• Passenger Traffic: 6.5 million, a decrease of 2.4% year-over-year.
• Domestic Passenger Traffic: Decreased by 4.3%.
• International Passenger Traffic: Increased by 12%.
• Aeronautical Revenue: Decreased by 2.5%.
• Non-Aeronautical Revenue: Increased by 13.8%.
• Commercial Revenue: Increased by 12%.
• Diversification Revenue: Increased by 27%.
• Total Revenue: MXN2.9 billion, a growth of 1.1%.
• Construction Revenue: MXN556 million, a decrease of 22%.
• Adjusted EBITDA: MXN2.2 billion with a margin of 73.3%.
• Net Income: MXN1.3 billion, an increase of 1.5% year-over-year.
• Cash from Operating Activities: MXN1 billion.
• Cash Position: MXN1.6 billion at the end of the quarter.
• Total Debt: MXN10.9 billion.
• Net Debt to Adjusted EBITDA Ratio: 1 times.

• Warning! GuruFocus has detected 5 Warning Sign with OXLC.

Release Date: July 29, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• International passenger traffic increased by 12% compared to the second quarter of last year, driven by strong performance at Monterrey Airport.
• Non-aeronautical revenues grew by 13.8%, highlighting successful strategic projects and diversification efforts.
• Commercial revenues increased by 12%, with significant contributions from VIP lounges, parking, and restaurants.
• OMA Cargo saw a 35% increase in revenues, driven by new operations with Lufthansa Cargo and expansion plans in Monterrey.
• Hotel services grew by 16%, with high occupancy rates and increased average room rates at both NH and Hilton Garden Inn hotels.

Negative Points

• Overall passenger traffic decreased by 2.4% compared to the second quarter of last year, with domestic passenger traffic down by 4.3%.
• Aeronautical revenue decreased by 2.5%, primarily due to lower domestic passenger traffic.
• Construction revenues fell by 22% due to slower MDP investment execution.
• Cost of services and G&A expenses increased by 16.5%, driven by expansion in operational areas and higher unit costs.
• Concession tax increased by 71% due to a rate hike from 5% to 9%, impacting financial results.

Q & A Highlights

Q: Can you provide your expectations for traffic for the second half of the year in Mexico? A: We maintain our previous projection, expecting a low-single digit decrease in traffic due to the Pratt & Whitney issue. - Ricardo Duenas Espriu, CEO

Q: What is the potential for non-aeronautical revenue per passenger in the medium to long term? A: We expect commercial revenue per passenger to remain stable and increase with inflation. Diversification activities like cargo and hotel services are not directly correlated to passenger growth. - Ruffo Perez Pliego Del Castillo, CFO

Q: How relevant do you think Toluca can be as an alternative to Felipe Angeles and AIFA? A: The government aims for a metropolitan airport system including Mexico City, Toluca, and Santa Lucia. We believe excess traffic will mostly go to Santa Lucia. - Ricardo Duenas Espriu, CEO

Q: What caused the traffic decrease on the Monterrey-Cancun route? A: The decrease was due to capacity cuts by carriers affected by the Pratt & Whitney issue. We expect a quick recovery as the issue resolves. - Ruffo Perez Pliego Del Castillo, CFO

Q: Are you considering international expansion projects? A: We are always looking for international expansion opportunities, but currently, we are not involved in any international tender processes. - Ricardo Duenas Espriu, CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.