Q2 2025 Grupo Aeroportuario del Sureste SAB de CV Earnings Call
Good day, ladies and gentlemen, and welcome to assures. Second quarter 2025 results conference call.
Christine: My name is Christine and I'll be your operator.
Christine: At this time, all participants are in a listen-only mode.
Christine: We will conduct a question and answer session toward the end of today's conference.
Christine: If you would like to ask a question, please press star 1.
Christine: If you want to withdraw your question at any time, please press star 2.
Christine: If you are using a speaker-phone, please lift the handset before making a selection.
Christine: As a reminder, today's call is being recorded.
Christine: Now I'd like to turn this call over to Mr. Adolfo. Castro chief executive officer. Please go ahead, sir.
Christine: Thank you, Christine and good morning everyone.
Christine: Active results to different material.
Christine: Including factors. That may be beyond our company's control.
Christine: Additional details about our second quarter. 2025 results can be found in our press release which was issued yesterday after market close.
Christine: And is available on our website. Investor relations section.
Christine: Following my presentation, I will be. I will be available for Q&A.
Christine: As usual all compartments in this course, on this call will be year on year figures and are expressed in Mexican pesos.
Christine: unless specified, otherwise,
Christine: You are the second quarter. We serve 17.7 million passengers across all airports. We operate with traffic remaining largely flat year and year.
Christine: once again, better performance in Columbia and Puerto Rico offset sadness in Mexico,
Christine: Puerto Rico was the best performing Market. This quarter posting 3%. Growth in passenger traffic,
Christine: Supported by domestic traffic and sustained strength in the international traffic.
Christine: In Colombia traffic was up 1% with international travel up 12% and domestic Contracting a low single digit.
Christine: Lastly, Mexico, reported that decline of nearly 2% in total traffic.
Christine: with an increase of 1.2% in domestic offset by a decrease, by 4.5 in international trap,
Christine: International travel in Mexico, continued to experience, year-on-year declines from all regions during the quarter.
Christine: passenger volumes from Europe were down 4.7%
Christine: From the US 5.3%.
Christine: South America, 2.7% and Canada 1.6%.
Christine: I mean 4 portion of this decline approximately 38% is attributable to the grandpa of the new airport in Tulu which continues to draw some passenger flow previously concentrated in Cancun.
Christine: Beyond this shift, we believe the broader sharpness in the international traffic, reflects Robert market dynamics,
Including a more cautious demand environmental across several source of markets.
Christine: While while the underlying drivers vary.
Christine: Some of these pressures are so also evident in other International markets as well.
Christine: Looking ahead. We expect traffic in Mexico to gradually stabilized over the course of next year.
As the effects of the engine related aircraft groundings appear to have bottomed out and to loom airport reaches more normalized level of operations.
Christine: With respect to the potential US Department of Transportation restrictions on Mexican carriers.
Christine: as soon as does not expect a material impact on our operations from these measures,
Christine: as our exposure to an effective Airlines is minimal.
Christine: To put this in context at a Mexico, accounted for just 0.3% of total passengers. Travelling between our airports and the US.
Christine: while Viva arabus and Polaris together represented approximately 1.3%,
As I noted in Prior prior goals, which is a long-term growth potential for both Cancun and to do each driven by the specific demand, dynamics of their perspective, catchment area.
While the program micro environment remains uncertainty.
Christine: History has shown that travel related disruptions particularly those type of us and Mexico demand tend to be temporary in nature. Now turning to a review of our financial performance
Christine: We call that all reference to revenue and cost figures split Construction.
Total revenues increased 5% here and here.
Christine: To 7.4 billion pesos reflecting, Topline growth across operations, particularly in Puerto Rico and Columbia.
Christine: Mexico, which accounted for 72% of total revenues posted and no single digit increase of 0.7%.
With relatively growth.
Christine: In, I don't know. Optical analysis.
Christine: Puerto Rico, contributed 17.7% of the total revenues with Topline growth in the High Teens.
Christine: This compared to growth in high 20s in the prior quarter.
By reporting exchange rate benefits. Resulting from a weaker test.
Christine: Columbia, which accounted for 12% of the total revenues posted at 15.4% Top Line growth this accelerating from growth in the low 30s achievement prior prior quarters.
Christine: This was driven by both aeronautical and honorable rabbits which benefited from the continued recovery in domestic traffic and international traffic.
and the opening of 35 new commercial spaces over the past 12 months,
Christine: Partially offset by strong. Mexican peso.
Christine: Part of our ongoing strategy to increase our commercial offerings. We open 47 new commercial spaces over the last 12 months. As I said, 35 in Colombia 7 in Mexico, 5 in Portugal.
Christine: This expansion, supported High single digit growth in total commercial revenues driven by a strong performance in Columbia and Puerto Rico and a modest increasing Mexico.
Christine: For a big passenger basis. Commissioner of Revenue reached nearly 140 pesos in the quarter.
Christine: Representing meet single digit year on year growth with contributions from all 3 regions.
Christine: Columbia lead with a 22% increase.
Christine: Followed by 20% gain, in Puerto Rico, those achieved despite less favorable exchange rates.
Christine: In Mexico, commercial Revenue per passenger froze, nearly 3%, to 159 pesos.
Christine: Even as passenger traffic. So the
Christine: moving on to cost total expenses, increased nearly 10% year in year.
Christine: This accelerating from the 18% growth. We saw in Prior quarter.
Christine: In Mexico, grows Rose 7% P primarily reflecting the 12% increase in minimum wage effective at the start of the year.
In both Puerto Rican, Columbia cost increase in load.
Christine: Teams.
Christine: Benefiting from the Precision of the Mexican peso against the US dollar and the Colombian p.
Christine: As a result, Consolidated UDA processes, likely to present over year over year, reaching 5 million pesos in the quarter.
Christine: Notably Puerto Rican, Columbia posted a double digit TV across from 20% and 15% respectively.
Christine: While Mexico saw a 1.6% decrease in MDA in line, with the passenger traffic, the negative impact of the strong pension. And the higher cost by just explained,
Christine: The just the, DDA margin, which exclude construction Revenue, stood at nearly 68% compared with the 69 in the same quarter last year.
It's like margin contraction was, mainly achievable to 170 basis points, decline in Mexico, while Columbia hosted the move, 20 basis points, decrease
Christine: Puerto Rico, on the other hand, deliver a 120% margin Improvement in across the March.
Christine: Our bottom line, this quarter was negative impact by a foreign exchange loss up to 100 million pesos driven by the appreciation of the Mexican peso in the US.
Christine: This Compares with to a foreign exchange gain of 9.942 million in the same quarter last year.
Christine: Which reflected the opposite effect to even buy the the Precision of the peso during the that period.
Christine: Moving on to our balance sheet, we maintain a strong cash position closing. The quarter with nearly 20 billion pesos in cash and cash equivalents up, 30% year in year.
Christine: Net debt to FDA ratio increases slightly to 0.1 times, reflecting the drop down of a loan facility in Mexico. 2019.5 billion pesos in the quarter.
Turning to Capital, allocation reflecting our solid financial position in may we pay a 50 pesos per share cash dividend.
For the from account account account of accumulated, return earnings.
Christine: In addition, we will be paying 2 extra extraordinary dividends of 15 pesos per share each in September and another 1 in November.
Christine: Capital expenditures in the quarter, total 1.4 billion pesos with most of these investment directed towards modernization and expansion projects, our net at our Mexican airports.
Christine: and the terminal expansion, it will have
Christine: In Puerto Rico, we currently attending in the construction of taxiway hotels.
Christine: All construction activities, continue to take place outside, operational areas to ensure, no disruption to operation of to airport operations.
Christine: Lastly on the covenant's prompt during the quarter, this is about 3 to was appointed to our board of directors as an independent member.
Following the resignation is that we have to share.
with these 57% of our board is comprised of independent directors and female representation has increased to 36%
Christine: We thank Mr or his Parable contribution, and years of service on the board.
Christine: This is PTO. Brings a wealth experience, in both public and private sector beginning and financial services.
Christine: Close our second quarter performance, underscores the recipients of our Diversified portfolio and our sustained cost on the efficiency improvements.
Christine: We continue investing in infrastructure, elevating the passenger experience and delivering sustainable long-term growth.
Christine: We also remain attentive to evolving Global macroeconomic conditions. I believe our healthy financial position will help to mitigate potential of us.
This concludes my prepared remarks. Christine, please open the floor for questions.
Thank you. We will now begin the question and answer session to ask a question, dial in by phone and press star. Then 1 on your telephone keypad,
Speaker Change: Please share to mute your mute function is turned off and if you are using a speaker-phone, please pick up your handset before pressing the keys.
Christine: To withdraw. Your question, press star, then 2
At this time, we will pause momentarily to assemble our roster.
Thank you. Our first question comes from the line of Jen's fees with Morgan Stanley. Please receive with your question.
Jen: Yes. Um, hello Adolfo. Thank you for taking my questions. I have basically 2 1 is regarding non-air revenues.
Jen: so, just just wondering what drove like, the sequential decline in, in on our revenues was, it was, it makes,
Jen: Um, of the type of passengers or or is anything else explaining it? And secondly, um, I mean, you already mentioned the, the, the OT situation with the US, um, not impacting you, but I was thinking that, um, maybe 1 outcome might be that the capacity restrictions in Mexico City might be lifted, which would, uh, end up benefiting, um, uh, potentially the, the passenger traffic in the system as a whole. What? What if in case that materializes?
Jen: How much of a positive impact would you expect? Thank you.
Jen: Hey, thank you, Jensen and good morning. Well, in the case of none, I have an optical revenues. Of course, the exchange rate plays, an important role during the quarter
No, I would say, of course uh, a slight difference in the, in the passenger, mix International person's domestic. And also in the case of domestic the situation that we have in Terminal 2,
Jen: in terms of your second question, I don't know if you saw 30 days ago that uh, The Mexican government decided to increase, uh, or
To is too easy. The Restriction. They have in Mexico City Airport from 43 to 44.
Jen: This amount an announcements explained that they have made an analysis of the airspace in Mexico City and also an analysis on telling a buildings. And that's why they decided to increase that from 4:30 to
Jen: from 42 to 43.
Jen: So,
Jen: 1 uh operation more in Mexico City here, which reflects more or less 1 million passenger traffic in that airport.
Jen: I was expecting, uh.
Jen: This restriction to be lifted towards the end of the year.
Jen: I have my serious steps that this will happen after what we saw in this announcement.
Jen: Mexican government will have to review the situation.
Jen: And see, what is?
Jen: Uh uh what they going to say? After what the dod has expressed.
Jen: as I said, uh, the situation between the traffic
Jen: To and from the us from our airports.
Jen: It's basically managed by us.
Jen: As I said, uh, I don't exist here for 3 in the case of people that is together. 1 Point 3%. So it's 1.8%.
1 1.6% of the total traffic between these 2 countries. So I do not expect any major implication of this in, in our case, of course, Eve,
Jen: As a result of this uh, the government decided to uh increase the operations in Mexico City, that would be beneficial to us.
Speaker Change: Anyway, okay perfect. Thank you very clear. Thank you all for
Jen: you're welcome.
Speaker Change: Our next question comes from line of Steven Trent with City. Please receive with your question.
Good morning Adolfo. And thanks very much for, uh, taking my question. The, the first um, just quickly on Tulum. Um, is it still the case that uh it's Charter. Traffic is still, uh, sort of the primary piece of the pie that's uh, leaving Cancun and and and shifting uh to Tulum or um, you know, are you seeing a little bit more of a tilting commercial? Thank you.
Speaker Change: Hello.
Yes, I don't think. Can you hear me?
Speaker Change: yeah, but could you repeat your question because you were you were not
Sure, sure, no problem. Um,
Speaker Change: Yeah, I was just curious in terms of, uh, the what you're seeing in Tulum airport, um, and the traffic impact of Cancun. Uh, am I thinking about this correctly? It's still primarily, uh, Charter traffic. Uh, that's the piece that's going there, or are you seeing a little more of a shift of of commercial traffic there, too? Thank you.
Speaker Change: Well, it's uh of course you can find some uh, chart flights there but basically, I would say most of these commercial flights.
Speaker Change: Uh, basically coming from the US.
Speaker Change: No.
Speaker Change: peace is coming from Mexico but uh,
Speaker Change: The most important region in that sense is us.
Speaker Change: Got it, I appreciate that. Um, and just a very quick question, on, on the balance sheet, I saw there was, um, uh, 1.5 billion peso investment in financial instruments in 1 cue that uh, is no longer there in 2 q and just
Speaker Change: Uh, just was curious. Uh what was sort of the uh, the rationale behind the shift? Uh, thank you.
Speaker Change: Uh, the huge amount of fun that we have in the bank in the basement.
Speaker Change: So we decided to do that uh a piece of that in a fund, instead of uh, the usual instruments, we have been in just to try to get some more return for that amount of money.
unknown: Okay, let me leave it there. Very helpful. Thanks Adele.
Speaker Change: Our next question, comes from line of Kiara Mendes with JP Morgan. Please receive with your question.
Kiara Mendes: Good morning. Thanks for taking the time. Uh the first question is on the, the follow up on the traffic Outlook you mentioned in the beginning that you do expect some kind of normalization on, Mexican traffic into next year. Uh, just trying to understand what does it mean for the second half of this year? I understand that the base of comparison is relatively easier. So is it fair to assume that we could expect some kind of, uh, traffic growth. Let's say meet single digits uh, on on Mexican. Traffic into the second half of 25 when compared to second half of 24.
Kiara Mendes: Yes. Well, the the domestic traffic as you have seen in the numbers during the quarter.
Kiara Mendes: Is no longer, uh, decreasing. It was a small increase.
Kiara Mendes: and basically, this is
Kiara Mendes: because the engine, uh, problem of platinum, Whitney,
Kiara Mendes: is basically, uh,
Kiara Mendes: Burned out. So
um, Polaris has expressed. Yes today that they have that 6 aircrafts in the
In the shop.
Kiara Mendes: in the, in the
Kiara Mendes: and um,
Kiara Mendes: How can I say it in the, in the crowded? Because grounded, yeah, no problem.
Kiara Mendes: Exactly. And that was exactly the same. Uh, figure we saw during the first quarter. So, this is uh, the lowest part of the curve. I would say,
Kiara Mendes: Uh, as we can see with the numbers. Uh,
Kiara Mendes: from now on, we should see an increase in domestic because of this
Kiara Mendes: no, that is in my opinion the most important situation of course
Kiara Mendes: Uh, the situation of Mexico City helps from these know.
Kiara Mendes: But as as we said, there was a small increase in the Restriction from 42 to 43.
Kiara Mendes: So from now on everything should be better than how it was before. Well in the case of the FX in the commercial revenues. Yeah this has to do with the
Kiara Mendes: the exchange rate, uh,
Activities there on 1 side, on the other side, if it has to do with your free.
Kiara Mendes: And of course, what? I have mentioned before the situation, uh, we have in in the case of Terminal 2 know
Kiara Mendes: So that's why you are seeing a very soft. I would say, no, no, no detail. Revenues in the second quarter compared with the first quarter this year,
Kiara Mendes: maybe put in a different way. Um, do you have high high high level numbers on? What is the the USD exposure you have on your commercial activity?
Kiara Mendes: It's it's not that easy because uh, of course the only 1 that is uh, related to US dollars is 233. No. Uh, the only thing is the, the way the people expense, you know, uh, in terms of put a beverage prices are in pesos, but
Kiara Mendes: Doesn't.
Kiara Mendes: mean that the people will spend more in Mexican peso than proceeds
Kiara Mendes: Which is not the case in the stores in the stores. Again, the the prices are in pesos know, but the people tends to spend more if the Mexican peso depression,
Speaker Change: Got it. Thank you Ado, for have a nice day.
You welcome.
Speaker Change: Our next question comes from Ryan of Pablo monivae with sparkles. Please receive with your question.
Ryan: Hi, uh, good morning, Adolf of, uh, a follow-up on on the commercial revenues question, what should we expect for the next, uh, 2 quarters? Uh, with the situation, you're naming on the terminal, uh, to uh, should we expect again? Uh, a couple of quarters of a still a, a soft, uh, commercial, um, Revenue activity. And, um, my second question, is maybe to put different, uh, the question of K.
What percentage of the rents that you have in your tenants at? Kangun are in US Dollars. Thank you.
Ryan: In the case of Seminole 2, we should expect that for the next 4 quarters.
Ryan: It will be up to the third quarter next year, when we will be able to open.
Ryan: The.
Ryan: New reconstruction, and expand the terminal 1.
Ryan: Which uh, should alleviate in a significant way the situation in Terminal 2.
My, my prices are the way that we charge.
In the permission revenues, uh, is basically a, a minimum warranty payment per passenger. 100%, I showed the sales.
Ryan: Normally what they pay to us is the percentage on the their sales. And as I said before, if their sales are in pesos in between brackets, this is special. But it's not the currency that the the
Ryan: passenger weaponess of, of these know in the past I used to say what Russian is to use guys in the duty free,
Ryan: Well, and this has to do with with the passenger. Not with what is that?
Ryan: Okay, thank you very much.
You're welcome.
Speaker Change: Our next question comes from the line of Pablo recalled. I was East itow Asset Management, please receive with your question.
Speaker Change: Uh, the first 1 is from the Mexico, profitability or editor margin. I don't know if you can explain a little bit further with what happened on the cost line. And you mentioned we saw are including the labor cost and utility, but just wondering if maybe you register a provision or something and and that's why extensively that much and and that much and how can we think of availability in Mexico, going forward? And, and my second question is on your balance sheet, and your cash on balance, is that going to be the mistaken, 60% of your taxes in USD, I just want to double check that number.
Speaker Change: Yes, Pablo. Well in the case of of of the margin know, and and normally I don't want to or I don't like to talk about margins because revenue is an expenses are basically independent.
Speaker Change: The expensive side through, uh, 7%. And, and basically, because of the minimum wage increase October centers from the beginning of the year,
Speaker Change: no. Uh, it was, uh, less than what we had in the first quarter. So we
Speaker Change: Had to to take some actions, their due to the situation of the weak traffic. We had to in the
Speaker Change: Combination of both is what you are saying. Uh, a decrease in the market know that is.
Speaker Change: Something that you need to see on an independent basis. No.
Speaker Change: Okay.
Speaker Change: and,
in the case of of the
Speaker Change: What you're saying in the in the balance sheet? What was your question?
And like that, how could you percentage of your cache which is in USD uh try to understand the potential of the FX loss of your piano? If I don't mistaken around 60% of your FX, it's you know all your taxes. You
Speaker Change: yeah, in the case of Mexico, at the end of the quarter,
We had 700 million dollars in dollars.
Okay, thanks.
Speaker Change: Our next question comes from the line of Fernando rakia with BTT pactual, please receive with your question.
Okay, I know for good morning. Uh thank you for taking my question, truth, hear from our side as well. So the First on, uh, the dividend Paul is going forward. We saw that uh, despite the payment of this first Branch, you're leveraging, uh, in a pretty comfortable level. So just wondering uh, what we can think about next year onwards, if we could expect such a, a good dividend payment, like we saw in 2025.
Speaker Change: And and second still, uh, follow up on the Tron. Uh, maybe, if you could elaborate a little bit further, when do you expect this airport to reach full capacity and when do you expect it to stop hurting? Uh, Cancun figures.
Speaker Change: Thank you.
Speaker Change: Thank you.
Speaker Change: For next year, let's let's try to.
Speaker Change: to conclude this year first know, uh, we have another payment in September another 1 in in November, then
Speaker Change: We will have to evaluate. How was, uh,
Speaker Change: The situation for the year and and the results of operations. And then next year, we will propose something to the board and then please check the service.
Speaker Change: in the case of Tulum airport, if we see lot of months reach around 1.5 million passengers,
If we see the last 12 months, end of December last year, it was 1.2. So, there was an increase of 300,000 passengers during the first half of the year.
Speaker Change: Acting 2.9 Million for this airport know, but recent news basically, uh, showing cancellation of some routes over time in Troy Minneapolis and others.
Speaker Change: basically, uh,
Speaker Change: Are saying to me that this airport will not reach what I was expecting at the beginning of the year.
Speaker Change: Uh, this airport should have roughly speaking, uh, 2.9 Million in a corner with, uh, location. Uh, this airport has
Speaker Change: so,
Speaker Change: Going back to your question. 1 will not be hurting from these is once this airport reaches
Speaker Change: the 2.9 Million. No.
Speaker Change: In the meantime, we will have to continue talking about the ramp up of t.
Okay, thank you very much.
Speaker Change: You're welcome.
Our next question comes from the line of address aguire with GBM. Please receive with your question.
Speaker Change: Good morning. Thanks for the call. Um, wondering if you could share the rationale behind the new depth, um, and given your current High cash balance. How are you thinking about deployment, going forward and possibilities for further? Leverage for capex. Thank you.
Speaker Change: Has to do with taxes and expenses in in Cancun Airport, know.
Speaker Change: We thought that it was uh uh something important for us to maintain some uh, cash on hand for the future.
Speaker Change: Uh, given the fact that the dividends proposed dividend proposal and authorizing for this year is a total of 24 billion know. So it was important to to, to be sure that we were able to fund that situation.
Thank you.
Speaker Change: You're welcome.
Speaker Change: Our next question comes from the line of Abraham Fuentes with bankos and tender. Please receive with your question.
Abraham Fuentes: Hello, good morning. Um, we have seen a drove in a number of tourists that are visiting. The US. Do you think that Mexico could capture any of those passengers and if that will be the case, when do you think we can begin to see it affect in terms of traffic?
Abraham Fuentes: Well, this is true. There are uh, diminishing decline from all the regions to the US. In terms of Tourism, we have approached some Canadian Airlines and and talk about this situation. And basically, what they are saying is that they will evaluate this situation towards the M of the year.
Abraham Fuentes: If this continued of course they will jump into into our region. Know, for the moment what they have expressed is that they do not want to do their slots in their most important airports.
Abraham Fuentes: And the US they have. So, uh,
Abraham Fuentes: Basically, I do believe that next year. We will see some positive effect of this basically from, uh, Canada. And from me from Europe,
Speaker Change: Okay, thank you.
Enrique Soho: Our next question comes from the line of Enrique Soho with fundamental Capital. Please receive with your question.
Enrique Soho: Hi. Thank you for taking my question, I wanted to quickly dive into International traffic Dynamics in Mexico, more specifically. During this first half of the year we have seen traffic internationally fall 7 and a half in the first queue and 4% in the second queue. None of this has been happening. Basically, with Tulum, not ramping up, how do you expect International traffic to kind of continue in the second half of this year and should if and should we expect to do to basically ramp up into 26 and hindering growth next year? Thank you.
Well, as I said during the initial remarks, the decline 308% of the decline of this quarter.
Enrique Soho: In the international traffic is uh uh, related to to new airport.
Enrique Soho: The difference is related to a weaker Market from all the, all the regions, uh, all our negative Canada, US, Europe, and South America.
Enrique Soho: What to expect for the Future? Let's see. What economics, the
Enrique Soho: Uh on what side microeconomics on the other side. All of these uh situation where the US
Enrique Soho: Migration policies.
Enrique Soho: and, and the case of South America,
Enrique Soho: with uh, the situation of the visa from the Brazilians, the visa for the peruvians
Enrique Soho: the mistreatment to, to Colombians know, all of these uh,
Enrique Soho: Has been analyzed by the Mexican Government today.
Enrique Soho: And also considering that the next year, we will have uh some games of the World Cup in Mexico. They would have to do something about it.
Enrique Soho: Great. And just to follow up, if I met in terms of domestic passengers, which now continue to see it falling, but do you expect a strong rebound? Do you see that when talking to bios? Or do you think it will be a more casual change? Thanks.
Enrique Soho: Well, when I have to expect, this is a better uh, Behavior. So no more that we do this from the public and it's like increasing the rest of the year.
Enrique Soho: Great. Thank you.
Speaker Change: Our next question comes from line of Alberto vez with UBS, please receive with your question.
Alberto vez: No, thank you for taking my questions. Uh, 1 uh, reminding for fault for side here. It's about capex, how should you expect the case of top deployment for the the next quarter? Uh, this quarter come a little bit below. Uh, what consensus in US was expecting. So how should we see the deployment of capex in the following quarters? Thank you very much.
Speaker Change: You're welcome. Well, I have to say that in addition.
Speaker Change: To the topics. We are, uh, Apple, our internal budget. Yeah, it's slightly above
Speaker Change: Uh, what do we expect for the end of the year to comply with, with what we have written in, in our in our MVP about speaking? 7 billion pesos,
Speaker Change: Uh, remember that most of these, this is a standard towards the full quarter.
Speaker Change: Okay, thank you.
Speaker Change: You're welcome.
Speaker Change: again, if you have a question, please press star then 1
Speaker Change: Our next question, comes from line of Alan, masias with Bank of America, please proceed with your question.
Speaker Change: Alan masas. Your line is live.
Our next question comes from the line of Anton Morton Carter with GBM. Please receive with your question.
Speaker Change: Thank you very much for the call. Um just just a quick 1. I mean, aside from Cancun uh and in the smaller airports in Mexico, maybe like maybe the our Waka. Uh, we've seen some steady performance. Was was just wondering, what kind of Dynamics I just seen in those smaller airports. And, and, and what would you expect going forward? I mean, anything interesting there.
Speaker Change: Well, every single airport, of course have its own uh situation.
Speaker Change: I would say that. Let me go in the case of what happened in public, this public demonstrations, uh, in in what happened, they have affected. Of course, the person that
Speaker Change: In the case of Mary that it's it's growing less than how it was before, that is still growing. So, uh, it's really well in the case of media mosa, I would say security as a threat to the traffic. So in each 1 has its own particular, we cannot generalize all of them.
Okay, thank you.
Speaker Change: You're welcome.
Speaker Change: Our next question, comes from line of Kilmer Mendes with JP Morgan. Please receive with your question.
Speaker Change: Thanks for for the follow up a coupon on traffic. There has been a lot of news on increasing sargassum uh in the Caribbean region.
Speaker Change: The year.
Speaker Change: uh, in the case of some customer, I have to say not, uh, uh, if we go back in history, we cannot say every 3 years, only 5 years, only 7 years
Speaker Change: You will have success in the region.
Speaker Change: The worst ever has been in 2018. Uh, but what we have seen for this year, this may be the worst ever know the situation guys. It's very
Speaker Change: Very difficult.
Speaker Change: Uh, of course, in terms of uh seasonality of the year, summer is the most important. So I would say after all you look at what um pop water, they would see lesser come, but what you will see for the summer but yes it's true. Not this year has been very tough situation.
Speaker Change: Got it. Thank you.
Speaker Change: You're welcome.
Speaker Change: Our next question comes from line of Fernando rakia with btg pactual. Please receive with your question.
Just a quick follow-up. Uh could you comment a little bit on your inorganic growth opportunities that you're currently providing? I don't know if you have any update on Bavaro airport and apart from that. Is there any other opportunity that you're looking at?
Is still the same. We're still in the living process of that.
For the moment, the project is on calls. And yes, we are seeing some other opportunities.
Okay. And just uh a follow up here, we know that uh, CCR is Under The Vessel process, uh, is is, uh, this process uh, makes sense for you or you looking at it.
I cannot comment.
Great. Thank you.
Speaker Change: You're welcome.
Our next question comes from the line of Alan masias with Bank of America. Please receive with your question.
Speaker Change: Good morning, uh, thank you for the call. Uh, just um, if you can give us some color on what's happening or what are the drivers for international traffic in Puerto Rico and Columbia, they're growing double digits, uh, levels. And, uh, if, if this is sustainable for the, for the second half of this year,
Speaker Change: Thank you.
You're welcome. I would say this has to do with what's happening there with concerts and and
Speaker Change: Related to music. So I for the biggest really important that 1 and some International traffic are taking opportunity to go there because of that.
Speaker Change: In the case of Columbia, uh, basically is dead is the US. So
Speaker Change: Mr. Castro, are you still connected?
No. Okay. And Mr. Masias was that the end of your question?
Masias: Uh yes. Thank you.
Speaker Change: Thank you.
Speaker Change: As a reminder, if you would like to ask a question, please press star. Then 1 on your telephone,
Speaker Change: Our next question comes from the line of feder. Rico glossy with TRG. Please receive with your question.
Federico Glossy: I have also, thank you for, for taking my question, quick, question in, in, in operations.
Federico Glossy: I can see a champion in cost of services in terms of Revenue and or year-over-year. The question is if there's anyone else or this, is the level that we have to to sink in for Mexican operation in the near future.
Federico Glossy: This is what you, what you will look it should expect for the for the coming class. Yes.
Federico Glossy: Okay, but it's not. No, no 1 office. 100% for the operations a collaboration. Yeah.
Federico Glossy: Okay, thank you.
Federico Glossy: You're welcome.
Federico Glossy: that concludes the question and
Mr. Castro: answer portion of today's conference call, I would like to turn it back over to Mr. Castro for closing remarks.
Mr. Castro: Thank you, Christine and thank you all again for joining us today. For our second quarter, 2025 conference call. We wish you a good day and goodbye.
Mr. Castro: Ladies and gentlemen that concludes our second quarter 2025 results conference call. We would like to thank you again for your participation. You may now disconnect