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  Title	Grupo Aeroportuario del Sureste S A B de C : ASUR ANNOUNCES 3Q24 RESULTS Form 6 K
  ID	3523045
  External ID	7238758128
  Author	Unknown
  Published Date	Oct. 23, 2024, 5:11 a.m.
  Summary	Total Revenue and EBITDA Increased YoY by 18% and 12%, Respectively Despite 2% Decrease in Passenger Traffic Mexico City, October 22, 2024 - Grupo Aeroportuario del Sureste, S.A.B. de C.V. (NYSE: ASR
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  URL	https://www.marketscreener.com/quote/stock/grupo-aeroportuario-del-s-6492978/news/grupo-aeroportuario-del-sureste-s-a-b-de-c-asur-announces-3q24-results-form-6-k-48138720/
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  Content ID	1851085
  Key	156d2ff1-91c3-4682-8389-7246b62fbde8
  Content	Total Revenue and EBITDA Increased YoY by 18% and 12%, Respectively Despite 2% Decrease in Passenger Traffic Mexico City, October 22, 2024 - Grupo Aeroportuario del Sureste, S.A.B. de C.V. (NYSE: ASR; BMV: ASUR) (ASUR), a leading international airport group with operations in Mexico, the U.S., and Colombia, today announced results for the three-and nine-month periods ended September 30, 2024. 3Q24 Highlights 3Q24 Earnings Call Day: Wednesday, October 23, 2024, at 10:00 AM ET; 8:00 AM Mexico City time Dial-in: 1-877-407-4018 (Toll-Free); 1-201-689-8471 (International) Access Code: Replay: Replay: Wednesday, October 23, 2024, at 2:00 PM ET, ending at 11:59 PM ET on Wednesday, October 30, 2024. Dial-in number: 1-844-512-2921 (Toll-Free); 1-412-317-6671 (International). Access Code: 13749410 Unless otherwise stated, all financial figures discussed in this press release are unaudited, prepared in accordance with International Financial Reporting Standards (IFRS), and represent comparisons between the three- and nine-month periods ended September 30, 2024, and the equivalent three- and nine-month periods ended September 30, 2023. All figures in this report are expressed in Mexican pesos, unless otherwise noted. Tables state figures in thousands of Mexican pesos, unless otherwise noted. Passenger figures for Mexico and Colombia exclude transit and general aviation passengers, unless otherwise noted. Commercial revenues include revenues from non-permanent ground transportation and parking lots. All U.S. dollar figures are calculated at the exchange rate of US$1.00 = Mexican Ps.19.6440 (source: Diario Oficial de la Federación de México), while Colombian peso figures are calculated at the exchange rate of COP. 213.06200 = Mexican Ps.1.00 (source: Investing). Definitions for EBITDA, Adjusted EBITDA Margin, Majority Net Income can be found on page 17 of this report.- ASUR 3Q24 Page 1 of 24 Passenger Traffic ASUR's total passenger traffic increased 2.1% YoY to 17.2 million in 3Q24. In Mexico, total passenger traffic declined 10.1% YoY to 9.6 million in 3Q24, driven by decreases of 12.6% in international traffic and 8.0% indomestic traffic. In Puerto Rico, total passenger traffic increased 4.6% YoY to 3.3 million in 3Q24, mainly driven by increases of 2.5% in domestic traffic and 20.7% in international traffic. Total passenger traffic in Colombia for 3Q24 increased 15.5% YoY to 4.3 million passengers, driven by growth of 22.5% and 13.6% in domestic and international traffic, respectively. On page 19 of this report, you will find the tables with detailed information on passenger traffic for each airport. Table 3: % YoY Change in Passenger Traffic 2024 & 2023 ASUR 3Q24 Page 2 of 24 Review of Consolidated Results Adjusted operating margin excludes the effect of IFRIC12 with respect to the construction or improvements to concessioned assets in Mexico, Puerto Rico and Colombia and is equal to operating income divided by total revenues minus revenues from construction services. Adjusted EBITDA Margin excludes the effect of IFRIC12 with respect to the construction or improvements to concessioned assets in Mexico, Puerto Rico and Colombia, and is calculated by dividing EBITDA by total revenues less construction services revenues. Passenger figures include transit and general aviation passengers Mexico, Puerto Rico and Colombia. Represents ASUR's operations in convenience stores. Consolidated Revenues Consolidated Revenues increased 18.1% YoY, or Ps.1,444.4 million, to Ps.7,483.3 million, mainly due to the following increases: Excluding Revenues from Construction Services , for which an equivalent expense is recorded under IFRS accounting standards, total revenues would have increased 14.1% YoY to Ps.6,882.5 million. Excluding revenues from construction services, Mexico represented 71.1% of ASUR's total revenues in 3Q24, while Puerto Rico and Colombia accounted for 15.5% and 12.8%, respectively. Commercial Revenues in 3Q24 increased 5.0% YoY to Ps.2,180.2 million. Commercial revenue growth was driven by revenue increase of 14.5% to Ps.505.4 million in Puerto Rico, 38.1% to Ps.231.9 million in Colombia and a decrease of 1.7% to Ps.1,442.9 million in Mexico. ASUR 3Q24 Page 3 of 24 Commercial Revenues per Passenger increased 7.2% YoY to Ps.124.9 in 3Q24, from Ps.116.5 in 3Q23. Consolidated Operating Costs and Expenses Consolidated Operating Costs and Expenses , including construction costs, increased 27.3% YoY, or Ps.725.8 million, to Ps.3,386.1 million in 3Q24. Excluding construction costs, operating costs and expenses increased 18.3%, or Ps.430.7 million, due to the following factors: Cost of Services increased 15.0%, or Ps.181.0 million, YoY mainly due to increases in personnel costs, surveillance and cleaning services, maintenance and conservation, professional fees, licenses, insurance and bonds, electric energy, and taxes and duties. Construction Costs increased 96.6% YoY, or Ps.295.1 million. This was mainly driven by a YoY increases of 143.7%, or Ps.265.3 million, in construction costs in Mexico, and 26.1%, or Ps.30.9 million, in Puerto Rico, and 48.0%, or Ps.1.1 million, in construction costs in Colombia. Administrative Expenses that reflect administrative costs in Mexico increased 22.2% YoY. Consolidated Technical Assistance Costs decreased by 46.1% YoY, as the technical assistance fee in Mexico decreased from 5% to 2.5% as of January 1, 2024. Concession Fees increased 71.4% YoY, on a consolidated basis, principally due to increases of 108.7% in Mexico due to an increase in the concession fee from 5% to 9% as of January 1, 2024, together with increases of 32.7% in Colombia and 14.0% in Puerto Rico as a result of higher regulated and unregulated revenues. Depreciation and Amortization increased 15.7% YoY, or Ps.81.6 million, principally due to an increase of 13.1%, or Ps.34.4 million in Mexico, 13.7%, or Ps.13.1 million in Colombia and 21.2%, or Ps.34.1 million, in Puerto Rico. Consolidated Operating Profit and EBITDA ASUR reported a Consolidated Operating Profit of Ps.4,097.2 million in 3Q24, with an operating margin of 54.8%, compared to Ps.3,678.5 million and an operating margin of 58.0% in 3Q23. Adjusted Operating Margin was 59.5% in 3Q24 compared to 61.0% in 3Q23. Adjusted Operating Margin excludes the effect of IFRIC 12 with respect to the construction of or improvements to concessioned assets in Mexico, Colombia, and Puerto Rico, which is calculated as operating profit or loss divided by total revenue minus revenue from construction services. EBITDA increased 12.0%, or Ps.501.9 million, to Ps.4,700.4 million in 3Q24, from Ps.4,198.4 million in 3Q23. By country of operations, EBITDA increased by 10.7%, or Ps.351.9 million to Ps.3,635.5 million in Mexico, and 6.9%, or Ps.34.7 million, to Ps.538.3 million in Puerto Rico and 28.0%, or Ps.115.3 million, to Ps.526.6 million in Colombia. Consolidated EBITDA margin in 3Q24 was 62.8% compared to 66.2% in 3Q23. ASUR 3Q24 Page 4 of 24 Adjusted EBITDA Margin , which excludes the effect of IFRIC 12 with respect to the construction of or improvements to concessioned assets in Mexico, Puerto Rico, and Colombia, was 68.3% in 3Q24, compared to 69.6% in 3Q23. Comprehensive Financing Gain (Loss) In 3Q24 ASUR reported a Ps.906.5 million Consolidated Comprehensive Financing Gain , compared to a Ps.143.0 million gain in 3Q23. This variation is mainly attributed to a foreign exchange gain of Ps.653.7 million in 3Q24 compared to a foreign exchange gain of Ps.126.7 million in 3Q23. The foreign exchange gain in 3Q24 resulted from the 7.6% quarter-end depreciation of the Mexican peso against the U.S. dollar on a U.S. dollar net asset position (3.7% average depreciation) during the covered period. The foreign exchange gain in 3Q23 resulted from the 1.6% quarter-end depreciation of the Mexican peso against the U.S. dollar on a U.S. dollar net asset position (0.5% average appreciation) during the covered period. Interest income increased 63.9%, or Ps.188.4 million reflecting a higher cash balance position, while interest expenses declined 17.3%, or Ps.48.1 million resulting from principal payments made in connection to indebtedness incurred in Mexico and Puerto Rico, and the Ps.10.3 million the amortization of the bank facility in Colombia. Income Taxes Income Taxes for 3Q24 increased Ps.520.0 million YoY, principally due to the following variations: Net Majority Income During 3Q24, ASUR reported a Net Majority Income of Ps.3,381.2 million, an increase from the Ps.2,709.5 million net majority income in 3Q23. This resulted in earnings per common share in 3Q24 of Ps.11.2706, or earnings per ADS of US$ 5.7374 (one ADS represents ten (10) series B common shares), compared to earnings per share of Ps.9.0318, or earnings per ADS of US$4.5977 in 3Q23. Net Income ASUR reported Net Income of Ps.3,474.5 million in 3Q24, an increase of 23.8%, or Ps.667.4.0 million, from Ps.2,807.1 million in 3Q23. Consolidated Financial Position Airport concessions represented 67.2% of ASUR's total assets as of September 30, 2024, with current assets representing 30.3% and other assets 2.5%. ASUR 3Q24 Page 5 of 24 As of September 30, 2024, cash and cash equivalents amounted to Ps.18,483.6 million, a 33.2% increase from Ps.13,872.9 million as of December 31 2023. Cash and cash equivalents in México, Colombia and Puerto Rico amounted to Ps.13,379.2 million, Ps.2,900.5 million and Ps.2,203.9 million, respectively. As of September 30, 2024, the valuation of ASUR's investment in Aerostar in accordance with IFRS 3 "Business Combinations," had the following effects on its balance sheet: (i) the recognition of a net intangible asset of Ps.5,090.3 million, (ii) goodwill of Ps.938.5 million (net of an impairment of Ps.4,719.1 million), (iii) deferred taxes of Ps.509.0 million, and (iv) a minority interest of Ps.5,054.3 million in stockholders' equity. The valuation of ASUR's investment in Airplan, in accordance with IFRS 3 "Business Combinations", resulted in the following effects on the balance sheet as of September 30, 2024: (i) the recognition of a net intangible asset of Ps.828.6 million, (ii) goodwill of Ps.1,541.0 million, (iii) deferred taxes of Ps.255.4 million, and (iv) a Ps.98.8 million recognition of bank loans at fair value. As of September 30, 2024, Stockholders' equity was Ps.57,896.0 million and total liabilities were Ps.20,534.2 million, representing 73.8% and 26.2% of ASUR's total assets, respectively. Deferred liabilities represented 18.1% of ASUR's total liabilities. As of September 30, 2024, Total Debt increased by 3.3% to Ps.12,630.4 million from Ps. 12,224.8 million as of December 31, 2023, mainly reflecting: (i) the FX conversion impact of the Mexican peso depreciation against the U.S. dollar and the Colombian peso, and (ii) payment of principal amounts of outstanding debt of Ps.127.0 million in Puerto Rico. As of September 30, 2024, 19.2% of ASUR's Total Debt was denominated in Mexican pesos, 77.5% in U.S. Dollars (incurred by Aerostar in Puerto Rico) and 3.3% in Colombian pesos (debt incurred by Airplan in Colombia). In July 2022, Aerostar in Puerto Rico issued US$200 million principal amount of 4.92% senior secured notes due March 22, 2035. In May 2022, Aerostar renegotiated the terms of its US$50 million principal amount of 6.75% senior secured notes originally due on June 24, 2015, and extended their maturity through March 22, 2035. All long-term debt is collateralized by Aerostar's assets. On November 15, 2023, Aerostar renewed the US$20.0 million revolving credit facility with Banco Popular de Puerto Rico, with a maturity date of December 29, 2026. As of June 30, 2024, no credit line has been drawn under this facility. In April 2023, Banco Popular transferred to the Bank of Bogotá its interests under the syndicated loan entered into with Airplan by issuing promissory notes under the same terms and conditions than the original loan. In July 2024, ASUR restructured its line of credit with BBVA Mexico so that the principal amount owed under this facility be paid on the maturity date on July 11, 2029. The annual interest rate is equivalent to the 28-day TIIE rate plus an applicable margin of 1.35 points. LTM Net Debt-to-LTM EBITDA stood at negative 0.3x as of September 30, 2024, while the Interest Coverage Ratio was 12.1x. This compared to LTM Net Debt-to-LTM EBITDA of negative 0.3x and an Interest Coverage Ratio of 11.4x as of September 30, 2023, respectively. ASUR 3Q24 Page 6 of 24 Strong Liquidity Position and Healthy Debt Maturity Profile ASUR closed 3Q24 with a solid financial position, with cash and cash equivalents totaling Ps.18,483.6 million and Ps.12,630.4 million in Total Debt. The following table shows the liquidity position for each of ASUR's regions of operations: ASUR 3Q24 Page 7 of 24 Accounts Receivables Accounts receivables increased 26.3% YoY in 3Q24, mainly driven by increased activity in Mexico and Colombia. On February 28 and March 29, 2023, Viva Colombia and Ultra Air in Colombia suspended operations. At the end of 3Q24, these two companies owed ASUR Ps.15.2 million and Ps.10.6 million, respectively and such amounts have been provisioned. Capital Expenditures During 3Q24 ASUR made capital expenditures of Ps.1,042.4 million. Of this amount, Ps.876.7 million were allocated to modernizing the Company's Mexican airports pursuant to its master development plans, Ps.164.5 million were invested by Aerostar in Puerto Rico and Ps.1.2 million were invested by Airplan in Colombia. This compared to Ps.367.4 million invested in 3Q23, of which Ps.235.6 million were invested in Mexico, Ps.129.7 million in Puerto Rico and Ps.2.1 million in Colombia. On an accumulated basis, ASUR made capital expenses for a total of Ps.1,861.8 million in 9M24, of which Ps.1,445.5 million were allocated to its Mexican airports, Ps.410.6 million invested by Aerostar in Puerto Rico and Ps.6.6 million invested by Airplan in Colombia. This compares to a total of Ps.663.3 million invested in 9M23, of which Ps.387.1 million were allocated to its Mexican airports, Ps.267.3 million in Puerto Rico and Ps.8.9 million in Colombia. ASUR 3Q24 Page 8 of 24 Review of Mexico Operations Mexico Revenues Mexico Revenues increased 17.1% YoY to Ps.5,386.4 million, mainly reflecting the new terms of the Master Development Plan published on December 13, 2023, and effectively starting on January 1, 2024. Excluding construction, revenues increased 11.8% YoY, mainly due to increases of 19.3% in revenues from aeronautical services and 0.9% in revenues from non-aeronautical services. Commercial Revenues decreased by 1.7% YoY, as shown in Table 12, mainly due to the 10.4% decline in passenger traffic. Commercial Revenues per Passenger for 3Q24 increased to Ps.149.0 from Ps.135.9 in 3Q23. ASUR classifies commercial revenues as those derived from the following activities: duty-free stores, car rentals, retail operations, banking and currency exchange services, advertising, teleservices, non-permanent ground transportation, food and beverage operations, parking lot fees, and other. As shown in Table 14, during the last 12 months, ASUR opened 18 new commercial spaces, 8 at Merida, 2 each at Huatulco, Tapachula, and Veracruz airports, and 1 each at Oaxaca, Cozumel, Minatitlan, and Villahermosa airports. More details of these openings can be found on page 20 of this report. ASUR 3Q24 Page 9 of 24 Mexico Operating Costs and Expenses Total Mexico Operating Costs and Expenses increased 29.9% YoY, or Ps.471.9 million. Excluding construction costs, operating costs and expenses increased 14.8%, or Ps.206.6 million, mainly due to higher concession fees, personnel expenses, professional fees, insurance and surety bond expenses, surveillance and cleaning services, and maintenance and conservation costs. Cost of Services increased 7.7% YoY, primarily due to higher costs in connection with personnel, surveillance insurance and surety bond expenses, professional fees, surveillance and cleaning services, maintenance, and conservation Administrative Expenses declined 22.2% YoY. The Technical Assistance fee declined 46.1% YoY, principally due to the reduction in the technical assistance fees charged by ITA to 2.5% from 5.0% of the EBITDA generated by ASUR's Mexican operations starting January 1, 2024. Concession Fees , which include fees paid to the Mexican government, increased by 108.7% YoY, principally due to the increase in the concession fee rate to 9% from 5% starting January 1, 2024 and the increase in the tariff calculation base set forth in the Mexican concession titles. Depreciation and Amortization increased 13.1% YoY, due to the recognition of investments made to date. Mexico Consolidated Comprehensive Financing Gain (Loss) During 3Q24, ASUR's Mexico operations reported a Ps.947.2 million Comprehensive Financing Gain, compared to a Ps.200.8 million in 3Q23. This was mainly due to a Ps.654.0 million foreign exchange gain reported in 3Q24, resulting from the 7.6% quarter-end depreciation of the Mexican peso against the U.S. dollar on a foreign currency net asset position (3.7% average depreciation). This compared to a Ps.125.5 million foreign exchange gain in 3Q23, resulting from the 1.6% quarter-end depreciation of the Mexican peso during that period against the U.S. dollar on a foreign currency net asset position (0.5% average appreciation). Interest income increased 97.6% YoY, or Ps.187.4 million, mainly resulting from a higher cash balance, while interest expenses declined 26.1%, or Ps.30.5 million YoY mainly due to principal payments in 2023 and 1H24. ASUR 3Q24 Page 10 of 24 Mexico Operating Profit (Loss) and EBITDA Mexico reported an Operating Gain of Ps.3,336.1 million and an Operating Margin of 61.9% in 3Q24. This compared to an Operating Gain of Ps.3,020.3 million and an Operating Margin of 65.7% in 3Q23. Adjusted Operating Margin for 3Q24 was 67.6% compared with 68.4% in 3Q23. Adjusted Operating Margin excludes the effect of IFRIC 12 with respect to the construction of or improvements to concessioned assets and is calculated as operating profit divided by total revenues excluding construction services revenues. EBITDA increased 10.7%, or Ps.351.9 million, to Ps.3,635.4 million in 3Q24, from Ps.3,283.6 million in 3Q23. EBITDA margin in 3Q24 was 67.5% compared to 71.4% in 3Q23. Adjusted EBITDA Margin , which excludes the effect of IFRIC 12 with respect to the construction of or improvements to concessioned assets, was 73.6% in 3Q24, compared to 74.4% in 3Q23. Mexico Tariff Regulation The Mexican Ministry of Communications and Transportation regulates the majority of ASUR's activities by setting maximum rates, which represent the maximum possible revenues allowed per traffic unit at each airport. ASUR's accumulated regulated revenues at its Mexican operations, as of September 30, 2024 totaled Ps.10,771.8 million, with an average tariff per workload unit of Ps.311.3 (December 2023 Mexican pesos), representing approximately 68.7% of total income in Mexico (excluding construction revenues) for the period. The Mexican Ministry of Communications and Transportation reviews compliance with maximum rate regulations at the end of each year. Mexico Capital Expenditures During 3Q24 ASUR invested Ps.876.7 million in connection with its plan to modernize its Mexican airports under its master development plans, compared to an investment of Ps.235.6 million in 3Q23. On an accumulated basis, capital investments in Mexican operations totaled Ps.1,444.5 million, compared to Ps.387.1 million in 3Q23. Review of Puerto Rico Operations The following discussion compares Aerostar's independent results for the three and nine-month periods ended September 30, 2023 and 2024. As of September 30, 2024, the valuation of ASUR's investment in Aerostar in accordance with IFRS 3 "Business Combinations," had the following effects on its balance sheet: (i) the recognition of a net intangible asset of ASUR 3Q24 Page 11 of 24 Ps.5,090.3 million, (ii) goodwill of Ps.938.5 million (net of an impairment of Ps.4,719.1 million), (iii) deferred taxes of Ps.509.0 million, and (iv) a minority interest of Ps.5,054.3 million in stockholders' equity. Puerto Rico Revenues Total Puerto Rico Revenues increased 14.5% YoY to Ps.1,215.6 million in 3Q24. Excluding construction services, revenues increased by 13.0% YoY, mainly due to increases of 14.5% in revenues from non-aeronautical services and 11.7% in revenues from aeronautical services. Commercial Revenues per Passenger were Ps.152.4 in 3Q24, compared to Ps.139.2 in 3Q23. Five commercial spaces were opened at Luis Muñoz Marin (LMM) Airport over the last 12 months, as shown in Table 20. More details can be found on page 20 of this report. ASUR classifies commercial revenues as those derived from the following activities: duty-free stores, car rentals, retail operations, advertising, non-permanent ground transportation, food and beverage operations, parking lot fees, banking and currency exchange services, and others. ASUR 3Q24 Page 12 of 24 Puerto Rico Costs & Expenses Total Operating Costs and Expenses for 3Q24 in Puerto Rico increased 21.3% YoY to Ps.872.1 million. Construction costs increased 26.1%, to Ps.149.6 million in 3Q24 from Ps.118.6 million in 3Q23. Excluding construction costs, operating costs and expenses increased 20.4% YoY, or Ps.122.3 million, mainly due to foreign exchange gain from the Mexican peso depreciation against the US dollar, together with increases in personnel and energy costs, insurance and surety bonds, licenses, security costs, concession fees and depreciation and amortization. Cost of Services increased 20.7%, or Ps.81.8 million in 3Q24, principally reflecting peso devaluation against the US dollar, together with higher personnel and energy costs, insurance and surety bonds, licenses, security services, professional fees, concession fees, and depreciation and amortization. Concession Fees paid to the Puerto Rican government in 3Q24 increased 14.0% YoY, or Ps.6.3 million. Depreciation and Amortization increased 21.2% YoY, or Ps.34.1 million, principally reflecting the foreign exchange translation impact. Puerto Rico Comprehensive Financing Gain (Loss) During 3Q24, Puerto Rico reported a Ps.101.4 million Comprehensive Financing Loss , compared to a Ps.90.1 million loss in 3Q23, mainly due to principal payments made on Aerostar's outstanding debt. On March 22, 2013, Aerostar carried out a private bond placement for a total of US$350.0 million to finance a portion of the Concession Agreement payment to the Puerto Rico Ports Authority, and certain other costs and expenditures associated with it. On June 24, 2015, Aerostar carried out a private bond placement for a total of US$50.0 million. In May 2022, Aerostar renegotiated the terms of its US$50.0 million principal amount of 6.75% senior secured notes, extending the maturity to March 22, 2035. In July 2022, Aerostar in Puerto Rico issued US$200.0 million principal amount of 4.92% senior secured notes due March 22, 2035. On November 15, 2023, Aerostar extended the maturity date of the US$20 million revolving credit line with Banco Popular de Puerto Rico, now maturing on December 29, 2026. As of September 30, 2024, no amounts have been drawn under this credit line. All long-term debt is collateralized by Aerostar's assets. ASUR 3Q24 Page 13 of 24 Puerto Rico Operating Profit and EBITDA Operating Profit in Puerto Rico increased 0.2% to Ps.343.5 million, resulting in an Operating Margin of 28.3%, compared to an operating profit of Ps.342.9 million and an Operating Margin of 32.3% in 3Q23. EBITDA increased 6.9% to Ps.538.3 million in 3Q24 from Ps.503.6 million 3Q23. The EBITDA Margin declined to 44.3% in 3Q24 from 47.4% in 3Q23. Adjusted EBITDA Margin (which excludes IFRIC 12) declined to 50.5% in 3Q24 from 53.4% in 3Q23. Puerto Rico Capital Expenditures During 3Q24, capital expenditures totaled Ps.164.5 million, compared to capital expenditures of Ps.129.6 million in 3Q23. On an accumulated basis, total capital expenditures increased to Ps.410.6 million in 9M24, compared to Ps.267.3 million in 9M23. Puerto Rico Tariff Regulation The Airport Use Agreement entered into by and among Aerostar, the airlines serving LMM Airport, and the Puerto Rico Ports Authority governs the relationship between Aerostar and the principal airlines serving LMM Airport. The agreement entitles Aerostar to an annual contribution from the airlines of US$62.0 million during the first five years of the term. From year six onwards, the total annual contribution for the prior year increases in accordance with an adjusted consumer price index factor based on the U.S. non-core consumer price index. The annual fee is divided between the airlines that operate at LMM Airport in accordance with the regulations and structure defined under the Airport Use Agreement to establish the contribution of each airline for each particular year. Review of Colombia Operations The following discussion compares Airplan's independent results for the three- and nine-month periods ended September 30, 2024 and 2023. The valuation of ASUR's investment in Airplan, in accordance with IFRS 3 "Business Combinations", resulted in the following effects on the balance sheet as of September 30, 2024: (i) the recognition of a net intangible asset of Ps.828.6 million, (ii) goodwill of Ps.1,541.0 million, (iii) deferred taxes of Ps.255.4 million, and (iv) a Ps.98.8 million recognition of bank loans at fair value. ASUR 3Q24 Page 14 of 24 Colombia Revenues Total Revenues in Colombia increased 29.9% YoY to Ps.881.3 million. Excluding construction services, revenues increased 30.2% YoY, principally reflecting the increase in total passenger traffic during the period. Commercial Revenue per Passenger was Ps.52.0 compared to Ps.43.3 in 3Q23. As shown in Table 26, during the past twelve-months a total of 31 new commercial spaces were opened in Colombia: 13 in Rionegro, 9 in Olaya Herrera, 3 each in MonterÃa and Quibdó, 2 in the Service Center and 1 in Corozal. Further details of these openings can be found on page 20 of this report. ASUR classifies commercial revenues as those derived from the following activities: duty-free stores, car rentals, retail operations, advertising, non-permanent ground transportation, food and beverage operations, parking lot fees, teleservices, banking and currency exchange services and other. Colombia Costs & Expenses ASUR 3Q24 Page 15 of 24 Total Operating Costs and Expenses in Colombia increased 27.7% YoY to Ps.463.8 million. Excluding construction costs, operating costs and expenses increased 28.2% YoY to Ps.462.6 million, principally due to increases in maintenance and conservation, personnel, taxes and duties, security and cleaning, professional fees, insurance and surety bond costs, concession fees and energy costs. Cost of Services increased 34.2% YoY, or Ps.47.3 million, principally resulting from higher maintenance and conservation costs, personnel expenses, professional fees, taxes and duties, as well as security, cleaning, surety bond costs, and energy costs. Construction Costs decreased by 48.0% YoY, or Ps.1.1 million. Concession Fees , which include fees paid to the Colombian government, increased 32.7% YoY, principally due to the increase in regulated and non-regulated revenues during the period. Depreciation and Amortization increased 13.7% YoY. Colombia Comprehensive Financing Gain (Loss) During 3Q24, Colombia reported a Ps.60.6 million Comprehensive Financing Gain , compared to a Ps.32.3 million gain in 3Q23. Interest expenses declined by Ps.25.7 million, mainly due to the payment of the principal amounts due under the COP 100,000 million syndicated loan in April 2024, and a Ps.10.3 million benefit obtained from the amortization of the fair value of the loan originated by the acquisition of the Colombia business. Interest income increased 7.0%, or Ps.4.2 million, reflecting a higher cash position and rates. Colombia Operating Profit (Loss) and EBITDA ASUR's Colombian operations reported an Operating Profit of Ps.417.6 million in 3Q24, compared to Ps.315.4 million in 3Q23. Operating margin was 47.4% in 3Q24, compared to 46.5% in 3Q23. The Adjusted operating margin, which excludes the effect of IFRIC12 with respect to construction or improvements to concessioned assets, increased to 47.4% in 3Q24 from 46.6% in 3Q23. EBITDA in 3Q24 was Ps.536.6 million, resulting in an EBITDA margin of 59.8%. This compared to an EBITDA of Ps.411.3 million and an EBITDA margin of 60.6% in 3Q23. ASUR 3Q24 Page 16 of 24 The Adjusted EBITDA Margin , which excludes the effect of IFRIC12 with respect to the construction or improvements of the concessioned assets was 59.8% in 3Q24, compared to 60.8% in 3Q23, principally reflecting the 30.2% YoY increase in revenues while costs increased 28.2%. Colombia Capital Expenditures Capital expenditures in Colombia amounted to Ps.1.2 million in 3Q24 compared to Ps.2.1 million in 3Q23. During 9M24 capital expenditures totaled Ps.6.6 million compared to Ps.8.8 million in 9M23. Colombia Tariff Regulation Functions of the Special Administrative Unit of Civil Aeronautics include establishing and collecting fees, tariffs, and rights for the provision of aeronautical and airport services or those generated by concessions, authorizations, licenses, or any other type of income or property. As a result, Resolution 04530, issued on September 21, 2007, establishes tariffs for the rights and the rates conceded to the concessionaire of the following airports: José MarÃa Córdova of Rionegro, Enrique Olaya Herrera of MedellÃn, Los Garzones of MonterÃa, El Caraño of Quibdó, Antonio Roldán Betancourt of Carepa, and Las Brujas of Corozal. This resolution also established the methodology to update and the mechanisms to collect such fees, tariffs, and rights. During 3Q24, regulated revenues in Colombia amounted to Ps.648.2 million. Definitions Concession Services Agreements (IFRIC 12 interpretation). In Mexico and Puerto Rico, ASUR is required by IFRIC 12 to include in its income statement an income line, "Construction Revenues," reflecting the revenue from construction of, or improvements to concessioned assets made during the relevant period. The same amount is recognized under the expense line "Construction Costs" because ASUR hires third parties to provide construction services. Because equal amounts of Construction Revenues and Construction Costs have been included in ASUR's income statement as a result of the application of IFRIC 12, the amount of Construction Revenues does not have an impact on EBITDA, but it does have an impact on EBITDA Margin. In Colombia, "Construction Revenues" include the recognition of the revenue to which the concessionaire is entitled for carrying out the infrastructure works in the development of the concession, while "Construction Costs" represents the actual costs incurred in the execution of such additions or improvements to the concessioned assets. Majority Net Income reflects ASUR's equity interests in each of its subsidiaries and therefore excludes the 40% interest in Aerostar that is owned by other shareholders. Other than Aerostar, ASUR owns (directly or indirectly) 100% of its subsidiaries. EBITDA means net income before provision for taxes, deferred taxes, profit sharing, non-ordinary items, participation in the results of associates, comprehensive financing cost, and depreciation and amortization. EBITDA should not be considered as an alternative to net income, as an indicator of our operating performance, as an alternative to cash flow or as an indicator of liquidity. Our management believes that EBITDA provides a useful measure that is widely used by investors and analysts to evaluate our performance and compare it with other companies. EBITDA is not defined under U.S. GAAP or IFRS and may be calculated differently by different companies. Adjusted EBITDA Margin is calculated by dividing EBITDA by total revenues excluding construction services revenues for Mexico, Puerto Rico, and Colombia and excludes the effect of IFRIC 12 with respect to the construction of, or improvements to concessioned assets. ASUR is required by IFRIC 12 to include in its income statement an income line reflecting the revenue from construction of, or improvements to concessioned assets made during the relevant period. The same amount is recognized under the expense line "Construction Costs" because ASUR hires third parties to provide construction services. In Mexico and Puerto Rico, because equal amounts of Construction Revenues and Construction Costs have been included in ASUR's income statement as a result of the application of IFRIC 12, the amount of Construction Revenues does not have an impact on EBITDA, but it does have an impact on EBITDA Margin, as the increase in revenues that relates to Construction Revenues does not result in a corresponding increase in EBITDA. In Colombia, construction revenues do have an impact on EBITDA, as construction revenues include a reasonable margin over the actual cost of construction. Like EBITDA Margin, Adjusted EBITDA Margin should not be considered as an indicator of our operating performance, ASUR 3Q24 Page 17 of 24 as an alternative to cash flow or as an indicator of liquidity and is not defined under U.S. GAAP or IFRS and may be calculated differently by different companies. About ASUR Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASUR) is a leading international airport operator with a portfolio of concessions to operate, maintain, and develop 16 airports in the Americas. These comprise nine airports in southeast Mexico, including Cancun Airport, the most important tourist destination in Mexico, the Caribbean, and Latin America, and six airports in northern Colombia, including José MarÃa Córdova International Airport (Rionegro), the second busiest airport in Colombia. ASUR is also a 60% JV partner in Aerostar Airport Holdings, LLC, operator of the Luis Muñoz MarÃn International Airport serving the capital of Puerto Rico, San Juan. San Juan's Airport is the island's primary gateway for international and mainland-US destinations and was the first and currently the only major airport in the US to have successfully completed a public-private partnership under the FAA Pilot Program. Headquartered in Mexico, ASUR is listed both on the Mexican Bolsa, where it trades under the symbol ASUR, and on the NYSE in the U.S., where it trades under the symbol ASR. One ADS represents ten (10) series B shares. For more information, visit www.asur.com.mx Analyst Coverage In accordance with Article 4.033.01 of the Mexican Stock Exchange Internal Rules, ASUR reports that the stock is covered by the following broker-dealers: Actinver, Banorte, Barclays, BBVA, Bradesco, BTG Pactual, Citi Global Markets, GBM Grupo Bursatil, Goldman Sachs, HSBC Securities, Insight Investment Research, Intercam, Itau BBA Securities, Jefferies, JP Morgan, Punto Research, Santander, Scotiabank, Signum Research, UBS Casa de Bolsa and Vector. Please note that any opinions, estimates or forecasts with respect to the performance of ASUR issued by these analysts reflect their own views, and therefore do not represent the opinions, estimates or forecasts of ASUR or its management. Although ASUR may refer to or distribute such statements, this does not imply that ASUR agrees with or endorses any information, conclusions or recommendations included therein. Forward Looking Statements Some of the statements contained in this press release discuss future expectations or state other forward-looking information. Those statements are subject to risks identified in this press release and in ASUR's filings with the SEC. Actual developments could differ significantly from those contemplated in these forward-looking statements. The forward-looking information is based on various factors and was derived using numerous assumptions. Our forward-looking statements speak only as of the date they are made and, except as may be required by applicable law, we do not have an obligation to update or revise them, whether as a result of new information, future or otherwise. Contacts: - SELECTED OPERATING TABLES & FINANCIAL STATEMENTS FOLLOW - ASUR 3Q24 Page 18 of 24 ASUR 3Q24 Page 19 of 24 ASUR 3Q24 Page 20 of 24 ASUR 3Q24 Page 21 of 24 ASUR 3Q24 Page 22 of 24 ASUR 3Q24 Page 23 of 24 ASUR 3Q24 Page 24 of 24 Attachments Original document Permalink Disclaimer ASUR - Grupo Aeroportuario del Sureste SA de CV published this content on October 23, 2024 , and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on October 23, 2024 at
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