Corporación América Airports S.A. (NYSE:CAAP) Q2 2022 Earnings Conference Call August 19, 2022 10:00 AM ET

Company Participants

Patricio Inaki Esnaola - Head, Investor Relations

Martin Eurnekian - Chief Executive Officer

Jorge Arruda - Chief Financial Officer

Conference Call Participants

Filipe Nielsen - Citi

Operator

Good morning and welcome to the Corporación América Airports' Second Quarter 2022 Earnings Conference Call. A slide presentation accompanies today's webcast and is available in the Investors section of the Corporación América Airports Investor Relations website. As a reminder, all participants will be in listen-only mode. There will be an opportunity to ask questions at the end of the presentation.

At this time, I would like to turn the call over to Patricio Inaki Esnaola, Head of Investor Relations. Please go ahead.

Patricio Inaki Esnaola

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 Jorge Arruda our, Chief Financial Officer.

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

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

Martin Eurnekian

Thank you, Inaki. Hello everyone and welcome to our second quarter 2022 earnings call. We reported another strong quarter as passenger traffic continues its recovery trend. Adjusted EBITDA increased to $111 million, driven by sustained improvements across our operations and up from $9 million in the same quarter last year.

Adjusted EBITDA margin ex-IFRIC has recovered to 36.2%, up from mid-single-digit margin in the second quarter of last year. Robust commercial revenues stand out this quarter meeting pre-pandemic levels by 20% and Jorge will discuss this in more detail shortly. We have also made significant strides in enhancing our leverage with our net debt-to-adjusted EBITDA ratio declining sharply on track to continue turning down.

Now, looking at traffic trends on slide four. Pent-up demand and lifting of travel restrictions continue to support the positive traffic recovery trend with a total of 15.1 million passengers traveling across our airports during the quarter and reaching 76% of second quarter 2019 levels. This momentum continued into July with traffic at nearly 80% of pre-pandemic levels.