• Total Revenue: EUR4.4 billion, up 16.3% year-on-year.
• Passenger Volume: 282.5 million, an 8.9% increase compared to the first nine months of 2023.
• EBITDA: EUR2.6 billion, a 26% increase, with a margin increase from 55.9% to 60.6%.
• Net Profit: EUR1,449 million, up 27.3% from 2023.
• Total Costs: EUR2,368.1 million, a 4.4% increase year-on-year.
• Commercial Revenue: EUR1.1 billion, a 20.9% increase.
• Real Estate Revenue: EUR67 million, up 33.1%.
• Operating Expenses: EUR1.7 billion, a 6.2% increase.
• Net Financial Debt: EUR5.7 billion, a decrease of EUR523 million.
• Net Debt-to-EBITDA Ratio: Reduced from 2.06x to 1.6x.
• Cash Generated by Operating Activities: EUR2.3 billion, a 23.5% increase.
• International Passenger Growth: London Luton Airport 2.7%, ANB Brazil 8.5%, BOAB Brazil 3.7%.
• Commercial and Real Estate Revenue per Passenger: EUR5.9, a growth of 12.8% excluding adjustments.
• Duty-Free Revenue Growth: 38%, reaching EUR394 million.
• Food and Beverage Revenue Growth: 8.1% for the first nine months.
• VIP Services Revenue Growth: 30.9%.
• Car Park Revenue Growth: 13.5%.
• Advertising Revenue Growth: 23.8% in the third quarter.

• Warning! GuruFocus has detected 3 Warning Sign with ANNSF.

Release Date: October 30, 2024

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

Positive Points

• Aena SME SA (ANNSF) recorded a total passenger volume of 282.5 million in the first nine months of 2024, marking an 8.9% increase compared to the same period in 2023.
• Total revenues reached EUR4.4 billion, a 16.3% year-on-year increase, driven by aeronautical and commercial revenues.
• The company achieved a consolidated EBITDA of EUR2.6 billion, representing a 26% increase, with the EBITDA margin improving by nearly 500 basis points.
• Commercial and real estate revenues increased by 16.2%, with the commercial segment alone reaching EUR1.1 billion, a 20.9% increase.
• Aena's international operations, including London Luton Airport and Brazilian subsidiaries, showed positive growth, with Luton Airport's revenues growing by 16.7% and Brazilian operations showing strong traffic and revenue increases.

Negative Points

• Operating expenses increased by 6.2% in the first nine months, driven by higher staff costs and consolidation of new operations.
• Despite revenue growth, there was no operating leverage in the Spanish airports, with OpEx rising at a similar rate to traffic growth.
• The company faces potential challenges from proposed increased taxes on air travel in Spain, which could impact traffic.
• There is uncertainty regarding the governance model for the airport in Catalonia, with no new developments since the last update.
• Aena is experiencing cost pressures due to inflation, regulatory changes, and increased labor costs, impacting overall expenses.

Q & A Highlights

Q: I was surprised not to see any change in the passenger outlook. Is there a reason for the slowdown from summer into Q4, and when can we expect an update on your strategic plan beyond 2024? A: We are not seeing any data that suggests a need to update our traffic guidance for this year. October trends are consistent with our June forecast. For 2025, we are in the budgeting process, which should conclude by December. We typically wait for summer season data, available in late January, before updating guidance.

Q: Could you provide insights on the potential increased taxes on air travel in Spain and their impact on traffic? A: We don't have additional information beyond what's publicly available. It's too early to estimate impacts, but historically, traffic has been resilient despite ticket price increases.

Q: Why is there a lag in food and beverage tenders compared to specialty shops? A: We are satisfied with the food and beverage performance, with an 8.1% revenue increase. The lag is due to pending unit finalizations in Madrid. Both F&B and specialty shops are seeing increased sales, and we are observing a trend towards hybrid offerings across categories.

Q: Are you pursuing any external assets, such as regional airports in the UK? A: We are open to opportunities that align with our strategic goal of increasing EBITDA contribution from international activities. However, our current focus is on executing the CapEx program in Brazil and refinancing efforts.

Q: Is there any update on the governance model change for your airport in Catalonia? A: There are no new developments since our last update in July.

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