Grupo Aeroportuario Del Pacifico, S.A. B. de C.V.

Good day, everyone, and welcome to GAAP's conference call. At this time, all lines have been placed on mute to prevent any background noise. After the presentation, we will open the floor for questions, and at that time, instructions will be given if you would like to ask a question. Now it's my pleasure to turn the call over to GAAP's investor relations team. Please go ahead.

Thank you, and welcome to GAAP's second quarter 2025 conference call. Prior to introducing GAAP's management team, I would like to take a few moments to read the forward-looking statements as described in the financial disclosure statement. Please be advised that the information shared today may include forward-looking statements. These may not account for future economic circumstances, industry conditions, the company's future performance, or financial results. As such, any information discussed is based on several assumptions and factors that could change causing actual results to materially differ from the current expectations. For a complete note on forward-looking statements, please refer to the quarterly report. Thank you so much for your attention. I'd like to present our speakers today, Mr. Raul Revuelta, Chief Executive Officer, and Mr. Saúl Villarreal, Chief Financial Officer. At this time, I will turn the call over to Mr. Revuelta for his opening remarks. Please begin.

Good morning, everyone, and thank you for joining us today. And please, to be able to share with you GAAP's key operational and financial highlights for the second quarter of this year. Overall, it was a solid quarter marked by a continued growth in revenue, EBITDA, and net income. This was achieved despite ongoing headwinds due to the draft economics issue and FX volatility. Let me begin with a discussion of total positive traffic. 15.8 million, representing a 4.1% increase if we compare it to the same quarter of 2024. It is also important to mention that eight new routes were added this quarter, seven domestic and one international, which brings us to 21 total new routes so far this year. I should mention that we are still expecting to announce additional routes and frequencies during the second half of 2025. In this regard, We have already announced additional frequencies and new international routes starting in November to Canada, including services from Guadalajara to Montreal, Toronto, and Calgary, from Puerto Vallarta to Toronto, Ottawa, and Jamico, and from Montego Bay to Halifax and Ottawa. Canada continues to be an increasingly relevant market to Leisure and BFR, especially during the winter season. These new routes will not only expand our network, but also enhance our ability to capture seasonal demand and strengthen our position in key international markets. That said, market conditions change rapidly, as you know, with measures cautious when looking ahead at the upcoming traffic trends. Thus, we will closely watch any changes as they occur and make adjustments as needed. Mainly, our concerns include the stricter U.S. migration and enforcement policies under the current administration, which tends to discourage travel among the BFI international passenger space. By our estimates, the segment represents approximately 38% of GAP's international traffic. As a result, what we see is that a portion of these travelers may opt not to travel outside the U.S. in order to avoid any potential compensation with their immigration status. We believe this could impact international traffic, specifically in the U.S.-Mexico woods. But overall, we expect to maintain our initial annual guidance as previously announced. Having said that, revenues generated through Africa 12 grew by 30.6% year-over-year, reaching 8.2 billion pesos, driven by a 26.4% increase in aeronautical revenues and 41.8% increase in aeronautical revenues. And excluding the acquisition of the cargo facility, it represents a solid 14% increase. This strong top-line performance was mainly supported by the implementation of targets that took effect in March 2025. The continued pace of depreciation, which averaged around 13.6% versus the second quarter of 2014, as well as a 41% of total positive traffic increase across our 14 airports. On the non-oil and optical side, commercial performance was solid. the revenues from business lines operated directly by GAAP increased by 113%, driven by the consolidation of the cargo and bonded warehouse business. Third-party operated business also grew by 10.7%, with significant contribution from food and beverage retail, duty-free, ground transportation, and timeshares. EBITDA increases by 31.1%, reaching 5.5 billion pesos, with an evident margin of 67.1%, excluding . As we discussed in previous queries, the margin reflects the operating cost integration of the new business, such as bounded warehouse business and the hotel, which while contributing positively in absolute terms, have lower individual margins. The cost increase during the quarter reflects the impact of higher operational expense. Additionally, maintaining expenses increased by 57.3% related to the airfield improvements, the opening of new operational areas, as well as operational jet bridges and air buses. As past, the previous management third parties both must now be operated directly by GAP due to the new regulations. Despite the higher pressure on the cost of services, our focus remains on controlling costs while at the same time ensure that service quality across our airports remains top rate. Operating income increased by 30.4% and net income by 17.9%, reflecting GAAP solid underlying fundamentals. Turning to our financial position, as of June 30, we held by 9.7 billion pesos in cash and cash equivalents. During the quarter, We paid the 2.5 billion pesos CAHPS 2021 bond, the first tranche of dividends approved in the last shareholder meeting. And additionally, we secured a 3.4 billion pesos credit facility from Banamex. These funds were used to concentrate short-term debt with Banamex and Begudea on a five-year loan. We continue to actively manage liabilities and maintain a healthy balance sheet. with a net debt evident ratio of 1.8 times. Let me now touch briefly on CAPEX. During the first half of 2025, GAAP executed capital investments of about 12.8 billion pesos in the line with our annual plans of 13.3 billion. These were the investments were mainly focused on the international of key projects, with early-stage construction activities already underway. This includes works on both air-sized infrastructure and commercial areas. Looking ahead, we remain cautiously optimistic, while peso volatility and U.S. macroeconomics conditions may impact discretionary travel. We are confident that our diversified airport portfolio and resilient domestic markets position us well to finish the year strong. I would like to mention that at a shareholders meeting held last April, a dividend of 16.84 pesos per share was approved for payment throughout 2025. The first tranche was already distributed in May, with a remanded schedule for the second half of the year, reinforcing our commitment to delivering value to shareholders while supporting growth through our disciplined investments. We are focused on continuing to execute our investment plan while prudently navigating traffic and maintaining the operational and financial excellence that we are known for. We are confident that our diversified revenue base and solid financial position will support the creation of long-term value shareholders moving forward. Before concluding, I wish to mention that as we informed during the previous conference call, We continue to pursue strategic expansion opportunities. As such, the outcome of the TULSA and CACOS tender process was not being announced, and we are waiting on that. We also continue to evaluate our participation in the potential acquisition of CCR airport assets. Thank you again for your time. Operator, please open the line for questions.