Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) Q2 2022 Earnings Conference Call July 27, 2022 11:00 AM ET

Company Participants

Emmanuel Camacho - IR Officer

Ricardo Duenas - CEO

Ruffo Perez Pliego - CFO

Conference Call Participants

Alejandro Zamacona - Crédit Suisse

Rodolfo Ramos - Bradesco BBI

Stephen Trent - Citigroup

Pablo Monsivais - Barclays Bank

Guilherme Mendes - JPMorgan Chase & Co.

Gabriel Himelfarb - Scotiabank

Alan Macias - Bank of America Merrill Lynch

Operator

Greetings, and welcome to the Grupo Aeroportuario del Centro Norte OMA Second Quarter 2022 Earnings Conference Call. [Operator Instructions]. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Emmanuel Camacho, Investor Relations Officer. Thank you, Emmanuel. You may begin.

Emmanuel Camacho

Thank you, Paul and good morning, everyone. Welcome to OMA's Second Quarter 2022 Earnings Conference Call. Participating today are CEO, Ricardo Duenas; and CFO, Ruffo Perez Pliego. Please be reminded that certain statements made during the course of our discussion today may constitute forward-looking statements, which are based on current management expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially including factors that may be beyond our control. I will now turn the call over to Ricardo for his opening remarks.

Ricardo Duenas

Thank you, Emmanuel. Good morning, everyone. We appreciate you joining us today. This morning, I will review our second quarter operational performance. First of all, I am pleased to inform that OMA delivered an outstanding performance during the second quarter of 2022 with all-time highs on our aeronautical revenues, non-aeronautical revenues, adjusted EBITDA and adjusted EBITDA margin, which reached 77.7%.

I will now briefly explain how we achieved these results. During the quarter, total passenger traffic reached $5.9 million, an increase of 30% versus the second quarter of '21. As compared to the second quarter of 2019, total passenger traffic stood at 99%. Our passenger traffic performance remains sound and consistent with our expectations of an increased business activity and a better performance from the business travel segment. During the quarter, the route that contributed most to passenger traffic growth in volume terms versus the second quarter of 2021 were Monterrey on its Mexico City and Guadalajara routes; and Ciudad Juárez, Chihuahua and Durango one the Mexico City route. All of them considered mainly business routes.

As a result of the strong passenger traffic performance as well as an increase in our aeronautical tariff earlier this year, aeronautical revenue grew 33% in the quarter versus the second quarter of '21 to MXN1.8 billion. On the commercial front, revenue increased 49% compared to the second quarter of '21. Marketing revenues increased 53% versus 2021, mainly due to higher penetration levels in Chihuahua and Monterrey as a result of higher business travel in those airports.