Release Date: August 27, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Passenger volumes in the first half of 2024 increased by 11%, reaching 97% of 2019 levels.
- Revenue, EBITDA, and consolidated results for the first half of the year exceeded the prior year period, marking the best half-year result in the company's history.
- The commercial and real estate businesses showed solid performance, with more than 90% of the Circle rented out.
- International operations, including the new Noida International Airport and the acquisition of Natal Airport in Brazil, are progressing well.
- The innovation hub has launched its first products, aiming to leverage digital transformation for operational improvements.
Negative Points
- Operating expenses rose by 12% over the prior year period, driven by higher personnel and security-related costs.
- Personnel expenses increased by 15% due to headcount growth and inflation adjustments.
- The construction work to develop landside passenger areas has impacted retail offerings, with completion expected only by 2027.
- The Noida International Airport project has been delayed by four months, now expected to open by the end of April 2025.
- There are fines associated with the delay in Noida's opening, although they are relatively low and can be passed on to the EPC contractor.
Q & A Highlights
Q: Can you share more details on the tariffs for Noida International Airport and current traffic assumptions?
A: We expect the tariff outcome to be published towards the end of the year, which will include precise numbers and traffic volume estimates. Until then, we cannot disclose further details. (Lukas Brosi, CEO)
Q: What measures are being taken to unlock faster growth rates in the retail and real estate segments?
A: For retail, we focus on portfolio management and attracting new tenants to enhance the mix. The landside retail expansion will be completed by 2027, offering new retail spaces. For real estate, the focus is on optimizing the portfolio and increasing occupancy rates. (Lukas Brosi, CEO)
Q: Can you explain the increase in personnel expenses and whether this is a structural change?
A: Approximately 3% of the increase was due to inflation adjustments, with the majority due to additional staff. We expect this to flatten out over the next two to three years, with continued economies of scale. (Kevin Fleck, CFO)
Q: What is the best-and-worst case scenario for the upcoming tariff negotiations?
A: Based on current parameters, a reduction is calculated due to over-coverage, but this is too simplistic. We expect normalized growth and rising capital costs to be considered in negotiations, aiming for a fair outcome. (Lukas Brosi, CEO)
Q: Why has the CapEx guidance for international activities been reduced by CHF 50 million?
A: This reduction is due to delays in the Noida project. (Lukas Brosi, CEO)
Q: What is the outlook for airside retail spending, which was down 2% compared to H1 last year?
A: We expect spending to remain at current levels, growing with inflation. The opening of the New Dock A in a few years could provide a boost. (Lukas Brosi, CEO)
Q: Can you share more details on the real estate projects in Vitória and their contribution to the P&L?
A: These are land lease contracts, and while the projects are in early stages, they offer additional potential for future revenue. (Kevin Fleck, CFO)
Q: When will the market hear about the dividend policy for 2025 and later?
A: We will communicate the new dividend policy in March next year when we announce the year-end results. Until then, we stick to the current policy. (Lukas Brosi, CEO)
Q: What are the reasons for the delay in opening Noida International Airport?
A: The delay is mainly due to construction taking more time than initially planned. We now see a more realistic schedule, with the airport expected to open by the end of April 2025. (Lukas Brosi, CEO)
Q: Are there any fines for the delay in opening Noida, and can they be passed on to the EPC contractor?
A: Yes, there are fines, but they are relatively low and can be passed on to the EPC contractor. (Lukas Brosi, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
