Corporacion America Airports Reports Third Quarter 2023 Results

Corporación América Airports S.A. one of the leading private airport operators in the world, reported its unaudited, consolidated results for the three and nine-month period ended September 30, 2023. Financial results are expressed in millions of U.S. dollars and are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (“IASB”).

Commencing 3Q18, the Company began reporting results of its Argentinean subsidiaries applying Hyperinflation Accounting, in accordance with IFRS rule IAS 29 (“IAS 29”), as detailed in Section “Hyperinflation Accounting in Argentina” on page 25.

Third Quarter 2023 Highlights

• Consolidated Revenues of $469.5 million, an 18.7% year-over-year (YoY) increase, or 12.6% above 3Q19. Excluding the impact of IFRS rule IAS 29, revenues increased 18.5% YoY to $473.7 million, reflecting increases of $46.2 million in Aeronautical Revenues and $28.7 million in Commercial Revenues. Revenues ex-IAS 29 were 8.1% above pre-pandemic levels.
• Delivered YoY increases across key operating metrics:

• 18.8% in passenger traffic to 22.2 million, reaching 97.9% of 3Q19 levels.
• 13.3% in cargo volume to 92.7 thousand tons, to 93.2% of 3Q19 levels.
• 12.5% in aircraft movements, to 99.8% of 3Q19 levels.

• Operating Income of $131.7 million, up from $92.5 million in 3Q22, mainly reflecting the YoY recovery in passenger traffic.
• Adjusted EBITDA increased to $172.7 million, from $131.1 million in the year-ago period, with Adjusted EBITDA margin ex-IFRIC12 expanding to 40.9% from 37.7%.
• Compared to 3Q19, Adjusted EBITDA increased 72.7%, with Adjusted EBITDA margin ex-IFRIC12 expanding 8.6 percentage points, or 1.1 percentage points when excluding a $23.1 million bad debt charge reported in 2019.
• Strong cash position with Cash & cash equivalents totalling $468.9 million.
• Net debt to LTM Adjusted EBITDA improved to 1.6x, from 1.8x as of June 30, 2023.

CEO Message

Martín Eurnekian, CEO of Corporación América Airport said: "We are pleased to report another strong quarter with solid revenue growth across geographies. Adjusted EBITDA set another record high at 173 million dollars, up 73% compared to the third quarter of 2019, even with passenger traffic recovering to just 2% below pre-pandemic levels. Importantly, Adjusted EBITDA Margin, ex-IFRIC12, expanded to 40.9% as we continued to drive operating leverage across our airport network. This good performance is a result of our focus on efficient execution and the recovery in travel demand.

Equally important, we remain focused and are progressing on several fronts: the execution of our fully funded Capex programs in Argentina and Uruguay, the negotiations with the government of Armenia to expand capacity at Zvartnots Airport, and the approval process for a new master plan at Florence Airport. Also, negotiations remain in place with the government of Nigeria in connection with the Abuja and Kano concession agreements as we continue to seek opportunities to selectively expand our airport network. Finally, we expect to receive the indemnification payment related to the return of Natal Airport within the next few months.

Looking ahead, we remain cautiously optimistic as we are monitoring the macroeconomic environment in Argentina, a concession we have managed successfully across multiple macroeconomic cycles for over 20 years. We also maintain a positive view for Armenia, Italy, Brazil and Uruguay. In summary, we are well prepared to continue to both effectively support existing operations and evaluate and pursue strategic initiatives with a view to delivering value to our shareholders.”

Operating & Financial Highlights
(In millions of U.S. dollars, unless otherwise noted)
	3Q23 as reported	3Q22 as reported	% Var as reported	IAS 29 3Q23	3Q23 ex IAS 29	3Q22 ex IAS 29	% Var ex IAS 29
Passenger Traffic (Million Passengers)	22.2	18.7	18.8%		22.2	18.7	18.8%
Revenue	469.5	395.5	18.7%	-4.1	473.7	399.8	18.5%
Aeronautical Revenues	216.8	171.1	26.7%	-1.9	218.7	172.5	26.8%
Non-Aeronautical Revenues	252.7	224.4	12.6%	-2.3	255.0	227.3	12.2%
Revenue excluding construction service	422.5	346.9	21.8%	-2.4	424.9	348.7	21.9%
Operating Income / (Loss)	131.7	92.5	42.4%	-20.7	152.4	109.8	38.8%
Operating Margin	28.0%	23.4%	466	0.0%	32.2%	27.5%	471
Net (Loss) / Income Attributable to Owners of the Parent	46.5	57.2	-18.8%	16.8	29.7	22.5	32.1%
EPS (US$)	0.29	0.36	-18.9%	0.10	0.18	0.14	32.0%
Adjusted EBITDA	172.7	131.1	31.8%	-11.3	184.0	131.2	40.3%
Adjusted EBITDA Margin	36.8%	33.1%	365	-	38.9%	32.8%	604
Adjusted EBITDA Margin excluding Construction Service	40.9%	37.7%	321	-	43.3%	37.6%	574
Net Debt to LTM Adjusted EBITDA	1.6x	2.6x	-	-	-	-	-
Net Debt to LTM Adjusted EBITDA excl. impairment on intangible assets (1)	1.6x	2.6x	-	-	-	-	-

Note: Figures in historical dollars (excluding IAS29) are included for comparison purposes.
1)	LTM Adjusted EBITDA excluding impairments of intangible assets.

Operating & Financial Highlights
(In millions of U.S. dollars, unless otherwise noted)
	9M23 as reported	9M22 as reported	% Var as reported	IAS 29 9M23	9M23 ex IAS 29	9M22 ex IAS 29	% Var ex IAS 29
Passenger Traffic (Million Passengers)	60.4	47.3	27.9%		60.4	47.3	27.9%
Revenue	1,273.8	1,006.1	26.6%	-15.1	1,288.9	993.4	29.8%
Aeronautical Revenues	590.0	450.0	31.1%	-6.2	596.2	442.9	34.6%
Non-Aeronautical Revenues	683.8	556.1	23.0%	-8.9	692.7	550.4	25.9%
Revenue excluding construction service	1,136.2	914.0	24.3%	-9.3	1,145.5	897.1	27.7%
Operating Income / (Loss)	344.0	221.9	55.0%	-58.5	402.5	266.3	51.1%
Operating Margin	27.0%	22.1%	495	-	31.2%	26.8%	442
Net (Loss) / Income Attributable to Owners of the Parent	147.6	160.5	-8.1%	64.6	82.9	46.2	79.6%
EPS (US$)	0.92	1.00	-8.2%	0.40	0.52	0.29	79.4%
Adjusted EBITDA	464.1	339.1	36.9%	-12.7	476.9	330.7	44.2%
Adjusted EBITDA Margin	36.4%	33.7%	273	-	37.0%	33.3%	371
Adjusted EBITDA Margin excluding Construction Service	40.7%	37.0%	370	-	41.5%	37.0%	448
Net Debt to LTM Adjusted EBITDA	1.6x	2.6x	-	-	-	-	-
Net Debt to LTM Adjusted EBITDA excl. impairment on intangible assets (1)	1.6x	2.6x	-	-	-	-	-

Note: Figures in historical dollars (excluding IAS29) are included for comparison purposes.
1)	LTM Adjusted EBITDA excluding impairments of intangible assets.