Corporacion America Airports SA

Good morning and welcome to the Corporación América Airport's third quarter 2022 earnings conference call. A slide presentation accompanies today's webcast and is available in the investor section of the Corporación América Airport's website. As a reminder, all participants will be in listen-only mode. There'll be an opportunity to ask questions at the end of the presentation. At this time, I would like to turn the presentation over to Patricio Enaki Esnaula, Head of Investor Relations. Patricio, please go ahead.

Thank you. Good morning, everyone, and thank you for joining us today. Speaking during today's call will be Martina Oquean, our Chief Executive Officer, and Jorge Arruda, our Chief Financial Officer. Before we proceed, I would like to make the following safe harbor statement. Today's call will contain forward-looking statements, and I refer you to the forward-looking statement section of our earnings release and recent filings with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or change events or circumstances. Now, let me turn the call over to our CEO, Martín Ornequian.

Thank you, Iñaki. Hello, everyone, and welcome to our third quarter 2022 earnings call. We reported a robust quarter with sustained growth in top and bottom lines, both beating pre-COVID levels. Total revenues were up in the low double digits against third quarter 2019, supported by a continued recovery in traffic and strong growth in commercial revenues. Along with our ongoing focus on cost control, allowed us to report an adjusted EBITDA of over $130 million, with positive contributions from all countries of operations. Notably, the adjusted EBITDA margin ex-IFIC-12 was also above pre-COVID levels, expanding to 38% this quarter, up from 32% in the third quarter of 2019, and low 20s in the third quarter last year. For the first nine months of the year, adjusted EBITDA already amounted to $339 million. On the balance sheet front, our leverage ratio continued to trend down with net debt to adjusted EBITDA below three times, reflecting relatively stable net debt levels combined with a significant recovery in adjusted EBITDA. Let me also highlight that last August, we also redeemed the remaining outstanding amounts related to the preferred shares in AA2000 for an amount close to $40 million. As a reminder, This is the traffic from mandatory capex in Argentina. Finally, as part of our development and missions, we were named preferred bidders to run Abuja and Kano airports in Nigeria this month. We are now in talks with government officials about the terms of the concession agreements, and we will update you on this matter as we make progress. As shown on slide four, passenger traffic continues to post a sustained recovery trend with over 18 million passengers flying to our airports in the third quarter. Traffic reached 82% of third quarter of 2019 levels, up from 76% in the second quarter, reflecting a solid demand and the removal of travel restrictions. We also saw an improved performance month over month throughout the quarter, with this momentum continuing into October, when traffic nearly reached 90% of pre-pandemic levels. Armenia continues to lead the recovery with traffic 16% above pre-pandemic levels. This rebound continued into October when traffic was up 26%. We remain vigilant about the geopolitical environment in the region. We also saw a good performance in Ecuador, supported by traffic from the US, Europe, and Panama with higher frequencies for international and domestic flights. Passenger traffic beat pre-pandemic levels by 3% and benefited from the airport's closure during three weekends of September 2019. This strong performance continued into October when traffic was up 8% compared to October 2019. In Italy, traffic posted a robust sequential improvement driven by the summer season, reaching 89% of third quarter of 2019 levels and continued the recovery observed in the prior quarter. Traffic in Brazil increased to 91% of third quarter of 2019, up from 76% in the prior quarter, and we expect this momentum to continue through the remainder of the year. Argentina and Uruguay continued the gradual recovery trend, with passenger traffic reaching 80% and 68% of third quarter of 2019 levels, respectively. As a reminder, borders were fully reopened at the start of November last year, While in Argentina, all COVID entry regulations were fully lifted only towards the end of August this year. Turning to slide five, we also continue to see a sustained recovery in cargo, which increased to 82% of third quarter of 2019 volume. Europe, Armenia, and Italy were particularly strong, beating third quarter of 2019 levels, while Argentina posted a sequential improvement with cargo volumes reaching 83% of pre-pandemic levels. Notably, cargo revenues increased 43% against third quarter of 2019, also reflecting the value provisions implemented last year. I will now hand off the call to Jorge, who will review our financial results. Please, Jorge, go ahead.