Business Context and Reporting Period
Company: Central North Airport Group (Grupo Aeroportuario del Centro Norte, S.A.B. de C.V.), trading as OMA (NASDAQ: OMAB; BMV: OMA).
Reporting Period: Second Quarter 2024 (ended June 30, 2024).
Filing Date: July 25, 2024.
Overview: OMA operates 13 international airports in central and northern Mexico, along with hotel and industrial services. The company reported unaudited consolidated financial and operating results for 2Q24.
Key Financial Metrics
| Metric | 2Q24 Value | Unit |
|---|---|---|
| Total Passenger Traffic | 6.5 million | Passengers |
| Adjusted EBITDA | 2,157 | Million MXN |
| Adjusted EBITDA Margin | 73.3% | % |
| Operating Income | 1,928 | Million MXN |
| Operating Margin | 55.1% | % |
| Net Income | 1,292 | Million MXN |
| Earnings Per Share (EPS) | 3.33 | MXN |
| Earnings Per ADS | 1.45 | USD |
| Cash and Cash Equivalents (End of Period) | 1,610 | Million MXN |
| Capital Investments (MDP + Strategic) | 816 | Million MXN |
| Dividend Paid (1st Tranche) | 2,125 | Million MXN |
Material Changes vs. Prior Period
- Passenger Traffic: Decreased 2.4% year-over-year (YoY) to 6.5 million. Domestic traffic fell 4.3%, while international traffic grew 12.4%.
- Revenue: The sum of aeronautical and non-aeronautical revenues grew 1.1% YoY. Aeronautical revenues decreased 2.5%, while non-aeronautical revenues increased 13.8%.
- Profitability: Adjusted EBITDA margin was 73.3%. Net income increased 1.5% YoY.
- Costs: Total operating costs and expenses increased 0.2% YoY. However, the airport concession tax increased 71% to Ps.239.3 million due to a rate change from 5% to 9%.
- Cash Flow: Operating cash flow was Ps.1,042 million. Net cash decreased by Ps.1,853 million primarily due to the first dividend installment payment.
Outlook, Risks, and Management Commentary
Management Commentary
- Concession Tax Impact: A 4% excess concession tax on aeronautical revenues (Ps.92.9 million) reduced Adjusted EBITDA. Excluding this, Adjusted EBITDA would have been Ps.2,248 million with a 76.3% margin. These excess payments will be recoverable via tariff adjustments starting January 2026.
- Operational Highlights: Commercial space occupancy reached 95.4%. Hotel occupancy rates improved (NH Collection: 85.4%; Hilton Garden Inn: 78.6%) with significant increases in average room rates.
- Investments: Inaugurated the expansion of Terminal A East at Monterrey International Airport in June 2024.
Risks and Contingencies
- Weather Impact: Acapulco traffic decreased 34.1% due to the lingering impact of Hurricane OTIS (October 2023).
- Regulatory Changes: Increased concession tax rates impacting short-term margins, though recoverable in future tariff revisions.
- Forward-Looking Statements: Results are subject to risks including economic conditions, regulatory changes, and unforeseen events as detailed in the company's Form 20-F.
Investor Verification Checklist
- Verify the recovery mechanism and timeline for the Ps.92.9 million excess concession tax starting January 2026.
- Monitor the trajectory of international passenger traffic growth versus domestic decline.
- Confirm the second dividend installment payment of Ps.2,125 million scheduled for November 30, 2024.
- Review the impact of the new Terminal A East expansion at Monterrey on future capacity and revenue.
- Assess the sustainability of commercial revenue growth (VIP lounges, parking, restaurants) amidst lower passenger volumes.