Q1 2025 Grupo Aeroportuario del Centro Norte SAB de CV Earnings Call
Speaker Change: [music].
Ladies and gentlemen, greetings and welcome to the Grupo <unk> del Centro Norte, The Omaha first quarter 2025 earnings conference call.
Operator: Ladies and gentlemen, greetings and welcome to the Grupo Aeroportuario del Centro Norte Omaha first quarter 2025 earnings conference call. At this time, all participants are in the listen-only mode.
At this time all participants are in the listen only mode. A brief question and answer session will follow the formal presentation.
Operator: A brief question and answer session will follow the formal presentation.
Operator: If anyone should require operator assistance during the conference, please press star and zero on your telephone keypad. As a reminder, this conference is being recorded.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
As a reminder, this conference is being recorded.
Emmanuel Camacho: It is now my pleasure to introduce your host, Emmanuel Camacho, Investor Relations Officer. Please go ahead, sir. Thank you, Encico.
Speaker Change: It is now my pleasure to introduce your host Emmanuel Camacho Investor Relations Officer. Please go ahead Sir.
Speaker Change: Thank you as we go Hello, everyone welcome to <unk> first quarter 2025 earnings conference call.
Emmanuel Camacho: Hello, everyone. Welcome to OMA's first quarter 2025 earnings conference call. We're delighted to have you join us today as we discuss our company's performance and financial results for the past quarter.
Speaker Change: Delighted to have you joining us today as we discuss the company's performance and financial results for the past quarter.
Emmanuel Camacho: Joining us today are CEO Ricardo Duenas and CFO Ruffo Perez-Fiego.
Speaker Change: Joining us today are I'm, CEO, he California and CFO.
Speaker Change: Jim.
Emmanuel Camacho: Please be reminded that certain statements made during the course of our discussion today may constitute forward-looking statements which are based on current management expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially, including factors that may be beyond our control.
Speaker Change: Please be reminded that certain statements made during the course of our discussion today may constitute forward looking statements, which are based on grid management expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially including factors that maybe beyond our control.
Ricardo Duenas: And now I'll turn the call over to Ricardo Duenas for his opening remarks. Thank you, Emmanuel. Good morning, everyone. We appreciate your presence on this call today. This morning, Ruffo and I will review our quarterly operational financial results, and then we will be pleased to answer your questions. In the first quarter of this year, OHA's passenger traffic totaled 6.4 million passengers, a 9.1% increase year-over-year. This increase was mainly attributable to an increase in seat capacity of 13.4% during the quarter. On the domestic front, passenger traffic grew by 8 percent, driven primarily by the Monterrey Airport, which saw increases on routes to Querétaro, the metropolitan area of Mexico City, including the Mexico City, IFA, and Toluca airports.
Speaker Change: And now I'll turn the call over to Ricardo Duenas for his opening remarks. Thank.
Ricardo Duenas: Thank you Manuel and good morning, everyone. We appreciate your presence on this call today. This morning roof on I will review, our quarterly operational and financial results and then we will be pleased to answer your questions.
Ricardo Duenas: In the first quarter of this year almost passenger traffic totaled $6 4 million passengers, a nine 1% increase year over year.
Ricardo Duenas: This increase was mainly attributable to an increase in seat capacity of 13, 4% during the quarter.
Ricardo Duenas: On the domestic front passenger traffic grew by 8% driven primarily by the Monterrey Airport, which saw increases on routes to get at that all the metropolitan area of Mexico City, including the Mexico City I thought I had to look at airports.
Ricardo Duenas: Hermosillo, Ciudad Juárez, Guadalajara, and Culiacán. These routes collectively added over 285,000 passengers during the quarter, representing 72% of the total domestic passenger growth. International passenger traffic increased 15.1%. This growth was also driven by the Monterey Airport with passenger traffic increases on routes to San Antonio, Chicago, Los Angeles, Orlando, San Francisco, Oakland, Miami, Austin, and Denver. This route collectively added over 132,000 passengers during the quarter, accounting for 94% of the total international passenger increase in the first quarter.
Ricardo Duenas: And most Ceos you that's why it is Guadalajara and Corey again.
Ricardo Duenas: These routes collectively added over 285000 passengers during the quarter, representing 72% of the total domestic passenger growth.
Ricardo Duenas: International passenger traffic increased 15, 1%.
Ricardo Duenas: This growth was also driven by the Monterrey Airport with passenger traffic increases on routes to San Antonio and Chicago, Los Angeles, Orlando, San Francisco, Auckland, Miami, Austin and Denver.
Ricardo Duenas: This route collectively added over 132000 passengers during the quarter accounting for 94% of the total international passengers in the first quarter.
Ricardo Duenas: During the first quarter, we launched 16 new routes, five of which were international. In terms of airline participation, Viva Aerobus represented 49% of our total traffic during the quarter with an 11% increase in terminal passenger numbers compared to the first quarter of 24, while Volaris, which accounted for 22% of our total traffic, recorded a 20% passenger increase during the quarter. Moving on to NOMAS for quarter financial highlights, aeronautical revenues increased 13.8% with aeronautical revenue per passenger rising 4.3% in the quarter. Commercial revenues had a strong double-digit growth, with commercial revenue per passenger growing 13% to 66%.
Ricardo Duenas: During the first quarter, we launched 16, new routes five of which were international.
Ricardo Duenas: In terms of airline participation be vital goods represented 49% of our total traffic during the quarter with an 11% increase in terminal passenger numbers compared to the first quarter of 'twenty, four while hilarious, which accounted for 22% of our total traffic recorded at 20% passenger lease during the quarter.
Ricardo Duenas: Moving you answered all my third quarter financial highlights aeronautical revenues increased 13, 8% with aeronautical revenue per passenger rising four 3% in the quarter.
Ricardo Duenas: Commercial revenues had a strong double digit growth with commercial revenue per passenger growing 13% to 66 vessels.
Ricardo Duenas: as compared to the first quarter of twenty four, driven by VIP lounges, restaurants and retail. VIP lounges benefit from higher access rates and a larger number of users, as well as the effect of the previously open lounge. The restaurant and retail line items benefited from the consolidation of new business units open across our airports during the past quarter. Occupants rate of commercial space due to 96% at the end of the quarter. On the diversification front, revenues increased 22 percent. OMA Cargo contributed most to this growth, mainly as a result of an increase in revenue related to air cargo operations in Monterey.
Ricardo Duenas: As compared to the first quarter of 'twenty, four driven by VIP lounges restaurants and retail.
Ricardo Duenas: VIP lounges benefit from higher access rates and a larger number of users as well as the effect of the previously opened lounges.
Ricardo Duenas: The restaurant and retail line items benefited from the consolidation of new business units opened across our airports during past quarters.
Ricardo Duenas: Occupancy rate of commercial space stood at 96% at the end of the quarter.
Ricardo Duenas: On the diversification front revenues increased 22% Walmart carload contributed most of this growth mainly as a result of an increase in revenue related to air cargo operations in Monterrey.
Ricardo Duenas: Revenue from industrial services increased 56.4% year-over-year, reaching 42 million pesos. primarily driven by a higher number of square meters leased in our industrial parts. During the quarter, we completed construction of a warehouse measuring about 9,200 square meters, as well as 2,400 square meter expansion of an existing facility. Additionally, we are currently building a 5,000 square meters warehouse, which we expect to complete in the second quarter of this year. OMA's first quarter adjusted EBITDA increased by 16% to 2.4 billion pesos and an adjusted EBITDA margin of 74.9%. On the capital expenditure front, total investments in the quarter, including MVP investment, major maintenance, and strategic investments were 502 million pesos.
Ricardo Duenas: Revenue from industrial services increased 56, 4% year over year, reaching 42 million pesos.
Ricardo Duenas: Primarily driven by a higher number of square meters lease in our industrial Park.
Ricardo Duenas: During the quarter, we completed construction of our warehouse measuring about 9200 square meters as well as 2004 2004 hundred square meter expansion of an existing facility.
Additionally, we are currently building a 5000 square meters warehouse, which we expect to complete in the second quarter of this year.
Ricardo Duenas: Well my first quarter adjusted EBITDA increased by 16% to $2 4 billion pesos and then adjusted EBITDA margin of 74.9%.
Ricardo Duenas: On the capital expenditure front total investments in the quarter, including M. D. P investments major maintenance and strategic investments were 502 million pesos.
Ricardo Duenas: Lastly, I want to mention that last Friday, we held our 2025 annual shareholders' meeting where shareholders vote on several matters, including the declaration and payment of a $4 5 billion special cash dividends.
Ricardo Duenas: Lastly, I want to mention that last Friday we held our 2025 annual shareholders meeting where shareholders voted on several matters including the declaration and payment of a 4.5 billion peso cash dividend.
Ruffo Perez-Priego: I would now like to turn the call over to Ruffo Perez-Priego, who will discuss our financial highlights for the quarter. Thank you, Ricardo, and good morning, everyone. I will briefly walk you through our financial results of the quarter, and then we'll open the call for your questions. Aeronautical revenues increased 13.8% relative to the first quarter of 2024, driven primarily by higher aeronautical yields, as well as the increase in both domestic and international passenger traffic. Non-aerial revenues increased by 20.9%. Commercial revenues increased by 2.8%, and the line items with the highest growth were VIP lounges, restaurants, and retail.
Ruble: I would now like to turn the call over to ruble, but our CEO, who will discuss our financial highlights for the quarter.
Ruble: Thank you Ricardo and good morning, everyone I will briefly walk you through our financial results for the quarter and then we'll open the call for your questions.
Ruble: I don't know, let's go revenues increased 13.8% relative to the first sports books 24, driven primarily by higher I don't know, if it'll yields as well as increasing both domestic and international passenger traffic.
Ruble: Revenues increased by 29%.
Ruble: Commercial revenues increased 22, 8% and denied items with the highest rosewater VIP lounges restaurants and retail.
Ruffo Perez-Priego: VIP lounges rose 80%, mainly due to an increase in rates and higher number of users, as well as the opening and the consolidation of the Cihuatanejo Lounge, which started operations last year. Restaurants increased 32.8% driven by greater customer penetration and the opening or replacement of outlets in previous quarters in airports such as Monterey, Ciudad Juarez, and Orlando. Retail increased 50.9% as a result of the contribution of new spaces opened or replacement of existing spaces in previous quarters, as well as the higher penetration, primarily in airports like Juarez, Monterrey, Torreón, and Culiacán. Diversification activities increased 22% mainly due to high revenues from Omakarga and the industrial park.
Ruble: VIP lounges rose, 80%, mainly due to an increasing rates and higher number of users as well as the opening of the consolidation of the see what the nipple lounge, which has started operations last year.
Ruble: Restaurants increased three 2% driven by greater customer penetration and the opening or replacement of outlets in previous quarters. These airports, such as Monterrey, Ciudad Juarez and lung.
Ruble: Retailed increased 59% as a result of the contribution of new space opens or replacement of existing spaces in previous quarters as well as at higher penetration primarily in airports like wireless.
Ruble: Monterrey Toyland until they're gone.
Ruble: Diversification activities increased three 2%, mainly due to high revenues from OMA cargo and the industrial Park.
Ruble: Total aeronautical revenues grew 15, 6% to $3 1 billion peso seen the quarter.
Ruffo Perez-Priego: Total aeronautical and non-aeronautical revenues grew 15.6% to 3.1 billion pesos in the quarter.
Ruffo Perez-Priego: Construction revenues amounted to 403 million pesos in the first quarter, a decrease of 60% as a result of lower MDP investment execution. The cost of services and G&A expense increased 10.2% year-over-year primarily due to a 42% rise in other cost and expenses. Payroll increased by 9.9% while contracted services grew 8.8%, mainly due to higher costs for security and cleaning services following contract renewals in prior quarters. Concession tax increased 16% to $259 million in line with the increase in revenue. Major maintenance provision was 53.4 million pesos as compared to 71.3 million pesos in the first quarter of 2014.
Ruble: Construction revenues amounted to 403 million patients in the first quarter a decrease of 60% just a result of lower MVP investment execution.
Ruble: The cost of services and G&A expense increased 10, 2% year over year, primarily due to a 42% rise in our cost of expenses.
Ruble: Payroll increased by nine 9% well constructed services grew eight 8%, mainly due to higher costs for security and cleaning services following contract renewals and probably two quarters.
Ruble: Concession tax increased 16% to 259 millions in line with the increase in revenues.
Ruble: Major maintenance provision was 53.4, we didn't vessels as compared to 71 3 million pesos in the first quarter of 'twenty four.
Ruble: I forgot to mention almost first quarter adjusted EBITDA was $2 4 billion versus an adjusted EBITDA margin reached 74, 9%.
Ruffo Perez-Priego: As Ricardo mentioned, FOMA's first quarter adjusted dividend was 2.4 billion pesos and adjusted dividend margin reached 74.9%. Our financing expense reached 312 million pesos, an increase of 13%, mainly due to a lower interest income as a result of lower average cash balance during the quarter as compared to the same period of the last year. Consolidated net income reached 1.3 billion pesos, which showed an increase of 19.7% versus the first quarter of 2014. Turning to our cash position, cash generated from operating activities in the first quarter amounted to 1.9 billion pesos, and cash at the end of the quarter stood at 2.3 billion pesos.
Ruble: Our financing expense reached truthfulness medians bezels and increase of 13%.
Ruble: Due to a lower interest income as a result of lower average cash balance during the quarter as compared to the same periods of the last year.
Ruble: Consolidated net income reached.
Ruble: One 3 billion pesos, which.
Ruble: So it's an increase of 19, 7% versus the first squad drove 24.
Ruble: Turning to our cash position.
Ruble: Generated from operating activities in the first quarter amounted to one point.
Ruble: Those in cash at the end of the quarter stood at $2 3 billion.
Ruble: At the end of the quarter total debt amounted to $11 3 billion vessels, we maintain a strong balance sheet ending the quarter with a net debt to adjusted EBITDA ratio of one time.
Ruffo Perez-Priego: At the end of the quarter, total debt amounted to 11.3 billion pesos. We maintain a strong balance sheet, ending the quarter with a net debt to adjust the dividend ratio of one time.
Speaker Change: This concludes our prepared remarks CECO. Please open the call for questions.
Ruffo Perez-Priego: This concludes our prepared remarks.
Operator: SICO, please open the call for questions. Thank you. Ladies and gentlemen, we will now be conducting a question and answer session. If you would like to ask a question, please press star and one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Ladies and gentlemen, we will wait for a moment while we poll for questions.
Ruble: Thank you.
Ruble: Ladies and gentlemen, we will now be conducting a question and answer session.
Ruble: If you'd like to ask a question. Please press star and one on your telephone keypad.
Ruble: Information tone will indicate your line is in the question queue.
Ruble: You May press Star and two if you would like to remove your question from the queue.
Ruble: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star fees.
Ruble: Ladies and gentlemen, we will wait for a moment, while we poll for questions.
Ruble: The first question comes from.
Alan Macias: The first question comes from Alan Macias with Bank of America, please go ahead. Hi, good morning and thank you for the call. Just a question on your expectations for traffic. Traffic in Monterrey has continued to be very strong. I understand there's more capacity, but how are you looking at demand and how was April so far? Thank you.
Speaker Change: Alan Macias with Bank of America. Please go ahead.
Ruble: Hi, Good morning, and thank you for the call just a a question on your expectations for traffic.
Speaker Change: Traffic in Monterrey has continued to be very strong, but I understand there's more capacity, but oh, how are you looking at demand and how was April.
Ruble: So far thank you.
Ricardo Duenas: Hello, Alan. Thank you for your question. Yes, first quarter traffic was looking good numbers. April, remember April, we're going to have the holidays, the holy week on April. We didn't have that one last year. So, on a month to month, the numbers are going to be good. We're still looking at the same expectation, as we mentioned on the previous call, somewhere around the mid-single digits. We are cautious for the rest of the year as we're monitoring the macro landscape and the international news coming there. Thank you.
Ruble: Hello, and thank you for your question yes.
Ruble: Yes, our first quarter traffic I was looking good numbers April remember April we're going to have the holidays.
Ruble: Holy week on April and we didn't have that one last year. So.
Ruble: Month to month, the numbers are going to be good.
Ruble: We're still looking at the same expectation as we mentioned on the previous call somewhere around the mid single digits. We're cautious for the rest of the year as we're monitoring the macro landscape and they international.
Ruble: Yeah.
Ruble: News coming there.
Ruble: Thank you.
Ruble: Thank you.
Speaker Change: The next question comes from the line of Pablo <unk> with Barclays. Please go ahead.
Pablo Monsivais: The next question comes from the line of Pablo Monsivais with Barclays. Please go ahead. Hi. Thanks for taking my question. This is just a... More broad question. But in case that your MDP has low capex requirements and you don't have major investment opportunities abroad.
Ruble: Hi, Thanks for taking my question. This is just.
Speaker Change: More.
Speaker Change: Question, but in case that MVP has low capex requirements and you don't have a major investment opportunities abroad.
Pablo Monsivais: What do you think the right strategy for dividends will be for OMA going forward? Thank you.
Speaker Change: What do you think the right strategy for dividends will be for them.
Speaker Change: Going forward. Thank you.
Okay.
Ricardo Duenas: Hi, Pablo. So over the past few years, we have tried to distribute as much cash as possible to shareholders in the form of dividends. That strategy, I don't think it's going to change in the foreseeable future. So as we are able to generate higher free cash flow, that should be translated into higher dividend distributions. Thank you.
Pablo: Hi, Pablo so so over the past few years, we have.
Pablo: Tried to distribute this as much cash as possible to shareholders in the form of dividends.
Pablo: That strategy I don't think it's going to change in the foreseeable future. So so as we are able to generate higher free cash flow that should be translated into a higher dividend distributions.
Pablo: Thank you.
Pablo: Thank you.
Jens Spiess: The next question comes from Jens Spiess with Morgan Stanley, please go ahead. Yes, hello. Congrats on the results. I have two questions. The first one is on capital allocation. CCER is, as you probably know, selling their assets, some of the assets in Brazil. Would you be interested in those assets or part of those assets or all of them? It would be much appreciated if you could give any perspective on that.
Speaker Change: The next question comes from Jens Spiess with Morgan Stanley. Please go ahead.
Jens Spiess: Yes, Hello, Congrats on the results I have two questions.
Speaker Change: The first one is on capital.
Speaker Change: Capital allocation CCR S. A S S. He probably know telling their assets some of the assets and in Brazil.
Speaker Change: Would you be interested in those assets or part of those assets or all of them.
Speaker Change: Hum.
Speaker Change: Much appreciate it if you could give any perspective on that and second my second question is on on like the traffic guidance.
Ricardo Duenas: And my second question is on the traffic guidance. And we're seeing that, like, the low-cost carriers have retrenched some of their capacity, Volaris, Viva, but still, things are pointing to quite good... in the Norte. Wouldn't that, like, set the stage better for you guys compared to the other airport operators? Because it would lower the base of, like, your traffic that you will be settling or negotiating in your next MDO.
Speaker Change: And we're seeing that.
Speaker Change: The low cost carriers have retrenched, some of the capacity for that or used to veeva, but still things are pointing to quite good.
Speaker Change: Our capacity increases for you guys for the rest of the year, maybe double digits. So so your guidance does surprise me a bit maybe it's could you elaborate if how conservative you're being <unk>.
Speaker Change: And even if if things kind of collapse in the second half of the year due to the macro environment.
Speaker Change: Wouldn't that set the stage better for you guys compared to the other airport operators because it would lower the base off like your traffic that you will be.
Speaker Change: Saddling or negotiating in your next MVP. Thank you.
Speaker Change: I'll take the first the first one yes, we took a look at the CCR assets are but are we at the moment, we decided not to do not to participate them on that process and for the second part beautiful.
Ricardo Duenas: I'll take the first the first one. Yes, we took a look at the CCR assets, but we at the moment, we decided not to not to participate on that process. And for the second part, we will... Yes, the seat capacity situation is somewhat volatile. There were some announcements made last week, and some capacity cuts are being reflected starting May and June by some of the low-cost carriers. Remember also that in the fourth quarter of 2024, several routes were opened, so there will be a much higher base of comparison in the fourth quarter as well. So yeah, it might be a bit conservative, but there are some uncertainties, and we don't want to be over-optimistic on capacity growth at this time.
Speaker Change: Yes, the seating capacity is it Jason is a somewhat more volatile there were some announcements made the last a week in some capacity.
Speaker Change: These guts are being reflected to starting may.
Speaker Change: June but by some of the low cost carriers.
Speaker Change: Remember also that in the fourth quarter of 'twenty for several routes were opened so so there will be a much higher base of comparison in the fourth quarter as well. So so so yeah, it might be a bit conservative but there are.
Speaker Change: Some.
Speaker Change: Uncertainties.
Speaker Change: We.
Speaker Change: They'll want to be over optimistic on capacity growth at this time.
Ricardo Duenas: And regarding the second half of your question on if this is going to benefit us in MDP negotiation that will occur towards the second half of the year, remember that the current formula looks at the traffic for the first five years, and actually through 2040 in our case. So any minor changes in capacity in a certain year wouldn't move that much the needle when you are looking at the next 15-year traffic forecast. So I don't think it's going to be necessarily a huge positive to have a lower traffic expectation this year.
Speaker Change: Regarding your second half of your or your question on this is going to benefit us.
Speaker Change: MVP negotiation that will cure towards the second half of the year.
Speaker Change: Remember that the the joint Formula looks at the tariffs sorry of the traffic.
Speaker Change: For the first five years and actually through 2040 in our case, so so any mine or changes in capacity in a certain year wouldnt move that much the needle when youre looking out the next 15 your traffic forecast.
Speaker Change: So I don't think it's gonna be necessarily.
Speaker Change: It is positive to have a lower traffic.
Speaker Change: So expectation this year.
Speaker Change: Okay perfect. So it probably helps in the negotiations, but but only marginally.
Jens Spiess: Okay, perfect. So it probably helped in the negotiations, but only marginally. Perfect.
Speaker Change: Perfect I appreciate the clarity thank you.
Jens Spiess: I appreciate the clarity. Thank you.
Speaker Change: Thank you.
Speaker Change: Thank you.
Alberto Valério: The next question comes from Alberto Valerio with UBS. Please go ahead. Hi. Thank you, gentlemen, for taking my question.
Speaker Change: The next question comes from Alberto Valerio with UBS. Please go ahead.
Alberto Valério: Hi, Thank you gentlemen for taking my question. My question is on another on optical revenue split backs are was strong this quarter well a gemstone fourth quarter, unless you unless you're a and also year over year from the first quarter I'm wondering if you can see another jump.
Alberto Valério: My question is on non-aeronautical revenues per tax. It was strong this quarter, a jump from fourth quarter last year, and also year-over-year from first quarter. I'm wondering if you can see another jump for the following quarters, or it will be something more stable in inflation index or looking forward for that line? Thank you. Yeah, I think that the results in extra error reflect the strategy that we have been implementing over the last couple of years, especially since VNC acquisition. For the next quarters, in terms of commercial revenue per pax, we expect a similar outcome as to the first quarter.
Speaker Change: For the following quarters or would be something more stable.
Alberto Valério: You might say show.
Speaker Change: Inflation index for looking forward.
Alberto Valério: Oh, that's right. Thank you.
Alberto Valério: Yeah, I think that's the the resourcing its trailer reflects the strategy that we have been implementing over the last couple of years, especially since it seems to have been C. A position.
Alberto Valério: For the next bloggers in terms of a commercial revenue per Pax, we expect a similar outcome as to the first larger.
Ricardo Duenas: And most likely in 2026, we'll see a higher yield as the new spaces in Monterey start to be opened. Perfect. Those spaces should be open before World Cup, isn't it? Yes, correct. Thank you very much, gentlemen. Thank you.
Alberto Valério: Most likely in 2026, we will see a higher yield.
Alberto Valério: As the news basis in Monterrey is starts to be opened.
Alberto Valério: The space will be open before we'd copies of it.
Alberto Valério: Yes, correct.
Speaker Change: Okay. Thank you very much gentlemen.
Thank you.
Pablo Ricalde: The next question comes from Pablo Ricalde with ITAU. Please go ahead. Hi, good morning. I have two questions. The first one is on the routes. I remember when your new partner came in, Vinci, with all these plans of adding new routes, like long-haul routes. Is that still on the table, or given all these macro concerns, that's on hold for now? May we request you to use your handphone, please? I don't know if you can hear me now. Yeah, we can hear you. Yes, sir. Please go ahead. So, my first question is on the new routes.
Speaker Change: The next question comes from Pablo recalled it with <unk>. Please go ahead.
Pablo: Hi, good morning.
Speaker Change: Right.
Speaker Change: I have two questions.
Yes.
Speaker Change: I remember.
Speaker Change: Partner B G.
Speaker Change: Oh, I'm, sorry, I didn't hear words like global.
Speaker Change: That's still on the table or people mobile backhaul.
Speaker Change: That's on hold for now.
Speaker Change: In Mexico.
Speaker Change: Thank you Charlie.
Speaker Change: Pablo.
Speaker Change: Maybe these questions at least.
Speaker Change: But I don't want get contribute though.
Speaker Change: Yes, we can hear you.
Speaker Change: Yeah. So please go ahead so.
Speaker Change: Hi, My first question is from that new routes.
Ricardo Duenas: I remember when BG came in, there was like all these plans about new routes, like long-haul routes. Is that still on the table or that's a long-haul route? In terms of new routes opened, It's, we have a constant dialogue with airlines, we are focusing both in building our international connectivity and the increase that you saw in the last few quarters, particularly from Monterey Airport, points towards that strategy of building good connectivity out of Monterey. But we also have two strong players in the local market. And therefore, we also focus on building greater regional connectivity. OK, thank you.
Speaker Change: Alright.
Speaker Change: Okay.
Speaker Change: Boardwalk like all the squad and somebody can give a little bit like local vote. If that's still on the table or that's on hold for now.
Speaker Change: In terms of new routes opened.
Speaker Change: It's Oh, we have a constant dialogue with airlines, we are focusing both in building our international connectivity and the increase that you saw in the last few quarters, especially this particular need for Monterrey Airport.
Speaker Change: <unk> pointed towards that strive to heal or building a good connectivity L O L Dopa Monterrey.
Speaker Change: But we also have a very strong players in the local markets and are therefore.
Speaker Change: Therefore, we.
Speaker Change: Also.
Speaker Change: <unk> focused on building a greater regional connectivity.
Speaker Change: Okay.
Speaker Change: Thank you.
Ricardo Duenas: Thank you.
Speaker Change: The next question comes from the line of Jason <unk> with Citibank. Please go ahead.
Jay Singh: The next question comes from the line of Jay Singh with Citibank. Please go ahead. My question is, Jay, dialing on for Stephen Trent, first thing I want to ask is, do you see any regulators pushing to adjust the TUA at Mexico City import? And to the extent that you could talk about it, maybe could this have any tariff implications for OMA? Sorry, the question again at the regulator pushing to again to adjust the airport use fees at Mexico City Airport. Well, the tour for Mexico City Airport is $13, and it increases by U.S. CPI inflation.
Jason: Thanks for taking my questions Jay dialing on for Stephen Trent First thing I wanted to ask is do you see any regulators pushing to adjust the T. UA at Mexico City import and to the extent that you could talk about it maybe could this have any tariff implications for OMA.
Jason: Sorry, the question again, and the regulator pushing too again too.
Jason: To adjust the airport use fees that Mexico City Airport.
Jason: Well the the tour for Mexico City airports.
Jason: $13.
Jason: Increases by a U S CPI inflation.
Ricardo Duenas: We have not heard that that process or mechanics of adjustment is going to change. So I believe that's adjusted at the beginning of every year, so probably the adjustment already took place in January, and we wouldn't expect increase to us in the Mexico City Airport for the rest of the year. Okay, got it.
Jason: We have not heard that that Oh.
Jason: The process or the mechanics of it doesn't there's not a change so so I believe that that's a.
Jason: Adjusted at the beginning of every year or so so probably the adjustment already took place in January and we wouldn't expect.
Jason: What's in the Mexico City Airport.
Jason: For the rest of the year.
Speaker Change: Okay got it and my second question is how much do you interact with Vinci on strategic matters, such as the M D P or any potential foreign investments.
Ricardo Duenas: And my second question is, how much do you interact with Vinci on strategic matters, you know, such as the MDP, or any potential foreign investment? We have a very close communication with them. They're involved in the MVP, of course, in non-ERA. They have been very active in CAPEX execution as well. So it's a very close communication with them. Got it. Thanks so much, gentlemen. Thank you.
Speaker Change: We have a very close communication with them, they're involved in navi and the MVP of chorus and non narrow they have been very active in capex execution as well. So it's a very close communication with them.
Speaker Change: Got it thanks, so much gentlemen.
Speaker Change: Okay.
Speaker Change: Thank you.
Ricardo Duenas: As there are no further questions, I would now like to hand the conference over to Ricardo Duenas, CEO, for closing comments. We would like to thank everyone for participating in today's call. We appreciate your insightful questions, engagement, and continued support.
Speaker Change: As there are no further questions I would now like to hand, the conference over to Ricardo Duenas CEO for closing comments.
Speaker Change: We would like to thank everyone for participating in today's call. We appreciate your insightful questions engagement and continued support Grupo and Manuel and I are always available should you have any further questions or require additional information. Thank you once again and have a great day.
Operator: Ruffo, Emmanuel, and I are always available should you have any further questions or require additional information. Thank you once again, and have a great day. Thank you.
Speaker Change: Thank you.
Speaker Change: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.
Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. © BF-WATCH TV 2021 © BF-WATCH TV 2021 © BF-WATCH TV 2021
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