Q4 2024 Corporación América Airports SA Earnings Call
In the investors section of the company's website.
As a reminder, all participants are in a listen only mode. There will be an opportunity to ask questions at the end of the presentation.
Patricio: At this time I would like to turn the call over to Patricio and Nokia <unk> head of Investor Relations.
Please go ahead.
Patricio: Thank you.
Patricio: Everyone. Thank you for joining us today speaking during today's call would be my opinion, Macewen, our chief Executive Officer and.
Speaker Change: Our Chief Financial Officer before.
Speaker Change: Before we proceed I would like to make the following safe Harbor statement today's call will contain forward looking statements and I refer you to the forward looking statements section of our earnings release and recent filings with the SEC.
Speaker Change: We assume no obligation to update or revise any forward looking statements to reflect new or tank events or circumstances.
Speaker Change: Note that throughout this call all references to revenues costs adjusted EBITDA margin, we refer to figures. Excluding I think 12, I will now turn the call over to our CEO Martina ordering again.
Thank you good morning, everyone and thank you for joining us today speaking during today's call would be about a female Nick young our chief Executive Officer, and our Chief Financial Officer.
Operator: Good morning, everyone, and thank you for joining us today.
Operator: Speaking during today's call will be Martina Ormecian, our Chief Executive Officer, and Jorge Arruga, our Chief Financial Officer.
Operator: Before we proceed, I would like to make the following safe harbor statement. This call will contain forward-looking statements, and I refer you to the forward-looking statement section of our earnings release and recent filings with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances. Please note that throughout this call, all references to revenues, costs, adjusted EBITDA, and margin will refer to figures excluding IFRIC 12.
Before we proceed I would like to make the following safe Harbor statement today's call will contain forward looking statements.
Speaker Change: Thank you and good day, everyone and thank you for joining us today.
Speaker Change: Like to start by sharing some key highlights from our fourth quarter 2020 for performance.
Good for you to the forward looking statements section well.
Our recent filings with the SEC.
Speaker Change: Afterwards correctly would provide a more in depth financial review and then we will open the floor for questions.
We assume no obligation to update or revise any forward looking statements to reflect new okay events or circumstances.
Speaker Change: Strong performance across most markets were key in driving our overall results this quarter.
Latino: Please note that throughout this call all references revenues costs adjusted EBITDA and margin we've referred to feed those excluding I think 12, I will now turn the call over to our CEO Latino going again.
Speaker Change: Underscoring the strength of our diversified portfolio.
Speaker Change: Argentina performance remained soft in the fourth quarter as a whole we were encouraged by a note of a rebound in domestic passenger traffic.
Inaki: I will now turn the call over to our CEO, Martina O'Rourke. Thank you, Iñaki. Good day, everyone, and thank you for joining us today.
Latino: Thank you Nikki and good day, everyone and thank you for joining us today.
Speaker Change: And.
Speaker Change: Total passengers reached record highs in December 'twenty 'twenty four with continued positive momentum in January and February.
Martina O'Rourke: I'd like to start by sharing some key highlights from our fourth quarter 2024 performance.
Latino: Like to start by sharing some key highlights from our fourth quarter of 'twenty 'twenty four for four months.
Martina O'Rourke: Afterwards, Jorge will provide a more in-depth financial review, and then we will open the floor for questions. Strong performances across most markets were key in driving our overall results this quarter. Underscoring the strength of our diversified portfolio, while Argentina's performance remained soft in the fourth quarter as a whole, we were encouraged by a notable rebound in domestic passenger traffic toward year's end. Total passengers reached record heights in December 2024 with continued positive momentum in January and February. Passenger traffic declined by 1.2% year-over-year, but increased 1.5% excluding Natal. Notably, we saw a solid 11.3% increase in international traffic in Argentina, supported by a continued recovery in outbound tourism.
Court: Afterwards court if he would provide a more in depth financial review and then we will open the floor for questions.
Speaker Change: Passenger traffic declined by one 2% year over year, but increased one 5% excluding net out.
Court: Strong performance across most markets.
Key in driving our overall results this quarter.
Speaker Change: Notably we saw a solid 11, 3% increase in international traffic in Argentina supported by continued recovery in outbound tourism.
Court: Underscoring the strength of our diversified portfolio.
Court: <unk> performance remained soft in the fourth quarter as a whole we were encouraged by a north of a rebound in domestic passenger traffic.
Speaker Change: In total we served nearly 80 million passengers across our airports in 'twenty 'twenty four with approximately 20 million in the fourth quarter alone.
Court: And.
Court: Total passengers.
Court: Reached record highs in December 'twenty 'twenty four with continued positive momentum in January and February.
Speaker Change: As Jorge will discuss briefly fourth quarter year over year comps were affected by the sharp devaluation of the Argentine peso in late December 2023.
Court: Passenger traffic declined by one 2% year over year, but increased 1.5% excluding that.
Jorge: The indemnification payment received in the fourth quarter of last year in connection with a friend elimination of the Natal Airport concession.
Court: Notably we saw a solid 11, 3% increase in international I figured Argentina.
Jorge: Excluding these two factors revenues were down by <unk>, 6% year over year in line with lower passenger traffic where revenue per passenger improved slightly to $19 $3 from $19 $2 in 2023.
Court: Supported by continued recovery in outbound tourism.
Martina O'Rourke: In total, we served nearly 80 million passengers across our airports in 2024, with approximately 20 million traveling in the fourth quarter alone.
Court: In total we served nearly 80 million passengers across our airports in 'twenty 'twenty four with approximately 20 million in the fourth quarter alone.
Martina O'Rourke: As Jorge will discuss briefly, fourth quarter year-over-year comps were affected by the sharp devaluation of the Argentine peso in late December 2023 and the indemnification payment received in the fourth quarter of last year in connection with the friend determination of the Natal Airport concession. Excluding these two factors, revenues were down by 0.6% year-over-year in line with lower passenger traffic, where revenue per passenger improved slightly to $19.3 from $19.2 in 2023. In turn, adjusted EBITDA for the quarter declined by 7%, pressured by weaker domestic traffic in Argentina, lower cargo revenues, and reduced duty-free sales, which were unusually high in the fourth quarter of 2023, as they benefited from a favorable official exchange rate until the peso devaluation took place in mid-December 2023.
Court: Our school, if you will discuss briefly fourth quarter year over year comps were affected by the sharp devaluation of the Argentine peso in late December 2023, and the indemnification payment received in the fourth quarter of last year in connection with a friend elimination.
Jorge: In turn adjusted EBITDA for the quarter declined by 7%.
Jorge: Pressured by weaker domestic traffic in Argentina, lower caring revenues and reduced duty free sales, which were unusually high in the fourth quarter of 2023 as they benefited from a favorable official exchange rate and <unk>.
Court: That effort concessions <unk>.
Court: Excluding these two factors revenues were down by 0.6% year over year in line with lower passenger traffic light revenue per passenger improved slightly.
Jorge: The peso devaluation took place in mid December 2023.
Jorge: Importantly, all our countries of operations reported positive year over year contributions to adjusted EBITDA.
Court: 19.3 daughters from 19 point to us in 2023.
Jorge: Notably, we maintain a strong cash flow and a robust financial position with our leverage ratio remaining at low levels.
Court: In turn adjusted EBITDA for the quarter declined by 7%, Russia by weaker domestic traffic in Argentina, lower cargo revenues and reduced duty free sales, which were unusually high in the fourth quarter of 2023, I say benefited from a favorable official exchange rate.
Jorge: This solid footing gives us the flexibility to continue to pursue strategic growth initiatives.
Jorge: The balance across our portfolio continues to demonstrate the resilience of our business and our ability to deliver consistent performance despite localized challenges.
Court: Will the peso devaluation took place in mid December 2023.
Jorge: Now, let's move to slide four to discuss passenger traffic trends in more detail.
Martina O'Rourke: Importantly, all other countries of operations reported positive year-over-year contributions to adjusted EBITDA. Notably, we maintain a strong cash flow and a robust financial position, with our leverage ratio remaining at low levels. This solid footing gives us the flexibility to confidently pursue strategic growth initiatives. The balance across our portfolio continues to demonstrate the resilience of our business and our ability to deliver consistent performance despite localized challenges.
Court: Importantly, all our countries of operations reported positive year over year contributions to adjusted EBITDA.
Jorge: Turning to page four for a review of passenger traffic trends.
Notably, we maintain a strong cash flow and a robust financial position with a leverage ratio remaining at low levels.
Jorge: Overall total passenger traffic declined by one 2% year on year to over 20 million when adjusted for the discontinuation of Natal Airport passenger traffic was up one 5%.
Court: This solid footing gives us the flexibility to compete and to pursue strategic growth initiatives.
Court: Yeah, but it is across our portfolio continues to demonstrate the resilience of our business and our ability to deliver consistent performance despite localized challenges.
Jorge: Minor.
Jorge: Effective February 'twenty 'twenty four we have terminated our concession agreement for the Natal Airport.
Jorge: Traffic improved from a one 5% decline reported in the previous quarter to a growth of one 5% when excluding the tide.
Martina O'Rourke: Now, let's move to slide 4 to discuss passenger traffic trends in more detail. Turning to page four for a review of passenger traffic trends. Overall, total passenger traffic declined by 1.2 percent year-on-year to over 20 million.
Court: Now, let's move to slide four to discuss passenger traffic trends in more detail.
Court: Turning to page four for a review of passenger traffic trends.
Jorge: Domestic traffic showed sequential improvement, but remains 7% lower year over year or down 2%, excluding the title, mainly reflecting weaker demand in Argentina, particularly in October and November.
Court: Overall total passenger traffic declined by one 2% year on year to over 20 million.
Martina O'Rourke: When adjusted for the discontinuation of Natal Airport, passenger traffic was up 1.5 percent. As a reminder, effective February 2024, we have terminated our concession agreement for the Natal Airport. World traffic improved from a 1.5% decline reported in the previous quarter to a growth of 1.5% when excluding Natal. Domestic traffic showed sequential improvement but remained 7% lower year over year, or down 2% excluding Natal, mainly reflecting weaker demand in Argentina, particularly in October and November. However, international traffic rose 7% year-over-year, supported by strong performances in Argentina and Italy, underscoring the resilience of our international operation.
Court: Adjusted for the discontinuation of Natal Airport passenger traffic was up one 5%.
Jorge: However, international traffic rose, 7% year over year supported by strong performances in Argentina, and Italy, and their scoring the resilience of our international operations.
Court: As a reminder.
Court: February 'twenty 'twenty four we have eliminated our concession agreement.
Court: Yeah.
Court: What are the traffic improved from a one 5% decline reported in the previous quarter to a growth of one 5% when excluding that.
Jorge: Let's take a closer look at some peak year on year trends by region.
Jorge: Starting with Argentina passenger traffic declined just over 1% showing a marked improvement from the six 2% decline posted in the third quarter.
Court: Domestic traffic showed sequential improvement, but remains 7% lower year over year or down 2%, excluding that that is mainly reflecting weaker demand in Argentina.
Jorge: This recovery was supported by record high passenger volumes in December.
Court: Particularly in October and November.
The year over year decline was primarily driven by softer domestic traffic in October and November reflecting the absence of the Premier High government incentive program that has bolstered local tourism in 2023 but was not repeated this year.
Court: However, international traffic rose, 7% year over year supported by strong performances in Argentina, and Italy, and their scoring the resilience of our international operations.
Martina O'Rourke: Let's take a closer look at some key year-on-year trends by region. Starting with Argentina, passenger traffic declined just over one percent, showing a marked improvement from the 6.2 percent decline posted in the third quarter. This recovery was supported by record high passenger volumes in December. The year-over-year decline was primarily driven by software domestic traffic in October and November, reflecting the absence of the previous government incentive program that had bolstered local tourism in 2023 but was not repeated this year. Encouragingly, international traffic remained a bright spot, up 11% year-on-year, supported by additional routes and increased flight frequency.
Court: Let's take a closer look at some key year on year trends by region.
Jorge: Encouragingly International traffic remained a bright spot.
Court: Starting with Argentina passenger traffic declined just over 1%.
Jorge: 11% year on year supported by additional routes and increased flight frequencies.
Court: Boeing a marked improvement from the six 2% decline posted in the third quarter.
Jorge: Anika and airlines resumed its assays at Dallas Route and the expanded services to Miami, while Delta introduced a second daily frequency to Atlanta.
Court: But he was supported by record high passenger volumes in December.
Jorge: Meanwhile, reddish airways increase seat capacity by nearly 22%.
Court: Year over year decline was primarily driven by softer domestic traffic in October and November.
Jorge: The anger.
Jorge: New <unk> road.
Court: The absence of the maybe a high government incentive program that had bolstered local tourism in 2023 but was not repeated this year.
Jorge: Additionally, Emirates, Iberia, and United boosted their frequencies further enhancing connectivity.
Court: Encouragingly in.
Jorge: The strong momentum achieved in December continued into January and February with passenger traffic growing by 13% and 10% year on year, respectively.
Court: The national traffic remained a bright spot up 11% year on year supported by additional routes and increased flight frequencies American Airlines, we assume it to stay said Dallas route and expanding its services to Miami.
Martina O'Rourke: American Airlines resumed its Ezeiza-Dallas route and expanded services to Miami, while Delta introduced a second daily frequency to Atlanta. Meanwhile, British Airways increased seat capacity by nearly 22 percent, while Avianca launched its new Guayaquil-Ezeiza route. Additionally, Emirates, Iberia, and United boosted their frequencies, further enhancing connectivity. The strong momentum achieved in December continued into January and February, with passenger traffic growing by 13% and 10% year-on-year respectively.
Jorge: In Italy.
Jorge: <unk> rose by 11%, reaching 2 million passengers.
Both was driven both by international travel.
Court: Does that introduce a second daily frequency to Atlanta I.
Jorge: Single digits, and an impressive high teen increase in domestic travel, reflecting strong demand in November and December, particularly at Pisa Airport.
Court: Meanwhile, with dish Airways increase seat capacity by nearly 22%.
Court: Got it.
Jackie: Well Jackie lets say you said route.
Court: Italy and.
Court: Iberia and United boosted their frequencies further enhancing connectivity.
Jorge: This performance continued into January and February with passenger traffic, increasing by 6% and 14% year on year, respectively.
Court: Strong momentum achieved in December continued into January and February with passenger traffic growing by 13% and 10% year on year, respectively.
Jorge: Turning to Brazil traffic continued to recover rising in the high single digits when adjusted for the discontinuation of Natal Airport. Despite ongoing challenges in the aviation sector and aircraft availability in the country.
Martina O'Rourke: In Italy, traffic rose by 11%, reaching 2 million passengers. Growth was driven both by international travel, up high single digits, and an impressive high-teen increase in domestic travel, reflecting strong demand in November and December, particularly at PISA. This performance continued into January and February, with passenger traffic increasing by 6% and 14% year-on-year, respectively.
In Italy traffic.
Court: Traffic rose by 11%, reaching 2 million passengers.
Court: Growth was driven both by internationally.
This recovery trend extended into January and February were overall graphic excluding <unk> increased by three 9% year on year, respectively.
Court: Up high single digits, and an impressive high teen increase in domestic travel, reflecting strong demand in November and December, particularly at Pisa Airport. Please.
Jorge: Uruguay passenger traffic increased by mid single digit supported by a new and assume routes, including American Airlines restatement of its Montevideo, Miami route as well as new services from Sky and Latam Airlines connecting Montevideo to re originator and <unk>.
Court: These performance continued into January and February with passenger traffic, increasing by six and 14% year on year, respectively.
Martina O'Rourke: Turning to Brazil, traffic continued to recover, rising in the high single digits when adjusted for the discontinuation of Natal Airport, despite ongoing challenges in the aviation sector and aircraft availability in the country. This recovery trend extended into January and February, where overall traffic, excluding Natal, increased by 3.9% year-on-year respectively.
Court: Turning to Brazil.
Court: <unk> continued to recover rising in the high single digits when adjusted for the discontinuation of Natal Airport. Despite ongoing challenges in the aviation sector and aircraft availability in the country.
Jorge: Dialectic has dialed in Chile for the summer season.
Jorge: Additionally, personnel resume its Montevideo salt the road re establishing these connections after more than two decades.
Court: This recovery trend extended into January and February what overall traffic, excluding <unk> increased by three 9% year on year, respectively.
Jorge: Traffic in the first two months of the year performed well with year on year increases of five 2% in January and February respectively.
Martina O'Rourke: In Uruguay, passenger traffic increased by mid-single digit, supported by new and resumed routes, including American Airlines restatement of its Montevideo-Miami route, as well as new services from Sky and Datam Airlines connecting Montevideo to Rio de Janeiro and Punta del Este-Santiago de Chile for the summer season. Additionally, Paranaer resumed its Montevideo-Salto route, reestablishing these connections after more than two decades. Traffic in the first two months of the year performed well with year-on-year increases of 5% and 2% in January and February respectively.
Court: Uruguay passenger traffic increased by mid single digit supported by new and assume routes, including American Airlines restatement of its Montevideo, Miami route as well as new services from Sky and Latam Airlines connecting Montevideo to Rio de Janeiro.
Speaker Change: Yes, Romania traffic was slightly up by 1%.
Speaker Change: Following a strong 2023 performance growth was supported by the introduction of several new airlines, including China Southern Eric idle.
Court: <unk> <unk> for the summer season.
Speaker Change: Idaho Selim air.
Speaker Change: <unk> Sky Express, which began operations at the end of an airport during the quarter.
Court: Additionally, but in their resume its Montevideo side of the road reestablishing these connections after more than two decades.
Speaker Change: Traffic in January rose by 7%, while in February it declined by 5% year over year.
Court: Traffic in the first two months of the year performed well with year on year increases of five 2% in January and February respectively.
Speaker Change: Lastly, in Ecuador passenger traffic declined by less than 1% year over year.
Martina O'Rourke: In Armenia, traffic was slightly up by one percent. Following a strong 2023 performance, growth was supported by the introduction of several new airlines, including China Southern, El Cairo, Salam Air, and Sky Express, which began operations at Yerevan Airport during the quarter. Traffic in January rose by 7%, while in February it declined by 5% year-over-year.
Speaker Change: A slight increase in international traffic was offset by a low single digit decline in domestic travel, which remain affected by high effort prices and ongoing security concerns.
Court: Okay, Armenia traffic was slightly up by 1%.
Court: Following a strong 2023 performance growth was supported by the introduction of several new airlines, including China Southern Eric.
Speaker Change: Which continued to weigh on demand.
Speaker Change: Perhaps you can generally performed well increasing by 8% year on year, while in February it declined by 2%.
Court: Selim Air.
Court: <unk> Sky Express, which began operations at the end of an airport during the quarter.
Court: Traffic in January rose by 7%, while in February it declined by 5% year over year.
Speaker Change: In summary, while Argentina domestic market faced challenges earlier in the quarter, we closed the year on a positive note with record high volumes in December <unk>.
Martina O'Rourke: Lastly, in Ecuador, passenger traffic declined by less than 1% year-over-year. A slight increase in international traffic was observed by a low single-digit decline in domestic travel, which remained affected by high airfare prices and ongoing security concerns, which continued to weigh on demand. Traffic in January performed well, increasing by 8% year-on-year, while in February it declined by 2%.
Court: Lastly, in Ecuador passenger traffic declined by less than 1% year over year.
Speaker Change: Meanwhile, strong results in Italy, Norway, and Brazil further underscore the resilience of our diversified portfolio.
Court: A slight increase in international traffic was upset by a low single digit decline in domestic travel, which remain affected by high effort prices and ongoing security concerns.
Speaker Change: Next as shown on slide five growth in cargo volumes accelerated to 16% year over year in the fourth quarter with positive contributions from all countries of operations.
Court: Which continued to weigh on demand.
Court: Perhaps you can generally performed well increasing by 8% year on year, while in February it declined by 2%.
Speaker Change: Cargo in Armenia was up over 51%, while Argentina posted an increase in the high teens benefiting from the flexible input regulations and improved macro conditions.
Martina O'Rourke: In summary, while Argentina's domestic market faced challenges earlier in the quarter, we closed the year on a positive note with record high volumes in December. Meanwhile, strong results in Italy, Uruguay, and Brazil further underscored the resilience of our diversified portfolio.
Court: In summary, while Argentina is domestic market faced challenges earlier in the quarter, we closed the year on a positive note with record high volumes in December.
Speaker Change: Slide volume growth cargo revenues.
Court: Meanwhile, strongly felt in Italy, Norway, and Brazil further underscore the resilience of our diversified portfolio.
Speaker Change: <unk> declined 3% year over year, primarily due to fewer storage days for imported good in Argentina.
Martina O'Rourke: Next, as shown on slide 5, growth in cargo volumes accelerated to 16% year-over-year in the fourth quarter, with positive contributions from all countries of operation. Cargo in Armenia was up over 51 percent, while Argentina posted an increase in the high PINs, benefiting from the flexible import regulations and improved macro conditions. Despite volume growth, cargo revenues, Ex-IAS 29 declined 3% year-over-year, primarily due to fewer storage days for imported goods in Argentina. This negatively impacted last year's billing scheme, which we already have revised this year.
Court: Next as shown on slide five growth in cargo volumes accelerated to 16% year over year in the fourth quarter with positive contributions from all countries of operations Carabiner linear was up over 51% while Argentina.
Speaker Change: This negatively impacted last year's billing scheme, which we already have revised this year.
Speaker Change: We remain focused on maximizing operational efficiencies across our network and continue to monitor cargo revenue trends closely.
Jorge: I will now turn the call to Jorge.
Court: With an increase in the high teens benefiting from the flexi, but input regulations and the improved macro conditions.
Jorge: Who will review our financial results. Please go ahead.
Jorge: Thank you Martin and good day, everyone before I start I would like to remind you that.
Court: Despite volume growth cargo revenues.
Court: I asked him today.
Jorge: Fourth quarter 2024 year over year comps were affected by the sharp devaluation of the Argentine peso in late December 2023, and the indemnification payment received in the fourth quarter of 2023 in connection with the termination of the knockout airport concession.
Court: Nine 3% year over year, primarily due to fewer storage days for imported within Argentina.
Court: This negatively impacted last year's billing scheme, which we already have revised this year.
Martina O'Rourke: We remain focused on maximizing operational efficiencies across our network and continue to monitor cargo revenue trends closely.
Court: We remain focused on maximizing operational efficiencies across our network and continue to monitor cargo revenue trends closely.
Jorge: Therefore for a bathroom and proper understanding of our performance, we will present and discuss our results.
Martina O'Rourke: I will now turn the call to Jorge, who will review our financial results. Please, go ahead.
Jorge: I will now turn the call to Jorge.
Jorge: <unk> the impact of room.
Jorge: We'll review our financial results. Please go ahead.
Jorge: Yes, 2009 in Argentina in both years as well as the contribution from Lockdown in the fourth quarter of 2023 in line with our fourth quarter earnings discussion from last year.
Jorge Arruga: Thank you, Martin, and good day everyone. Before I start, I would like to remind you that fourth quarter 2024 year-over-year comps were affected by the sharp devaluation of the Argentine peso in late December 2023 and the indemnification payment received in the fourth quarter of 2023 in connection with the termination of the Natal Airport concession. Therefore, for a better and proper understanding of our performance, we will present and discuss our results, excluding the impact of RU-IS29 in Argentina in both years, as well as the contribution from Natal in the fourth quarter of 2023, in line with our fourth quarter earnings discussions from last year.
Jorge: Thank you Martin and good day everyone.
Jorge: Before I start I would like to remind you that fourth quarter 2024 year over year comps were affected by the sharp devaluation of the Argentine peso in late December 2023, and the indemnification payment received in the fourth quarter of 2020 fleet in connection with the termination of dinner.
Jorge: Let's start with our top line on slide six total revenues ex <unk> 12 were slightly down 0.6% year on year in line with passenger traffic, while our revenue per passenger was spot.
Jorge: Concession.
Jorge: Therefore for a bathroom and proper understanding of our performance, we will present and discuss our results excluding the impact of flu.
Jorge: 0.6% to $93, leveraging perhaps global footprint.
Jorge: 2019 in Argentina in both years as well as the contribution.
Jorge: I don't know core revenues were up one 7% year on year. Despite a one 2% year on year declining traffic with positive contributions from all countries of operations, except Brazil.
Jorge: <unk> from markdown in the fourth quarter 2023 in line with our fourth quarter earnings discussion from last year.
Jorge Arruga: Let's start with our top line on slide 6. Total revenues exit week 12 were slightly down 0.6% year-on-year in line with passenger traffic while our revenue per passenger was up 0.6% to $19.3 leveraging CAPS global footprint. Aeronautical revenues were up 1.7 percent year-on-year despite a 1.2 percent year-on-year decline in traffic, with positive contributions from all countries of operations except Brazil. Notably, in Uruguay, we recorded a strong 12% increase in aeronautical revenues, capitalizing on robust momentum in this country. Importantly, in Argentina, aeronautical revenues rose 1.3 percent, supported by an 11.3 percent year-on-year increase in international traffic, and to a lesser extent by a domestic passenger tariff increase that took effect on November 1st.
Jorge: Let's start with our top line on slide six total revenues ex <unk> 12 were is likely down 0.6%.
Jorge: Notably in Uruguay, we recorded a strong 12% increasing aeronautical revenues capitalizing on robust momentum in this country.
Jorge: Importantly, in Argentina, and a multiple revenues rose one 3% supported by <unk>.
Jorge: In line with passenger traffic, while our revenue per passenger.
Jorge: 0.6% to $93, leveraging perhaps global footprint.
Jorge: 11, 3% year on year increase in international traffic and to a lesser extent by a domestic passenger tariff increase that took effect on November 1st.
Jorge: I don't know its core revenues were up one 7% year on year. Despite a one 2% year on year declining traffic with positive contributions from all countries of operations, except Brazil.
Jorge: Commercial revenues were down two 9% year on year, but improved sequentially. Following a six 6% decline in the third quarter.
Jorge: Notably even with why we recorded a strong 12% increasing over and outgrow revenues capitalizing on robust momentum in this country.
Jorge: This decline was mainly driven by lower cargo on duty free revenues in Argentina, and lower fuel revenue in Armenia, partially offset by higher revenues from VIP lounges parking food and beverage and catering services, particularly in Italy, a corridor and worldwide.
Jorge: Importantly, emerging peanuts, and multiple revenues rose, 1% supported by <unk>.
Jorge: 11, 3% year on year increase in international traffic and to a lesser extent by a domestic passenger tariff increase that took effect on November 1st.
Jorge: As Martin pointed out DTC and cargo revenues in Argentina were extraordinarily high in 2023 due to a significant disparity between the official and parallel FX rate and.
Jorge Arruga: Commercial revenues were down 2.9% year-on-year, but improved sequentially following a 6.6% decline in the third quarter. This decline was mainly driven by lower carbon duty-free revenues in Argentina and lower fuel revenues in Armenia, partially offset by higher revenues from VIP lounges, parking, food and beverage and catering services, particularly in Italy, Ecuador and Uruguay. As Martin pointed out, duty-free and cargo revenues in Argentina were extraordinarily high in 2023 due to a significant disparity between the official and parallel FX rate and the expected evaluation results.
Jorge: Commercial revenues were down two 9% year on year, but improved sequentially. Following a six 6% decline in the third quarter.
Jorge: Do you expect the devaluation respectively.
Jorge: Now turning to slide seven total cost and expenses, excluding <unk> 12 were largely stable year over year.
Jorge: This decline was mainly driven by lower cargo on duty free revenues in Argentina, and lower fuel revenue demand media partially.
Jorge: While the cost of services declined by two 8% this was offset by higher SG&A expenses in part impacted by.
Jorge: Partially offset by higher enrollment was strong VIP lounges parking food and beverage and catering services, particularly in Italy, a corridor or move away.
Jorge: Inflation level in Argentina.
Jorge: As Martin pointed out DTC and cargo revenues in Argentina.
Jorge: Importantly, we remain committed to stringent cost controls across our operations, particularly in Argentina, where challenging market dynamics persist. Nonetheless, we anticipate a more stable environment for this year.
Jorge: We hired in 2023 due to significant disparity between the official and parallel FX Blake.
Jorge: Do you expect the devaluation respectively.
Jorge: Now moving on to profitability on slide eight.
Jorge Arruga: Now turning to slide 7. Total costs and expenses excluding IFRIC 12 were largely stable year over year. While the cost of services declined by 2.8 percent, this was offset by higher SG&A expenses in part impacted by the inflation level in Argentina. Importantly, we remain committed to stringent cost controls across our operations, particularly in Argentina, where challenging macro-dynamics persist. Nonetheless, we anticipate a more stable environment for this.
Jorge: Now turning to slide seven total cost and expenses, excluding <unk> were largely stable year over ear.
Jorge: Adjusted EBITDA ex <unk> 12 was $151 million.
Jorge: A six 7% year on year decline largely explained by Argentina soft performance.
While the cost of services declined by two 8%. This was offset by higher SG&A expenses in part impacted by inflation level in Argentina.
Jorge: This was partially mitigated by strong contributions in growth from all other markets, particularly in Italy, which posted another quarter of solid growth in adjusted EBITDA, along with strong margin expansion.
Jorge: Importantly, we remain committed to stringent cost controls across our operations, particularly in Argentina, where challenging market dynamics persist. Nonetheless, we anticipate a more stable environment for this year.
Jorge: We are particularly encouraged by the performance of our operations in Brazil, which benefited from solid traffic recovering excluding apparel higher VIP lounges.
Jorge Arruga: Now moving on to profitability on slide A. Adjusted EBTVA X-FXII was $151 million, a 6.7% year-on-year decline, largely explained by Argentina's soft performance.
Jorge: Now moving on to profitability on slide eight.
Jorge: Adjusted EBITDA ex <unk> 12 was $151 million, a six 7% year on year decline largely explained by Argentina soft performance piece.
Jorge: So in <unk> revenues as well as favorable impact this quarter from a $110 million reais economic compensation related to the <unk> of the concession for Covid related losses for 2024.
Jorge Arruga: This was partially mitigated by strong contributions and growth from all other markets, particularly Uruguay and Italy, which posted another quarter of solid growth in adjusted EBITDA along with strong margin expansion. We are particularly encouraged by the performance of our operations in Brazil, which benefited from solid traffic recovery, excluding Natal, higher VIP lounges, cargo and duty-free revenues, as well as favorable impact this quarter from a R$110 million economic compensation related to the weakening of the concession for COVID-related losses for 2025.
Jorge: This was partially mitigated by strong contributions from growth from all other markets, particularly in Italy, which posted another quarter of solid growth in adjusted EBITDA, along with strong margin expansion.
Jorge: Turning to slide nine.
Jorge: Supported by our strong cash flow generation, we closed the year with a total liquidity position of $526 million up 15% when compared to year end 2023.
Jorge: We are particularly encouraged by the performance of our operations in Brazil, which benefited from solid traffic recovering excluding at all.
Jorge: Furthermore, our operating subsidiaries reported positive cash flow from operating activities during the 12 month period.
Jorge: JP lounges cargo and <unk> revenues as well as favorable impact this quarter from a 110 million has economic compensation related to the nickel evening of the concession for Covid, you're making losses for 2024.
Jorge: As a reminder, cash used in financing activities included the previously announced $31 million acquisition of our indirect stake in <unk> 2000.
Jorge: Now moving on to depth and maturity profile on slide 10.
Jorge Arruga: Turning to slide 9. Supported by our strong cash flow generation, we close the year with a total liquidity position of $526 million, up 15% when compared to year-end 2023. Furthermore, all of our operating subsidiaries reported positive cash flow from operating activities during the 12-month period.
Jorge: Turning to slide nine.
Jorge: Supported by our strong cash flow generation, we closed the year with a total liquidity position of $526 million up 15% when compared to year end 2023.
Jorge: Total debt at year end was $1 $2 billion, while our net debt decreased to $718 million from $962 million at December 2023.
Jorge: Furthermore, our follow up relating subsidiaries reported positive cash flow from operating activities during the 12 month period.
Jorge: Our net leverage ratio stood at one one times at year end, reflecting debt reductions from the amortization of scheduled principal payments as well as early redemption in Argentina in Romania due in 2021.
Jorge Arruga: As a reminder, cash used in financing activities included the previously announced $31 million acquisition of our indirect stake in AA2000. Now moving on to death and maturity profile on flight. Total debt at year-end was $1.2 billion, while our net debt decreased to $780 million from $963 million at December 2025. Our net leverage ratio stood at 1.1 times at year-end, reflecting debt reductions from the amortization of scheduled principal payments, as well as early redemption in Argentina and Armenia during 2025.
Jorge: As a reminder, cash using financing activities included the previously announced $31 million acquisition of our indirect stake in <unk> 2000.
Jorge: Wrapping up we closed the year with a robust balance sheet and healthy debt profile, which position us well to capture future growth opportunities.
Jorge: Now moving on to depth and maturity profile on slide 10.
Jorge: Total debt at year end was $1 $2 billion, while our net debt decreased to $718 million from $963 million at December 2023.
Despite the headwinds we faced throughout 2024.
Jorge: Our business remains resilient.
Jorge: As we look ahead, we remain committed to cost efficiency, enhancing our commercial operations and expanding our portfolio to deliver value to our shareholders.
Jorge: Our net leverage ratio stood at one one times at year end, reflecting debt reductions from the amortization of scheduled principal payments as well as early redemption in Argentina in Romania due 2024.
I will now hand back the call to Martin who will provide closing remarks and discuss our view for this year.
Martin: Moving on to slide 12.
Jorge Arruga: Wrapping up, we close the year with a robust balance sheet and healthy debt profile, which position us well to capture future growth opportunities. Despite the headwinds we face throughout 2024, our business remains resilient. As we look ahead, we remain committed to cost-efficiency, enhancing our commercial operations, and expanding our portfolio to deliver value to our shareholders.
Jorge: Wrapping up.
Martin: We conclude I would like to highlight a few takeaways from the quarter.
Jorge: We closed the year with a robust balance sheet and healthy debt profile, which position us well to capture future growth opportunities.
Martin: Our solid results across key markets, largely offset softer performance in Argentina, where domestic passenger traffic showed encouraging signs of recovery, reaching record highs in December 'twenty done before as well as in generate on the Wi Fi, while adjusted EBITDA margins improved across all countries over.
Jorge: The headwinds we faced throughout 2024 hour business remains resilient.
Jorge: As we look ahead, we remain committed to cost efficiency, enhancing our commercial operations and expanding our portfolio to deliver value to our shareholders.
Martin: Operations, except Argentina, we are confident that ongoing initiatives to boost commercial revenues and strategic developments across our concessions will support improved results in the quarters ahead.
Jorge Arruga: I will now hand back the call to Martin, who will provide closing remarks and discuss our view for this year. Moving on to slide 12.
Jorge: I will now hand back the call to my team, who will provide closing remarks and discuss our view for this year.
Jorge: Moving on to slide 12, as we conclude now.
Martina O'Rourke: As we conclude, I would like to highlight a few takeaways from the quarter. Our solid results across key markets largely offset softer performance in Argentina, where domestic passenger traffic showed encouraging signs of recovery, reaching record highs in December 2024, as well as in January 2025. While adjusted EBITDA margins improved across all countries of operation except Argentina, we are confident that ongoing initiatives to boost commercial revenues and strategic developments across our concessions will support improved results in the quarters ahead. On the commercial front, we are advancing on key projects to enhance the passenger experience and boost commercial revenue growth across our network.
Speaker Change: To highlight a few takeaways from the quarter.
On the commercial front, we are advancing on key projects to enhance the passenger experience and boost commercial revenue growth across our network.
Speaker Change: Our solid results across key markets, largely offset softer performance in Argentina, where domestic passenger traffic showed encouraging signs of recovery, reaching record highs in December turned it on the floor as well as in January 'twenty 'twenty five.
Martin: Dana we are expanding the duty free area at this as airports arrival terminal increasing the space by over 50% to 1100 square meters in Brazil, We elaborated and logistics center signed agreements with three car dealerships and are progressing with the construction of a new lifestyle center.
Speaker Change: While adjusted EBITDA margins improved across all countries of operation, except Argentina, we are confident that ongoing initiatives to boost commercial revenues.
Speaker Change: Strategic developments across our concessions will support improved results in the quarters ahead.
Martin: Lastly in Uruguay, the construction of a new cohort parking facility at Montevideo Airport is moving forward as planned.
Speaker Change: On the commercial front, we are advancing on key projects to enhance the passenger experience and boost commercial revenue growth across our network.
Martin: We also achieved important milestones across our concessions in Argentina and domestic that it increased became effective in November which will provide additional support to our local operations in Brazil, We reached an agreement with the government on a new methodology for long term economic re.
Martina O'Rourke: In Argentina, we are expanding the duty-free area at the CESA airport's arrival terminal, increasing the space by over 50 percent to 1,100 square meters. In Brazil, we inaugurated a logistics center, signed agreements with three car dealerships, and are progressing with the construction of a new lifestyle center. Lastly, in Uruguay, the construction of a new convert parking facility at Montevideo Airport is moving forward as planned.
Dana: Dana we are expanding the duty free add this as airports arrivals terminal increasing the space by over 50% to 1100 square meters.
Dana: Brazil, we integrated logistics center.
Martin: Could you room to compensate for the impacts of Covid.
Dana: Agreements with three car dealerships and are progressing with the construction of a new lifestyle center.
Martin: Meanwhile, in Uruguay, we inaugurated our new state of the art private aviation terminal at <unk>.
Dana: Lastly in Uruguay, the construction of a new cohort of parking facility at Montevideo Airport is moving forward as planned.
Martin: Daily at the airport and less February completed the works on <unk> International Airport.
Martin: In Italy, we continue advancing on the 425 million euros Master planned for Florence Airport.
Martina O'Rourke: We also achieved important milestones across our concessions. In Argentina, a domestic tariff increase became effective in November, which will provide additional support to our local operations. In Brazil, we reached an agreement with the government on a new methodology for long-term economic re-equilibrium to compensate for the impacts of COVID. Meanwhile, in Uruguay, we inaugurated a new state-of-the-art private aviation terminal at Punta del Este Airport, and last February completed the works on Durazno International Airport. In Italy, we continue advancing on the 425 million euros master plan for Florence Airport. While in Armenia, we are progressing on approvals for our $425 million CAPEX program.
Dana: We also achieved important milestones across our concessions in Argentina and domestic that is increased became effective in November which will provide additional support to our local operations in Brazil. We reached an agreement with the government on a new methodology for long term economic risk.
Martin: While in Armenia, we are progressing on approvals for our $435 million Capex program.
Martin: Both initiatives remain key strategic priorities aimed at delivering long term value for our shareholders.
Dana: Could you room to compensate for the impacts of Covid.
Martin: Finally.
Martin: We closed the year with a solid balance sheet and a net leverage ratio of one one times reinforcing our financial stability and flexibility to invest in growth opportunities.
Dana: Meanwhile, in Uruguay, we inaugurated our new state of the art private aviation terminal at <unk> Airport and last February completed the works on <unk> International Airport.
Martin: Looking ahead, we are cautiously optimistic about Argentina, and doing the 25% while international traffic continues to perform well we expect a recovery in domestic traffic supported by the positive momentum posted in January and February.
Dana: In Italy, we continue advancing on the 425 million euros Master plan for Florence Airport.
Dana: While in Armenia, we are progressing on approvals for our $435 million Capex program.
Martina O'Rourke: Both initiatives remain key strategic priorities aimed at delivering long-term value for our shareholders. Finally, we close the year with a solid balance sheet and a net leverage ratio of 1.1 times, reinforcing our financial stability and flexibility to invest in growth opportunities.
Martin: To conclude in 2025, we remain focused on executing on our strategic growth objectives, while capitalizing on the initiatives taken throughout 2024.
Dana: With initiatives remain key strategic priorities aimed at delivering long term value for our shareholders.
Dana: I agree with.
Dana: We closed the year with a solid balance sheet and a net leverage ratio of one one times reinforcing our financial stability and flexibility to invest in growth opportunities.
Martin: With a strong foundation in place we are confident in our ability to drive sustainable growth and deliver value.
Martin: Later, please open the line for questions.
Martina O'Rourke: Looking ahead, we are cautiously optimistic about Argentina in 2025. While international traffic continues to perform well, we expect a recovery in domestic traffic supported by the positive momentum posted in January and February. To conclude, in 2025 we remain focused on executing on our strategic growth objectives while capitalizing on the initiatives taken throughout 2024. With a strong foundation in place, we are confident in our ability to drive sustainable growth and deliver value.
Dana: Looking ahead, we are cautiously optimistic about Argentina, and going to 25% while international traffic continues to perform well we expect a recovery in domestic traffic supported by the positive momentum posted in January and February.
Martin: Thank you.
Martin: Ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press the star followed by the one on your Touchtone phone.
Martin: Perhaps that you had has been raised.
Martin: <unk> should decline from the polling process. Please press star followed by the Q and if you are using a speaker phone. Please lift the handset before pressing any case.
Dana: To conclude in 2025, we remain focused on executing on our strategic growth objectives, while capitalizing on the initiatives taken throughout 2024.
Speaker Change: Your first question is from Alejandro Demichelis at Jefferies. Please go ahead.
Dana: With a strong foundation in place we are confident in our ability to drive sustainable growth and deliver value.
Alejandro DeMichelis: Yes, good morning, gentlemen, thank you for taking my questions two questions. If I may please.
Operator: Operator, please open the line for questions. Thank you.
Speaker Change: Operator, please open the line for questions.
Alejandro DeMichelis: First one is could you please update us on how you see the concessional review booked in Argentina, <unk> much progress Youre, making what are kind of the next steps we can see from there and then the second question is.
Dana: Thank you.
Operator: Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press the star followed by the 1 on your touchtone phone. You will hear a prompt that your hand has been raised.
Dana: Ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press the star followed by the one on your Touchtone phone you will hear prompts that Johan has been raised should it should decline from the polling question. Please press star followed by the Q and if you are using a speaker phone. Please lift the handset before pressing any case.
Speaker Change: Martin you talk about your strategy.
Operator: If you wish to decline from the polling process, please press star followed by the And if you are using a speakerphone, please lift the handset before pressing it. Thank you.
Speaker Change: Our priority is on <unk>.
Speaker Change: Maybe you can also how you're seeing the opportunity for inorganic growth say in Latin America and also outside of our region.
Dana: Your first question is from Alejandro Demichelis at Jefferies. Please go ahead.
Alejandro DeMichelis: Your first question is from Alejandro Demichelis at Jefferies. Please go ahead. Yes, good morning, gentlemen. Thank you very much for taking my questions.
Alejandro DeMichelis: Yes. Good morning, gentlemen, thank you for taking my question two questions. If I may. Please the first one is could you. Please update us on how you see the Concessional review Boston, Argentina Collins much progress Youre, making what are kind of the next steps we can see from there and then the second question is.
Martin: Thank you very much for the handling of all your interest and for your questions Martin here.
Alejandro DeMichelis: Two questions, if I may, please. The first one is, could you please update us on how you see the concession review process in Argentina? How much progress you're making? What are kind of the next steps we can see from there?
Speaker Change: In terms of.
Speaker Change: In terms of Argentina in the contract.
Speaker Change: A little bit as we said last time.
Alejandro DeMichelis: And then the second question is, Martin, you talk about your strategic priorities and initiatives. Maybe you can also add how you're seeing the opportunity for inorganic growth, say, in Latin America and also outside of the region.
Speaker Change: We expect.
Alejandro DeMichelis: Martin you talk about your strategy.
Speaker Change: Things to happen during this year hopefully, although the official timing.
Alejandro DeMichelis: Priorities and initiatives, maybe you can all thought how you are seeing the opportunity for inorganic growth say in Latin America and also outside of our region.
Speaker Change: What's expected for.
Speaker Change: At the end of third quarter and second quarter.
Speaker Change: We don't have exact.
Speaker Change: Exact days as of today to be able to know when the regulator will.
Martina O'Rourke: Thank you very much Alejandro for your interest and for your questions, Martin here. In terms of Argentina and the contract, a little bit as we said last time, we expect things to happen during this year, hopefully, although the official timing was expected for the end of third quarter and second quarter, we don't have exact dates as of today to be able to know when the regulator will finish the work they are doing. But we have very good expectations that during this year we will have positive news on that side in terms of having a path to move ahead.
Alejandro DeMichelis: Thank you very much and I'll hand, it off all your interest and for your questions Martin here.
We'll finish the work they are doing.
Speaker Change: But we have very high.
Alejandro DeMichelis: In terms of.
Speaker Change: Our expectation is that during this year, we will have positive news on that side in terms of.
Alejandro DeMichelis: In terms of Argentina in the contract.
Alejandro DeMichelis: A little bit as we said last time.
Speaker Change: Having a path to move ahead.
Alejandro DeMichelis: We expect.
Speaker Change: And as we said last time.
Alejandro DeMichelis: Things to happen during this year hopefully, although the official timing.
Speaker Change: In the railroad environment in Argentina, the Lady of Axis, which is the lower proven.
Alejandro DeMichelis: What's expected for.
Speaker Change: Last year by the government.
Alejandro DeMichelis: At the end of third quarter and second quarter.
Speaker Change: Gives the executive and the regulator very good tools to be able to.
Alejandro DeMichelis: We don't have exact.
Alejandro DeMichelis: Exact days as of today to be able to know when the regulator will.
Speaker Change: To do this.
Speaker Change: <unk> comprehensive revision. So we're very positive on that side, but we still do not have details what exact dates although we hope it will we will have news during this year.
Alejandro DeMichelis: We'll finish the work they are doing.
But we have a very good expectations that during this year, we will have positive news on that side in terms of.
Speaker Change: And regarding inorganic growth.
Yeah.
Speaker Change: <unk>.
Alejandro DeMichelis: Having a path to move ahead.
Speaker Change: We are happy to say that we're looking at.
Martina O'Rourke: And as we said last time, the regulatory environment in Argentina, the Ley de Bases, which is the law approved last year by the government, gives the executive and the regulator very good tools to be able to do a comprehensive revision. So we are very positive on that side, but we still do not have details or exact dates, although we hope we will have news during this year.
Alejandro DeMichelis: And as we said last time.
Speaker Change: A very diverse.
Opportunities in different geographies.
Alejandro DeMichelis: In that area the environment in Argentina, the native access which is the lower proving.
Speaker Change: And different sizes and shapes, let's say.
Speaker Change: We have.
Alejandro DeMichelis: Last year by the government.
Speaker Change: Strengthen our M&A team.
Alejandro DeMichelis: The executive and the regulator very good tools to be able to.
Speaker Change: Adding more talent and people to the team to be able to take on more challenges. So.
Alejandro DeMichelis: To do this.
Alejandro DeMichelis: <unk> comprehensive revision. So we are very positive on that side, but we still do not have details what exact dates although we hope it will we will have news during this year.
Speaker Change: Hopefully you will see us very active in the market as the opportunities arise and become public.
Martina O'Rourke: and regarding inorganic growth. We are happy to say that we are looking at very diverse opportunities in different geographies, in different sizes and shapes, let's say. We have strengthened our M&A team, adding more talent and people to the team to be able to take on more challenges. So hopefully you will see us very active in the market as the opportunities arise and become public.
Alejandro DeMichelis: And regarding inorganic growth.
Speaker Change: Hey, good opportunities, but these opportunities are mostly in Latin America or can we expect something outside of our region.
Alejandro DeMichelis: Yeah.
Alejandro DeMichelis: We are happy to say that we're looking at.
Alejandro DeMichelis: It's very diverse.
Alejandro DeMichelis: <unk> is in different geographies.
Speaker Change: No definitely you can expect us.
Alejandro DeMichelis: And in different sizes and shapes that say we have.
Speaker Change: In very diverse regions, we have participated already participated in ongoing processes.
Alejandro DeMichelis: Strengthen our M&A team.
Speaker Change: The middle East in Africa.
Alejandro DeMichelis: Adding more talent and people to the team to be able to take on more challenges.
Speaker Change: And in Latin America.
Speaker Change: And in Europe.
Speaker Change: So we're looking at many opportunities.
Alejandro DeMichelis: Hopefully you will see us.
Speaker Change: Thank you.
Alejandro DeMichelis: Very active in the market as the opportunities arise and become public.
Speaker Change: Okay.
Speaker Change: Thank you. The next question comes from Fernanda. Thank you BTG. Please go ahead.
Martina O'Rourke: Thank you Alejandro. No, definitely you can expect us in very diverse regions. We have participated, already participated in ongoing processes in the Middle East, in Africa and in Latin America and in Europe. So we're looking at many opportunities, yes. Thank you.
Speaker Change: Hey, good opportunities, but these opportunities are mostly in Latin America or can we expect something outside of our region.
Speaker Change: Hello, Thank you Mark Jim Harding Lucky too.
Alejandro DeMichelis: No definitely you can expect us.
Speaker Change: Two questions from our side as well.
Alejandro DeMichelis: In very diverse regions, we have participated already participated in ongoing processes.
Speaker Change: I would like to explore a little bit.
Speaker Change: For the year of 2025.
Speaker Change: So.
Alejandro DeMichelis: Middle East in Africa.
Speaker Change: Look the way to train.
Alejandro DeMichelis: And in Latin America.
Alejandro DeMichelis: And in Europe.
Speaker Change: Sean are there trends in China, especially on the Max.
Alejandro DeMichelis: So we're looking at many opportunities yes.
Rob.
Speaker Change: So if you could provide.
Alejandro DeMichelis: Thank you.
Speaker Change: What is your expectation for Argentina.
Alejandro DeMichelis: Okay.
Speaker Change: Thank you. The next question comes from Fernanda. Thank you BTG. Please go ahead.
Fernanda Recchia: The next question comes from Fernanda Recchia at BTG. Please go ahead. Hello, thank you, Martin, Jorge and Naki. Two questions from our side as well. The first, I would like to explore a little bit further the traffic trends for the year of 2025. So as we look at the year to date, the trend has shown a better trend for Argentina, especially on the domestic route. So, if you could provide some color on what is their expectation for Argentina this year. Also, Brazil is suffering on a year-to-date basis, so I would appreciate any thoughts and comments on Brazil as well.
Speaker Change: Sure.
Speaker Change: But our daily.
Speaker Change: Year to date basis so they.
Speaker Change: Presage any thoughts and comments on Brazil as well.
Speaker Change: Hello, Thank you, Jim Hardy and Lucky.
Speaker Change: The first question and my second question is regarding.
Speaker Change: Two question from our side with the first I would like to explore a little bit for guaranteed traffic trends or the euro 2025.
Speaker Change: The project.
Speaker Change: Tony.
Speaker Change: I think Martin mentioned that we had progress in lowering closing remarks, but if you could provide any.
Speaker Change: Or has it been Luke.
Speaker Change: Our year to date.
Speaker Change: Hi.
Speaker Change: Further details in terms of deadline and what is it.
Speaker Change: Sean are there trends in China, especially on the Max.
Speaker Change: Nathan.
Speaker Change: <unk>.
Speaker Change: France will have the final approval.
Speaker Change: So if you could provide some color.
Speaker Change: Q.
Speaker Change: What is your expectation for Argentina midyear.
Speaker Change: Okay.
Speaker Change: Thank you Fernando for your questions and for your interest.
Speaker Change: But our daily suffering on a year to date basis, So alright.
Speaker Change: Starting with traffic for 2025 U S.
Speaker Change: Well I can't comment on Brazil as well.
Fernanda Recchia: This is the first question.
Speaker Change: About Argentina.
Speaker Change: The first question and my second question is regarding.
Fernanda Recchia: And my second question is regarding the projects in Armenia and Italy. I think Martin mentioned that they are progressing well on his closing remarks. But if you could provide any further details in terms of deadlines and what is missing for us to have the final approval. Thank you.
Speaker Change: That I think there are two main.
Speaker Change: Two main issues affecting the real positive dynamics, we're seeing in Argentina.
Speaker Change: The project May not need.
Speaker Change: Charlie.
Speaker Change: As Martin mentioned, we are progressing well wanting for closing remarks.
Speaker Change: One is.
Speaker Change: If you could provide any color.
Speaker Change: The macro environment, where.
Speaker Change: <unk> in terms of deadline and what it means to them.
Speaker Change: More people have more access to.
Speaker Change: Perhaps you'll have the final approval.
Speaker Change: Two U S dollars and due to inter.
Speaker Change: Thank you.
Speaker Change: International tickets as we have seen in the international passenger growth that we have seen in the last two months is substantial.
Speaker Change: Okay.
Martina O'Rourke: Thank you, Fernanda, for your questions and for your interest. Starting with the traffic for 2025, you asked about Argentina. I think there are two main issues affecting the real positive dynamics we are seeing in Argentina. One is the macro environment, where more people have more access to... red tape for the aviation industry. Firstly, signing open skies agreements with a lot of countries which give the possibilities for more airlines to put more flights without any preconditions. And also the. the opening of the internal regulations themselves, which also allow companies, foreign companies and foreign aircraft and foreign crews to work domestically and internationally in Argentina with far less restrictions than before.
Speaker Change: Thank you Fernando for your questions for your interest.
Speaker Change: Starting with traffic for 2025 U S.
Speaker Change: But also domestic has picked up so we are very positive on the trends in Argentina given.
Speaker Change: About Argentina.
Speaker Change: That I think there are two main.
Speaker Change: Those dynamics and the fact that the government has worked through last year very aggressively on opening all sorts of.
Two main issues affecting the real positive dynamics, we're seeing in Argentina.
Speaker Change: One is.
Speaker Change: The macro environment, where.
Speaker Change: Red tape for the aviation industry, Firstly, assigning open skies agreements with a lot of countries, which you will see really this for more airlines to put more flights without an EBIT conditions.
Speaker Change: More people have more access to.
Speaker Change: Two U S dollars into.
Speaker Change: International tickets as we have seen in the international passenger growth that we have seen in the last two months.
Speaker Change: And also the.
Speaker Change: Substantial.
Speaker Change: The opening of the internal regulations themselves, which also allow companies foreign companies and Fortinet aircraft important crews to work domestically and internationally in Argentina with far less restrictions on before so these two things combined are unleashing.
Speaker Change: But also domestic has picked up so we are very positive on the trends in Argentina given the.
Speaker Change: Those dynamics and the fact that the government has worked through.
Speaker Change: Last year very aggressively on opening all sorts of.
Speaker Change: Red tape for the aviation industry Firstly.
Speaker Change: The growth.
Speaker Change: To ensure that we're seeing.
Speaker Change: The traffic in Argentina.
Speaker Change: Signing open skies agreements with a lot of countries, which you. Therefore see really these for more airlines to put more flights without an EBIT conditions.
Speaker Change: You mentioned, Brazil.
Speaker Change: I understood you mentioned the suffering of Brazil.
Speaker Change: Maybe youre looking at the numbers, adding talent, which is not there anymore, but if you take out.
Speaker Change: And also the <unk>.
Speaker Change: The opening of the internal regulations themselves, which also allow companies foreign companies and Fortinet aircraft and crew.
Speaker Change: The dynamics in Brazil are quite interesting.
Jorge: Jorge here, if you can comment but.
Speaker Change: About 5% and growth in.
Jorge: The first two months with <unk> Airport.
Speaker Change: Crews to work domestically and internationally in Argentina with far less restrictions and before so these two things combined are unleashing.
Speaker Change: Almost.
Speaker Change:
Speaker Change: Almost 6% so.
Although the industry as a whole has challenges in Brazil, as we mentioned in the call.
Martina O'Rourke: So these two things combined are unleashing the growth potential that we're seeing in the traffic in Argentina.
Speaker Change: The growth potential that we're seeing.
Speaker Change: We think that these <unk>.
Speaker Change: It makes sense or not but given the overall Brazilian environment.
Speaker Change: The traffic in Argentina.
Martina O'Rourke: You mentioned Brazil, I understood, you mentioned the suffering of Brazil, maybe you are looking at the numbers adding Natal, which is not there anymore, but if you take out Natal, the dynamics in Brazil are quite interesting, Jorge is here, he can comment, but above 5% in growth in the first two months for Brasilia Airport, almost. So, although the industry as a whole has challenges in Brazil, as we mentioned in the call, we think that these dynamics are not bad given the overall Brazilian environment.
Speaker Change: You mentioned, Brazil.
Speaker Change: And.
Speaker Change: Understood you mentioned the suffering of Brazil.
Speaker Change: Regarding EMEA in Italy.
Speaker Change: Maybe you are looking at the numbers, adding that value, which is not there anymore, but if you take out the.
Speaker Change: In both cases in different dynamics, we are progressing really well.
Speaker Change: The dynamics in Brazil are quite interesting.
Speaker Change: In a minute we're awaiting feedback on the government on.
Speaker Change: Korakas here, if you can comment but.
Speaker Change: On the negotiation to do these new Capex that we mentioned in the presentation.
Speaker Change: Up 5% and growth in.
Speaker Change: In the first two months with <unk> Airport.
Speaker Change: But for that a lot of things.
Speaker Change: Almost.
Speaker Change:
Okay, almost 6% so.
Speaker Change: We'll probably be revised.
Speaker Change: Although the industry as a whole has challenges in Brazil, as we mentioned in the call.
Speaker Change: Waiting for feedback on the government on that side and as soon as we have.
Speaker Change: We think that these dynamics are not are not about given the overall Brazilian environment.
Speaker Change: And I agree the model we will.
Speaker Change: Let the investors know about it with more details.
Martina O'Rourke: And regarding Armenia and Italy, in both cases, in different dynamics, we are progressing really well. In Armenia, we're waiting feedback on the government on the negotiation to do this new CAPEX that we mentioned in the presentation. But for that, a lot of things will probably be revised. We're waiting for feedback on the government on that side. And as soon as we have an agreed model, we will let the investors know about it with more detail.
Speaker Change: In.
Speaker Change: Regarding EMEA in Italy.
Speaker Change: And regarding Italy.
Speaker Change: In both cases in different dynamics, we are progressing really well.
Speaker Change: We are very well advanced into all the technical requirements.
Speaker Change: We are waiting feedback on the government on.
Speaker Change: To receive.
Speaker Change: The most important approval that we need which is environmental one.
Speaker Change: On the negotiation to do these new Capex that we mentioned in the presentation.
Speaker Change: But the teams have been working very hard with the different sides of the government that work on this and.
Speaker Change: For that a lot.
Speaker Change: Lot of things and it will probably be revised we're waiting for feedback on the government on that side and as soon as we have.
Speaker Change: We can say, we're fairly fairly advanced and hopefully in the next few months, we will have news.
Speaker Change: Positive views on the approval for the modem rental.
Speaker Change: And I agree the model we will.
Speaker Change: Let the investors know about it with with more details.
Speaker Change: The momentum that we need to be able to.
Martina O'Rourke: And regarding Italy. We are very well advanced into all the technical requirements to receive the most important approval that we need, which is the environmental one. But the teams have been working very hard with the different sides of the government that work on this and we can say we're fairly advanced and hopefully in the next few months we will have news, positive news on the approval for environmental approval that we need to be able to start construction on the CAPEX program for Florence. The one that's going to be more transformative for the company and for value creation.
Speaker Change: Regarding Italy.
Speaker Change: Start construction.
Speaker Change: We are very well advanced into all the technical requirements to.
Speaker Change: The Capex program for Florence, which is the one that's going to be more transformative for the company.
Speaker Change: To receive the most important approval that we need which is environmental one.
Speaker Change: For value creation.
Speaker Change: Thank you for Linda.
Speaker Change: But the teams have been working very hard with the different sides of the government that work on this.
Speaker Change: Thank you much.
Youre welcome.
Speaker Change: David Sandberg generally expect traffic to keep this mid single digit that we saw an idea to main pages.
Speaker Change: We can say, we're fairly fairly advanced and hopefully in the next few months, we will have news.
Speaker Change: Yes, I would say I would say that the trends that we're seeing in the beginning of the year for most of our regions.
Speaker Change: Positive views on the approval for the moment.
Speaker Change: The modem rental a brewery that we need to be able to.
Speaker Change: Look promising.
Speaker Change: Probably Armenia, where we saw a negative February.
Speaker Change: Start construction.
Speaker Change: The Capex program for Florence, which is the one that's going to be more transformative, Florida company and for value creation.
Speaker Change: EBITDA of an outlier.
Speaker Change: Where we expect to have.
Speaker Change: I know, we're all consolidated year on the positive side.
Martina O'Rourke: Thank you, Fernanda. Thank you, Martin.
Speaker Change: Thank you for Linda.
Linda: Thank you Mike.
Speaker Change: So yes, I think I think that you can say that we're seeing.
Martina O'Rourke: Just a follow up and thinking on a consolidated figure, can we expect traffic to keep this mixed single digit that we saw on our year to date basis? Yeah, I would say I would say that the trends that we're seeing in the beginning of the year for most of our regions look promising. Probably Armenia, where we saw a negative February, it's a little bit of an outlier where we expect to have a consolidated year on the positive side. So, yes, I think I think that you can say that whatever we're seeing in the first two months, we expect those trends to continue.
Speaker Change: On a consolidated finger generally expect traffic to keep the mix.
Speaker Change: In the first two months.
Speaker Change: We expect those trends to continue.
At this time, all 90 H b.
Yeah, I would say I would say that the trends that we're seeing in the beginning of the year for most of our regions.
Speaker Change: Perfect. Thank you so much.
Speaker Change: Thank you. The next question comes from Stephen Trent with Citigroup. Please go ahead.
Speaker Change: Look promising.
Speaker Change: Brody Armenia, where we saw a negative February.
Stephen Trent: Good morning, gentlemen, thanks, very much for the time.
Speaker Change: Maybe the final layer.
Stephen Trent: The first question I was wondering.
Speaker Change: Where we expect to have.
Speaker Change: I know, we're all consolidated here on the positive side.
Stephen Trent: How are you thinking about weighing.
Stephen Trent: Potential growth opportunity the potential investments in new concessions.
Speaker Change: So yes, I think I think that you can say that whatever we're seeing.
Stephen Trent: Any view as to whether.
Speaker Change: In the first two months.
Stephen Trent: Geographic or air traffic diversity is sort of the main thing you look at.
Speaker Change: We expect those trends to continue.
Operator: First of all, thank you so much. Thank you.
Speaker Change: Perfect. Thank you so much.
Stephen Trent: Or are you more interested for example.
Stephen Trent: And acquiring assets that are single Taylor dual tail or are inflation based or something along those lines with just love to hear a little more about that thank you.
Speaker Change: Thank you. The next question comes from Stephen Trent with Citigroup. Please go ahead.
Stephen Trent: The next question comes from Stephen Trent at Citigroup. Good morning, gentlemen, and thanks very much. The first question, I was wondering. You know, any of you as to whether Air Traffic Diversity. The main thing you look at. Or are you more interested, for example, And acquiring assets that are single-tail or dual-tail or inflation-based or something along those lines, which I just love to hear a little more about.
Stephen Trent: Good morning, gentlemen, and thanks very much for the time.
Speaker Change: The first question.
Stephen Trent: Was wondering.
Stephen Trent: Hello Trent Trent. Thank you for your question.
Speaker Change: How are you thinking about weighing.
Stephen Trent: I think it's a difficult question to ask.
Speaker Change: Potential growth opportunity the potential investments and new concessions.
Stephen Trent: To answer on our side.
Stephen Trent: Because as we have always mentioned we have a.
Speaker Change: Any view as to whether Jia.
Speaker Change: Geographic.
Stephen Trent: Our view on being first of all accretive to our portfolio second very disciplined on how we look at and how we analyze the opportunities.
Speaker Change: Or air traffic diversity is sort of the main thing you look at.
Speaker Change: Or are you more interested for example.
Speaker Change: And acquiring assets that are single Taylor dual tail or are inflation based or something along those lines, we'd just love to hear a little more about that thank you.
Stephen Trent: <unk>.
Stephen Trent: And very opportunistic in the end.
Stephen Trent: We are able to.
Stephen Trent: To get all that.
Stephen Trent: No.
Stephen Trent:
Stephen Trent: I wouldn't say I wouldn't be able to plan to classify a regulatory scheme that we think expected I think we need to look at that opportunity as a whole.
Martina O'Rourke: Hello, Trent. Trent, thank you for your question. I think it's a difficult question to answer on our side because, as we have always mentioned, we have a view on being, first of all, accretive to our portfolio, second, very disciplined on how we look at and how we analyze the opportunities. And. and very opportunistic in the end to be able to get all that. So I wouldn't say, I wouldn't be able to classify a regulatory scheme that we think is better. I think we need to look at an opportunity as a whole and analyze case by case to see whether an opportunity is interesting or not.
Speaker Change: Hello, and thank you for your question.
Speaker Change: I think it's a difficult question to ask on our own.
Speaker Change: To answer on our side.
Speaker Change: Because as we have always mentioned we have a.
Stephen Trent: And it is case by case to see whether in opportunities interesting or not and I wouldn't say that.
Speaker Change: Our view on being first of all accretive to our portfolio second very disciplined on how we look at and how we analyze the opportunities.
Stephen Trent: They readily scheme needs.
Stephen Trent: <unk> to be one or the other for it to be interesting is you've seen our portfolio. We have all the cases that you mentioned and we like the morning, nor I would think that.
Speaker Change: <unk>.
Speaker Change: And very opportunistic in the end.
Stephen Trent: Each of our concessions.
Speaker Change: We are able to.
Speaker Change: To get all that so.
Stephen Trent: As of today is a success story and being very diverse and very different. So I Couldnt tell you that we are looking for specific regulatory scheme. When we go for the recession, but we do an in depth analysis of.
Speaker Change: I wouldn't say I wouldn't be able to like to classify it.
Speaker Change: Lottery scheme that we think its better I think we need to look at that opportunity as a whole.
Speaker Change: And it is case by case to see whether an opportunity is interesting or not and I wouldn't say that.
Stephen Trent: The potential of the capacity of that opportunity to add value to our shareholders.
Martina O'Rourke: And I wouldn't say that the regulatory scheme needs to be one or the other for it to be interesting. As you see in our portfolio, we have all the cases that you mentioned and we like them all. We think that each of our concessions as of today is a success story and being very diverse and very different. So I couldn't tell you that we are looking for a specific regulatory scheme when we go for a concession, but we do an in-depth analysis of the potential, the capacity of that opportunity to add value to our shareholders, regardless of the type of concession or even geography.
Stephen Trent: Regardless of the type of recession or even geographies because as we said before we are working publicly in the opportunities in the middle East in Europe Latin.
Speaker Change: That regulatory scheme.
Speaker Change: It needs to be one or the other for it to be interesting is you've seen our portfolio. We have all the cases that you mentioned and we like good morning, No I would think that.
Stephen Trent: Latin America and Africa. So so.
Speaker Change: Each of our concessions.
Speaker Change: As of today is a success story and being very diverse and very different. So I Couldnt tell you that we are looking for specific regulatory scheme. When we go for organization, but we do an in depth analysis of.
Stephen Trent: We're fairly open into the geographies that we think our management will be capable of adding value.
Martin: Okay I really appreciate that that's very helpful. Martin Thank you.
Stephen Trent: Just one quick follow up for me.
Speaker Change: The potential of the capacity of that opportunity to add value to our shareholders.
Stephen Trent: You guys have had some success.
Stephen Trent: And amending.
Stephen Trent: Our existing concessions.
Speaker Change: Regardless of the type of concession or even geography, new because as we said before we are working publicly in opportunities in the middle East in Europe and.
Stephen Trent: Adding <unk>.
Stephen Trent: More years.
Martina O'Rourke: Because as we said before, we are working publicly in opportunities in the Middle East, in Europe, Latin America and Africa. So we are fairly open into the geographies that we think our management will be capable of adding value. Okay, I really appreciate that. That's very helpful. And just one quick follow-up for me, you know, you guys have had some success. And amending your existing concessions, adding more years to session tenor. Do you think it's reasonable that we could expect more potential contract extensions over the coming years as this is something You are still discussing with your grant?
Stephen Trent: Two.
Stephen Trent: The concession tenure.
Stephen Trent: Do you think it's reasonable that we could expect.
Speaker Change: Latin America and Africa. So so.
Stephen Trent: More potential.
Stephen Trent: Contract extensions over the coming years as this is something that.
Speaker Change: We're fairly open into the geographies that we think our management will be capable of adding value.
Speaker Change: You are still discussing with your grantors. Thank you.
Martin: Okay I really appreciate that that's very helpful. Martin.
Speaker Change: Well.
Martin: Just one quick follow up for me.
Speaker Change: In this case.
Speaker Change: As we always say our teams are focused.
Speaker Change: You guys have had some success.
Speaker Change: And amending our existing concessions adding.
Speaker Change: On.
Speaker Change: Creating value.
Speaker Change: For our shareholders, but from our stakeholders as well because if we do not create value for oil.
Speaker Change: More years.
Two.
Speaker Change: The <unk>.
Speaker Change: <unk> session tenure.
Speaker Change: Difficult to have a sustainable business in our public services as the one we run.
Speaker Change: Do you think it's reasonable that we could expect.
Speaker Change: More potential.
Speaker Change: So with that mindset.
Speaker Change: Contract extensions.
Speaker Change: You will see our teams.
Speaker Change: For the coming years as this is something that.
Speaker Change: Finding ways to keep investing keep creating value.
Speaker Change: You are still discussing with your grantors. Thank you.
Speaker Change: Working towards the growth of the companies in the concessions that we have.
Martina O'Rourke: Well, in this case, as we always say, our teams are focused on on. for our shareholders, but for our stakeholders as well, because if we do not create value for all, it'd be difficult to have a sustainable business in a public service as the one we run. So with that mindset, you will see our teams finding ways to keep investing, keep creating value, keep working towards the growth of the companies and the concessions that we have. And sometimes to get all that mixed together, the extension and the extra time are a very good way to create value for all stakeholders, including, of course, our shareholders.
Speaker Change: Well.
Speaker Change: In this case as.
Speaker Change: In.
Speaker Change: As we always say our teams are focused on on.
Speaker Change: Sometimes to get all that mixed together.
Speaker Change: Extension and the extra time.
Speaker Change: Creating value.
Speaker Change: For our shareholders, but forum, our stakeholders as well because if we do not create value for oil.
Speaker Change: At a very good way to create value.
Speaker Change: <unk> stakeholders, including of course, our shareholders. So you.
Speaker Change: It would be difficult to have a sustainable business in our public services as the one we run so it with that mindset.
Speaker Change: We can say that we are always in the lookout to create.
Speaker Change: Create value in this and in other ways as well.
Speaker Change: You'll see our teams.
Speaker Change: Okay very helpful. Thank you.
Speaker Change: Finding ways to keep investing keep creating value keep.
Stephen Trent: Thank you Steven.
Speaker Change: Working towards the growth of the companies in the concessions that we have and.
Speaker Change: Thank you we have no further questions I will turn the call back over to Tim Martin of Mcewen for closing comments.
Speaker Change: Sometimes to get all that mixed together.
Tim Martin: I just wanted to thank everybody for joining us today.
Speaker Change: Extension and the extra time.
Tim Martin: And also remind you that our investor relations team is available.
Speaker Change: So at a very good way to create value.
Speaker Change: For all stakeholders, including of course, our shareholders. So you can say that we are always in the lookout to.
Tim Martin: For any further questions or discussions you want to have a router company. Thanks, again and enjoy the rest of your day Bye bye.
Stephen Trent: So you can say that we are always on the lookout to create value in this and in other ways as well. OK, very helpful. Thank you, Stephen. Thank you.
Speaker Change: Create value in these and in other ways as well.
Speaker Change: Ladies and gentlemen, this concludes your conference call for today, we thank you for participating and we ask that you. Please disconnect your lines.
Speaker Change: Okay very helpful. My team. Thank you.
Stephen Trent: Thank you Steven.
Speaker Change: Thank you we have no further questions I will turn the call back over to Martin of Natkin for closing comments.
Operator: We have no further questions.
Martina O'Rourke: I will turn the call back over to Martine Ernakian for closing comments.
Operator: I just wanted to thank everybody for joining us today and also remind you that our Investor Relations team is available for any further questions or discussions you wanted to have about our company. Thanks again and enjoy the rest of your day. Bye bye.
Speaker Change: I just wanted to do.
Speaker Change: Thank everybody for joining us today.
Speaker Change: And also remind you that our investor relations team is available.
Speaker Change: For any further questions or discussions you want that to have a router company. Thanks again and enjoy the rest of your day Bye bye.
Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and we ask that you please disconnect.
Speaker Change: Ladies and gentlemen, this concludes your conference call for today, we thank you for participating and we ask that you. Please disconnect your lines.