Press release content from Business Wire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

Corporación América Airports Announces 3Q19 Results

November 22, 2019 GMT


Corporación América Airports S.A. (NYSE: CAAP), (“CAAP” or the “Company”) the largest private sector airport operator based on the number of airports under management and the tenth largest private sector airport operator worldwide based on passenger traffic, reported today its unaudited, consolidated results for the three- and nine- month periods ended September 30, 2019. Financial results are expressed in millions of U.S. dollars and are prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting” (“IAS 34”) as issued by the International Accounting Standards Board.

Commencing 3Q18, the Company began reporting results of its Argentinean subsidiaries applying Hyperinflation Accounting, in accordance to IFRS rule IAS 29 (“IAS 29”), as detailed on Section “Hyperinflation Accounting in Argentina”.

Third Quarter 2019 Highlights

  • Consolidated revenues of $417.1 million, up 19.9% YoY. Excluding the impact of IFRS rule IAS 29, revenues increased 12.6% to $438.0, mainly due to higher construction service revenue in Argentina reflecting higher capex in the period.
  • Performance of key operating metrics:
    • Passenger traffic up 1.4% YoY to 22.5 million
    • Cargo volume increased 4.1% to 98.6 thousand tons
    • Aircraft movements declined 2.3% to 225.7 thousand
  • Operating Income declined 29.0% YoY, to $61.8 from $87.0, mainly impacted by a bad debt provision of $23.1 in Argentina and the impact of IAS 29. The operating margin contracted to 14.8% from 25.0% in 3Q18
  • Adjusted EBITDA was $99.9 million, down 18.5% YoY, with Adjusted EBITDA margin Ex-IFRIC12 contracting 812 bps to 32.3%. Excluding, the bad debt provision recorded in Argentina, Adjusted EBITDA would have been $125.2 million
  • Ex-IAS 29, Adjusted EBITDA declined 25.5% YoY, to $102.1 million, and Adjusted EBITDA margin Ex-IFRIC12 contracted 898 bps to 31.7%. Excluding, the bad debt provision recorded in Argentina, the Adjusted EBITDA margin Ex-IFRIC12 would have been 38.9%

CEO Message

Commenting on third quarter 2019 results, Mr. Martín Eurnekian, CEO of Corporación América Airports, noted: “We continue to navigate unfavorable market conditions, particularly in Argentina, our largest market, and to a lesser extent in Brazil, which impacted our performance in this quarter. Over 22 million passengers travelled through our 52 airports in 3Q19, up over 1% year-on-year, reflecting 4% and 3% growth in domestic and international traffic, respectively, partially offset by a double-digit decline in transit passengers. Traffic at our Brazilian airports continued to be impacted by the cessation of operations of Avianca Brasil.

In Argentina, we continue to experience a mix shift towards more affordable domestic traffic and weaker commercial revenues. Profitability in this market was also impacted by a $23.1 million bad debt provision recorded this quarter related to past due commercial revenues and aircraft fees accumulated for over a year from a local airline.

Despite these challenges, and excluding this bad debt charge, comparable Adjusted EBITDA margin Ex-IFRIC12 was at 39%.

Looking ahead, while we face complex macroeconomic dynamics and low visibility in Argentina, we continue advancing on our investment program to capture additional growth when the economy picks up. In Brazil, we remain focused on adding new domestic and international routes to gradually restore Avianca Brasil’s former capacity at Brasilia Airport. In Italy, we expect to deliver positive traffic growth this year and have begun works at Pisa Airport as we continue to monitor the evolution of Alitalia and the development of Brexit.

In sum, while in the near term we continue to face several headwinds, principally in Argentina and Brazil, we have a successful track record of operating in Argentina for over two decades in different macro cycles. Our resilient business model with over 80% of revenues generated in US dollars is further supported by a solid balance sheet. This provides flexibility as we move ahead in the execution of our investment projects to further expand and modernize our airport network to meet growing demand when the macro environment improves.”

Operating & Financial Highlights


(In millions of U.S. dollars, unless otherwise noted)




3Q19 as


3Q18 as


% Var as


IAS 29


3Q19 ex IAS


3Q18 ex IAS


% Var ex IAS

Passenger Traffic (Million Passengers)(1)






























Aeronautical Revenues















Non-Aeronautical Revenues















Revenue excluding construction service















Operating Income















Operating Margin















Net (Loss) / Income Attributable to Owners of the Parent






























Adjusted EBITDA















Adjusted EBITDA Margin















Adjusted EBITDA Margin excluding Construction Service















Net Debt to LTM EBITDA















Note: Figures in historical dollars (excluding IAS29) are included for comparison purposes.

1) Preliminary data on 750 flights in August and 873 flights in September at Brasilia Airport, due to delays in the submission of information by third parties

To obtain the full text of this earnings release and the earnings presentation, please click on the following link: http://investors.corporacionamericaairports.com/Results-Center




9:00 a.m. Eastern time, November 22, 2019



Mr. Martín Eurnekian, Chief Executive Officer



Mr. Raúl Francos, Chief Financial Officer



Ms. Gimena Albanesi, Head of Investor Relations



1-888-347-6492 (U.S. domestic); 1-412-317-5258 (international)






Participants can access the replay through November 29, 2019 by dialing:



1-877-344-7529 (U.S. domestic) and 1-412-317-0088 (international). Replay ID: 10136474.

Use of Non-IFRS Financial Measures

This announcement includes certain references to Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA excluding Construction Service and Adjusted EBITDA Margin excluding Construction service, as well as Net Debt:

Adjusted EBITDA is defined as income for the period before financial income, financial loss, income tax expense, depreciation and amortization.

Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenues.

Adjusted EBITDA excluding Construction Service (“Adjusted EBITDA ex-IFRIC”) is defined as income for the period before construction services revenue and cost, financial income, financial loss, income tax expense, depreciation and amortization.

Adjusted EBITDA Margin excluding Construction Service (“Adjusted EBITDA Margin ex-IFRIC12”) excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets and is calculated by dividing Adjusted EBITDA excluding Construction Service revenue and cost, by total revenues less Construction service revenue.

Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA excluding Construction Service and Adjusted EBITDA Margin excluding Construction Service are not measures recognized under IFRS and should not be considered as an alternative to, or more meaningful than, consolidated net income for the year as determined in accordance with IFRS or as indicators of our operating performance from continuing operations. Accordingly, readers are cautioned not to place undue reliance on this information and should note that these measures as calculated by the Company, may differ materially from similarly titled measures reported by other companies. We believe that the presentation of Adjusted EBITDA and Adjusted EBITDA excluding Construction Service enhances an investor’s understanding of our performance and are useful for investors to assess our operating performance by excluding certain items that we believe are not representative of our core business. In addition, Adjusted EBITDA and Adjusted EBITDA excluding Construction Service are useful because they allow us to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to our financing methods, capital structure or income taxes and construction services (when applicable).

Net debt is calculated by deducting “Cash and cash equivalents” from total financial debt.

Figures ex-IAS 29 result from dividing nominal Argentine pesos for the Argentine Segment, by the average foreign exchange rate of the Argentine Peso against the US Dollar in the period. Percentage variations ex-IAS 29 figures compare results as presented in the prior year quarter before IAS 29 came into effect, against ex-IAS 29 results for this quarter as described above. For comparison purposes the impact of adopting IAS 29 in Aeropuertos Argentina 2000, the Company’s largest subsidiary in Argentina, is presented separately in each of the applicable sections of this earnings release, in a column denominated “IAS 29”. The impact from “Hyperinflation Accounting in Argentina” is described in more detail page 19 of this report.

Definitions and Concepts

Commercial Revenues: CAAP derives commercial revenue principally from fees resulting from warehouse usage (which includes cargo storage, stowage and warehouse services and related international cargo services), services and retail stores, duty free shops, car parking facilities, catering, hangar services, food and beverage services, retail stores, including royalties collected from retailers’ revenue, and rent of space, advertising, fuel, airport counters, VIP lounges and fees collected from other miscellaneous sources, such as telecommunications, car rentals and passenger services.

Construction Service revenue and cost: Investments related to improvements and upgrades to be performed in connection with concession agreements are treated under the intangible asset model established by IFRIC 12. As a result, all expenditures associated with investments required by the concession agreements are treated as revenue generating activities given that they ultimately provide future benefits, and subsequent improvements and upgrades made to the concession are recognized as intangible assets based on the principles of IFRIC 12. The revenue and expense are recognized as profit or loss when the expenditures are performed. The cost for such additions and improvements to concession assets is based on actual costs incurred by CAAP in the execution of the additions or improvements, considering the investment requirements in the concession agreements. Through bidding processes, the Company contracts third parties to carry out such construction or improvement services. The amount of revenues for these services is equal to the amount of costs incurred plus a reasonable margin, which is estimated at an average of 3.0% to 5.0%.

About Corporación América Airports

Corporación América Airports acquires, develops and operates airport concessions. The Company is the largest private airport operator in the world based on the number of airports and the tenth largest based on passenger traffic. Currently, the Company operates 52 airports in 7 countries across Latin America and Europe (Argentina, Brazil, Uruguay, Peru, Ecuador, Armenia and Italy). In 2018, Corporación América Airports served 81.3 million passengers. The Company is listed on the New York Stock Exchange where it trades under the ticker “CAAP”. For more information, visit http://investors.corporacionamericaairports.com

Forward Looking Statements

Statements relating to our future plans, projections, events or prospects are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “believes,” “continue,” “could,” “potential,” “remain,” “will,” “would” or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements, including, but not limited to: delays or unexpected casualties related to construction under our investment plan and master plans, our ability to generate or obtain the requisite capital to fully develop and operate our airports, general economic, political, demographic and business conditions in the geographic markets we serve, decreases in passenger traffic, changes in the fees we may charge under our concession agreements, inflation, depreciation and devaluation of the AR$, EUR, BRL, UYU, AMD or the PEN against the U.S. dollar, the early termination, revocation or failure to renew or extend any of our concession agreements, the right of the Argentine Government to buy out the AA2000 Concession Agreement, changes in our investment commitments or our ability to meet our obligations thereunder, existing and future governmental regulations, natural disaster-related losses which may not be fully insurable, terrorism in the international markets we serve, epidemics, pandemics and other public health crises and changes in interest rates or foreign exchange rates. The Company encourages you to review the ‘Cautionary Statement’ and the ‘Risk Factor’ sections of our annual report on Form 20-F for the year ended December 31, 2018 and any of CAAP’s other applicable filings with the Securities and Exchange Commission for additional information concerning factors that could cause those differences.

View source version on businesswire.com:https://www.businesswire.com/news/home/20191122005083/en/

CONTACT: Investor Relations Contact

Gimena Albanesi

Head of Investor Relations


Phone: +5411 4852-6411



SOURCE: Corporación América Airports S.A.

Copyright Business Wire 2019.

PUB: 11/22/2019 06:00 AM/DISC: 11/22/2019 06:00 AM