ASR

Business Context and Reporting Period

Company: Grupo Aeroportuario del Sureste, S.A. de C.V. (ASUR)
Filing Type: Form 6-K (Foreign Private Issuer)
Reporting Period: Second Quarter (2Q) and First Half (1H) ended June 30, 2004
Business Overview: ASUR is the first privatized airport group in Mexico, operating concessions for nine airports in the southeast region, including the major hub at Cancun. Financial figures are presented in constant Mexican pesos (Ps.) as of June 30, 2004.

Key Financial Metrics

Liquidity and Balance Sheet (as of June 30, 2004):

• Cash and Marketable Securities: Ps. 855.8 million (up 39.87% YoY).
• Total Assets: Ps. 12.3 billion.
• Total Liabilities: Ps. 712.8 million (5.80% of total assets).
• Shareholder's Equity: Ps. 11.6 billion (94.20% of total assets).
• Debt: No notes payable reported; liabilities are primarily deferred taxes and concession fees.

Material Changes vs. Prior Period

Passenger Traffic Growth:

• Total Traffic (2Q04): Increased 16.32% to 3.57 million passengers.
• International Traffic: Surged 24.96%, driven by 23.53% growth at Cancun and 45.92% at Cozumel.
• Domestic Traffic: Increased 4.45%, led by a 20.25% jump at Oaxaca due to new airline routes.

• Non-Aeronautical Revenues: Rose 64.90% to Ps. 125.4 million, outpacing aeronautical growth (23.16%).
• Commercial Revenues: Increased 85.01% to Ps. 101.5 million. Key drivers included:
• • Direct operation of two restaurants and three convenience stores (started May 2004).
  • Food & Beverage revenues up 88.77%.
  • Retail revenues up 235.21%.
  • Advertising revenues up 100.72%.
• Commercial Revenue Per Passenger: Increased 59.71% to Ps. 27.82.

• Total operating costs rose 13.05%, significantly lower than revenue growth, driving margin expansion.
• Administrative expenses declined 16.63% due to operational reallocation.
• Technical assistance fees increased 41.74% (linked to EBITDA performance).

Guidance, Outlook, and Risks

Management Commentary & Corporate Actions:

• Dividends: Approved a regular net after-tax cash dividend of Ps. 0.56 per share, paid May 31, 2004.
• Share Repurchase: Shareholders approved a reserve of Ps. 152.0 million for share repurchases to protect share price, though management stated no immediate intention to execute the program.
• Capex: Invested Ps. 75.8 million in the quarter for airport modernization.
• One-Time Fee: Agreed to pay a US$7 million early termination fee to a concessionaire at Cancun airport.

• Regulation: Revenues are subject to maximum rates set by the Mexican Ministry of Communications and Transportation. Regulated revenues accounted for 80.53% of total income in 1H04.
• Taxation: Subject to Mexican asset tax (1.8% of average tax value of assets). Ps. 15.1 million was expensed in 2Q04, with Ps. 23.9 million recorded as a recoverable asset.
• Forward-Looking Statements: Future expectations are subject to risks identified in SEC filings; actual results may differ.

Investor Verification Checklist

• Revenue Quality: Verify the sustainability of the 85% commercial revenue growth, specifically the contribution from direct operations (restaurants/stores) which began in May 2004.
• Regulatory Exposure: Confirm the impact of the Ministry of Communications' annual tariff review on the 80.53% of revenue that is regulated.
• One-Time Costs: Assess the impact of the US$7 million early termination fee on future cash flows and concessionaire relationships.
• Share Repurchase Intent: Monitor board decisions regarding the Ps. 152 million reserve, as management currently has no intention to repurchase.
• Exchange Rate Sensitivity: Note that US$ figures are calculated at Ps. 11.5258; verify current FX exposure for US-based investors.