Corporación América Airports S.A. (NYSE:CAAP) Q4 2018 Earnings Conference Call - Final Transcript

Apr 11, 2019 • 09:00 am ET


Corporación América Airports S.A. (NYSE:CAAP) Q4 2018 Earnings Conference Call - Final Transcript


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Good morning, and welcome to the Corporacion America Airports Fourth Quarter 2018 Earnings Call. A slide presentation accompanies today's webcast and is available in the Investor section of Corporacion America Airports Investor Relations website at

As a reminder, all participants will be in a listen-only mode. There will be enough opportunity for you to ask questions at the end of today's presentation. As a reminder, this call is being recorded.

And at this time, I would like to turn the call over to Gimena Albanesi of Investor Relations. Please go ahead.

Gimena Albanesi

Thank you. Good morning, everyone, and thank you for joining us today. Speaking during today's call will be Martin Eurnekian, our Chief Executive Officer; and Raul Francos, our Chief Financial Officer. Also with us today is Jorge Arruda, Finance and M&A Manager. All will be available for the Q&A session.

Before we proceed, I would like to make the following Safe Harbor statements. Today's call will contain forward-looking statements, and I refer you to the forward-looking statements section of our earnings release and reconcilings with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances.

I also would like to remind you that following the categorization of Argentina as a highly inflationary economy in accordance with IFRS commencing July 2018, we began applying IFRS rule IAS 29. This rule applies directly starting January 1st of 2018. For comparison purposes, in addition to presenting as reported results, we are also disclosing the isolated impact of the adoption of Hyperinflation Accounting in Argentina and our results excluding rule IAS 29.

Additional information in connection with the application of rule IAS 29 can be found in our earnings report. Note that for comparison purposes and a better understanding of the underlying performance in our presentation today, we will be discussing results excluding Hyperinflation Accounting in Argentina.

Now, let me turn the call over to our CEO, Martin Eurnekian.

Martin Antranik Eurnekian

Thank you, Gimena. Hello, everyone, and thank you for joining us today. It's a pleasure to welcome you to Corporacion America Airports Fourth Quarter 2018 Earnings Conference Call. I will begin my presentation with a discussion of the highlights of the quarter, and then Raul will take you through our financial results. Afterwards, I will provide an update on our key business segments and overview for the remainder of the year. We will then open the call to your questions.

Starting with Slide 3. 2018 was a challenging year with travel dynamics and results impacted by the unfavorable macro environment and a sharp devaluation in Argentina, our largest market and to a lesser extent in Brazil. Beyond these headwinds, we served over 81 million passengers across our airport network, up 6% year-on-year as we continued to add new routes and airlines and began operations at El Palomar, our new airport targeting low-cost airlines in Argentina. Excluding inflation accounting, adjusted EBITDA margin ex-IFRIC for the year expanded 190 basis points to almost 37% and