Corporacion America Airports SA

Good morning and welcome to the Corporación América Airport's third quarter 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 are in a listen-only mode. There will be an opportunity to ask questions at the end of the presentation. At this time, I would like to turn the call over to Patricio Iñaki-Esaola, 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 Martín Ebermecchian, 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 segments to reflect new or changed events or symptom centers. I will now turn the call over to our CEO, Martin El-Mekian.

Thank you, Iñaki. Hello, everyone, and welcome to our third quarter 2023 earnings call. I will start today's call with an overview of key highlights, followed by a review of traffic and cargo trends. I will then hand it over to Jorge for an overview of our third quarter financial results. We delivered another strong quarter with a robust performance across the business. Revenues increased 37% compared to third quarter 2019, and adjusted EBITDA set another record high at $173 million. up 73% compared to a third quarter of 2019, even with passenger traffic at 2% below pre-pandemic levels. Adjusted EBITDA margin, XRT12, expanded 8.6 percentage points to 40.9% as we continue to drive operating gains. This good performance was supported by positive adjusted EBITDA growth across all geographies. reflecting our sustained focus on efficient execution together with the continued recovery in travel demand. In addition, we closed the quarter with a strong balance sheet and a comfortable maturity profile. Our leverage ratio improved further this quarter, achieving an all-time low of 1.6 times on the back of higher profitability and a slight reduction in net debt. We are also making good progress in the execution of our fully funded investment programs in Argentina and Uruguay. Additionally, we continue to work on new airport investment opportunities and remain focused on delivering long term value to our stakeholders. Please turn to slide four for the discussion on traffic. By September, overall traffic had recovered to 99% of pre-pandemic traffic levels, with international passenger traffic surpassing third quarter of 2019 levels by 5%. This performance was supported by a continued recovery in travel demand, reflected by higher load factors and the gradual return of flight routes and frequencies across all countries of operation. On a geographic basis, traffic volumes in Italy surpassed pre-pandemic levels for the first time this quarter, while Armenia and Ecuador continued to beat 2019 volumes. In turn, passenger traffic in Argentina and Uruguay remained in line with third quarter of 2019 levels, while traffic in Brazil continues on the path to full recovery. Armenia continues to lead the recovery, supported by the entrance of new carriers and increased flight frequencies. Traffic was up 40% year-on-year, beating pre-pandemic levels for the sixth consecutive quarter. This solid performance continued into October, with traffic surpassing pre-pandemic levels by 62%. In Argentina, passenger traffic increased to nearly pre-pandemic levels even as we experienced a minor contraction from the second quarter of 2023, which benefited from Previaje, a government-sponsored program to boost domestic tourism. Domestic traffic, which accounted for more than 70% of total traffic, remained strong, beating pre-pandemic levels by 4%, while international passengers recovered to 89% of third quarter of 2019 levels. In October, Total traffic exceeded 2019 levels by 10%, with domestic traffic surpassing pre-pandemic numbers and international traffic improving to 96% of 2019 volumes. In Ecuador, solid performance in both domestic and international traffic, driven mainly by increased frequencies, supported the sustained growth trend in passenger traffic, which was 12% above pre-pandemic levels. Growth continued into October, beating 2019 volumes by 9%. Uruguay continued to recover with the number of passengers increasing to 94% of third quarter of 2019 levels. This good performance continued into October as passenger traffic surpassed 2019 volumes by 7%. Passenger traffic in Italy beat pre-pandemic levels for the first time up 4% from the third quarter of 2019 volumes, supported by growth in the high teens in international traffic and low single digits in domestic traffic. While some destinations have not yet resumed at Pisa Airport, Florence Airport continued to operate above pre-pandemic levels, increasing in the mid-teens from the third quarter of 2019 levels. In October, traffic exceeded 2019 levels by 6%. Finally, traffic in Brazil was at 94% of pre-pandemic levels, compared to 96% in the previous quarter, as some local airlines remain impacted by financial and aircraft constraints. October traffic was 15% below 2019 levels, still impacted by the aforementioned financial and aircraft constraints. Moving on to cargo on slide five, we are pleased to observe a sustained recovery in our cargo business. Volumes to 93% of pre-pandemic levels compared to 86% in the prior quarter. Cargo revenues, in turn, were 56% higher than the third quarter of 2019 levels. with all geographies beating pre-pandemic levels, except Brazil, which still remains in a recovery phase. I will now hand off the call to Jorge, who will review our financial results. Please, Jorge, go ahead.