The following is a summary of the Aena S.M.E., S.A. (ANYYY) Q4 2023 Earnings Call Transcript:
Financial Performance:
Aena reported Q4 total ordinary revenue over €5 billion, marking a new record. Aeronautical revenue was at €2.8 billion, and commercial revenue at €1.5 billion.
The company reported a net profit of over €1.6 billion, the highest in the company's history.
Operating expenses for Q4 were around €3 billion, a significant variation due to a reversal of the impairment of the airports of Northeast Brazil, amounting to €155.5 million. EBITDA for the period was about €3 billion, with an EBITDA margin of 58.8%.
The board proposes an approval of a gross dividend of €7.66 per share, a new record high.
Tax payments in 2023 saw an exceptional increase, reaching €447 million from €177 million in the preceding year.
Business Progress:
Aena saw a 16% increase in traffic to 314 million passengers year-on-year, marking a 2.3% increase compared to 2019 levels.
Commercial contracts recently awarded significantly contributed to an increase in contracts average.
Recovery from the pandemic and return to normal travel conditions boosted performance, as traffic has been steadily increasing.
The company is exploring opportunities for global investment and is also considering options for potential hedging to mitigate future volatility in the cost structure.
Major goal for Aena is to increase EBITDA from international activities while strictly adhering to the risk and return criteria.
The company is energized by the recent change in the UK regulation, which gives Aena an opportunity to offer a wider Duty-Free range to non-European Union UK passengers.
Anticipating the impacts of new regulatory constraints includes adherence to the IMAP (International Mission Assurance Program) Index, which will be applied shortly.
The company achieved international growth, primarily in Brazil, surpassing 2019 levels by 17%.
The winning of significant contracts for rental car activity and Specialty Shops & Food & Beverage businesses are targeted for 2024.
The Spanish Government approved the 2024 tariffs proposal, which includes an increase of 4.09% or €0.40 per passenger.
Aena was included for the first time in the Dow Jones Sustainability Index, reinforcing the company's commitment to sustainability.
The company is focusing on expanding operations, especially in Brazil, and maintaining its industry position. Aena remains open to international opportunities, adhering to asset quality, price, and regulatory risk considerations.
More details: AENA SME S.A. UNSP ADR EACH REPR 0.1 ORD SHS IR
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