ASUR 2Q07 PASSENGER TRAFFIC UP 15.29% YOY

 

2Q07 Highlights¹:

 

 

 

 

 

 

 

México D.F., July 23, 2007 Grupo Aeroportuario del Sureste, S.A.B. de C.V. (NYSE:ASR; BMV:ASUR), (ASUR) the first privatized airport group in Mexico and operator of Cancun Airport and eight others in the southeast of Mexico, today announced results for the three- and six-month periods ended June 30, 2007.

 

 

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¹ Unless otherwise stated, all financial figures discussed in this announcement are unaudited, prepared in accordance with Financial Reporting Standards, expressed in constant Mexican pesos as of June 30, 2007, and represent comparisons between the three-month period ended June 30, 2007, and the equivalent three-month period ended June 30, 2006. Tables state figures in thousands of pesos, unless otherwise noted. Passenger figures exclude transit and general aviation passengers. Commercial revenues include revenues from the activities of non-permanent ground transportation and parking lots. All U.S. dollar figures are calculated at the exchange rate of US$1 = Ps.10.7946.

 

ASUR 2Q07, Page 1 of 16

 

 

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Passenger Traffic

 

For the second quarter of 2007, total passenger traffic increased year-over-year by 15.29%. International passenger traffic rose by 8.52% and domestic passenger traffic increased by 25.51%.

 

The 15.29% year-over-year increase in total passenger traffic primarily reflected the drop in passenger traffic in the second quarter of 2006, due to the lingering effect of Hurricane Wilma on Cancun, the Mayan Riviera and Cozumel. Hurricane Wilma struck the Yucatan peninsula in October 2005 and inflicted widespread damage on the region’s infrastructure. Travel and tourism in Cancun and the Mayan Riviera regions have since recovered, while Cozumel’s recovery is continuing.

 

The 8.52% rise in international passenger traffic resulted mainly from increases of 8.08%, 29.39% and 10.19% at the Cancun, Cozumel and Huatulco airports, respectively. The increases at Cancun and Cozumel were principally due to favorable year-over-year comparisons with the 2Q06 base numbers affected by Hurricane Wilma, as noted above. The increase in international passenger traffic was partially offset by a 39.51% decrease in international passenger traffic to Oaxaca in the wake of social unrest in the region.

 

The 25.21% rise in domestic passenger traffic resulted mainly from increases of 29.88%, 30.55%, 46.92% and 21.23% at the Cancun, Merida, Veracruz and Villahermosa airports, respectively. The increase at Cancun was principally due to the favorable year-over-year comparison described above. The increases in Merida, Veracruz and Villahermosa were principally due to the opening of new airline services at those airports.

 

For the first six months of 2007, total passenger traffic rose by 21.45% compared to the first six months of 2006, with international passenger traffic up 21.60% and domestic passenger traffic up 21.22%.

 

 

 

 

 

 

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Table I: Domestic Passengers (in thousands)

 

 

Table II: International Passengers (in thousands)

 

 

Table III: Total Passengers (in thousands)

 

 

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Consolidated Results for 2Q07

 

Total revenues for 2Q07 increased year-over-year by 17.45% to Ps.701.2 million. This was mainly due to increases of:

 

 

 

ASUR classifies commercial revenues as those derived from the following activities: duty-free services, car rental, retail, banking and currency exchange, advertising, teleservices, non-permanent ground transportation, food and beverage, and parking lots.

 

Commercial revenues rose by 32.68% year-over-year during the quarter, principally as a result of revenue increases from the following areas:

 

 

 

 

 

 

 

 

 

 

 

The growth in each of these areas resulted generally from the rise in passenger traffic and in particular from the opening on May 18, 2007 of Cancun Airport’s new Terminal 3, including the following commercial establishments:

 

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Food and Beverage

 

 

 

Retail and Other Commercial Space

 

 

 

Other factors also boosted revenues during the quarter. Retail revenues benefited from higher concession fees charged to local crafts and specialty shops. Revenues from car rental companies increased due to improved economic terms with concessionaires and the opening of eight new commercial spaces in Terminal 3. The rise in parking lot revenues was partially due to annual rate increases at several airports.

 

The sharp rise in advertising revenue reflects ASUR’s direct sale of advertising space at its airports, which began on August 2006.

 

 

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Total operating costs and expenses for 2Q07 increased 11.76% year over year, primarily as a result of:

 

 

 

 

 

 

Operating margin for the quarter rose to 43.75% from 40.89% in 2Q06. This was mainly the result of the 17.45% increase in total revenues, which more than offset the increase in costs during the period.

 

Mexican companies are generally required to pay the greater of their income tax liability or their asset tax liability (determined at a rate of 1.25% of the average tax value of virtually all of the company’s assets including, in ASUR’s case, its concessions, without deducting the average tax value of certain liabilities). ASUR made asset tax payments of Ps.35.8 million for 2Q07. Of these payments, Ps.4.5 million was recorded as an expense in the results for the quarter. The difference was recorded as an asset, since ASUR expects to recover Ps.31.3 million as a credit against future income tax payments.

 

Net income for 2Q07 was Ps.234.0 million, an increase of 29.82% from 2Q06. Earnings per common share for the quarter were Ps.0.7798, or earnings per ADS (EPADS) of US$0.7224 (one ADS represents ten series B common shares). This compares with Ps.0.6007, or EPADS of US$0.5565, for the same period last year.

 

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Table IV: Summary of Consolidated Results for 2Q07

Note: Figures are in thousands of constant Mexican pesos as of June 30, 2007. U.S. dollar figures are calculated at the exchange rate of US$1 = Ps. 10.7946.

 

 

 

Note: For purposes of this table, about 70,100 and 79,500 transit and general aviation passengers are included for 2Q06 and 2Q07, respectively. Revenue figures are in thousands of constant Mexican pesos as of June 30, 2007.

 

 

 

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Table VI:  Operating Costs and Expenses for 2Q07

 

Consolidated Results for the Six-Months Ended June 30, 2007

 

Total revenues for 1H07 increased by 23.33% from 1H06 to Ps.1,381.3 million. This was mainly due to increases of:

 

 

 

Commercial revenues rose by 28.26% year-over-year during 1H07, principally as a result of revenue increases from the following areas:

 

 

 

 

 

 

 

 

 

The growth in each of these areas resulted generally from the rise in passenger traffic and in particular from the opening on May 18, 2007 of Cancun Airport’s new Terminal 3, including the new commercial establishments described above.

 

 

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Other factors also contributed to the rise in commercial revenue for the first half of 2007. Retail revenues benefited from higher concession fees charged to local crafts and specialty shops. Revenues from car rental companies increased due to improved economic terms with concessionaires and the opening of eight new commercial spaces in Terminal 3. The rise in parking lot revenues was partially due to annual rate increases at several airports.

 

The increase in commercial revenue for the half was partially offset by declines in the following areas:

 

 

 

Costs and expenses for 1H07 increased year-over-year by 11.24%, mainly due to the following:

 

 

 

 

 

 

Operating margin increased to 45.01% in 1H07, up from 39.03% for 1H06. This was mainly the result of the 23.33% increase in revenues, which more than offset the 11.24% increase in costs and expenses during the period.

 

Net income for 1H07 increased by 45.08% to Ps.456.6 million. Earnings per common share for the period were Ps.1.5220, or earnings per ADS (EPADS) of US$1.4100 (one ADS represents ten series B common shares). This compares with Ps.1.0491, or EPADS of US$0.9719, for the same period last year.

 

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Table VII:    Summary of Consolidated Results for the Six-Month Period

Note: Figures are in thousands of constant Mexican pesos as of June 30, 2007. U.S. dollar figures are calculated at the exchange rate of US$1 = Ps. 10.7946.

 

Table VIII: Commercial Revenues for the Six-Month Period

 

Note: For purposes of this table, about 144,600 and 169,200 transit and general aviation passengers are included for 1H06 and 1H07, respectively. Revenue figures are in thousands of constant Mexican pesos as of June 30, 2007.

 

 

 

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Table IX:   Operating Costs and Expenses for the Six-Month Period

 

Tariff Regulation

 

The Mexican Ministry of Communications and Transportation regulates the majority of ASUR’s activities by setting maximum rates, which represent the rates for the maximum possible revenues allowed per traffic unit at each airport.

 

ASUR’s regulated revenues for 1H07 were Ps. 1,027.10 million, resulting in an annual average tariff per workload unit of Ps.120.26. ASUR’s regulated revenues accounted for approximately 74.90% of total income for the period.

The Mexican Ministry of Communications and Transportation reviews compliance with the maximum rates on an annual basis at the close of each year.

 

Balance Sheet

 

On June 30, 2007, Airport Facility Usage Rights and Airport Concessions represented 84.74% of the Company’s total assets, with current assets representing 11.38% and other assets representing 3.80%.

 

On June 30, 2007, cash and marketable securities were Ps.1,393.04 million. On the same date, shareholder’s equity was Ps.14,010.78 million and total liabilities were Ps.1,320.77 million, representing 91.38% and 8.61% of total assets, respectively. Total deferred liabilities represented 81.24% of the Company’s total liabilities.

Capex

 

During the quarter, ASUR made investments of Ps.127.10 million as part of the Company’s ongoing plan to modernize its airports pursuant to its master development plans. During 1H07 ASUR made capital investments of Ps.369.22 million.

 

 

ASUR 2Q07, Page 11 of 16

 

 

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2Q07 Earnings Conference Call

 

 

 

 

About ASUR:

 

Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASUR) is a Mexican airport operator with concessions to operate, maintain and develop the airports of Cancun, Merida, Cozumel, Villahermosa, Oaxaca, Veracruz, Huatulco, Tapachula and Minatitlan in the southeast of Mexico. The Company is listed both on the NYSE in the U.S., where it trades under the symbol ASR, and on the Mexican Bolsa, where it trades under the symbol ASUR. One ADS represents ten (10) series B shares.

 

Some of the statements contained in this press release discuss future expectations or state other forward-looking information. Those statements are subject to risks identified in this press release and in ASUR’s filings with the SEC. Actual developments could differ significantly from those contemplated in these forward-looking statements. The forward-looking information is based on various factors and was derived using numerous assumptions. Our forward-looking statements speak only as of the date they are made and, except as may be required by applicable law, we do not have an obligation to update or revise them, whether as a result of new information, future or otherwise.

 

# # # TABLES TO FOLLOW # # #

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Grupo Aeroportuario del Sureste, S.A.B. de C.V.
	By:   /s/ ADOLFO CASTRO RIVAS
		Adolfo Castro Rivas
		Director of Finance

 

Date: July 23, 2007