Corporacion America Airports Results

Corporacion America Airports Announces 3Q18 YoY Growth of 5.8% in Passenger Traffic

Passenger traffic up 5.9% YoY in Argentina and 5.2% in Brazil, further supported by growth across most countries of operations

Corporacion America Airports

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 nine-month periods ended September 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.

Starting in 3Q18, the Company is reporting results of its Argentinean subsidiaries applying Hyperinflation Accounting, in accordance to IFRS rule IAS29, as detailed on Section “Review of Consolidated Results”.

Third Quarter 2018 Highlights

  • Consolidated revenues declined 17.4% YoY to $348.0 million. Excluding the impact of IFRS rule IAS29, revenues declined 7.7% YoY mainly due to lower travel demand in Argentina reflecting difficult macro conditions and the FX impact in Argentina and Brazil, partially offset by increases in Ecuador and Armenia
  • Growth across key operating metrics:
    • Passenger traffic up 5.8% YoY to 22.1 million
    • Cargo volume increased 1.2% to 94.8 thousand tons
    • Aircraft movements rose 2.6% to 231.1 thousand
  • Operating Income declined 16.4% YoY, mainly reflecting IAS 29 impact, with operating margin expanding 30 bps to 25.0% from 24.7% in 3Q17
  • Adjusted EBITDA reached $122.5 million, down 2.7% YoY, with Adjusted EBITDA margin Ex-IFRIC12 expanding 435 bps to 40.4%
  • Ex-IAS 29, Adjusted EBITDA increased 8.8% YoY and Adjusted EBITDA margin Ex-IFRIC12 increased 469 bps to 40.7%

CEO Message

Commenting on the third quarter 2018 results, Mr. Martin Eurnekian, CEO of Corporación América Airports, noted: “We delivered year-on-year Adjusted EBITDA Ex IAS 29 growth of almost 9% this quarter despite the increasingly challenging macro environment, particularly in Argentina. Moreover, Ex-IFRIC Adjusted EBITDA margin expanded over 460 points to 40%. Our three key markets, Argentina, Brazil and Italy contributed to this higher profitability in the quarter.

Passenger traffic growth showed a slight deceleration this quarter while total revenues posted a high-single digit year-on-year decline, impacted mainly by an average quarterly depreciation in local currencies of 85% in Argentina and 26% in Brazil. Additionally, in Argentina, we saw a high-single digit decline in international travel, an accelerated mix-shift to more affordable domestic destinations, and the impact of FX translation on local currency revenues. Brazil’s revenue in local currency increased more than 10% reflecting continued traffic growth and the positive contribution from recent commercial activities. Our operations in Italy, continued to deliver a solid top line performance, supported by healthy traffic trends and the contribution from the redesigned VIP lounge, new retail stores as well as new space for duty free shops. Furthermore, our cost structure continued to benefit from the currency depreciation in Argentina and Brazil, along with higher profitability across most of our countries of operations.

Looking ahead, we see the difficult economic environment in Argentina continuing to negatively impact traffic trends in the country. Moreover, profitability is expected to be impacted more as inflation in the country catches up with currency depreciation lowering the strong operating leverage experienced this quarter. We remain focused on further strengthening our global airport platform, moving ahead in our capex initiatives particularly in Argentina and Italy, as well as developing new routes and frequencies while providing our passengers with a great travel experience, which in turn should create long-term value for the Company. This is further underscored by our strong balance sheet.”

Operating & Financial Highlights

(In millions of U.S. dollars, unless otherwise noted)









  3Q18 ex

IAS 29


IAS 29


3Q18 as



% Var as



% Var ex

IAS 29

Passenger Traffic (Million Passengers)   20.9   -   -   22.1   5.8%   -

Revenue   421.1   388.9   -40.9   348.0   -17.4%   -7.7%

Aeronautical Revenues   205.1   196.0   -19.0   177.1   -13.7%   -4.4%

Non-Aeronautical Revenues   216.0   192.8   -21.9   170.9   -20.9%   -10.7%

Revenue excluding construction service   348.4   335.3   -32.9   302.4   -13.2%   -3.8%

Operating Income   104.0   109.7   -22.7   87.0   -16.4%   5.5%

Operating Margin   24.7%   28.2%   -   25.0%   30   351

Net (Loss) / Income Attributable to Owners of the


  19.0   -26.9   11.7   -15.2   -179.8%   -241.4%

EPS (US$)   0.13   -0.17   0.07   -0.09   -173.9%   -230.8%

Adjusted EBITDA   125.9   137.0   -14.5   122.5   -2.7%   8.8%

Adjusted EBITDA Margin   29.9%   35.2%   -   35.2%   531   532

Adjusted EBITDA Margin excluding Construction Service   36.0%   40.7%   -   40.4%   435   469

Net Debt to LTM EBITDA   2.26   1.87   -   2.09   -1,774   2,143


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