Published On: Thu, Feb 23rd, 2017

Cancun continues to propel Grupo Aeroportuario del Sureste’s earnings

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According to Matthew DiLallo, a stock market expert and collaborator for the Motley Fool, Grupo Aeroportuario del Sureste SAB CV  or ASUR, continues to benefit from its concession to operate the Cancun International Airport, which drives the bulk of its traffic and growth.

A record 21.4 million passengers passed through that airport last year, up 9.3% year over year, accounting for 75% of the company’s total traffic. With additional capacity expansions on the way, that key location should continue to drive the company’s earnings higher.

ASUR’s results: The raw numbers

Metric Q4 2016 Q4 2015 Year-Over-Year Change
Total passenger traffic 7.1 million 6.3 million 11.9%
Total commercial revenue per passenger $96.38 $88.70 8.7%
Earnings per share $1.48 $1.18 25.5%

DATA SOURCE: GRUPO AEROPORTUARIO DEL SURESTE, S.A.B. DE C.V.


What happened with ASUR this quarter? 

Traffic at Cancun continues to grow:

  • Domestic traffic rose at all but two of the company’s airports during the fourth quarter, with Cozumel and Minatitlan the only weak spots, though they accounted for just 2.6% of total traffic. Meanwhile, Cancun did most of the heavy lifting as traffic rose 19.5% to 1.8 million passengers during the quarter, which was 52% of ASUR’s domestic traffic.
  • Cancun was the star of the show internationally, accounting for 95% of traffic during the quarter. Overall, 3.4 million international passengers passed through that airport, up 9.4% from the year-ago quarter due in part to last year’s expansion of Terminal 3.
  • Thanks to the fixed-cost nature of its operating model, ASUR continues to leverage its traffic growth to capture more revenue per passenger, which was up 8.7% year over year. That said, if there was one weak spot, it was company’s directly operated convenience stores where revenue was only up 5.9% year over year to $15.76 per passenger.
  • Total operating costs dropped 1.4% year over year, primarily due to an 11.4% decrease in construction costs and a 2.8% drop in administrative expenses. Those declines more than made up for a 28.9% increase in the cost of services from the Terminal 3 expansion and higher cost of sales from the directly operated convenience stores.

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Source: https://www.fool.com/

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