Q2 2025 Grupo Aeroportuario del Centro Norte SAB de CV Earnings Call
Operator: Greetings and welcome to OMA's second quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode.
Greetings and welcome to all my second quarter 'twenty 25 earnings Conference call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance. Please press star zero on your telephone keypad as a reminder, this.
Operator: A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded.
Conference is being recorded it is now my pleasure to introduce Emmanuel Camacho Investor Relations. Thank you Sir you may begin.
Emmanuel Camacho: It is now my pleasure to introduce Emmanuel Camacho, Investor Relations. Thank you, sir. You may begin. Thank you, Jerry.
Thank you Teri Hello, everyone and welcome to all my second quarter 235 earnings Conference call.
Emmanuel Camacho: Hello, everyone. Welcome to OMAS second quarter 2025 earnings conference call. We are delighted to have you join us today as we discuss our company's performance and financial results for the past quarter.
We are delighted to have you join 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, Grupo Perez-Figueroa.
Joining us today our CEO.
The CFO.
Yep.
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 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.
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 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.
Ricardo Duenas: And with that, I will turn the call over to Ricardo Duenas for his opening remarks. Thank you, Emmanuel. Good morning, everyone.
And with that I will turn the call over to be calibrated for his opening remarks.
Thank you Amanda good morning, everyone. This morning, I will briefly comment on several key developments during the quarter, including highlights of our upcoming Master development program negotiation with.
Ricardo Duenas: This morning, I will briefly comment on several key developments during the quarter, including highlights of our upcoming master development program negotiation. Well, then I will review our operational performance and financial results. And finally, I will be pleased to answer your questions.
Then I will review, our operational performance and financial results and finally, I will be pleased to answer your questions.
Ricardo Duenas: Let me begin with an update regarding our senior management team. During August and September, we will implement changes in two key leadership positions. First, our chief operating officer, Enrique Navarro, will be retiring in August after 21 years of dedicated service to OMA. On behalf of the entire team, I want to express our gratitude of his leadership, commitment and contributions throughout this year. We are pleased to announce that Raful Zacarias will succeed him as chief operating officer. RAFU has been with OMA since 2006 in various operational positions, most recently as airport administrator at our Monterey airport.
Let me begin with an update regarding our senior management team.
During August and September we will implement changes in two key leadership positions first our chief operating officer, and reaching a lateral will be retiring in August after 21 years of dedicated service to Omar on behalf of the entire team I want to express our gratitude of his leadership commitment and contributions throughout this.
Yes.
We are pleased to announce that platform checkout Es will succeed him as chief operating officer, who has been with all my since 2006 in various operational positions. Most recently as the airport administrator administrator at our Monterrey Airport.
Ricardo Duenas: Second, in September, Pierre Grosmeier will join OMA as Chief Commercial Officer, taking over from Alvaro Leite, who will be assuming the responsibilities within Vinci Airports. We thank Alvaro for his valuable contributions to our commercial strategy. Pierre brings extensive commercial experience in the airport sector. He served as Chief Commercial Officer of Lyon Airports from 2018 to 2025. He also served as Global Aviation Development Director at Vinci Airports. Under Pierre's leadership, we will continue to grow our extra aeronautical activity.
Second in September or in September.
Mayor will join <unk> as Chief commercial officer, taking over from Alberta, Lady who will be assuming responsibility. These within Vinci airports, we think out loud for his valuable contributions to our commercial strategy.
<unk> brings extensive commercial experience in the airport sector. He served as chief commercial officer of Neon airports from 2018 to 2025. He also served as global Aviation development director at Vinci airports under <unk> leadership, we will continue to grow our extra our aeronautical activities.
Ricardo Duenas: Moving on, on June 27, we successfully completed our 2.75 billion peso issuance in long term notes in the Mexican market. Proceeds will be used to repay 600 million pesos in short-term loans and the remainder will be used to fund committed investments as well as for general corporate purposes.
Moving on on June 27, we successfully completed our $2 75 billion peso issuance in long term notes in the Mexican market.
Proceeds will be used to repay 600 million bushels in short term loans and the remainder will be used to fund committed committed investments as well as for general corporate purposes.
Ricardo Duenas: Finally, let me provide an update of the ongoing negotiation process of the 2630 Master Development Corp. At the end of June, we submitted our proposed MVP to Mexico's Federal Civil Aviation Agency, or AFAC. The total committed investment is similar in real peso terms to the amount committed under our previous MVP program, 21 to 25. From early August through late September, AFAG will be conducting technical visits to our 13 airports to review and discuss the proposed projects. Following that, we would expect negotiation of the tariff model to take place between October and November.
Finally, let me provide an update of the ongoing negotiation process of the 26 30 Master development program.
At the end of June we submitted our proposed MVP to Mexico's federal Civil Aviation agency or APAC.
The total committed investment is similar and real peso terms to the amount of committed under our previous MVP program 'twenty one to 'twenty five.
From early August through late September in fact, we will be conducting technical visits to our 13 airports to review and discuss the proposed projects. Following that we would expect the negotiation of the tariff model to take place between October and November.
Ricardo Duenas: Final approval of the MVP and the new maximum tariff is expected in early December, at which point we also anticipate disclosing the outcome to the market. Our investment proposal is designed to enhance efficiency and optimize operations while maintaining the highest standards of safety and service quality. Approximately 49% of the investment will be allocated to our Monterey Airport. Key projects there include the third phase expansion of Terminal A, pavement reconfiguration such as platform expansions, the construction of fast taxiways and several others, as well as a number of technology upgrades across our airport network. Other airports with significant investments include Culiacan, Ciudad Juarez, and Mazatlán.
Final approval of the MVP and the new maximum tariff is expected in early December at which point, we also anticipate disclosing the outcome to the market.
Our investment proposal is designed to enhance efficiency and optimize operations, while maintaining the highest standards of safety and service quality.
Approximately 49% of the investment will be allocated to our Monterrey Airport key projects. There include the third phase of expansion of terminal a payment rackham figuration, such as platform expansions that construction of fast actually waste and several others as well as a number of technology upgrades across our airport network.
Airports with significant investments include Korea, and so that's why they can master plan.
Ricardo Duenas: This proposal reflects a balanced and disciplined approach with a strong emphasis on optimizing capacity of our current infrastructure. as well as enhancing passenger experience and long-term value creation.
This proposal reflects a balanced and disciplined approach with a strong emphasis on optimizing capacity of our current infrastructure.
As well as enhancing passenger experience and long term value creations.
Ricardo Duenas: In terms of tariff expectation, based on our proposal, we anticipate low single digit increase in the maximum tariff in real Moving on to our main quarterly operational highlight. In the second quarter of 25, OMAS passenger traffic totaled $7.2 million, an 11% increase year-over-year. Seat capacity during the quarter increased 12%. On the domestic front, passenger traffic grew by 10 percent, driven primarily by the Monterrey Airport, which saw an increase on routes to the metropolitan area of Mexico City, including the Mexico City, IFA, and Toluca Airport. Guanajuato, Hermosillo, Puerto Vallarta, Querétaro, and Ciudad Juárez. These routes collectively added over 360,000 passengers during the quarter, representing 65% of the total domestic passenger route.
In terms of guidance expectation based on our proposal, we anticipate low single digit increase in the maximum tariff in real terms.
Moving on to our main quarterly operational highlights.
In the second quarter of 'twenty, five or mass passenger traffic totaled $7 2 million and 11% increase year over year.
Seat capacity during the quarter increased 12%.
On the domestic front passenger traffic grew by 10% driven primarily by the Monterrey Airport, which saw increase on routes to the metropolitan area of Mexico City, including the Mexico City.
Look at airports.
And most of you put it the way you have to get it done and see that twice. These routes collectively added over 360000 passengers during the quarter represented a 65% of the total domestic passenger routes.
Ricardo Duenas: International passenger traffic increased by 19%. This road was also driven by Monterey Airport with passenger traffic increase on routes to Los Angeles, Miami, Chicago, San Francisco, San Antonio and Denver. This route collectively added more than 106,000 passengers during the quarter, accounting for 66% of the total international passenger traffic increase in the quarter.
International passenger traffic increased by 19%. This growth was also driven by Monterrey Airport with passenger traffic increase on routes to Los Angeles, Miami, Chicago, San Francisco, San Antonio and member.
This ralphs collectively added more than 106000 passengers during the quarter accounting for 66% of the total international passenger traffic increased in the quarter.
Ricardo Duenas: In terms of airline participation, Viva Aeroportus represented 51% of our total traffic during the quarter, with a 14% increase in terminal passenger numbers compared to the second quarter of 24, while Volaris, which accounted for 24% of our total traffic, recorded 31% passenger increase during the quarter.
In terms of airline participation be vital pools represented 51% of our total traffic during the quarter with a 14% increase in terminal passenger numbers compared to the second quarter of 24, while varieties, which accounted for 24% of our total traffic record of 31% passenger increased.
During the quarter.
Ricardo Duenas: Moving on to ALMA's second quarter financial highlights, aeronautical revenues increased 17% with aeronautical revenue per passenger rising 5% in the quarter. Commercial revenues had a strong 20% growth, with commercial revenue per passenger increasing by 8% to 62 pesos in the quarter, as compared to the second quarter of last year, mainly driven by restaurants, parking, VIP lounges, and retail. The occupancy rate for commercial space stood at 96% at the end of the quarter. On the diversification front, revenues increased 11% with industrial service contributing most to this growth.
Moving on to all of our second quarter financial highlights aeronautical revenues increased 17% with aeronautical revenue per passenger rises rising 5% in the quarter.
Commercial revenues had a strong 20% growth with commercial revenue per passenger increasing by 8% to 62 vessels in the quarter as compared to the second quarter of last year, mainly driven by restaurants parking VIP lounges and retail.
The occupancy rate for commercial space stood at 96% at the end of the quarter.
Yeah.
On the diversification front revenues increased 11% with industrial service contributing most of this route.
Ricardo Duenas: During the quarter, we completed the construction of a 5,000 square meter warehouse as part of the expansion plan of one of our tenants. OMA's second quarter adjusted EBITDA increased by 19% to 2.6 billion pesos and an adjusted EBITDA margin of 74.6%.
During the quarter, we completed the construction of a 5000 square meter warehouse as part of the expansion plan of one of our tenants.
All my second quarter, adjusted EBITDA increased by 19% to $2 6 billion pesos and then adjusted EBITDA margin of 74, 6%.
Ricardo Duenas: On the capital expenditures front, total investments in the quarter, including MDP investments, major maintenance, and strategic investments were 965 million pesos.
On the capital expenditures front total investments in the quarter, including MVP investments major maintenance and strategic investments were 965 million pesos.
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 for the quarter, after which we will open the call for your answers. Aeronautical revenues increased 17% relative to Q24, driven primarily by higher aeronautical yields, as well as an increase in both domestic and international passenger traffic. non-aeronautical revenues increased 16%. Commercial revenues increased 19.7%. The line items with the highest growth were restaurants, parking, VIP lounges, and retail. Restaurants increased 41.1%, driven by a greater customer penetration and the opening or replacement of outlets in previous quarters in airports such as Monterrey, Ciudad Juárez, and Durango.
I would now like to turn the call over to Blake <unk>.
We will discuss our financial highlights for the quarter.
Thank you Ricardo and good morning, everyone.
Briefly walk you through our financial results for the quarter after which we will open the call for your answers.
I don't know, it's about revenues increased 17% relative to Q24, driven primarily by higher electrical yields as well as an increase in both domestic and international passenger traffic.
I have another vehicle revenues increased 16%.
Commercial revenues increased 19.
7% the line items with the highest growth where restaurants parking VIP lounges and retail.
Restaurants increased 41, 1% driven by a greater customer penetration and the openings or replacement of our lithium previous quarters in airports such as Monterrey. She that's why this unbilled angle.
[noise] parking grew 12.7%, mainly due as a result of higher domestic and international passenger traffic.
Ruffo Perez-Priego: Parking grew 12.7%, mainly due as a result of higher domestic and international passenger traffic. VIP lounges rose 34.6% mainly due to an increase in rates and higher number of users, as well as the opening and consolidation of the Ciguatanejo lounge, which started operations on last year's July. Retail increased 27.4%, and similar to restaurant revenues, this was mainly due to a greater customer penetration and the opening or replacement of spaces in previous quarters in airports like Ciudad Juarez, Monterrey, Torreón, and Culiacán. Diversification activities increased 10.7% mainly due to high revenues from industrial services and hotel services.
VIP lounges rose 34, 6%, mainly due to an increase in rates and higher number of users that's what as well as the opening and consolidation of us see what the initial launch which started operations on last year's you like.
Retail increased 27, 4% and seamless restaurant revenues. This was mainly due to a greater customer penetration and the openings or replacements of spaces in previous quarters in airports like shoot us wireless Monterrey.
Click on.
Diversification activities increased 10.7%, mainly due to higher revenues from industrial services and the hotel services.
Ruffo Perez-Priego: Industrial services grew over 100% mainly due to an increase in least square meters in our industrial park as compared to the second quarter of 2020. Revenue from hotel services increased 4% year over year, reaching 112 million pesos, primarily driven by an increase in average room rates in both of our hotels, partially offset by lower occupancy rates. Total aeronautical and non-aeronautical revenues grew 16.8% to 3.4 billion pesos during the quarter. Construction revenues amounted to 916 million pesos in 2Q25, an increase of 64.7% as a result of increased MVP investment. The cost of services and G&A expense increased 5.6% year-over-year, primarily due to an 11% rise in payroll.
Industrial services grew over 100%, mainly due to an increase in leased square meters in our industrial park as compared to the second quarter of 2024.
Revenue from our hotel services increased 4% year over year, reaching a hormone plus millions vessels, primarily driven by an increase in average room rates in both of our hotels, partially offset by lower occupancy rates.
Total I don't know what the color on that analytical revenues were 16.8% to 3.4 billion. This was during the quarter.
So structural revenues amounted to 916 million pesos into Q25, an increase of 64, 7% as a result of increased MTP investments.
Yeah.
The cost of services and G&A expense increased five 6% year over year.
Primarily due to an 11% rise in payroll.
Ruffo Perez-Priego: Contracted services rose 8.2%, mainly due to higher costs for security and cleaning services following contract renewals in prior quarters. Concession tax increased 18.1% to 283 million pesos in line with increase in revenue. Major maintenance provision was 50.4 million pesos compared to 43 million pesos last year. As Ricardo mentioned, OMA's second quarter adjusted EBDA reached 2.6 billion pesos, and the adjusted EBDA margin was 74.6%. Our financing expense increased by $184 million, reflecting a $185 million variation in non-cash interest expense related to major maintenance provision as a result of lower discount rates used for its calculation. Consolidated net income was 1.3 billion pesos in the quarter, an increase of 3.8% versus 2Q24.
Truckload services Rose 8.2, mainly due to higher costs for security and cleaning services.
In contract renewals in prior quarters.
Precision concession tax increased 18, 1% to 283 million vessels in line with increase in revenues.
Major maintenance provision was $50 4 million compared to 43 million versus last year.
Chicago mentioned almost second quarter adjusted EBITDA reached 2.6 billion pesos on the adjusted EBITDA margin was 74, 6%.
Our financing expense increased by 884 million, reflecting a 485 million variation in lung cash interest expense related to major maintenance provision as a result of lower discount rates used for each stipulation.
Consolidated net income was $1 3 billion peso seen the quarter, an increase of three 8% versus Q4.
Ruffo Perez-Priego: Turning to our cash position. Cash generated from operating activities in the second quarter amounted to 1.8 billion pesos and investing activities used cash for 575 million pesos. Financing activities reflect interest expense payments, the first installment of the ordinary dividend of 2.25 billion, the long-term debt placement of 2.75 billion, and the prepayment of 600 million pesos of short-term loans, resulting in a net cash outflow of 138 million. As a result, our cash position at the end of the quarter stood at 3.4 billion. At the end of June, and including the latest debt issuance, total debt amounted to 13.6 billion pesos.
Turning to our cash position.
That's generated from operating activities in the second quarter amounted to 1.8 million pixels and investing activities used four used cash for 575 million vessels.
Financing activities reflect interest expense payments the first installment of the ordinary dividend of $2 25 billion. The long term that's placements of $2 75 billion and the prepayment of 600 million pestles of short term loans, resulting in a net.
Outflow of 38 million.
As a result, our cash position at the end of the question, where it stood at 3.4 mediums.
At the end of June and including the latest debt issuance total debt amounted to $13 6 billion pesos, we maintain a strong balance sheet ending the quarter with a net debt to adjusted EBITDA ratio of one times.
Ruffo Perez-Priego: We maintain a strong balance sheet ending the quarter with a net debt-to-adjusted DVDA ratio of 1x.
Okay.
Ruffo Perez-Priego: This concludes our prepared remarks.
This concludes our prepared remarks Cherry please open the call for questions.
Operator: Sherry, please open the call for questions. Thank you.
Operator: If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue, and for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. One moment while we poll for questions.
If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if he would like to remove your question from the queue and for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star.
He is one moment, while we poll for questions.
Okay.
Guilherme Mendes: Our first question is from Guilherme Mendes with J.P. Morgan. Please proceed.
Our first question is from go ahead, ma'am Mendez with J P. Morgan. Please proceed.
Guilherme Mendes: Hi, Ricardo, Ruffo, Emmanuel, thanks for taking my question. The first one is a follow-up on the MDP and thanks for providing more color. Just wanted to confirm if I got it right. Ricardo, you mentioned about a similar level of CAPEX in absolute terms, in nominal terms, correct? So it would be talking about... In real terms. In real terms. Okay, perfect. Not per passenger, right? No, in real terms and absolute numbers.
I he Colorado roof him on the al. Thanks for taking my question. The first one is a follow up on on D. M. D. P. N. Thanks for providing more color just wanted to confirm if I got it right. He cut of the human and show modest similar level of Capex in absolute terms in nominal terms correct. So it wouldn't be talking about <unk> 13 and <unk>.
With terms okay perfect.
Not for passenger right.
No in real terms in absolute numbers.
Guilherme Mendes: Perfect, thank you.
Perfect. Thank you and then the second point is on the traffic outlook are we have been seeing a very strong performance month. After month on the previous call you guys mentioned about an expectation for a mid single digit increase for the year, which looks conservative at this point.
Guilherme Mendes: And then the second point is on the traffic outlook. We have been seeing a very strong performance month after month. On the previous call, you guys mentioned about an expectation for a mid-single-digit increase for the year, which looks conservative at this point. So I just wanted to get a fresh view on what you were expecting for the second half of this year. Thank you.
So just wanted to get a fresh view on what you were expecting for the second half of this year. Thank you.
Ricardo Duenas: Yeah, thank you, Guilherme. Yes, so we had a very good first half of the year. So we anticipate for the rest of the year to be in the mid to high single digit traffic growth.
Yeah. Thank you.
Yes, so we had a very good first half of the year. So we anticipate for the rest of the year to be in the mid to high single digit traffic growth we.
Ricardo Duenas: We expect some of the growth that we've seen in the first half of the year to reduce as we move along for the rest of the year, based on the reduced capacity announced by some of the airlines and also by tougher comps compared to last year. But the mid to high single digits would be a fair and accurate. Perfect, thank you.
We expect some of the wells that we've seen in the first half of the year to reduce as we move along for the rest of the year based on the reduced capacity announced by some of the airlines and also by tougher comps compared to last year, but in the mid to high single digits would be a fair.
Accurate.
Perfect. Thank you and if I may a follow up on on what is driving the traffic performance. So we haven't seen the new routes are coming into Monterrey, but is this related to near shoring in some way or is there something else explaining this strong performance. Thank you again.
Guilherme Mendes: And if I may, a follow up on what is driving the traffic performance, so we haven't seen the new routes coming into Monterrey, but is this related to near shoring in some way, or if there's anything else explaining the strong performance? Thank you again.
Yes.
Ruffo Perez-Priego: Hi Guilherme, this is Ruffo. So certainly Monterey has been the airport that has grown most dynamically during this year, both in domestic and international terms. And certainly industrial activity, we continue to see very strong industrial activity and low occupancy, very high occupancy factors in the industrial park business, which is an indicator of very strong economic performance in the region. So yes, we attribute traffic growth to strong economic performance in that market. Very clear.
How high do you already see.
Is this is real for so so certainly our mantra has been D. The airports that has grown a mostly and I'm glad you're doing this year are both in domestic and international terms and certainly our industrial activity. We continue to see very strong industrial activity.
Low coupon see Oh at very high capacity factors in the industrial parks, a business, which is an indicator of a very strong.
Economic performance in the region. So so yes, we attribute our profit growth to two stroke economic performance seen in that market.
Very clear thank you both.
Guilherme Mendes: Thank you both. Thank you.
Thank you.
Juan Ponce: Our next. Our next question is from Juan Ponce with Bradesco BVI. Please proceed. Hi everybody, thank you for taking my question and for the call. Monterrey's international traffic has been increasing a lot, new routes, etc. What are you expecting in terms of the network development in this airport over the next 12 months? So, we still see new openings, particularly in the domestic side, in the Monterrey Airport in the second half. And we expect consolidation of some of the routes that were opened recently, particularly since last November. But, as we mentioned, there are some capacity cuts being announced and they started to kick in in June.
Our next question.
Our next question is from one ponds with Bradesco BBA. Please proceed.
Hi, everybody. Thank you for taking my question and for the call.
Monterrey is international truck, because it's been increasing a lot our new routes et cetera. What are you expecting in terms of the network development in this airport over the next 12 months. Thank you.
So are we we we still see new new openings.
And particularly in the domestic sites are in the Monterrey Airport in the second half.
And we expect a consolidation of some of the Rosa or opened recently, particularly since last.
Last November.
But as you as we mentioned there are some capacity cuts are being announced in and they started to kick in in June.
Ricardo Duenas: So, therefore, we don't expect that much acceleration in the second half of the year in terms of passenger growth in the international market in Monterrey. But we do still see pretty good growth for the full year.
So therefore, we don't expect that's much acceleration in the second half of the year in terms of passenger growth.
In the international marketing and in Monterrey, but we do still see pretty good growth for the full year.
Juan Ponce: Thank you, that was very clear.
Thank you that's very clear.
Alberto Valério: Our next question is from Alberto Valerio with UBS. Please proceed. Hi, thanks, Ricardo, Emmanuel. One follow-up on the MVP question. You mentioned about the high single-digit tariffs. Should we expect any concentration in an airport, or should be some divergence between among the own airports or on tariffs? Thank you very much.
Our next question is from Alberto Valerio with UBS. Please proceed.
Hi, Thanks Ricardo.
Manuel.
One follow up on the question you mentioned about the high single digits Terrace, a should we expect any concentration on airports or there should be some divergence between a marketed deal my thoughts on tariffs. Thank you very much.
Ricardo Duenas: I'm sorry, could you repeat your question, Alberto? Sorry, the line. No, no problem. It's better now. Can you hear me? Yes. Yes, about the tariff for MVP, Ricardo mentioned that in the initial remarks that probably will be high single digits, is that correct? No, it will be low single digits. Low single digits. And should we see difference between among the airports? Some airports with higher increase in tariffs, some others with maybe a decrease in tariffs? It's still part of the negotiation, Alberto, we don't see a decrease in any of them, so, but we're still a work in progress with the authorities, but it's in the growth we expect is in the low single digits.
Oh I'm, sorry could you repeat your question Aldo sorry the line.
Oh no problem, it's better now can you hear me.
Yes.
Yes.
About the tariffs for MVP, he got a bunch of that in the initial remarks that probably would be high single digits is that correct.
So low single digits.
Low single digits.
<unk>.
Should we see difference between among the airports. So my poetry is higher.
<unk> terrace, as some others may be a decrease in Paris.
It's still part of the negotiation Alberto.
We don't see a decrease in any of them so, but we still work in progress with the authorities, but it seemed that the growth. We expect is in the low single digits.
Ricardo Duenas: And we believe this is what maximizes the net present value of the company. Thank you very much.
And we believe they think competitors would maximizes.
And we believe that this is the what maximizes the net present value of the company.
Perfect.
Thank you very much.
Alberto Valério: Thank you.
Thank you.
Abraham Jens: Our next question is from Abraham Jens with Bank of Santana. Please proceed. Thank you, good morning.
Our next question is from Abraham James with Banco Santander. Please proceed.
Thank you good morning.
Abraham Jens: I wonder if you can give us more core about the growth in the commercial aeronautical profession that you are expecting in the near to long term, specific with your MDP that you are revising. Hi, Abraham. So commercial revenues obviously have increased by a number of measures that we have been implementing over the last couple of years. Renegotiation of of of contracts, opening of new outlets, this refresher of of of of, you know, the decoration and the feel and look of the of the stores, as well as some use of technology to maximize passenger exposure to to to retail outlets and the number of outlets.
Wonder if you can give on small core about good growth.
Progressing work that you are expecting mid to long term.
Yes.
Sure.
Hey that you are a.
Thanks.
Thanks.
Yeah.
Have you ever him. So so commercial revenues are obviously have have have increased by a number of measures that we have been implementing over the last couple of years, a renegotiation of a of contracts opening of new outlets a refresh all of it.
You know the declaration in the feel a little of the of the stores as well as some use of technology to maximize our passenger.
Passenger I would say a social tool to all retail outlets and for them a rush outlets.
Ruffo Perez-Priego: We expect those those activities to to continue.
We expect those those activities to continue in and.
Ruffo Perez-Priego: And but just in the second part of your question, you mentioned MDP. Remember that MDP refers to aeronautical investments. So so therefore, we don't see that much relationship between the MDP and the commercial growth of renewables in Europe. Okay, thank you.
Just in the second part of your question you mentioned in D. P. Remember that MVP refers to I don't know if it'll investments Oh. So therefore, we don't see that much relationship between the MVP and the commercial growth Oh, Brian you're progressing.
Okay. Thank you.
Alright.
Gabriel Hemelphar: Our next question is from Gabriel Hemelphar with Gosha Bank. Please proceed. Hi, thanks for the call. Quick question. Are you perhaps looking at the possibility of new assets or investments perhaps in Brazil now that Motiva CCR is selling airport assets? Thank you. Thank you, Gabriel. We're not formally as FOMA. We're not formally involved in in that specific process. We're always looking for potential opportunities in airports, but we're not involved in that specific. We're not involved in the formal process as of today. Okay, thank you very much.
Our next question is from Gabriel Himmelfarb with Scotiabank. Please proceed.
Hi, Thanks for the call quick question.
Are you perhaps.
Looking at the possibility of a new assets or investments, perhaps on Brazil, now that Motiva CCR is selling airport assets. Thank you.
Thank you. Thank you Ravi we're not formally asked all my word not formally involved in in that specific process. We're always looking for potential opportunities are.
In airports, but we're not involved in that specific but we're not involved informed process as of today.
Okay. Thank you very much.
Gabriel Hemelphar: Our next question is from Federico Galassi with TRG. Please proceed. Hi. Thank you.
Our next question is from Frederico philosophy with TRT. Please proceed.
Okay. Thank you.
Federico Galassi: Two questions, if you can give us. Rural Number, but in general terms, how much of the non, the commercial revenues are coming from Monterrey? If you have a number for that, thinking that you will increase the commercial capacity at the end of this year and next year? I don't have the specific number, Federico, we'll get back to you, but yeah, I'll look for you and get back to you. Okay, thank you.
Two questions. If you can give you a fair.
Our number but in general thanks.
Much of the knowing that the commercial revenues are coming from on that right. If you come in and not in number for that.
Thinking that you wouldn't get the commercial capacity of Dnf's D. C had a mix yeah.
Yes.
I don't have the specific number, but we will get that.
To to you, but yeah, I I, Oh, I hope for you and does that to you.
Okay.
Ruffo Perez-Priego: And the second, Ruffo, is... related to the MDP, all the investment in in Monterrey. Can you give us, and I understand it's more related to aeronautical than commercial, but can you give us some clue of what are the focus of this new investment? Yes, so we mentioned that about 49% of the next MDP will be focused on Monterey. What we are doing is a lot of expansion in apron and platform capacity to maximize the use of existing gates and be able to use also remote gates to service our airlines and passengers. We're doing new fast lane exit taxiways from the runway also to increase its efficiency.
I think all of them is in the.
The <unk> related to the M D B E.
The base many in.
Can you give us I know you and there's plenty smart related to so I don't know what to call them commercial but can you give us some.
To go work on the focus on almost piecemeal investment.
Yes. So so so we mentioned that the thought about 49% of the next time you will be focused on on the Monterey. What we are doing just a lot of expansion in APE run in platform.
Capacity to to maximize the use of its distinct.
Gates.
And be able to use social remote remote gates too too to service our Oh.
And passengers.
We're doing a new fast lane exit taxi ways from from the wrong way also to to increase its its.
You can see and we are also.
Ruffo Perez-Priego: And we are also expanding to continue to expand the terminal A of Monterey throughout the five year period as well to be able to cope with the expected demand that we anticipate in Monterey. So basically, that's the key highlights of those investment airport coupled with a lot of technology operates so we can also be able to process passengers more efficiently and provide a better experience to passengers. Okay, thank you so much.
Expanding continue to expand the terminal a of Monterrey as well to the five year period, as well to be able to cope with the expected demand that we anticipate.
And in Monterrey, So so basically that's that's the key highlights of those.
Our investment in airports are coupled with a lot of our technology operates a so so we can also be able to process passengers more efficiently and provides a better <unk>.
Spirit Stu to passengers.
Okay. Thank you so much.
David Soto: Our next question is from David Soto with Scotiabank, please. Hi, good morning. Thanks for taking my question. Just a quick one. Do you see any upside risk on passing the bill due to the U.S. DOT actions at Mexico? Can you repeat, please? Sorry, did you hear me there? Yes. My question was, do you see any upside risk on passenger growth due to the recent U.S. DOT actions at Mexico? Your question is if we see a risk on passenger outlook because of the DOT announcements recently? Yes, correct. Sorry for all the back noise. Yep. Yes. So so yes, we do not expect any major impacts in the following months, but we will continue to monitor closely any measures taken by the U.S.
Our next question is from David <unk> with Scotiabank. Please proceed.
Hi, Good morning, Thanks for taking my question just a quick one do you see any upside risk on Youtube.
Due to the U S E T actions at Mexico.
Yeah.
Okay.
Uh huh.
Any business.
Okay.
So can you give me there.
Yeah.
Yes.
Yep.
My question, what do you see do you see any upside risk on passenger growth due to the recent U S. D O T actions at Mexico.
Yeah.
Is your question is if we see a risk oh on passenger outlook because of the D O T announcements recently.
Yes, correct, sorry for the for all the background.
Yes, yes. So so yes, we do not expect any major impacts in the following months, but we will continue to monitor closely any measures taken by the U S. D O T.
Ricardo Duenas: DOT.
Okay.
David Soto: Okay, perfect. Thanks.
Okay perfect.
Thanks.
Operator: As a reminder, there's star one on your telephone keypad if you would like to ask a question.
As a reminder, this star one on your telephone keypad, if he would like to ask a question. Our next question is from Alan <unk>.
Alan Macias: Our next question is from Alan Macias with Bank of America. Please. Hi, hi, good morning. And thank you for the call.
Yes with Bank of America. Please proceed.
Hi, Hi, good morning, and thank you for the call.
Just a question regarding dividend policy given.
Ricardo Duenas: Just a question regarding dividend policy, giving your expected CAPEX for the next 5 years. Could we expect a change in dividends, an increase there? Thank you.
Giving your expected capex for the next.
Five years could we expect the change in dividend.
An increase there thank you.
Ricardo Duenas: In terms of dividend policy, we have been in past recent years distributing between 85 to 95 of net income. We would expect to continue with a similar policy for the foreseeable future. So as EBITDA and net income grows, yes, there will be available cash flow for distribution. Thank you.
Yeah in terms of our dividend policy, we have meaning past recent years distributing between 85 to 95 of net income and we would expect to continue with a similar policy for the foreseeable.
Well the future so so as.
And our net income gross yes, there are and will be.
Available cash flow for distribution.
Thank you.
Operator: There are no further questions at this time.
There are no further questions at this time I would like to turn the floor back over to Rick cargo for closing remarks.
Ricardo Duenas: I would like to turn the floor back over to Ricardo for closing remarks. We would like to thank everyone for participating in today's call. We appreciate your insightful questions, engagement, and continued support. Ruffo, Emmanuel, and I are always available should you have any further questions or require additional information.
We would like to thank everyone for participating in today's call. We appreciate your exact question engagement and continued support rueful Manuel and I are always available should you have any further questions will require additional information. Thank you once again and have a great day.
Operator: Thank you once again, and have a great day. Thank you.
Thank you. This will conclude today's conference you may disconnect. Your lines at this time and thank you for your participation.
Operator: This will conclude today's conference. You may disconnect your lines at this time and thank you for your participation.
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Yeah.
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Okay.
Yeah.