Corporacin Amrica Airports SA Reports Second Quarter 2024 Earnings
Intellectia.AI Updated: 2024-08-21
Corporación América Airports S.A. Reports Second Quarter 2024 Earnings
Corporación América Airports S.A. (NYSE: CAAP), a leading private airport operator, announced its unaudited consolidated financial results for the quarter ending June 30, 2024.
Key Financial Metrics
| Metrics | 2Q24 | 2Q23 | YoY Change |
|---|---|---|---|
| Consolidated Revenues ex-IFRIC12 | $366.1 million | $365.3 million | +0.2% |
| Operating Income | $92.9 million | $110.4 million | -15.8% |
| Adjusted EBITDA ex-IFRIC12 | $136.2 million | $149.3 million | -8.8% |
| Adjusted EBITDA margin ex-IFRIC12 | 37.2% | 40.9% | -9.0% |
| Cash & Cash Equivalents | $439.4 million | - | - |
| Net Debt to LTM Adjusted EBITDA | 1.1x | 1.4x (12/31/23) | -21.4% |
Performance Interpretation : Corporación América Airports S.A. showed resilience in its overall revenue with a small year-over-year increase despite a decline in passenger traffic. However, EBITDA and operating income faced significant drops primarily due to macroeconomic impacts in Argentina.
Revenue Performance by Segment
| Segment | 2Q24 Revenue | 2Q23 Revenue | YoY Change |
|---|---|---|---|
| Aeronautical Revenues | $214.1 million | $207.6 million | +3.2% |
| Commercial Revenues | $152.0 million | $157.7 million | -3.6% |
Segment Performance Interpretation : Aeronautical revenues experienced a healthy growth of 3.2% YoY, driven largely by international traffic growth in Argentina and strong performances in Italy and Uruguay. Commercial revenues, however, declined by 3.6%, impacted by Argentina's economic conditions affecting domestic traffic and duty-free sales.
Key Operational Data
| Operating Metrics | 2Q24 | 2Q23 | YoY Change |
|---|---|---|---|
| Passenger Traffic (millions) | 18.2 | 19.7 | -7.8% |
| Cargo Volume (thousand tons) | 95.1 | 90.8 | +4.7% |
| Aircraft Movements | -7.8% | -7.7% | YoY improvement |
| Passenger Traffic ex-Natal | -5.4% | -5.0% | YoY improvement |
Comments from Company’s Officers
Mr. Martín Eurnekian, CEO, stated: "Despite a mild decline in overall passenger traffic, our revenues remained resilient due to our geographic diversification, reflected in a 9% increase in revenue per passenger. EBITDA has declined primarily due to the impact of Argentina's macroeconomic conditions. However, international traffic in Argentina performed well and we saw strong performances in Italy and Uruguay. We remain engaged in strategic initiatives and expect positive dynamics in our key regions to continue."
Dividends and Share Repurchase Program
No information on dividends or share repurchases was provided in the report.
Forward Guidance
The company did not provide specific forward guidance but expressed confidence in continued positive dynamics in Uruguay and Italy. It also highlighted potential opportunities opened by recent bilateral open skies agreements with Argentina.
Stock Price Movement
Following the earnings release, the stock experienced a -1.31% change.
Conclusion
Corporación América Airports S.A. showcased a resilient revenue performance amidst challenging conditions, with robust contributions from international markets. The company continues to maintain a strong cash position and favorable debt maturity profile as it navigates near-term challenges, particularly in Argentina.
For more detailed information, please refer to the full earnings release and presentation at: Earnings Release .