Grupo Aeroportuario del Sureste, S. A. B. de C. V. Q1 2023 Earnings Call Transcript

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Provided by Quartr
April 25, 2023

There are 11 speakers on the call.

Operator

Good day, ladies and gentlemen, and welcome to Astore's First Quarter 2023 Results Conference Call. My name is Paul, and I'll be your operator. At this time, all participants are in a listen only mode. We will conduct a question and answer session toward the end of today's conference. As a reminder, today's call is being recorded.

Operator

Now, I'd like to turn this call over to Mr. Adolfo Castro, Chief Executive Officer. Please go ahead, sir.

Speaker 1

Thank you, Paul, and good morning, everyone. Before I begin discussing our results, let me remind you that certain statements made during the This call may constitute forward looking statements, which are based on current management's expectations and beliefs And are subject to several risks and uncertainties that could cause actual results to differ materially, including factors that may be beyond our company's control. As usual, additional details about our quarterly results can be found in our press release, Which was issued yesterday after market close and is available on our website in Investor Relations Sector. Before getting into a discussion of the quarterly financial results, I want to note that our latest sustainability report is available on our website, and we invite you to read all it. Last year during the Q1 conference call, we laid out the 7 key strategic objectives for the company to implement In the short term and medium term, 2 notable advances made last year towards achieving this goals include The formation of the Sustainability Committee.

Speaker 1

This committee has 3 members and will support the Board of Directors in making decisions focused on environmental, social And governance matters and incorporate them into the company's long term strategy. Furthermore, the company will support the organization in integrating And corporate social responsibility at the highest level of the corporate governance in the company. The committee held its 1st meeting earlier this year. We also made progress with respect to reducing greenhouse gas emissions in 2022. We began installing solar panels at the airports of Cancun, Merida and Oaxaca will generate 900,000 kilowatt hours We are already seeing benefits with a reduction in greenhouse emissions.

Speaker 1

One of our objectives for the next year is to expand this project to other efforts in the group. As we continue to make progress to get closer to achieving our goals, We will provide you updates at the appropriate time. Now moving to a review of our operational and financial results Some color on travel demand during the quarter. Note that all comparisons are year over year unless otherwise noted. We are pleased to report record high passenger traffic revenues and EBITDA in the Q1 of the year, But we are more cautious for the remaining of the year given the easy comps from Omicron during the 1st 2 months of 2022 And the negative effects of the personnel suspension of 2 Colombian airlines during the quarter.

Speaker 1

We delivered sustained growth in the number of passengers traveling through our airports, up 19% and reaching a record Of nearly $18,000,000 Mexico post the fastest growth with total passenger traffic of 23%, Reflecting increases across all of our airports. Domestic travel was up in the high 20s With traffic at Piedmonta above pre pandemic levels, while we expect Veracruz to fully recover this year. In turn, international traffic was up in the high teens, mainly driven by steady demand from the United States and Europe And an uptick in Canada, which recovered pre pandemic levels during the Q1. These all regions that we operate within Have recovered 12 months pre pandemic levels. Puerto Rico followed with traffic up 22%, with domestic traffic up in the high teens Internationally, up by nearly 50%.

Speaker 1

Lastly, total passenger traffic Colombia increased 9% with domestic traffic slowing to the middle single digits and international passengers to the high 30s. As anticipated, this is lower growth reflects the increase in VAT from 5% to 19%, which is impacting traffic trends And the suspension of operations of PIVA Colombia at the end of February and Ultra Air during March. These airlines represented 17.4% and 1.9% of 2022 passenger traffic in Colombia, respectively. On a consolidated basis, the share of domestic traffic over total traffic is stood at 59.3% of total traffic compared with 60.1 percent in the Q1 2022. Now moving to the P and L.

Speaker 1

As a reminder, all reference to revenues and costs exclude construction revenues. Before Beginning with our key financial figures, revenues increased 22%, reaching all time high of MXN6.30 billion. This robust performance is attributed to the solid growth in both aeronautical and non aeroptical revenues across our 3 geographic regions. Mexico represented 75% of total revenues, while Puerto Rico accounted for 15% and Colombia contributed 10%. Commercial revenues continue to show an upward trend increasing by 22% overall with Mexico up 23%, Puerto Rico 18% Colombia 13%.

Speaker 1

On a per passenger basis, commercial revenues increased to MXN 123 from nearly ARS 121 in the year ago quarter. LaVijay, commercial revenues were in the range of ARS 145 to ARS 100 47 in Mexico and Puerto Rico. Of note, these figures include the effect of the struck Mexican peso, which appreciated 10 point 36% at 36.23 percent versus the U. S. Dollar and the Colombian pesos since the end of Q1 last year Through the Q1 of this year, commercial revenues per passenger in Colombia were up in the low single digit in Mexican pesos, Impacted by the currency depreciation that increased 37.8% in local currency, reflecting the opening of 29 commercial spaces over the Moving to costs, total comparable operating expenses were up 12% below the 20 2% revenue growth in the quarter.

Speaker 1

Note that comparable costs exclude the effect of the MXN196 1,000,000 expense recovery In the Q1 2022, resulting from the application of the CRASA in Puerto Rico. Expenses in Mexico increased in the low 20s, below the 26% revenue growth. Higher costs were primarily due to personnel, energy and maintenance, Along with increased technical assistance and concession fees in line with the higher EBITDA. We have worked hard to maintain our cost control Obviously, the 20% increase in the minimum wage had a negative impact on team and security contracts. In Puerto Rico, comparable costs were relatively stable as a reduction in the maintenance reserve more than offset higher cost of services.

Speaker 1

Cost in Colombia was generally flat compared to a high single digit increase in revenues. Solar passenger traffic growth Together with higher commercial revenues and increased operating leverage resulted in another quarter of pre chlor carrying, EBITDA reaching MXN4.5 billion, Up 23% and adjusted EBITDA margin of nearly 72%, up 90 basis points from the year ago quarter. Again, this quarter, we delivered high profitability in our 3 regions of operation. Mexico posted a highly increase in EBITDA of Over 28 percent to MXN 3,600,000,000. In Puerto Rico, EBITDA was up 4% to MXN520 1,000,000 while Colombia EBITDA grows 12% to over MXN415 1,000,000.

Speaker 1

At geography, adjusted EBITDA margin improved 80 basis points in Mexico to nearly 77% And by 150 basis points in Colombia to just over 3% in turn, Puerto Rico posted a 2 60 basis points decline in adjusted EBITDA margin to nearly 55%. To recap, we delivered yet another strong quarter characterized by a record bridge Traffic and revenues. The combined effect of these achievements and our operating leverage led to an increase of 15% Net majority income reaching MXN2.5 billion for the quarter. In terms of the balance sheet, we maintain a robust Cash position of Ps. 15,000,000,000 and a well balanced debt profile.

Speaker 1

Accounts receivables were up 44 Present mainly reflecting the high passenger traffic across our airport network as well as At Zorch in Puerto Rico from the recognition of other revenues disclosed in the Q4 2022, we anticipate Collecting these receivables within the first half of twenty twenty three. To a lesser extent, VIVA Colombia and Nutriener outstanding receivables to Azure We're a combined sum of MXN 22,000,000. Eptel investments during the quarter were MXN 143,000,000, of which Nearly 50% was allocated to Mexico, MXN 47,000,000 to Puerto Rico and MXN 6,000,000 were invested in Colombia. Before we move to the Q and A portion of the call, some brief closing remarks. We are pleased to have started the year with a Strong note, nevertheless, as we think about the remaining of 2023, the year over year comps will not be easy as We experienced in the Q1, as I mentioned earlier, 2 of the Colombian airlines have recently suspended operations.

Speaker 1

Meanwhile, we will continue to look for ways to further improve our cost structure and drive margin improvement. Our balance sheet is healthy, and we will continue to invest to support future growth. Separately, on the news front, At the end of the quarter, the President of Mexico sent to the Mexican Congress a deal to reform 2023 laws. The deal was provided, among other things, additional funds for the Mexican government to modify or to report license authorizations and payments. And it's not clear whether the Congress will pass this bill And it's Natesto's the impact it may have on the Mexican economy and the company's operation.

Speaker 1

We believe this deal will be disclosed by the Mexican In conclusion, with a keen focus on providing value to our shareholders, Our Board of Directors has proposed an ordinary net cash dividend of MXN9.93 per share payable in May And the next ordinary net cash dividend of MXN 10 per share payable in November for each of the ordinary B and BB Sure. Equivalent to a combined total of nearly MXN6 1,000,000,000 in dividend payments. These among All the items will be reported by our shareholders at our Annual General Meeting held this Wednesday.

Operator

One moment please while we poll for questions. Thank you. Our first question is from Guillermo Mendez with JPMorgan. Please proceed with your question.

Speaker 2

Hi, Adolfo. Good morning and thank you for taking my question. I have two questions. The first one is related to the regulatory noise that you just mentioned regarding The question is, if you see any kind of risk for your upcoming MDP negotiation. I understand there Still a lot of doubts and we haven't seen like the full definition of it, but what's your best guess on how this could potentially impact And the second question is regarding to Colombia.

Speaker 2

As you mentioned, You have 2 less players operating on the region. How do you see the competitive environment in the region and the potential impact on traffic going forward? Thank you.

Speaker 1

Hi, good morning. Well, the bill is not a concession bill. The bill is affecting All the entities that have received from the government a license, a permit, an approval For an authorization or a concession, it's not just for concession. Also, this deal has some other things. It is not just To strengthen the power of the Mexican government in conversations.

Speaker 1

I'm not expert on loss or legal matters. You can read the 20 8 report and you will see what my lawyers say about this document. In the case of Colombia, yesterday at night, there was a communication from the Ministry of Transport where they are approving the merge between Viva Columbia and Avianca under certain conditions. This may help in order that these airlines can restart operations. Also, I received a notification from Ultra Air that they want to restart operations, and this may Improve the situation in Colombia because what I believe is that currently Avianca and LATAM does not have The possibility to absorb all the passengers these airlines left into the tail.

Speaker 1

I hope that these two things will improve and we will see information, I would say, over the next week.

Speaker 2

Okay. Thanks very much. Have a nice day, Adolfo.

Speaker 1

You're welcome.

Operator

Thank you. Our next question is from Rodolfo Ramos with Bradesco BBI. Please proceed with your question.

Speaker 3

Thank you and good morning, Adolfo. A couple of questions from my side as well. The first one is, if you can share a little bit on your expectations for international traffic, Particularly coming from the U. S, I don't know if you have any visibility as to bookings or anything. We were looking at air travel searches from the U.

Speaker 3

S. Towards Cancun And it looked like they're a bit off from what we saw at this time of the year in last year. So just wanted to get your thoughts there. And I have a second question, a follow-up on the first one.

Speaker 1

Okay. Rob, hi, good morning. We do not have too much or additional information of the one you have. Of course, we have the bookings up to the end of the season, of the winter season that ends almost at the end of April. What I expect is more stable crudes in the case of the U.

Speaker 1

S. The important The point will be the summer in the case of the U. S. And domestic and towards the end of the year, again, the Colombian traffic.

Speaker 3

Okay. Thank you. And a follow-up on the previous question. On your MDP, P, I mean, I don't know if there's anything you can share as to the progress of your MDP. I mean, you mentioned that This reform doesn't contaminate, so to speak, the process, but just wanted to get your any initial comments that you can make regarding Perhaps tariff expectations or any projects in terms of CapEx, just anything for us to have visibility at this Time where kind of like the regulatory concerns are a little bit more heightened.

Speaker 3

Thank you.

Speaker 1

Well, the only thing that I can say about the MDP is that the first half of the year normally the authority It takes a visit to each one of the airports basically to check 2 things. 1 is what we call the inventory, what is the real status of every single piece of the infrastructure at the airport. And the second one is to review each one of the projects we have proposed to them. What I can say to you is that this program of visits have started as And we are at the airports as we speak. So in the second half of the year is when the government Thank you.

Speaker 1

The path of the traffic, we can rate and final calculations.

Speaker 3

Thank you, Luis.

Speaker 1

You're welcome.

Operator

Thank you. Our next question is from Alberto Valerio with UBS. Please proceed with your question.

Speaker 4

Hi, Bruce. Thanks for taking my questions. I would like to do another follow-up on the NBP. You are the only one to provide a CapEx estimate for the following 5 years of the current NBP. And if I'm not mistaken, 2018, you provided a $10,000,000,000 CapEx.

Speaker 4

Can you still use that? It's duplicated if it makes sense or if it does not make sense anymore? And another point is that CapEx that is postponed from the extra engineering in 2021, if you could I'll add this extra CapEx to your planned CapEx or planned CapEx back in 2018. And just to compliment, do you think that the spread between the spread above the 10 year bond or Mexican Could be close to what we got in 2018 was 1% or you think can be higher for the next period the NBP? Thank you.

Speaker 1

Hello. Your line is cutting. I couldn't hear well your question, but let me say that In the case of the MXN2 1,000,000,000 that were postponed from the previous CapEx, of course, Those will be considered in the current NBP numbers. And also in the case of Of the situation of this postponement It's due to the fact of the new passenger traffic forecast. So the project can postpone Because if we do not reach the level of passenger traffic that is required to make the projects, The company is or take the decision to postpone those projects in order not to affect the maximum rate.

Speaker 1

I know that you had some other questions, but I couldn't hear.

Speaker 4

Can I try again? It's better now.

Speaker 1

It's really

Speaker 4

I can follow-up with you by any means.

Speaker 1

Thank you very much for those. Okay. You're welcome.

Operator

Thank you. Our next question is from Juan Macedo with GBM. Please proceed with your question.

Speaker 5

Hi, Adolfo. Thanks for the call and congrats on the results. I have two questions. My first question is regarding the Commercial We saw great results in United revenues per passenger on Colombian concessions despite the Mexican peso appreciation. Could you give us some color on that dynamic?

Speaker 5

Is it due to commercial expansions or does it come from passenger behavior?

Speaker 1

Well, this is coming from what we have done there. As I mentioned in the remarks, we have opened 29 spaces And those are producing well results. Of course, as I mentioned during the initial remarks, probably we are now Seeing the full effect of this in Mexican peso figures because of the acquisition of the Mexican peso versus the Colombian peso That is 1, 36% over the last 12 months. So if you put all of these on the top of the number we have presented In the report, you will see that the results in Colombia are very good.

Speaker 5

Yes, agreed. Thank you. And my second question is regarding tariffs. Could you give us some detail on when and how the tariff increment implementations go during the quarter?

Speaker 1

Well, remember that the type or the level of how much we reach of the maximum rate It's measured once a year in a calendar year. So last year, we end up around 96%. I do believe

Speaker 6

with the

Speaker 1

current expectation of inflation this year, probably we will be at 98% this year.

Speaker 5

Great. Thanks for the color.

Speaker 1

You're welcome.

Operator

Thank you. Our next question is from Bruno Amorim with Goldman Sachs. Please proceed with your question.

Speaker 7

Hi. Good morning, Adolfo. Thank you for taking my question. It's a follow-up on MZP as well. I know you cannot Comment on the outcomes, of course.

Speaker 7

But maybe you can help us understand where do we stand in terms of traffic, the need For CapEx and then cost of capital, right? The first question would be, is it fair to say that traffic is now above what was initially When you and the regulators agreed on the extraordinary revision during the pandemic given the sharp recovery in traffic. The second question would be, Is there a spare capacity to accommodate this additional demand without the need for higher CapEx or All else held constant should this eventually stronger than initially expected traffic rebound to drive higher than initially expected CapEx? And The last question would be on cost of capital. At the moment when you have reset the tariffs and the CapEx plan during the pandemic, Has the regulator adjusted the cost of capital as well or not?

Speaker 7

I'm asking this because at that moment in time, 10 year rates in We're well below the current level, so this could have an implication for the direction of the tariffs as well. Thank you.

Speaker 1

Hello Bruno. In the case of traffic, yes, in some cases, traffic is higher than expected In comparison with what we presented in our extraordinary Maxim type revision, Remember that we did that in the Q1 2021, but that's for some airports. For some others, it is not. So in total, I would say probably it's higher, but just a bit. In terms of high CapEx, what I can say to you is that the projects, important projects will come in the case of Permian Airport.

Speaker 1

We're talking about terminal expansion. Remember that the €2,000,000,000 or The most important portion of the $2,000,000,000 that was postponed in CapEx was the expansion of fore holding gates in the case of Cancun Terminal 4. And of course, those are going to be included in the new MDP. In terms of the cost of capital, That will be measured, as I said, during the 3rd Q4 this year. Remember that the government uses the last 24 months The Mexican paper issued in international markets long term.

Speaker 1

So we will Be able to answer your question up to the 3rd or 4th quarter this year.

Speaker 4

Yes, but just a follow-up on the

Speaker 7

cost of Capital, when you and the regulator agreed on the extraordinary revision during the pandemic, has the allowed return being Adjusted at a moment in time reflecting the cost of capital at that time or not?

Speaker 1

It was adjusted, yes. Okay. Thank you very much. You're welcome.

Operator

Thank you. Our next question is from Felipe Nielson with Citi. Please proceed with your question.

Speaker 8

Hello, good morning or afternoon and thanks for taking my questions. So I have Two questions on my side. The first one is with the NBP review on the horizon, how should we Think about the technical assistance fee and if you think that it's reasonable to consider That fee given that Azure is much more experienced versus back in 1998? And the second question is how now that we are in the halfway mark of the 50 year concessions, do you think that it's Say, maybe some color on those two points. Thank you.

Speaker 1

Hello. In terms of the technical assistance, It's important to say that this is not for free. We have an agreement with ETA that they have to comply with. And also I have to say this is one of the most important moments where they have to deliver, which is the case of the MDP. In the case of the renewal of the concession, the contract says that it's for 50 years and it can be renewed.

Speaker 1

The contract doesn't say how And I'm sure that I'm not going to be hearing this company or maybe a bit worse when this will occur. So for the moment, I'm not concerned about The renewal because that is or that will or should appear in 2,048.

Speaker 8

Great. Thank you very much for the color.

Operator

Thank you. Our next question is from Gabriel Himmel Thor with Scotiabank. Please proceed with your question.

Speaker 9

Hi, Alulfo. Thanks for the call. Just a follow-up question on the MDP. And for modeling purposes, do you think it's appropriate we add a risk premium to the discount rate Due to the current regulations that have been proposed in the Congress And also, do you think we should consider additional CapEx for example, connecting the terminals with the Tren Maya Or any tariff increase that could be allowed due to the Tulum airport? Thank you.

Speaker 1

Well, in the case of the cost of capital or The discount rate, no, that has been defined as the one of the industry. So of course, the process to calculate that is The Mexican paper issued in international market last 12 months, average for the last 24 plus something, okay. But again, that will be disclosed during the 3rd, Q4 this year. In the case of what you're saying about The connection with the Maya train, we're working today as we speak with the government to be able to connect the Maya train with The airport and yes that will be or should be considered in the next MVP.

Speaker 9

Okay. And in the case of the Tulum airport, if the airport is approved, Do you think the government will provide will allow you for higher tariffs that compensate the traffic drive?

Speaker 1

In order to allow the higher traffic, remember that how we do the calculation is to forecast our passenger traffic in the future And that of course includes all the effects, the economy, the tourism trends, hurricanes, doom airport, everything.

Speaker 9

Okay. Thank you. You're welcome.

Operator

Thank you. Our next question is from Francisco Gossuarez with Scotiabank. Please proceed with your question.

Speaker 6

Hello, good morning. And also thank you for the call. A question on your sustainability report. I was noticing that you are doing a really good job in Overall, energy consumption in absolute and in relative terms compared to 2019 figures, but I just noticed that In terms of water consumption and waste of non hazardous waste, that is not the case. Can you A little bit of why it might be happening and what is your overall strategy to cut The gross consumption of water in your terminals in Mexico?

Speaker 6

Thank you.

Speaker 1

Absolutely. In the case of water, that's a good question because our next NBP or I would say the focus or the important focus of our next NBP It's water, no? It's clear that we have not done yet most of the things that we can do there. Of course, what you are seeing in the numbers includes the water that we have to spend to construct the expansion of the building. So that is why probably you see some higher numbers in the case of May than some other airports.

Speaker 1

But we will see these improvement once we finish with those works.

Speaker 6

Great. Thank you. And if I may, a follow-up on this Adolfo. It is interesting because when we discuss So potential retrofits in other type of structures with companies, those are kind of challenging in terms of the economics to do that. But under your industry, it seems that you're in a great position to put that On the MDP as well to make a retrofit in the terminals for instance and with that cut your overall Energy and water intensity in those buildings, do you think that, that might be a possibility?

Speaker 6

And if it's Actually correct what I'm saying that perhaps if this type of CapEx is A place on the MDPs as you're going to do that now in the next month, That is actually the way to make a profit out of those investments that in other industries seems to be more and more challenging.

Speaker 1

Well, in the case of the energy, you will have to go back to a 6 day or press release that we issued The 15 December, 2015. Okay. 15, you will see that We were announcing that we signed an agreement with a company called SunPower to purchase Energy from solar source. And that at the moment 100% of the energy consumption at the airport. Today, probably this is around 78% of the construction because after that we opened Terminal 4 and all the reductions that we have been able to manage since then.

Speaker 1

We are waiting these to be in place there. The solar farm It's waiting for the approval from the energy approaches here in Mexico. The solar farm is ready since the Q1 last And once they get this approval, our increase in the case of Solar energy will be extremely important. Got you.

Speaker 6

But going back to my initial question, does retrofits to your existing Buildings, the older terminals can be put in the MDPs and with that not only cut your overall energy And what are intensities, but also earn a profit out of these investments?

Speaker 1

I don't know The true definition of your retrofit, but let me say, the most important consumption on energy we have It's related to air conditioner.

Speaker 6

Yes.

Speaker 1

Of course, when we construct a new building, The free equipment will be more efficient in comparison with the others. And that's where we get these benefits of the new equipment or when we will be paid those in the old units.

Speaker 6

Perfect. Thank you, Adolfo. Congrats on the results. Thanks.

Operator

Thank you. Our next question is from Alan Macias with Bank of America. Please proceed with your question.

Speaker 7

Hi, Alvaro, and thank you for the call. My question was answered, but can't you just repeat your dividend payments That you mentioned? Thank you.

Speaker 1

Yes. The annual general shareholders meeting is going to take place tomorrow. The proposal is COP 9.93 in an ordinary dividend to be paid on May And the extraordinary MXN10 per share to be paid in November. Thank you.

Operator

Thank you. Our next question is from Lucila Gomez with Compass Group. Please proceed with your question.

Speaker 10

Hi, good morning, Alonso. Thank you for taking my question. Just a quick follow-up On the Cancun airport, after all these expansions, what is the annual capacity that the airport has right now in terms of Traffic, and what is your where do you think you'll be reaching for this year?

Speaker 1

Well, hi, Lucia. The capacity of the building, of course, has to do with the level of service. It's very difficult to say what is The full capacity of a building in just a single number because A restriction can be security field, there's something that you can solve with, let's say, 100,000,000 barrels. But if you want just a single number in the Quezua Pena, it could be today 31000000, 32000000 passenger traffic Yes, okay. More or less what we have today.

Speaker 1

So we are very close to the capacity Defined in terms of the level of service we want. So in other words, that doesn't mean that we cannot have more passengers. But of course, in some time of the day, in some these days of the year, probably the level of service you will receive there

Speaker 10

Okay. So just as a follow-up, if you Wanted to add more passengers. What would be like the most it would allow you to reach at the moment?

Speaker 1

Okay. In the MDP, the way we do is we draw our passenger traffic line for the next 15 years And then we convert these into use per hour in each one of the features of the airport. Understand that is that we can have lack of capacity just 30 hours in a year. So that means in the 31st hour of the year, demand is higher than the capacity we have to go To the next step, so to increase the security filter, to increase the volume gain, to increase the elector's stand, etcetera. That is how we construct the NBP.

Speaker 10

Okay. Thank you, Alberto.

Speaker 1

You're welcome.

Operator

Thank you. Our next question is from Fernanda Raddia with APG. Please proceed with your question.

Speaker 10

Hey, Adolfo. Good morning. Thank you for taking my questions. I have 2 on my side. The first one, we heard that this year should be the record in terms of Sargassum.

Speaker 10

So I was just wondering if you could maybe could Provided your thoughts on the potential impact it could have on Cancun's airport? And the second, we see that you are not cash as of Q1. I was wondering if you could Provided any thoughts regarding capital allocation besides dividend payment, if you're thinking of Further expanding your geographic footprint? And if it does, which region would you be focused on? Thank you.

Speaker 1

Hi, Fernando. Thank you for your question. Well, I don't believe that this year is going to be the record year. I believe that 2018 will be the record year So far, but it's true that we are having Zagazzo and these hotel owners are doing an extraordinary work In the case of cash, yes, Ps. 15,000,000,000 is a very good number.

Speaker 1

But as I mentioned, I will have to pay €6,000,000,000 of those 15 during this year. It's true that we have a low CapEx

Speaker 10

Okay. Thank you.

Operator

Thank you. Our next question is from Mauricio Butrago with AM Advisors. Please proceed with your question.

Speaker 1

Hello, Adolfo. I have two quick questions. The first one is how the close of operations of Viva Air in Colombia Impacted your results in the quarter? And second question is just if you can repeat the guidance of CapEx and EBITDA for this year, please? Hi, Mauricio.

Speaker 1

In the case of Iberia, as I mentioned, they stopped operations at the end of February, So no passengers during March, and they represented 17.4% of our traffic in 2022. So the impact in the case of Colombia, you already saw that with March passenger traffic figure. It was an important adjustment in the case of the month of March in comparison In terms of the CapEx, What we are expecting is round number MXN 700,000,000 in the case of Mexico and around MXN 20,000,000 20 something million in the case of Puerto Rico and probably 10,000,000 in the case of Colombia.

Operator

This concludes our question and answer session for today's conference call. I would now like to turn the conference over to Mr. Castro Mr. Castro for any closing remarks.

Speaker 1

Thank you, Paul, and thank you all of you again for participating in the Q1 results conference call. On

Operator

Ladies and gentlemen, this concludes Astor's 1st Quarter 2023 Results Conference Call. We would like to thank you again for your participation. You may now disconnect.

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Grupo Aeroportuario del Sureste, S. A. B. de C. V. Q1 2023
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