Corporación América Airports Announces 2Q19 Results
Corporación América Airports S.A. (NYSE: CAAP), (“CAAP” or the “Company”) 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, 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.”
Second Quarter 2019 Highlights
- Consolidated revenues of $412.6 million, up 3.9% YoY. Excluding the impact of IFRS rule IAS 29, revenues remained stable at $395.5, mainly due to higher construction service revenue in Argentina reflecting higher capex in the period.
- Performance of key operating metrics:
- Passenger traffic up 3.8% YoY to 19.8 million
- Cargo volume increased 6.6% to 104.7 thousand tons
- Aircraft movements declined 4.0% to 206.9 thousand
- Operating Income declined 18.7% YoY, to $76.5, mainly impacted by IAS 29, and the operating margin contracted to 18.5% from 23.7% in 2Q18
- Adjusted EBITDA was $118.5 million, down 2.2% YoY, with Adjusted EBITDA margin Ex-IFRIC12 expanded 53 bps to 37.7%
- Ex-IAS 29, Adjusted EBITDA reached $113.1 million, declined 6.6% YoY and Adjusted EBITDA margin Ex-IFRIC12 expanded 19 bps to at 37.7%
Commenting on second quarter 2019 results, Mr. Martín Eurnekian, CEO of Corporación América Airports, noted: “The quarter was characterized by ongoing headwinds, particularly in Argentina, our largest market, and to a lesser extent in Brazil. We also experienced a continued mix shift towards more affordable domestic traffic and weaker commercial revenues. At the same time, traffic at our Brazilian airports were impacted by the cessation of operations of Avianca Brazil. Despite these challenges, comparable Adjusted EBITDA margin Ex-IFRIC12 was flat at 37% year-on-year. Better margins this quarter in Italy and Uruguay, were more than offset by margin contraction in Argentina, Ecuador and Armenia. Over 20 million passengers travelled through our airport network in 2Q19 – up approximately 4% year-on-year as we continue to add new routes and airlines. This growth reflects domestic traffic increasing 9% partially offset by international traffic which was down in the low single digits.