Corporacion America Airports Announces 4Q17 YoY Growth of 7.6% in Passenger Traffic and 8.4% in Revenues

Successfully Completes Initial Public Offering

Passenger traffic up 13.0% YoY in Argentina supported by positive market dynamics

LUXEMBOURG--()--Corporación América Airports S.A. (NYSE:CAAP), (“CAAP” or the “Company”) the largest private sector airport concession 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 twelve-month periods ended December 31, 2017. Financial results are expressed in millions of U.S. dollars and are prepared in accordance with International Financial Reporting Standards (IFRS).

Fourth Quarter 2017 Highlights

  • Revenues up 8.4% YoY to $416.6 million mainly driven by Argentina and Armenia and further supported by Italy and Uruguay
  • Positive dynamics across key operating metrics:
    • Passenger traffic up 7.6% YoY to 19.5 million;
    • Cargo volume increased 8.0% to 121.0 thousand tons; and
    • Aircraft movements rose 1.0% to 214.0 thousand
  • Consolidated Adjusted EBITDA reached $ 106.9 million, up 17.8% YoY
  • The Argentine government granted Aeropuertos Argentina 2000 S.A.(“AA2000”) the concession to operate the El Palomar Airport located in the province of Buenos Aires

2017 Highlights

  • Revenues up 15.3% YoY to $1.6 billion principally driven by Argentina and Armenia and further supported by all other concessions
  • Positive dynamics across key operating metrics:
    • Passenger traffic up 6.7% YoY to 76.6 million;
    • Cargo volume increased 8.1% to 389.8 thousand; and
    • Aircraft movements rose 1.8% to 851.3 thousand
  • Consolidated Adjusted EBITDA reached US$ 461.6 million, up 8.1% YoY
  • New flight routes in Argentina and Brazil

CEO Message

Commenting on the fiscal year 2017, Mr. Martin Eurnekian, CEO of Corporación América Airports, noted: “The year ended on a high note, posting strong traffic growth with more than 76 million passengers travelling through our airports worldwide, up almost 7% from 2016. This good performance was mainly supported by positive macro and industry dynamics across the regions in which we operate, along with our initiatives to add new flight routes and frequencies, which resulted in solid revenue and Adjusted EBITDA growth.”

“Our Argentine airports delivered record passenger traffic growth in the year, up 14% reaching 37 million passengers, reflecting new routes and additional flights to existing destinations along with the operation of new airlines, all of which contributed to increasing domestic connectivity and expanding international travel opportunities. We are also very pleased with the addition of our 37th airport in Argentina. In December 2017, the Argentine Government granted AA2000 the concession to operate El Palomar Airport. In Brazil, we are encouraged with the 4% growth in passenger traffic at the Brasilia Airport in 4Q17 contributing to annual traffic of 17 million passengers, signaling a recovery from the recession experienced in the country.”

"Our recent initial public offering was a strategic milestone for our Company and positions us among the few airport groups that have committed to the highest standards of corporate governance through a full listing in the U.S., and further enhances our financial position to support our growth initiatives.”

“Looking ahead, reflecting our confidence in the growth opportunities in our markets, particularly in Argentina, Brazil and Italy, we are focused on increasing capacity to capture additional expected passenger traffic and higher commercial revenues. In Argentina, we are working with the Government to develop the capex plan, mainly increasing capacity at Ezeiza, Aeroparque and El Palomar airports. Our goal is to address the anticipated growth in passenger traffic, resulting from the Government’s 'Airplane Revolution Plan' that aims to attract new airlines including low cost carriers and to open new flight routes to serve the expected growth in demand. In Brazil, we are making progress with our plan to expand the commercial area at the Brasilia Airport, for which we expect to begin construction works in 2H18. Last December, we also received the environmental approval for the construction of a new runway at the Florence Airport, Italy, and expect to begin construction works in the second half of the year.”

Operating & Financial Highlights

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

    4Q17   4Q16   % Var   2017   2016   % Var
Passenger Traffic (Million Passengers)   19.5   18.2   7.6%   76.6   71.8   6.7%
Revenue   416.6   384.5   8.4%   1,575.2   1,366.3   15.3%
Aeronautical Revenues   191.9   177.9   7.9%   767.0   673.5   13.9%
Non-Aeronautical Revenues   224.7   206.6   8.8%   808.1   692.9   16.6%
Revenue excluding construction services   338.9   318.8   6.3%   1,325.1   1,201.2   10.3%
Operating Income   89.7   65.3   37.4%   369.1   331.8   11.2%
Operating Margin   21.5%   17.0%   455 bps   23.4%   24.3%   -85 bps

Net Income Attributable to Owners of

the Parent

  -3.9   -7.1   -45.1%   63.5   33.8   87.9%
EPS (US$)   -0.02   -0.04   -42.9%   0.43   0.29   48.3%
Adjusted EBITDA   106.9   90.8   17.8%   461.6   427.2   8.1%
Adjusted EBITDA Margin   25.7%   23.6%   205 bps   29.3%   31.3%   -196 bps

Adjusted EBITDA Margin excluding

Construction Services

  31.4%   28.4%   307 bps   34.7%   35.4%   -72 bps
Net Debt to LTM EBITDA   2.74x   2.09x   30.9%   2.74x   2.09x   30.9%

To obtain the full text of this earnings release and the 4Q17 earnings presentation, please click on the following link:


When: 10:00 a.m. Eastern time, April 25, 2018
Who: Mr. Martin Eurnekian, Chief Executive Officer
Mr. Raul Francos, Chief Financial Officer
Ms. Gimena Albanesi, Head of Investor Relations
Dial-in: 1-888-317-6016 (U.S. domestic); 1-412-317-6016 (international)

Replay: Participants can access the replay through May 02, 2018 by dialing:
1-877-344-7529 (U.S. domestic) and 1-412-317-0088 (international). Replay ID: 10118246.

Use of Non-IFRS Financial Measures

This announcement includes certain references to Adjusted EBITDA, Adjusted Segment EBITDA and Free Cash Flow:

Adjusted EBITDA is defined as income from continuing operations before financial income, financial loss, income tax expense, depreciation and amortization. Adjusted EBITDA margin refers to Adjusted EBITDA as defined above divided by revenue.

Adjusted EBITDA Margin Excluding IFRIC 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 revenues and costs, by total revenues less construction services revenues.

Adjusted EBITDA is not a measure recognized under IFRS. 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.

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, as shown on the table below.

Construction Services Revenues and Costs: 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 2017, it served 76.6 million passengers. The Company is listed on the New York Stock Exchange where it trades under the ticker “CAAP”. For more information, visit

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 Registration Statement on Form F-1 filed with the SEC for additional information concerning factors that could cause those differences.


Corporación América Airports S.A.
Investor Relations Contact:
Gimena Albanesi, +5411 4852-6411
Head of Investor Relations

Release Summary

Corporación América Airports Announces 4Q17 YOY Growth of 7.6% in Passenger Traffic and 8.4% in Revenues


Corporación América Airports S.A.
Investor Relations Contact:
Gimena Albanesi, +5411 4852-6411
Head of Investor Relations