• Revenue: EUR6.2 billion, up 12% versus last year.
• EBITDA: EUR2.1 billion, up 6% against 2023.
• Net Income: EUR638 million, up 16% excluding one-off effects.
• Dividend: Proposed EUR3 per share.
• Traffic Growth: Paris traffic up 3.7%; TAV Airport traffic growth exceeding 11%.
• Spend Per Passenger: EUR32.1, up almost 5%.
• Operating Expenses: Up 17%, including EUR131 million new infrastructure tax in France.
• Net Debt: Adjusted net debt just above EUR8 billion as of 31st December.

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

Release Date: February 20, 2025

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

Positive Points

• Aeroports de Paris SA (AEOXF) exceeded 2019 traffic levels, with strong international traffic growth, particularly in North America, Africa, and Asia.
• The company achieved robust financial results, surpassing all 2024 targets, and proposed a dividend of EUR3 per share.
• Retail performance was strong, with spending per passenger reaching a new record, and significant growth in luxury and retail sectors.
• International assets like TAV and GMR Airports showed double-digit traffic growth, contributing significantly to the group's revenue.
• Sustainability initiatives are progressing well, with Delhi Airport achieving the highest level of airport carbon accreditation and Paris platforms' decarbonization trajectory validated by SBTi.

Negative Points

• The reported net result was down due to a negative non-cash accounting charge from the GMR operation.
• Traffic in Paris was impacted by ATC system disruptions and a weak start to summer due to the Olympics, affecting domestic traffic.
• Operational expenses increased by 17% due to new infrastructure tax and higher staff costs, particularly in Turkey due to inflation.
• The company faces challenges in securing fair returns on increased CapEx, with ongoing negotiations for a new economic regulation agreement.
• The impact of the Olympics on 2024 EBITDA was negative, with a net impact of EUR16 million, and future advertising and retail revenue may normalize.

Q & A Highlights

Q: Could you provide insights on the free cash flow expectations for 2025, considering your EBITDA and CapEx guidance? A: Antoine Crombez, Deputy CFO, explained that the free cash flow in 2025 is expected to be similar to 2024. This is due to ongoing impacts from the infrastructure tax and corporate income tax, balanced by increased traffic and tariff adjustments approved by the regulator.

Q: What are the expected returns from your investments in India and Turkey, and when do you anticipate receiving dividends from these assets? A: Philippe Pascal, Chairman and CEO, stated that dividends from TAV Airports are expected soon, while dividends from GMR Airports are anticipated before the end of the decade. The focus is on securing contributions and dividends from these international investments.

Q: How do you plan to navigate the competitive landscape for international expansion, given the high valuations and liquidity in the infrastructure sector? A: Philippe Pascal emphasized a selective approach to international expansion, focusing on securing contributions and dividends from existing assets like TAV and GMR. The strategy involves balancing development with financial discipline.

Q: Can you elaborate on the timeline and stakeholders involved in negotiating the new economic regulation agreement? A: Philippe Pascal outlined that a formal proposal for the economic regulation agreement is expected by the end of the year, with a formal process involving stakeholders such as airlines, the French state, and the regulator. The agreement is anticipated to be finalized by early 2027.

Q: What are the main factors influencing the CapEx guidance for 2025, and how do you plan to ensure returns on these investments? A: Antoine Crombez noted that the 2025 CapEx guidance reflects both Paris and group-level needs, with a focus on delivering planned projects. Philippe Pascal added that ensuring a good return on CapEx is crucial, with a focus on regulated CapEx and economic regulation agreements to secure remuneration.

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