Grupo Aeroportuario Del Centro ((OMAB)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Grupo Aeroportuario Del Centro’s recent earnings call reflected a cautiously optimistic sentiment, highlighting solid growth in passenger traffic and revenues, while also addressing challenges posed by increased operating costs. The management emphasized their focus on managing cost pressures to sustain growth.
Passenger Traffic Increase
OMA reported a notable increase in passenger traffic, totaling 7.6 million passengers, which marks an 8% year-over-year growth. This rise was supported by an 11% increase in seat capacity during the quarter, showcasing the company’s ability to attract more travelers and expand its operational reach.
Growth in Aeronautical and Commercial Revenues
The company experienced an 11% increase in aeronautical revenues, with revenue per passenger rising by 3%. Additionally, commercial revenues grew by 7% compared to the third quarter of the previous year, indicating a robust performance in both segments despite challenges.
International Passenger Traffic Growth
International passenger traffic saw an impressive 11% increase, primarily driven by popular routes to San Francisco, Atlanta, and Dallas. This growth underscores OMA’s strategic focus on expanding its international market presence.
Adjusted EBITDA Growth
OMA’s adjusted EBITDA grew by 9% to MXN 2.7 billion, achieving a margin of 74.8%. This growth reflects the company’s operational efficiency and ability to maintain profitability amidst rising costs.
Strong Financial Position
The company’s consolidated net income increased by 9.1% to MXN 1.5 billion, maintaining a strong financial position with a net debt to adjusted EBITDA ratio of 0.9x. This financial stability provides a solid foundation for future investments and growth.
Increased Operating Costs
Operating costs, including airport services and G&A expenses, rose by 14.4%, driven by higher payroll, IT-related requirements, and transportation services. This increase highlights the challenges OMA faces in managing its operational expenses.
Contracted Services and Minor Maintenance Cost Rise
Expenses for contracted services increased by 16.4%, largely due to higher costs for security and cleaning services. Additionally, minor maintenance costs rose by 19.8%, reflecting the ongoing need for infrastructure upkeep.
Commercial Revenue per Passenger Decline
Commercial revenue per passenger experienced a decline, attributed to the impact of one-time revenues recorded in the previous year. This indicates a need for strategic adjustments to enhance per-passenger revenue streams.
Forward-Looking Guidance
Looking ahead, OMA expects continued growth in passenger traffic and revenues. The company anticipates investments for the 2026-2030 Master Development Program to remain at committed levels, with a maximum tariff increase in the low single digits. These projections underscore OMA’s commitment to long-term growth and development.
In summary, Grupo Aeroportuario Del Centro’s earnings call conveyed a cautiously optimistic outlook, with significant growth in passenger traffic and revenues. However, increased operating costs and a decline in commercial revenue per passenger present challenges that the company aims to address. Overall, OMA’s strong financial position and strategic focus on managing costs are key takeaways from the call.