Corporación América Airports Announces 1Q19 Results

Passenger traffic up 2.6% with growth of 7.0% YoY in Argentina, 7.5% in Ecuador, and 10.4% in Armenia partially offset by declines in other countries of operations

LUXEMBOURG--()--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- month period ended March 31, 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” on page 18.

First Quarter 2019 Highlights

  • Consolidated revenues of $360.6 million, down 7.8% YoY. Excluding the impact of IFRS rule IAS 29, revenues declined 4.0% YoY mainly due to lower travel demand in Argentina reflecting difficult macro conditions and FX fluctuation in Argentina, Brazil and Italy, partially offset by revenue growth in Ecuador and Armenia
  • Growth across key operating metrics:
    • Passenger traffic up 4.0% YoY to 20.4 million
    • Cargo volume increased 6.3% to 104.8 thousand tons
    • Aircraft movements declined 0.3% to 212.7 thousand
  • Operating Income declined 29.9% YoY, mainly impacted by IAS 29, and the operating margin contracted to 21.3% from 28.0% in 1Q18
  • Adjusted EBITDA was $116.9 million, down 14.5% YoY, with Adjusted EBITDA margin Ex-IFRIC12 contracting 86 bps to 38.7%
  • Ex-IAS 29, Adjusted EBITDA declined 10.8% YoY and Adjusted EBITDA margin Ex-IFRIC12 contracted 61 bps to 39.0%

CEO Message

Commenting on first quarter 2019 results, Mr. Martín Eurnekian, CEO of Corporación América Airports, noted: “Our first quarter results were impacted by the difficult macro conditions in Argentina, our largest market and to a lesser extent a slowdown in Brazil and Uruguay. Passenger traffic growth decelerated which together with significant currency depreciation in Argentina and, to a lower degree, in Brazil and Italy, resulted in lower revenue growth. In Argentina, soft consumer demand and sharp FX fluctuation continued to drive mix-shift to domestic destinations and lower commercial revenues, particularly when compared to a record quarter a year ago. In Italy, our commercial initiatives continue to bear fruit driving sustained growth in local currency revenues, while Brazil reported a mid-single digit increase in local currency revenues. As a result, comparable Adjusted EBITDA Ex-IAS29, excluding one-time items in 1Q18 and construction service margin, declined 8.3% YoY, while the margin remained stable at 39% during the period, reflecting better comparable margins in Argentina and Italy.

As the year progresses, our business is expected to track generally in line with overall macro trends. Argentina, our key market, is facing a more difficult macro environment which, together with the added volatility from this being a Presidential election year, suggests a more subdued economic recovery towards year-end. This is expected to weigh on passenger traffic trends and slow revenue growth. In Brazil, traffic will remain impacted by airline capacity adjustments and recent reductions in GDP growth forecasts for the current year. While we face several headwinds across key markets, we maintain a solid balance sheet that supports our focus on advancing on our strategy and key capital investment projects, particularly in Argentina and Italy. Noteworthy, last April the Italian Ministry of Transportation approved the 2014-2029 Master Plan for Florence's Amerigo Vespucci Airport and we also extended the concession agreement of the Punta del Este Airport in Uruguay for a fourteen–year period from 2019 through 2033.


Operating & Financial Highlights

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


1Q19 ex
IAS 29

    IAS 29    

1Q19 as


% Var as


% Var ex
IAS 29

Passenger Traffic (Million Passengers)     19.6     6.9     -     6.9     -65.1%     -65.1%
Revenue     390.9     375.2     -14.7     360.6     -7.8%     -4.0%
Aeronautical Revenues     204.8     192.3     -7.3     185.0     -9.7%     -6.1%
Non-Aeronautical Revenues     186.1     183.0     -7.4     175.6     -5.7%     -1.7%
Revenue excluding construction service     344.3     310.9     -11.1     299.8     -12.9%     -9.7%
Operating Income     109.6     94.4     -17.6     76.8     -29.9%     -13.9%
Operating Margin     28.0%     25.2%     119.6%     21.3%     -673     -288
Net (Loss) / Income Attributable to Owners of the Parent     26.5     34.8     -4.4     30.4     14.9%     31.4%
EPS (US$)     0.17     0.22     -0.03     0.19     11.5%     27.4%
Adjusted EBITDA     136.8     122.0     -5.1     116.9     -14.5%     -10.8%
Adjusted EBITDA Margin     35.0%     32.5%     -     32.4%     -257     -248
Adjusted EBITDA Margin excluding Construction Service     39.6%     39.0%     -     38.7%     -86     -61
Net Debt to LTM EBITDA     1.98     -     -     2.05     690     -

Note: Non-IFRS figures in historical dollars are included for comparison purposes.


To obtain the full text of this earnings release and the 1Q19 earnings presentation, please click on the following link:



When: 9:00 a.m. Eastern time, May 21, 2019
Who: Mr. Martín Eurnekian, Chief Executive Officer
Mr. Raúl Francos, Chief Financial Officer
Ms. Gimena Albanesi, Head of Investor Relations
Dial-in: 1-888-347-6492 (U.S. domestic); 1-412-317-5258 (international)

Replay: Participants can access the replay through May 28, 2019 by dialing:
1-877-344-7529 (U.S. domestic) and 1-412-317-0088 (international). Replay ID: 10131633.

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 18 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

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.


Investor Relations Contact
Gimena Albanesi
Head of Investor Relations
Phone: +5411 4852-6411


Investor Relations Contact
Gimena Albanesi
Head of Investor Relations
Phone: +5411 4852-6411