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Central North Airport Group reports mixed Q2 results

Published 26/07/2024, 15:14
OMAB
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Mexico City, Mexico – Central North Airport Group, known as OMA (NASDAQ: OMAB; BMV: OMA), disclosed its second-quarter financial and operational performance, revealing a slight increase in revenues against a backdrop of declining passenger traffic. The information, based on a recent SEC filing, indicates a 2.4% drop in passenger numbers compared to the same period last year, totaling 6.5 million passengers.

Despite the dip in traffic, the group's combined aeronautical and non-aeronautical revenues saw a modest rise of 1.1%. Adjusted EBITDA for the quarter reached 2,157 million pesos, with capital investments and major maintenance works, as outlined in the Master Development Plans (MDPs) plus strategic investments, amounting to 816 million pesos.

OMA's financial report also highlighted a 34.9% increase in freight logistics services revenues, attributed to heightened ground and air cargo operations at Monterrey. Hotel services also performed well, with the NH Collection Terminal 2 Hotel and Hilton Garden Inn reporting occupancy rates of 85.4% and 78.6%, respectively, alongside notable increases in average room rates.

Commercial space occupancy in passenger terminals stood at 95.4% as of June 30, 2024. The report further noted an increase in commercial revenues by 11.9%, driven by significant growth in VIP lounges, parking, and restaurant services.

However, the airport operator faced challenges, including a notable decrease in aeronautical revenues by 2.5% and a substantial 71% hike in airport concession taxes due to a rate change from 5% to 9%. This tax adjustment is expected to start being recovered through maximum tariffs beginning January 2026.

OMA's net consolidated income for the quarter was up slightly by 1.5% to 1,292 million pesos. The earnings per share for the controlling interest were 3.33 pesos, with earnings per American Depositary Share (ADS) at US$1.45.

In operational developments, OMA announced the inauguration of the expansion of Terminal A East public area at Monterrey International Airport in June 2024. Additionally, the company's board of directors saw changes with the appointment of Regina García-Cuéllar as a Provisional Independent Board Member and the resignation of Katya Somohano.

These financial results and operational updates are based on the company's SEC filing.

In other recent news, Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., known as OMA, also addressed an inquiry from the Mexican Stock Exchange about an unusual surge in its trading volume. The company clarified it was unaware of any undisclosed events that might have led to this activity and confirmed that neither its Board of Directors nor relevant executive officers were involved in these trading movements.

Furthermore, OMA stated that its share repurchase program was not active during the time of the unusual trading volume. These developments are recent and emphasize OMA's commitment to transparency.

InvestingPro Insights

In light of OMA's recent financial and operational performance report, InvestingPro data and tips offer additional context for investors considering the company's stock. With a market capitalization of $3.36 billion and a robust gross profit margin of 58.51% in the last twelve months as of Q1 2024, OMA showcases its ability to generate significant earnings relative to revenue. Additionally, the company's P/E ratio stands at 12.31, indicating that it is trading at a low earnings multiple, which might appeal to value-oriented investors.

InvestingPro Tips further highlight OMA as a prominent player in the Transportation Infrastructure industry, with a track record of profitability over the last twelve months. Moreover, the company pays a significant dividend to shareholders, boasting a yield of 10.05%, which is particularly attractive for income-focused investors. The dividend growth in the last twelve months has been substantial at 99.24%, reflecting the company's commitment to returning value to its shareholders.

For those interested in a deeper analysis, there are additional InvestingPro Tips available that could provide greater insight into OMA's financial health and market position. To access these tips and learn more about how OMA's performance metrics stack up against industry standards, investors can visit https://www.investing.com/pro/OMAB. Don't forget to use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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