Grupo Aeroportuario del Sureste S. A. B. de C. V. Q1 2023 Earnings Call

[music].

Good day, ladies and gentlemen, and welcome to our stores first quarter 2023 results Conference call. My name is Paul and I'll be your operator at this time all participants are in a listen only mode.

We will conduct a question and answer session towards the end of todays conference if you'd like to ask a question. Please press star one.

You want to withdraw your question at any time. Please press star two if you're using a speaker phone. Please lift the handset before making a selection.

As a reminder, today's call is being recorded.

Now I'd like to turn this call over to Mr. Adolfo Castro Chief Executive Officer. Please go ahead Sir.

Thank you Paul and good morning, everyone.

Before I begin discussing our souls that remind you that certain statements made during this call may constitute forward looking statements.

Based on current management expectations, and beliefs and are subject to a federal risk and uncertainties that could cause actual results to differ materially.

Factors that may be our company's control.

As usual additional details about our quarterly results can be found in our press release, which was issued yesterday after market close and is available on our website Investor Relations director.

Well when my presentation I will be available for Q&A.

Before getting into a discussion of quarterly financial results I want to note that our latest sustainability report you said available on our website and we think you delete all right.

Last year during the first quarter conference call, we laid out the seven key strategic objectives for the company to implement.

There are short term and medium term.

Yeah.

Two notable advances made long geared towards achieving these goals.

The termination of the sustainability Committee This committee here.

And we will support the board of directors, you can make a decision focus on environmental social and governance matters.

You can read them to the company's long term strategy.

Sure.

<unk> will support organization unique with great interest the Wpa corporate social responsibility at the highest level of the corporate governance in the company.

A committee Joe Spirit's meeting earlier this year.

We also made progress with respect to reducing greenhouse gas emissions in 2022.

We'd be done shortly.

The old appointment at the airports.

Okay will generate 900000 kilowatt hours annually in nature.

We're already seeing benefits with the reduction.

And in terms of emissions.

One of our objectives for the next year is to expand this project all their exports.

As we continue to make progress closer to achieving our goals.

We will provide you updates I think it'll be target now moving to a regional.

Great.

Financial results.

Some color on travel demand during the quarter.

Note that all comparisons are year over year, unless otherwise noted.

We are pleased can be board, Rick with passenger traffic revenues and EBITDA in the first quarter of the year, but we are more cautious for the remaining of the year given the easy comps from Amit from during the first two months of 2022 and the negative effects of additional suspension.

Columbia comparisons during the quarter.

We believe we're sustaining growth in the number of passengers traveling through or whatever.

19% and reaching a record of nearly $18 million.

Mexico post the fastest growth with total passenger dropping 23%.

Collecting pieces.

Across all of our airports.

Domestic travel was up in the high 20.

Traffic was down.

Levels, when we expect to fully recover this year.

In June International Drumbeat will show up in the high teens, mainly driven by steady demand from the United States and Europe , and then in Canada language recover to pre pandemic levels during the first quarter.

Please all regions that we operate women have recovered 12 months people then you can leverage.

Well the vertical portal with traffic up 22% with domestic trumping bulk high teens internationally.

Oh, my nearly 50%.

Lastly, total package injunctions in Colombia increased 9% with domestic traffic is more into the middle single digits and international passengers.

Dennis.

As anticipated due to slower growth.

Fees in <unk>.

D from 5% to 19%, which you get back in Germany.

And the suspension of operations of Viva, Colombia at the end of February and we will try here during March.

Deadlines represented 17.4% and one 9% of 2022 passenger traffic in Colombia, respectively.

On a consolidated basis the share of domestic dropping over the total traffic gets stood up 59, 3%.

A little jumpy.

60.

61% in the first quarter 2022.

Now moving to the P&L.

As a reminder, all references to revenue sharing costs exclude.

Instructions.

Before.

Beginning with our key financial figures revenues increased 22%, reaching all time high.

$6 3 billion pesos.

This robust performance you should treat with good solid growth in both out of a month ago.

Revenues across our three geographic regions.

Sickle represent considered responders.

Revenues, while Puerto Rico accounted for 15% and Colombia contributed 10%.

Commercial lending has continued to show an upward trend increasing by 22% overall with Mexico on 23%, Puerto Rico, 18% and Columbia, 13%.

On a per passenger basis commercial revenues increased to 123 batches from nearly 121 branches in the year ago quarter.

By region conventional revenue as you can imagine we're in the range of 145, 247 in Mexico and Puerto Rico.

Of note. These figures include the effect of the Mexican peso with Jefferies.

36%.

23%.

This was the U S dollar on the Colombian peso since the end of the first quarter last year.

During the first quarter.

Commercial revenues per passenger in Colombia, we're up in the low single digits in Mexican peso was impacted by the currency depreciation will increase.

Seven 8% in local currency, reflecting the opening of 29 commercial spaces over the past 12 months.

Moving to.

Total comparable operating expenses were up 12% below the 22% revenue growth in the quarter no.

No that is compatible close to exclude the effect of the $196 million interest expense recovery in the third quarter, resulting from the application of the <unk>.

In Puerto Rico.

Expenses in Mexico, increasing below 20 below the 26% revenue growth.

Of course, we're primarily due to personnel and energy and <unk>.

Along with increased digital spend.

Concession fees in line with the higher EBITDA.

We have worked hard to maintain our cost control policy.

The 20% increase of the minimum wage had a negative impact on cleaning and security conscious.

The Rico comparable because were relatively stable.

That reduction in the maintenance reserves more than offset higher cost of services.

Cost in Colombia were generally flat compared to a high single digit increases.

So all of those passenger traffic growth together with kind of your commercial revenues and increased operating leverage resulted in another quarter of <unk>.

EBITDA, reaching four 5 billion pesos up 23%.

The EBITDA margin of nearly 72% up 90 basis points from the year ago quarter.

Again this quarter, we will leave their houses.

The regions of operation, Mexico posted the signs of increasing EBITDA.

Almost 28%.

$3 6 million pencils.

EBITDA was up 4% to 520 million vessels, once Colombia, EBITDA rose, 12% to over 415 million versus <unk>.

Geography, adjusted EBITDA margin.

Basis points in Mexico up to me at least.

77%.

And by 250 basis points in Colombia to just over 3% in June .

The renewables does that 260 basis points and adjusted EPS margin anyway.

55%.

To recap, we delivered yet another strong quarter.

Got it organized by a record breaking.

Traffic and revenues.

The combined effect of these achievements and our operating leverage.

We present net majority income, reaching <unk> 5 billion expenses for the quarter.

In terms of the balance sheet, we maintain a robust cash.

Cash position of 15 billion pesos and it will vary.

Sorry.

Receivables were up 44%, mainly reflecting the higher passenger traffic.

Our airport network.

As well as as George.

You'll recall from the recognition of other revenue as disclosed in the fourth quarter 2022 we anticipate collecting these receivables within the first half of 2000.

Three.

Then Viva, Colombia, and we're trying to have some receivables bloodstream, where combined sum of 22 million pets.

Capital investments during the quarter work longer than 43 million of which nearly 50% was elevated to Mexico 47 to Puerto Rico and Thank me in vessels were invested in Colombia.

Before we move to the Q&A portion of the call. Some brief closing remarks.

We are pleased to have just started the year with a straw.

Nope.

The list as we think about the remaining 23 the year over year comps will not be easy as we experienced in the first quarter.

As I mentioned earlier.

Two of the Columbia recently suspended operations. Meanwhile, we will continue to look for ways to further improve our cost structure and drive margin improvement.

Our balance sheet is healthy and we will continue to invest to support future growth.

Separately on many fronts at the end of the quarter, the Brazil, Mexico Central the Mexican Congress appeal to lead form 23 launch reveal was provided for.

For like among other things additional funds for the Mexican government to modify all towards more license amortization sanction.

Patients in this.

And it's not clear whether that Congress would that be.

And if the vessels.

But it may have on the Mexican economy and company separation.

We believe this deal will be disclosed, but the Mexican Congress during the third quarter.

Yeah.

In conclusion with a keen focus on providing value to our shareholders. Our board of directors propose an ordinary cash dividend of $9 93 per share payable to <unk> and make certain that we need a cash dividend.

10 pence per share payable in November for each of the ordinary BB shares.

Sure.

Equivalent to a combined total of nearly 6 million business and getting paid.

These.

Thinks will be boarded by our shareholders at our annual general being filled each one.

We've been more concentration.

We'll open the floor for questions.

Thank you well now be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad.

A confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset one moment. Please while we poll for questions.

Thank you. Our first question is from Gary Mendez with J P. Morgan. Please proceed with your question.

Hi, Adolfo good morning, and thank you for taking my question I have two questions. The first one is related to the regulatory noise that I just mentioned regarding the concession deal.

Send Miami to Congress.

The question is if you see any kind of risk are for Europe coming MTP negotiation I understand there is still a lot of doubts.

And we haven't seen the full definition of it but what's your best guess on how this could potentially impact the the sector as a whole and the second question is regarding to Colombia as I mentioned have tool at less players operating in the region. How do you see the competitive environment in the region and the Patel.

So impact on trust going forward. Thank you.

Hi, good morning.

But really no concessions.

The beauty is affecting.

All begin to be the cab, Virginia from the government and license it badly.

One.

Or an authorization or concession is not just for construction.

Also these deals have some level of things.

It is not just to.

The strength the power of the Mexican government in conversations.

I'm not expert on launch or the legal matters you can read plenty of reports and we will see what my lawyers say about these are talking.

In the case of Colombia.

Instead, the various display up nine.

Was there a communication from the.

Transport, where they are approving the marriage.

Queen Viva, Colombia, and that'd be Erica under certain conditions.

This may help.

Northern there than.

We thought the operations.

Onshore I receive a notification from one player that they want to respond to producers and these may improve the situation in Colombia, because what I believe is that.

You can get the anchor and Latam does not have the possibility to absorb all the bathroom gives these are loans left into the data.

I hope that these two things.

Improve.

I would say probably by next week.

Okay. Thanks, very much have a nice day ahead of them.

You're welcome.

Thank you. Our next question is from Rodolfo Ramos with Bradesco <unk>. Please proceed with your question.

Thank you and good morning.

Couple of questions from my side as well. The first one is if you can share a little bit on your on your expectations for international traffic, particularly coming from the U S. I don't know if you have any visibility as to bookings or or anything we were looking at air travel searches from the U S tourist Scott Corning and then it looked like.

A bit off from from what we saw at this time of the year in last year. So so I just wanted to get your thoughts there.

And I have a second question a follow up on the first one.

Okay. Okay. Good morning.

We do not have too much or at the gym information over when you have of course, we have bookings after the end of the season of the winter season and almost at the end of April .

And what I expect is more stable.

In the case of the U S importantly point will be there.

Summer in the U S domestic.

And towards the end of the year.

Again, the Colombian traffic.

Okay. Thank you and a follow up on the previous question.

On your M. D. P. I mean, I don't know if theres anything you can share.

As to the progress of your MVP I mean, you know the.

And you mentioned that this is reform doesn't it.

It doesn't contaminate so to speak the process, but just wanted to get your.

Any initial comments that you can make regarding perhaps a tariff expectations or any projects or in terms of capex.

Just anything for us to have visibility at this time, we're kind of like the regulatory.

Concerning side, a little bit more heightened thank you Alex.

Well the only the only thing that I can say about the mvpds that the first half of the year normally.

Dorothy.

And things are busy to each one of the airports basically to check two things one is to what we call. The inventory what are the yields that does everything.

Every single piece of the infrastructure at the airports and the second one is to review each one of these projects we have proposed to them.

What I can take to you is that these are.

Program obesity trial started.

They are.

At the airports as we speak.

So we're in the second half of the year's word is what the government to start checking the passenger traffic did gangrene and final regulations.

Okay. Thank you.

Youre welcome.

Thank you. Our next question is from Alberto Valerio with UBS. Please proceed with your question.

Hi, Bill.

My question that I would like to do another follow up.

Yeah.

Uh huh.

What they want you want to provide a capex needs for the following years.

And you cannot mistake training provide F N topics.

We still use that data to make sense of it.

And another point to that topic.

Upon from the external generic trend between one if you could.

This extra capex to your planned capex that can trend in industrial complex.

Blue Seatbelts.

It's spread between.

Oh, yes.

One dog and bond could be called Swag, we'd go out to 'twenty one.

Yeah.

Hi, Bob.

Next to that.

Thank you.

Hello.

Your line is cutting I couldn't occurred well your question, but let me say that.

In the case of the two.

Billion patches that were postponed.

From the previous Capex of course, those will be things either in the current MVP numbers.

And also.

In the case.

Of the situation.

Each performance is due to the fact of the new bathroom Trumping August .

So the task force on the.

Because if we do not reach the levels.

Passenger traffic that is required to make the projects.

Got it.

Or take the decision to postpone those branches in order to be able to affect the maximum rate.

Okay.

I know that you had had some other questions, but I couldnt hear.

Got it got it again, it's better now.

It's extremely cognizant.

I can't I can follow up.

Thank you very much.

Okay.

Thank you. Our next question is from one Macedo with G. P. M. Please proceed with your question.

Hi, Thanks for the color and congrats on the results I have two questions. My first question is regarding the commercial segment.

We saw great results in a matter of revenues per passenger on Colombia and concessions. Despite the Mexico peso appreciation did.

Could you give us some color on that dynamic is it due to commercial expansions or does it come from passenger behavior.

Yeah.

Well this is coming from what we have going there.

I mentioned in the remarks, we have opened 29 basis in Colombia.

And those are producing wells. These sorts of course as I mentioned during the initial remarks, probably we are not seeing the full effect of it.

In Mexican peso figures because of the acquisition of the Mexican peso versus the Colombian peso that at 136% over the last 12 months.

So if you put all of these.

The number we have presented in the in the report you will see that.

The results in Colombia are very good.

Yes, I agree.

Thank you and my second question is regarding targets could you give us some detail on where and how the various increments implementations go during the quarter.

Well remember not retiring.

The level of how much we reach the maximum rates.

Once a year in the calendar year.

So last year, we ended up around 90% I do believe.

The current expectation of inflation of the year, probably will be at 98 BVA.

Great. Thanks for the color.

Youre welcome.

Thank you. Our next question is from Bruno Amorim with Goldman Sachs. Please proceed with your question.

Hi.

Thank you for taking my question.

It's a follow up on MVP as well I know you cannot comment on the outcomes of course, but maybe you can help us understand where do we stand in terms of you know.

Traffic the need for Capex, and then cost of capital right. The the first question would be you know is it fair to say that traffic is now above what was initially expected when you and the regulators I agree you're done the extraordinary revision during the pandemic given the sharp recovery in traffic and the second question would be.

You know if there is spare capacity to accommodate these additional demand without the need for higher Capex are all else held constant should this eventually stronger than initially expected traffic rebound to drive higher than initially expected Capex and then the last question would be on cost of capital you know at the moment.

When you have a reset to the tariff and the Capex plan. During the pandemic have has the regulator I just had a cost of capital as well.

Our our notch I'm asking this because at that moment in time, you know 10 year rates in Mexico were well below the current level. So this could have an implication for the direction of the tariffs as well. Thank you.

Hello Bruno.

Traffic yes.

Kansas is higher than expected.

In comparison with what we presented in our extraordinary mezzanine type of vision.

Remember that we need that and Thats, what 'twenty one no.

That's for some airports for some others. It is not in total I would say, probably it's higher but just to beat.

In terms of how you Kathryn what I can say to you is that.

The project.

Important projects will come and it gives them an airport.

We're talking about terminal expansion and remember that.

The 2 billion or more.

And then most important portion of the 2 billion.

Blended <unk> was the expansion of four point engaging it gives them.

Four.

And of course, those are going to be intuitive.

MVP in terms of cost of capital that will be measured.

During the third and fourth quarter. This year remember that the government uses the last 24 months.

All right.

Mexican paper issue didn't get international markets long term. So we will be able to answer your question up to the third or fourth one or the year.

Yeah, but just a follow up on the cost of capital when you when the regulator agreed on the extraordinary vision during the pandemic.

Has the allowed return being I just at that moment in time, reflecting the cost of capital at that time or not.

It wasn't just a guess.

Okay. Thanks.

Thank you very much.

You're welcome.

Thank you. Our next question is from fully by Nielsen with Citi. Please proceed with your question.

Helpful.

Good morning, or afternoon, and thanks for taking my questions. So I have two questions on my side. The first one is with the NDP reveal on the horizon.

How should we think about the technical assistance fee.

And if you think that it's reasonable to consider.

That.

That's fine.

Given that I'm sure is a much more experienced versus back in 1998 and the second question is.

How are now that we are in the half halfway part of the team.

T E concessions do you think that it's fair to assume that it could.

I have some sort of opinion to renew its concessions or if it's too early to say Ah maybe some color on those two points. Thank you.

Hello, Tim.

We're taking a look at boots is important to say that this is not for free.

We have an agreement with <unk> they have different languages.

And also I have to say this is one of the most important.

Moments, where they have to be either in the case of the MVP.

Indications from the renewal of the concession the contract says that installed 50 years, only because we've renewed the contract thousands anyhow.

And I'm sure that I'm not going to be here in this company and maybe even get worse.

When this will occur so for the moment I'm not concerned about it.

Because that is a well that will or should appear in 2048.

Great. Thank you very much for the color.

Thank you. Our next question is from Gabriel.

I'm also with Scotiabank. Please proceed with your question.

Hi, Hello, Thanks for the call.

A follow up question on the MVP.

For modeling purposes, do you think a.

Propane, we add a risk premium to the discount rate due to the current regulations that being.

I've been here.

But both in the Congress.

And also.

Do you think we should consider additional capex.

Or for example, connecting the terminal with the trend.

Terry.

An increase that could be allowed due to the two airports.

Q.

[laughter].

Q1 indicates some of the.

The cost of capital or the become great.

That has been defined at the walk of the industry So of course.

Process to complete that is.

The Mexican paper issued international market last month's average for the last 24 plus something okay.

But again that will be disposed during the third and fourth quarter. This year no indications of what you're seeing in both different niches within that you have clean we're.

We're working today as we speak with the government to be able to coordinate with my opinion with the airports and yes that will be or should be considered in.

And the next AEP.

Yeah.

Okay and in the case of the Loom Airport.

The airports to proved.

Do you think the government could provide well allow you for higher tariffs that compensate the traffic trends.

He will pull along with higher drunk.

That's how we do the calculations borges, our passenger traffic in the future.

And that will of course include all the factors.

The economy appears some trends she regains therefore.

Okay.

Uh huh.

Okay. Thank you.

You're welcome.

Thank you. Our next question is from Francisco Suarez with Scotiabank. Please proceed with your question.

Hello, Good morning, and also thank you for the call.

A question on your sustainability report.

It isn't that you are doing a really good job.

Overall and the East coast.

Assumption in absolute term.

Relative terms compared.

Compared to 2019 figures, but I just noticed that in terms of water consumption and waste.

This waste that is not the case could you explain a little bit of why it might be happening.

What is your overall strategy to court and the cross consumption of water.

In your terminals in Mexico. Thank.

Thank you.

Absolutely in the kitchen.

A question because I wanted them to be or I would say that the book.

Fourth and 14th Bookers over next MVP.

These water no. It's good that we have not done yet.

Most of the things that we can do that of course, what you are seeing in the numbers in fields.

And one of them that we have to spend to go strong expansion that would be a little small.

That is why probably you see some higher numbers in the case of Mei.

Airports.

And we will see these improving once we've finished with those works.

Great. Thank you and if I may I follow up on this is all for Ann.

It's interesting because when we discuss about potential retrofits in another type of stroke trust with companies those are kind of.

<unk> in terms of the cause of that.

Got it under your industry. It seems that you are in a great position to put that homecare MTBE as well to make a retrofit and thats terminals for instance, with that caught your overall and their key out of water intensive team does real things do you think that.

That might be a possibility.

And if it's factually correct, but I'm, saying that perhaps if and if.

This type of Capex.

Play Sunday MTP.

I'm going to do that now and the next one.

And that is that actually they they have to wait to make a profit out of those investments. That's in other industries seems to be more challenging.

Well in the case of the energy you will have to go back to Dave.

Yeah, you're referring to.

So that we can ship the.

The 15 of December 2015.

Uh huh.

One you will see that we were announcing that we signed an agreement with a company called Sunpower.

Pages.

Energy from.

Solar source.

And that the moment, representing 200% of the energy consumption at the airports.

Today, probably this is around seven 8% of the construction because after that we open terminal four.

And all the reductions that we have been able to manage them.

We are waiting to be in place there.

The solar farm is waiting for the approval from the energy boom is here in Mexico.

The solar farm is ready to.

For the last year.

And once they get these approvals our in Greece in the case of salts solar energy will be extremely important.

Gotcha.

But it got quite a bit.

So no question.

Retrofits to your existing buildings the older terminals.

B.

India, MTP said with that not only caught your overall and their key.

10 cities, but also earn a profit out of these investments.

I don't know.

The definition of your retro, but let me let him.

The most important consumption on an energy when you shop.

It related to air Conditioner.

Of course, when we construct engines globally.

Great.

It will be more interesting comparison would be August .

And that's where we get it.

Benefits of the new build or when will we get a dose in deals yields.

And then of course equity MVP.

Yes, yes.

Perfect. Thank you that's helpful.

Congrats on the results.

<unk>.

Thank you. Our next question is from Alan Macias with Bank of America. Please proceed with your question.

Hi.

Thank you for the call.

My question was answered but.

Could you just repeat your dividend payments of debt.

Sure.

You mentioned thank you.

Yeah. The animals Juno's shareholders' meeting is it's going to take place tomorrow.

Both are leased 90 93 benches in the Norwegian yard dividend to be paid on me.

And the extraordinary 10 pence per share to be paid in November .

Thank you.

Okay.

Thank you. Our next question is from Lucia lot Gomez with Compass Group. Please proceed with your question.

Hi, Good morning. Thank you for taking my question and just a quick follow.

Follow up on the Cancun Airport.

All of this expansion.

Why do you think I'm wrong capacity that the airport costs right now in terms of traffic.

Why do you feel we're right where do you think you'll be reaching.

Reaching pardon here.

Yeah.

Well currently.

The building of course going to do with the level of service.

It's very difficult to say what is the pooled capacity.

Of our building.

In it you know.

Just a single number because.

A restriction could be a security field, there's something that you can show, let's say 800 basketballs.

If you want Joseph single number in the physical network could be today, 31, 32 million passenger traffic a year okay.

Yeah, more or less what we have today. So we are very close to it.

Yeah.

We have capacity declines in the in terms of the level of certainty we want no. So in other words that doesn't mean that we cannot have more passengers.

But of course in some time of the day.

So these days of the year, probably that level of savings you will perceive that is not appropriate.

Okay.

I can follow it.

I wanted to to add more passengers what would make the most of it.

It will allow you to two weeks at the moment.

Okay, and the MVP and the way we do is we drove our passenger traffic line from the Ministry of 10 years.

And then we convert these two huge where our in each one of the features of the airports.

And it's done that means that.

We can have a lack of capacity just 30 hours in a year.

So that means even 31st busy hour of the year the 91st dumping of capacity, we have to go to the next day or so.

The pieces of your filter to reasonable engaging breeze directors.

No.

That is how we construct the NDP.

Okay.

Thank you.

You have them.

Thank you. Our next question is from Fernando radio with a P. G. Please proceed with your question.

Yeah, no for the mining to take effect into my questions I have two on my side.

First Glenn.

We've heard that DVA shouldn't be their record in terms of time Boston.

Was just wondering if you could maybe you could provide us there.

Our thoughts on the potential impact it could have one Ken corn standpoint.

And then Jack on let's say that you are in that cash two one I was wondering if you could provide it.

Any thoughts regarding capital allocation besides dividend payment at Jefferies.

So are they expanding.

Geographic footprint and if it does at least region, where they'll be show focuses on thank you.

Thank you for your question Linda.

Linda it's gonna be the record year.

I'll leave that to you.

It will be a record year so far.

But it's true that we are having some castle and hotel owners.

Doing an extra 90 war gaming the beaches every single day.

In the case of cash, yes, 15 billion pencils.

There's a good number but as I mentioned.

And we will have to pay 6 billion of loans, we've been doing this year. It is true that we have a low level.

Never leased a year, but we have to be prepared for Nashville.

Okay. Thank you.

Yes.

As a reminder, if you would like to ask a question. Please press star one on your telephone keypad.

Okay.

Thank you. Our next question is from more ACO.

So with a M advisors. Please proceed with your question.

Hello, I have two quick questions. The first one is.

At the close of operations Viva Air in Colombia.

<unk> impacted your results in the quarter and the second question is just if you can repeat the guidance of Capex in every deck, where this year. Please.

Hi, Mauricio in the kitchen.

As I mentioned, they should stop operations at the end of February .

Passengers during March and they represented 17% of our traffic in 'twenty two.

Took the impact in the case of Colombia, you already.

So that.

March passenger traffic figure.

It was.

And importantly judgment in the case of <unk>.

The month of launch income pause them off cold was.

In February .

In terms of the category.

What we're expecting is wrong.

Round number.

700 million vessels in the case of Mexico alone 20 medium 20 something million in the case of portable heat cool.

Totaling $10 million indication for Colombia.

Perfect. Thank you.

You're welcome.

This concludes our question and answer session for today's conference call I would now like to turn the conference over to Mr. Castro.

Mr Castro for any closing remarks.

Thank you Paul and thank you all of you again for participating in the first quarter results conference call on behalf of Westwood, We wish you a good day.

Goodbye.

Yeah.

Ladies and gentlemen, this concludes our stores first quarter 2023 results conference call, we'd like to thank you again for your participation you may now disconnect.

Yes.

Okay.

Yeah.