Corporacion America Airport reports Q4 EPS 81c, two estimates 30c

Reports Q4 revenue $397.6M, two estimates $440M. Commenting on the results for the quarter Mr. Martin Eurnekian, CEO of Corporacion America Airports, noted: “The strong momentum experienced throughout the year continued into the fourth quarter, with passenger traffic growing 13% year-on-year and revenue growth ex-IAS29 surpassing the increase in traffic. This resulted in a solid expansion in revenues per PAX, which was 5% higher than 4Q22 and 39% above pre-pandemic levels. Total costs and expenses grew in line with higher activity but below revenue growth, leading to Adjusted EBITDA growth of 29% YoY and 71% when compared to 4Q19. These financial highlights include two important impacts: First, due to the sharp devaluation of the Argentine peso last December, as reported figures included non-cash accounting impacts from applying hyperinflation accounting, in accordance with IFRS Rule IAS29, causing a $28.9 million Adjusted EBITDA reduction in our Argentina segment, which is not indicative of the underlying performance of our business. Importantly, as the majority of Argentine revenues are linked to the USD and approximately half of the costs are in ARS, we have a natural hedge against currency devaluation. Second, a key milestone this quarter was the successful conclusion of the friendly termination process of the Natal airport concession agreement, which benefited Adjusted EBITDA by $166.5 million. The net indemnification amount to CAAP was R$465 million. This good performance was underscored by strong momentum across all geographies and reflects our commitment to efficient execution and our ability to leverage the ongoing recovery in travel demand. Looking ahead, we remain focused on the approval processes in Italy and Armenia in connection with significant expansion projects in our airports in Firenze and Yerevan, respectively, which will foster growth and create value for our stakeholders. In Firenze, we are working on the approval of a new master plan that will include a new runaway with much longer reach and a larger new terminal. The total investment is estimated at Euro 400 million, of which Euro 150 million will be funded with government grants. In Yerevan, we remain in negotiations with the government to expand our Zvartnots Airport and enhance commercial offerings. The total investment plan is expected to be approximately $400 million.”