- Total Revenue: Grew by 17.7% in the first half of 2024.
- Aeronautical Revenue: Increased by 16.4%.
- Commercial Revenue: Increased by 17.4%.
- Real Estate Revenue: Increased by 18%.
- International Activity Revenue: Increased by 25.6%.
- Total Operating Expenses: Grew by 3.2%.
- EBITDA: EUR1.6 billion, with an EBITDA margin of 56.6%.
- Net Profit: Increased by 33.1%, reaching EUR0.8 billion.
- Total Sales: Grew by 13.4% year-on-year.
- Minimum Annual Guaranteed Rents: Increased by 21% in 2024 compared to 2023, and by 35% in 2025 compared to 2023.
- Tariff Proposal for 2025: EUR10.4 per passenger, a 0.54% increase.
- Brazilian Concession EBITDA Contribution: EUR50.4 million, with an EBITDA margin above 55%.
- Gross Dividend: EUR7.66 per share paid on May 7.
- Updated Traffic Forecast: 306.7 million passengers, an 8.3% year-on-year increase.
- Commercial Revenue Growth: 17.4% year-on-year, reaching EUR889.2 million.
- Passenger Revenue: EUR6.2 per pax, compared to EUR5.9 in the previous year.
- Duty-Free Sales: Increased by 15.4%.
- Food and Beverage Sales: Increased by 13%, with variable rents growing at almost 16%.
- Specialty Shops: 41 tenders for 54 outlets published, 29 tenders for 43 stores awarded.
- Car Parks Revenue: Increased by 14.7% year-on-year.
- VIP Services Revenue: Increased by over 30%, with VIP lounges registering a 25% increase.
- Operating Expenses: EUR1.2 billion, a 6% increase compared to 2023.
- Cash Generated by Operating Activities: Over EUR1.4 billion, a 33.7% increase.
- Net Debt-to-EBITDA Ratio: 1.9 times.
- Fixed Rate Debt: 74% of total debt at fixed rates.
- London Luton Airport Traffic: 93.3% of 2019 levels, with a 3.2% year-on-year increase.
- London Luton Airport EBITDA: EUR64.3 million, a 10% increase.
- Brazilian Operations EBITDA: BRL277 million for the first six months of 2024.
Release Date: July 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Aena SME SA (ANNSF, Financial) reported a 10.5% year-on-year increase in global traffic, reaching 172.7 million passengers.
- Total revenue grew by 17.7%, with aeronautical revenue up by 16.4%, commercial revenue by 17.4%, real estate revenue by 18%, and international activity by 25.6%.
- EBITDA for the first half of 2024 was EUR 1.6 billion, with an EBITDA margin of 56.6%.
- Net profit increased by 33.1%, reaching EUR 0.8 billion.
- Commercial activity showed robust growth, with total sales increasing by 13.4% year-on-year, driven by traffic strength, increased spending by EU and UK passengers, and the introduction of new brands and concepts.
Negative Points
- The IT outage on July 19 caused significant disruption, leading to the cancellation of 400 flights out of more than 8,000.
- Total operating expenses grew by 3.2% in the first half of the year, with higher staff costs, security, maintenance, and energy prices contributing to the increase.
- The political agreement involving Catalonia has introduced uncertainty, requiring Aena to closely monitor potential developments and hire legal experts.
- Variable rents in some commercial business lines have performed less strongly than in previous quarters due to construction activities and the addition of lower-priced products.
- Operating expenses at the group level increased by 6%, driven by higher staff costs, consolidation of new activities in Brazil, and cost increases in security and maintenance.
Q & A Highlights
Q: Is the separation of Barcelona airport outside of Aena network a realistic possibility at this stage? And is the EBITDA from Barcelona significantly more than 18% of your traffic in Spain?
A: The text of the political agreement does not mention anything about ownership or separation of airports. Aena will closely monitor the development of this agreement with the support of legal experts. Regarding financial details, Aena operates as a network, and individual financial information for airports is not disclosed.
Q: Have you seen any signs of demand softening in Spain, particularly in the last three weeks?
A: We have not witnessed any significant changes in load factors or airline capacity revisions that would indicate a softening in demand. Sales in retail business lines remain strong, with double-digit growth in duty-free, specialty shops, and food and beverage.
Q: How easy would it be to change the regulatory framework to allow regional authorities input in the regulatory process?
A: The agreement does not have a univocal development, and Aena will analyze any potential developments with the support of legal experts. The company will defend its interests and those of its shareholders.
Q: What is the progress on the energy hedging front, particularly regarding the PPA?
A: Aena has short-term hedges in place for this year, covering around 50% of consumption. The company has launched an RFP for a medium to long-term PPA and expects to close it before year-end if the proposals are satisfactory.
Q: What are your thoughts on the impact of protests in Spain on tourism volumes, particularly in the Spanish Islands?
A: Tourism has been crucial for Spain's economic and social development, and it remains highly valued. Aena's role is to accommodate future trends in tourism and passenger flows, ensuring operational efficiency.
Q: Can you provide more details on the tariff agreement for 2025 and its drivers?
A: The Board approved a tariff proposal of EUR10.40 per passenger for 2025, representing a 0.54% increase. This increase is mainly due to the performance of energy prices and other cost components in the index calculation.
Q: How do you see the political agreement affecting Aena's M&A strategy?
A: The recent political developments will not change Aena's strategic objectives, including M&A activities. The company will continue to analyze potential opportunities without any impact from the political situation.
Q: What is driving the double-digit growth in your real estate business?
A: The growth is driven by new contracts with logistics companies and leasing ramp facilities to handling operators. Increased cargo activity and higher contract values have contributed to the substantial growth in real estate revenues.
Q: Can you update us on the progress of the duty-free store renovations and the sales uplift from new stores?
A: Construction activities for duty-free stores are on track to be completed by the end of October, with some finishing during the summer season. The new stores will offer more surface area, better product mix, and higher price points, expected to result in higher variable rents.
Q: What are the trends to consider for operating expenses in the second half of the year and into 2025?
A: The trends in operating expenses are influenced by new contracts, increased activity, and cost increases in maintenance, security, and other services. Energy prices have also impacted costs, but the overall trend is expected to continue with similar dynamics.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
