2018 Highlights
- Revenues up 3.5% YoY to $397.1 million mainly driven by Armenia, Argentina and Ecuador, further supported by Uruguay.
- Growth across key operating metrics:
- Passenger traffic up 7.4% YoY to 19.2 million
- Cargo volume increased 10.4% to 98.2 thousand tons
- Aircraft movements rose 5.4% to 215.5 thousand
- Operating Income up 17.3% YoY, with operating margin increasing to 23.7% from 20.9% in 2Q17
- Adjusted EBITDA reached $121.1 million, up 12.9% YoY, with Adjusted EBITDA margin expanding 255 basis points to 30.5%
Commenting on the second quarter 2018 results, Mr. Martin Eurnekian, CEO of Corporación América Airports, noted: “We reported solid results against a challenging macro environment in some of our key markets this quarter, evidenced in the 13% year-on-year increase in Adjusted EBITDA and 364 basis point expansion in Ex-IFRIC Adjusted EBITDA margin to slightly over 37%. Total passenger traffic rose slightly over 7% year-on-year. Despite currency depreciation and softer overall consumption in Argentina which hurt overall travel demand, passenger traffic in the country rose 6.5%, while traffic growth in Brazil increased over 9%. We also saw solid traffic growth across the majority of our countries of operations.”
“Revenues, however, grew at a slower pace this quarter reflecting a mix-shift from international to domestic passenger traffic together with the impact of FX translation on local currency revenues in Argentina, as well as with the impact of the currency depreciation in Brazil. By contrast, our cost structure benefitted from the currency depreciation in these two countries driving Adjusted EBITDA margin Ex-IFRIC expansion of 500 basis points in Argentina and significant growth in Adjusted EBITDA in Brazil. We also saw improvements across most of our countries of operations.”
“An important milestone in our long-term vision of value creation was the agreement entered into with Investment Corporation of Dubai last July, that provides a solid foundation to jointly identify and develop new future opportunities in the airport sector in Italy, Eastern Europe and Middle East, while keeping our focus on delivering on our growth strategy in key markets, primarily Argentina and Brazil.”
“Looking ahead to the remainder of 2018, we are cautiously optimistic and anticipate overall healthy dynamics and continued growth across our markets. Although we see traffic continuing to expand at lower rates in Argentina given currency volatility, over time we expect international inbound traffic to pick-up compensating for lower internal demand of international travel. In the meantime, we will continue providing the best travel experience for passengers through our airports while never losing sight of our focus on further strengthening our global platform for long-term success.”
|Operating & Financial Highlights|
|(In millions of U.S. dollars, unless otherwise noted)|
|2Q18||2Q17||% Var||1H18||1H17||% Var|
|Passenger Traffic (Million Passengers)||19.2||17.9||7.4%||38.8||36.1||7.5%|
|Revenue excluding construction service||324.4||318.7||1.8%||668.7||637.8||4.8%|
|Net Income Attributable to Owners of the Parent||-22.7||15.6||-245.2%||3.8||48.1||-92.1%|
|Adjusted EBITDA Margin||30.5%||28.0%||255||32.7%||31.0%||170|
|Adjusted EBITDA Margin excluding Construction Service||37.2%||33.5%||364||38.4%||35.8%||266|
|Net Debt to LTM EBITDA||1.98||-||-||1.98||-||-|
1 Data for LTM EBITDA as of June 30, 2017 is not available as CAAP started consolidating its results in 2H16.
About Corporación América Airports
Corporación América Airports acquires, develops and operates airport concessions. The Company is the largest private airport operator in the world based on the number of airports and the tenth largest based on passenger traffic. Currently, the Company operates 52 airports in 7 countries across Latin America and Europe (Argentina, Brazil, Uruguay, Peru, Ecuador, Armenia and Italy). In 2017, it served 76.6 million passengers. The Company is listed on the New York Stock Exchange where it trades under the ticker “CAAP”.
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