Aena Sme S.A Unsp/Adr

Ladies and gentlemen, thank you for standing by. My name is Desiree and I will be your conference operator today. At this time, I would like to welcome everyone to the IENA first quarter 2025 results presentation. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the star one. I would now like to turn the conference over to Carlos Gallego, Head of Investor Relations. You may begin.

Good afternoon, everyone, and welcome to our Q1 2025 resource presentation. This is Carlos Gallego speaking, Head of IR. It's a real pleasure being with all of you today. Our CFO, Ignacio Castejón, will host the call together with myself. As usual, we are going to cover some of the main topics explained in the results presentation that is already available both on the AINA and on the CMV website. And we'll finish with a Q&A session. Without further ado, I give the floor to Ignacio Castejón. Thank you.

Thank you very much, Carlos. Good afternoon, ladies and gentlemen, and thank you for joining us to go through our first quarter 2025 resource presentation today. I'll start sharing some highlights with all of you, and then I'll give back the floor to Carlos to further explain our performance through this quarter. At the end, there will be a Q&A session, as stated by Carlos. So I'm referring now to traffic, so I would go to slide four. AIDA group traffic increased year-on-year by 4.9%, as you can see over there, reaching almost 78.3 million passengers. In the Spanish network, the annual increase was 4.7%, and we reached almost 63.6 million passengers, beating our expectations and recording the highest ever traffic in any first quarter. As you know, you are well aware that last year, 2024, was a leap year and that the Easter break took place during the first quarter of 2024. We don't see at this stage reasons to change our February traffic guidance for this year. April traffic is performing well, continuing the positive trend seen over the last quarters. The European market and most of our international markets are performing in line with our expectations. On the other hand, we observe a certain slowdown in the domestic market and regarding the USA, the summer schedule looks higher than the comparable figure in 2024 as of today. However, we are seeing some early indicators that might result into a less strong demand in the following months. Having said all that, I would like to share that the current aircraft shortage, spare parts supply chain issues, economic and political uncertainty, raising airfare and accommodation prices, especially in Spain, could affect both demand and supply in our industry and therefore result into changes in the traffic forecast. Now I will move to financial performance. With respect to the first quarter 2025 financial performance, total revenue went up by 7.5% up to 1,325.6 million euros. On the cost side, the total operating expenses increased by 3.2% up roughly to 890.6 million euros. This means that in total EBITDA came to 643.6 million euros. and the margin stood at 48.6%, comparing to 47.1% in the first quarter of the previous years. All in all, the net profit slightly exceeded 300 million euros. With respect to commercial, on the commercial side, and now in slide number five, I would like to mention that the growth that started back in 2022 continues this year in 2025. Total sales have gone up by 10% in this quarter and on a per passenger basis by 5.1%. Revenue from fixed and variable rents invoicing the period increased by 15.8% compared to the first quarter of 2024. I would like to highlight several things on the commercial front. Our tenants keep finishing their units and therefore we are adding more renovated spaces and a more complete offer and new brands. The lot of the Canary Islands, I'm referring to the duty-free business, has operated this first quarter above the minimum loan and guaranteed rent level for that lot. The outstanding performance of the car rental and VIP services have been incredible this quarter. The car rental revenue increased by 32.7% year-on-year, reflecting the sales increase and improved conditions of the new contracts that are entering into operation in the first of November of last year. With regard to the VIP services, revenue increased by 33.7%. Thanks to a strong demand in the VIP lounges, plus 18%, and also in increasing the number of users. Real estate revenue also increased 9.7% year on year. In the context of these real estate activity and in our real estate businesses, I would like to highlight and I'm happy to announce that we have received proposals to develop the land plot for logistic purposes in the Barcelona airport. This is a 50 year contract. in which Aena will be collecting a monthly rent and the logistic operator will be responsible for the CAPEX investments. On the international front, international revenue and EBITDA were above €168 million and €88 million respectively. Our international assets keep performing positively and delivering growth and efficiency improvements. Please note that this quarter, the reported performance of our international activity in our consolidated figure was positively affected by an insurance compensation received in Luton, also was affected by the end of our construction activity in A and B, and the beginning of construction activity in our second subsidiary in Brazil, BOAB. You know that all this construction activity and how it is accounted for in our books has an impact in how we report income and cost, although it's neutral from an EBITDA standpoint. With respect to the future capacity expansion of Luton, I would like to mention that on April 3rd, the British Secretary of State for Transport approved the expansion of airport capacity from the current 19 million passengers to 32 million passengers. Starting on that date, there is a six-week judicial review period in which there might be arguments being presented against such decision. Once this DCO has been granted, the Luton Borough Council will have to decide how and when that expansion is carried out. These are positive news for us and as we said in our 2024 results presentation in our call at that moment in time, we welcome the opportunity to collaborate with the Luton Borough Council to make that project happen. As you know, in the annual general meeting held back in the April 9th, all the resolutions were approved, including our updated climate action plan, the term by one share split that we expect to execute in the following weeks, and also a dividend payment of 9.76 euros per share out of our results of last year that was paid last week. Before finishing with this part of the call, I would like to refer to the very serious event that took place on Monday, mainly affecting Spain and Portugal, and referring to the general blackout that affected the country. In this regard, I would like to highlight the robustness and effectiveness of the company operations during that day. All airports were operational in the outage thanks to the contingent power systems in place at the airports. The transitions to these backup systems happen without disruptions and the transitions back to the ordinary power systems also happen without major disruptions. The operations and management of the airports through a network demonstrated once again its strengths by helping to keep all the airports operational and coordinated during that day. Overall, the Spanish airport served 93% of the commercial flights that day. I would like to thank all the teams involved and our partners That day, it was a difficult day, but the company reacted in a very positive manner. This is the end of my brief presentation. I will join you, of course, in the Q&A session afterwards. Now I'll give the floor to Carlos to go through the whole presentation. Thank you, Carlos. Thank you, everyone.