OMAB Reports In-line Results – Analyst Blog

Mexican airport operator Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (OMAB) reported in-line results for the fourth quarter and full year 2009.

 

During the quarter, total revenues were MXN$483 million, a reduction of 0.8% year over year. Aeronautical revenues per passenger increased 7.9%, and non-aeronautical revenues per passenger increased 27.6%. Monterrey, Grupo Aeroportuario’s principal airport, contributed 45.0% of revenues. During full-year 2009, total revenues were MXN$1,896.3 million, down from MXN$1,988 million in 2008.

 

Consolidated net income was MXN$163 million in the quarter, an increase of 246.5% compared to the prior year period. The increase was principally due to comprehensive financial income and the reversal of tax provisions taken earlier in the year. Earnings per share were MXN 41 cents, or US 25 cents per American Depositary Share (ADS) versus MXN 12 cents and US 7 cents respectively in the fourth quarter of 2008. EPADS also beat the Zacks Consensus Estimate of US 16 cents.

 

During full year 2009, consolidated net income was MXN$471 million compared to MXN$542 million in the previous year. EPS and EPADS were MXN$1.19 and US 73 cents, down from MXN$1.37 and US 84 cents in the year-ago quarter. However, reported EPADS was above the Zacks Consensus Estimate of US 62 cents.

 

Passenger traffic decreased 11.1% to 2.8 million. Domestic traffic decreased 11.1% and international traffic decreased 10.6%. The suspension of Aviacsa operations on July 6, 2009 continued to be one of the principal factors affecting traffic during the quarter. During full year 2009, passenger traffic decreased 18.1% year over year.

 

In this environment, Grupo Aeroportuario launched various strategic initiatives. The principal actions were steps to protect aeronautical revenues, including the termination of the special incentive program for the Monterrey airport. The company also planned to increase and improve commercial offering and the passenger services available in the airport terminals and to start new commercial services such as the NH Terminal 2 Hotel in Mexico City. The company also enforced a policy of strict controls on costs and expenses.

 

With these actions, Grupo Aeroportuario was able to mitigate the impact of the reduction in revenues and adjusted EBITDA, which decreased only 4.6% and 7.9%, respectively, in 2009. These actions also mitigated the impact on adjusted EBITDA margins, with a full year margin of 51.2%, compared to 53.0% in 2008.