Corporacion America Airports Results

Corporación América Airports Announces 1Q19 Results

Passenger traffic up 2.6% with growth of 7.0% YoY in Argentina, 7.5% in Ecuador, and 10.4% in Armenia partially offset by declines in other 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- month period ended March 31, 2019. Financial results are expressed in millions of U.S. dollars and are prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting” (“IAS 34”) as issued by the International Accounting Standards Board.

Commencing 3Q18, the Company began reporting results of its Argentinean subsidiaries applying Hyperinflation Accounting, in accordance to IFRS rule IAS 29 (“IAS 29”), as detailed on Section “Hyperinflation Accounting in Argentina” on page 18.

First Quarter 2019 Highlights

  • Consolidated revenues of $360.6 million, down 7.8% YoY. Excluding the impact of IFRS rule IAS 29, revenues declined 4.0% YoY mainly due to lower travel demand in Argentina reflecting difficult macro conditions and FX fluctuation in Argentina, Brazil and Italy, partially offset by revenue growth in Ecuador and Armenia
  • Growth across key operating metrics:
    • Passenger traffic up 4.0% YoY to 20.4 million
    • Cargo volume increased 6.3% to 104.8 thousand tons
    • Aircraft movements declined 0.3% to 212.7 thousand
  • Operating Income declined 29.9% YoY, mainly impacted by IAS 29, and the operating margin contracted to 21.3% from 28.0% in 1Q18
  • Adjusted EBITDA was $116.9 million, down 14.5% YoY, with Adjusted EBITDA margin Ex-IFRIC12 contracting 86 bps to 38.7%
  • Ex-IAS 29, Adjusted EBITDA declined 10.8% YoY and Adjusted EBITDA margin Ex-IFRIC12 contracted 61 bps to 39.0%

CEO Message

Commenting on first quarter 2019 results, Mr. Martín Eurnekian, CEO of Corporación América Airports, noted: “Our first quarter results were impacted by the difficult macro conditions in Argentina, our largest market and to a lesser extent a slowdown in Brazil and Uruguay. Passenger traffic growth decelerated which together with significant currency depreciation in Argentina and, to a lower degree, in Brazil and Italy, resulted in lower revenue growth. In Argentina, soft consumer demand and sharp FX fluctuation continued to drive mix-shift to domestic destinations and lower commercial revenues, particularly when compared to a record quarter a year ago. In Italy, our commercial initiatives continue to bear fruit driving sustained growth in local currency revenues, while Brazil reported a mid-single digit increase in local currency revenues. As a result, comparable Adjusted EBITDA Ex-IAS29, excluding one-time items in 1Q18 and construction service margin, declined 8.3% YoY, while the margin remained stable at 39% during the period, reflecting better comparable margins in Argentina and Italy.

As the year progresses, our business is expected to track generally in line with overall macro trends. Argentina, our key market, is facing a more difficult macro environment which, together with the added volatility from this being a Presidential election year, suggests a more subdued economic recovery towards year-end. This is expected to weigh on passenger traffic trends and slow revenue growth. In Brazil, traffic will remain impacted by airline capacity adjustments and recent reductions in GDP growth forecasts for the current year. While we face several headwinds across key markets, we maintain a solid balance sheet that supports our focus on advancing on our strategy and key capital investment projects, particularly in Argentina and Italy. Noteworthy, last April the Italian Ministry of Transportation approved the 2014-2029 Master Plan for Florence's Amerigo Vespucci Airport and we also extended the concession agreement of the Punta del Este Airport in Uruguay for a fourteen–year period from 2019 through 2033.


Operating & Financial Highlights

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


1Q19 ex

IAS 29

    IAS 29    

1Q19 as



% Var as



% Var ex

IAS 29

Passenger Traffic (Million Passengers)     19.6     6.9     -     6.9     -65.1%     -65.1%
Revenue     390.9     375.2     -14.7     360.6     -7.8%     -4.0%
Aeronautical Revenues     204.8     192.3     -7.3     185.0     -9.7%     -6.1%
Non-Aeronautical Revenues     186.1     183.0     -7.4     175.6     -5.7%     -1.7%
Revenue excluding construction service     344.3     310.9     -11.1     299.8     -12.9%     -9.7%
Operating Income     109.6     94.4     -17.6     76.8     -29.9%     -13.9%
Operating Margin     28.0%     25.2%     119.6%     21.3%     -673     -288
Net (Loss) / Income Attributable to Owners of the Parent     26.5     34.8     -4.4     30.4     14.9%     31.4%
EPS (US$)     0.17     0.22     -0.03     0.19     11.5%     27.4%
Adjusted EBITDA     136.8     122.0     -5.1     116.9     -14.5%     -10.8%
Adjusted EBITDA Margin     35.0%     32.5%     -     32.4%     -257     -248
Adjusted EBITDA Margin excluding Construction Service     39.6%     39.0%     -     38.7%     -86     -61
Net Debt to LTM EBITDA     1.98     -     -     2.05     690     -

Note: Non-IFRS figures in historical dollars are included for comparison purposes.


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 2018, Corporación América Airports served 81.3 million passengers. The Company is listed on the New York Stock Exchange where it trades under the ticker “CAAP”.

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