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ASUR 2Q12 Passenger Traffic Up 7.36% YOY

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MEXICO CITY, July 23, 2012 /PRNewswire/ -- 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 other airports in southeast Mexico, today announced results for the three and six-month periods ended June 30, 2012.

2Q12 Highlights1:

  • EBITDA2 increased by 18.97% to Ps. 740.02 million
  • Total passenger traffic was up 7.36%
  • Total revenues rose by 16.53% due to increases of 13.19% in aeronautical revenues, 19.38% in non-aeronautical revenues, and 24.64% in construction services revenues
  • Commercial revenues per passenger increased by 13.33% to Ps.75.05
  • Operating profit increased by 21.52%
  • EBITDA margin increased to 58.02% from 56.82% in 2Q11

1. Unless otherwise stated, all financial figures discussed in this announcement are unaudited, prepared in accordance with International Financial Reporting Standards (IFRS) and represent comparisons between the three- and six month periods ended June 30, 2012, and the equivalent three- and six-month periods ended June 30, 2011. Financial figures for the three- and six-month periods ended June 30, 2011 have been restated to reflect IFRS. Results are expressed in nominal pesos. Tables state figures in thousands of pesos, unless otherwise noted. Passenger figures exclude transit and general aviation passengers. Commercial revenues include revenues from non-permanent ground transportation and parking lots. All U.S. dollar figures are calculated at the exchange rate of US$1.00 = Ps.13.4084.

2. EBITDA means net income before: provision for taxes, deferred taxes, profit sharing, non-ordinary items, comprehensive financing cost and depreciation and amortization. EBITDA should not be considered as an alternative to net income, as an indicator of our operating performance or as an alternative to cash flow as an indicator of liquidity. Our management believes that EBITDA provides a useful measure of our performance that is widely used by investors and analysts to evaluate our performance and compare it with other companies. EBITDA is not defined under U.S. GAAP or IFRS and may be calculated differently by different companies.

Passenger Traffic

For the second quarter of 2012, total passenger traffic increased year-over-year by 7.36%. Domestic passenger traffic increased by 14.95% while international passenger traffic increased by 1.79%.

The 14.95% growth in domestic passenger traffic growth was driven by increases at Cancun, Cozumel, Villahermosa, Minatitlan and Oaxaca. The 1.79% growth in international passenger traffic resulted mainly from an increase of 1.73% in international traffic at the Cancun airport.

Passenger traffic for the six-month period ended June 30, 2012 increased 8.90% compared to the same year-ago period, reflecting increases of 17.10% in domestic passenger traffic and 4.01% in international passenger traffic.

Table I: Domestic Passengers (in thousands)

Airport

2Q11

2Q12

% Change

1H
2011

1H

2012

% Change

Cancun

926.4

1,169.0

26.19

1,624.3

2,031.9

25.09

Cozumel

9.3

21.5

131.18

19.8

41.8

111.11

Huatulco

101.9

99.9

(1.96)

178.0

193.5

8.71

Merida

289.6

274.5

(5.21)

531.5

553.9

4.21

Minatitlan

26.5

31.1

17.36

50.5

61.4

21.58

Oaxaca

81.8

101.6

24.21

151.8

196.4

29.38

Tapachula

40.6

36.4

(10.34)

77.1

74.0

(4.02)

Veracruz

199.1

191.0

(4.07)

373.4

367.0

(1.71)

Villahermosa

191.7

221.0

15.28

365.6

428.8

17.29

TOTAL

1,866.9

2,146.0

14.95

3,372.0

3,948.7

17.10

Note: Passenger figures exclude transit and general aviation passengers.

II: International Passengers (in thousands)

Airport

2Q11

2Q12

% Change

1H
2011

1H

2012

% Change

Cancun

2,358.3

2,399.1

1.73

5,220.2

5,439.2

4.20

Cozumel

102.7

100.3

(2.34)

246.4

236.4

(4.06)

Huatulco

10.5

10.6

0.95

48.6

48.8

0.41

Merida

20.1

22.6

12.44

47.5

50.1

5.47

Minatitlan

1.1

1.5

36.36

2.1

2.9

38.10

Oaxaca

10.9

11.5

5.50

23.7

26.5

11.81

Tapachula

2.2

1.9

(13.64)

4.1

4.1

-

Veracruz

23.2

24.8

6.90

41.4

49.0

18.36

Villahermosa

11.5

13.7

19.13

22.6

26.6

17.70

TOTAL

2,540.5

2,586.0

1.79

5,656.6

5,883.6

4.01

Note: Passenger figures exclude transit and general aviation passengers.

Table III: Total Passengers (in thousands)

Airport

2Q11

2Q12

% Change

1H
2011

1H

2012

% Change

Cancun

3,284.7

3,568.1

8.63

6,844.5

7,471.1

9.15

Cozumel

112.0

121.8

8.75

266.2

278.2

4.51

Huatulco

112.4

110.5

(1.69)

226.6

242.3

6.93

Merida

309.7

297.1

(4.07)

579.0

604.0

4.32

Minatitlan

27.6

32.6

18.12

52.6

64.3

22.24

Oaxaca

92.7

113.1

22.01

175.5

222.9

27.01

Tapachula

42.8

38.3

(10.51)

81.2

78.1

(3.82)

Veracruz

222.3

215.8

(2.92)

414.8

416.0

0.29

Villahermosa

203.2

215.8

15.50

388.2

455.4

17.31

TOTAL

4,407.4

4,732.0

7.36

9,028.6

9,832.3

8.90

Note: Passenger figures exclude transit and general aviation passengers.

Consolidated Results for 2Q12

Total revenues for 2Q12 increased year-over-year by 16.53% to Ps.1,275.51 million. This was mainly due to increases of:

  • 13.19% in revenues from aeronautical services, principally as a result of the 7.36% rise in passenger traffic;
  • 19.38% in revenues from non-aeronautical services, reflecting the 21.49% increase in commercial revenues detailed below; and
  • 24.64% in revenues from construction services as a result of capital expenditures and other investments in concessioned assets during the period.

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

Commercial revenues increased by 21.49% year-over-year during the quarter, principally due to the 7.36% increase in passenger traffic. There were increases in revenues in the following activities:

  • 43.20% in advertising;
  • 39.29% in teleservices;
  • 24.93% in other revenue;.
  • 24.90% in duty-free stores;
  • 23.65% in retail operations;
  • 20.01% in banking and currency exchange services;
  • 16.60% in car rental revenues;
  • 12.73% in food and beverage;
  • 2.16% in ground transportation; and
  • 1.87% in parking lot fees.

Retail and Other Commercial Space
Opened since March 31, 2011

Business Name

Type

Opening Date

Cancun



Grab & Go

Food and beverage

April 2011

California Pizza Kitchen

Food and beverage

April 2011

Air Shop

Convenience store (2 stores)

April & May 2011

Ando Volando Bajo

Convenience store

June 2011

Starbucks Cafe

Food and beverage

July 2011

Traffic Tours

Tourism booth

September 2011

Construction revenues and expenses. As a result of ASUR's adoption of IFRIC 12 "Service Concession Contracts" ASUR is required to include in its income statement an income line reflecting the income from construction or improvements to concessioned assets made during the period. During 2Q12, ASUR recognized Ps.168.19 million in revenues from "Construction Services" because of improvements to its concessioned assets, a 24.64% year-on-year increase. The same amount is recognized under the expense line "Construction Costs" because ASUR hires third parties to provide construction services.

Because equal amounts of Construction Revenues and Construction Expenses have been included in ASUR's income statement as a result of the application of IFRIC 12, the increase in Construction Revenues in 2Q12 did not result in a proportionate increase in the EBITDA Margin, which is equal to EBITDA divided by total revenues.

Total operating costs and expenses for 2Q12 increased 11.89% year-over-year. This was primarily due to the following increases:

  • 24.64% in construction costs, due to greater improvements made to the concessioned assets during the period;
  • 5.38% in costs of services, principally reflecting higher energy costs, as well as higher cost of sales resulting from the increase in revenues at the convenience stores directly operated by ASUR, and fees paid to third parties in connection with ASUR's participation in international bidding processes. Higher insurance, as well as bond required in connection with an appeal of a decision overturning a tax credit, and higher maintenance also contributed to the increase;
  • 12.46% in administrative expenses mainly due to higher professional fees paid to third parties;
  • 19.10% in the technical assistance fee paid to ITA, reflecting the increase in EBITDA for the quarter (a factor in the calculation of the fee);
  • 14.49% in concession fees paid to the Mexican government, mainly due to an increase in regulated revenues (a factor in the calculation of the fee); and
  • 4.84% in depreciation and amortization, resulting mainly from capitalized investments.

Operating margin for the quarter increased to 50.21% from 48.14% in 2Q11. This was mainly due to the 16.53% increase in revenues which more than offset the 11.89% increase in expenses during the period.

Comprehensive Financing Result (Cost) for 2Q12 increased year-over-year by Ps.26.02 million, to Ps.33.13 million from Ps.7.10 million in 2Q11, principally due to a higher foreign exchange gain.

During 2Q12, the Company reported a foreign exchange gain of Ps.14.33 million which principally resulted from the 14.38% depreciation of the Mexican peso against the U.S. dollar during the period.

Interest expense declined in 2Q12 by Ps.6.48 million year-on-year, principally reflecting lower debt levels as a result of the Ps.368.0 million in principal payments made during 2Q12. Interest income increased by Ps.7.68 million year-on-year reflecting higher investments resulting from the increase in net income during the period.

Item

2Q11

2Q12

Increase (decrease)

Interest expense

(15,583)

(9,107)

(6,476)

Interest income

20,024

27,705

7,681

Foreign exchange gain, net

2,163

14,332

12,169

Other financing gain (expenses), net

500

195

(305)

Comprehensive Financing Gain (Cost)

7,104

33,125

26,021

Income Taxes. Following the changes in Mexican tax law that took effect January 1, 2008, which established a new flat rate business tax ("Impuesto Empresarial a Tasa Unica", or "IETU") and eliminated the asset tax, the Company evaluates and reviews its deferred assets and liabilities position as applied by Mexican Tax laws.

Income taxes for 2Q12 increased by 42.06%, or Ps.62.27 million year-over-year, principally due to the following factors:

  • Provisional IETU payments of Ps.2.67 million by some of ASUR's subsidiaries;
  • A Ps.68.16 million increase in the provision for income taxes, as a result of a higher taxable base resulting from the 16.53% increase in revenues during the period, which more than offert the 11.89% increase in operating costs.
  • A Ps.0.67 million increase in deferred income taxes resulting from the recognition of inflationary effects;
  • A Ps.9.79 million decline in deferred IETU because of the expiry of tax credits; and
  • A Ps.0.26 million decline in the asset tax for amounts that cannot be credited against other taxes.

Net income for 2Q12 increased 19.99% to Ps.463.23 million from Ps.386.05 million in 2Q11. Earnings per common share for the quarter were Ps.1.5441, or earnings per ADS (EPADS) of US$1.1516 (one ADS represents ten series B common shares). This compares with earnings per share of Ps.1.2868, or EPADS of US$0.9597, for the same period last year.

Table IV: Summary of Consolidated Results for 2Q12


2Q11

2Q12

% Change

Total Revenues

1,094,610

1,275,511

16.53

Aeronautical Services

619,617

701,374

13.19

Non-Aeronautical Services

340,050

405,948

19.38

Commercial Revenues

295,145

358,566

21.49

Construction Services

134,943

168,189

24.64

Operating Profit

526,991

640,415

21.52

Operating Margin %

48.14%

50.21%

4.29%

EBITDA

622,003

740,021

18.97

EBITDA Margin %

56.82%

58.02%

2.10%

Net Income

386,054

463,230

19.99

Earnings per Share

1.2868

1.5441

19.99

Earnings per ADS in US$

0.9597

1.1516

19.99

Note: U.S. dollar figures are calculated at the exchange rate of US$1 = Ps.13.4084.

Table V: Commercial Revenues per Passenger for 2Q12


2Q11

2Q12

% Change

Total Passengers ('000)

4,458

4,778

7.18

Total Commercial Revenues

295,145

358,566

21.49

Commercial revenues from direct operations (1)

63.173

80,761

27.84

Commercial revenues excluding direct operations

231,972

277,805

19.76



2Q11

2Q12

% Change

Total Commercial Revenue per Passenger

66.22

75.05

13.33

Commercial revenue from direct operations per passenger (1)

14.17

16.90

19.27

Commercial revenue per passenger (excluding direct operations)

52.05

58.15

11.72

Note: For purposes of this table, approximately 51,100 and 45,900 transit and general aviation passengers are included for 2Q11 and 2Q12, respectively.

(1) Revenues from direct commercial operations represent ASUR's operation of convenience stores in airports and the direct sale of advertising space.

Table VI: Operating Costs and Expenses for 2Q12


2Q11

2Q12

% Change

Cost of Services

219,265

231,068

5.38

Construction Costs

134,943

168,189

24.64

Administrative

41,007

46,117

12.46

Technical Assistance

32,700

38,947

19.10

Concession Fees

44,692

51,169

14.49

Depreciation and Amortization

95,012

99,606

4.84

TOTAL

567,619

635,096

11.89

Consolidated Results for the First Half of 2012

Total revenues for 1H12 increased year-over-year by 18.72% to Ps.2,561.5 million, mainly due to the following increases:

  • 14.85% in revenues from aeronautical services as a result of the 8.90% increase in passenger traffic during the period;
  • 22.27% in revenues from non-aeronautical services, principally as a result of the 24.02% rise in commercial revenues detailed below; and
  • 31.40% in construction services in connection with higher investments during the period.

Commercial revenues for 1H12 rose by 24.02% year-over-year, principally as a result of revenue increases in the following areas:

  • 37.64% in advertising;
  • 28.21% in duty-free stores;
  • 27.21% in retail operations;
  • 23.21% in other income;
  • 19.47% in banking and currency exchange services;
  • 18.10% in food and beverage;
  • 15.90% in ground transportation services;
  • 15.53% in teleservice;
  • 14.00% in car rentals; and
  • 2.66% in parking lot fees.

Total operating costs and expenses for 1H12 rose 13.70%, mainly due to the following increases:

  • 31.40% in construction costs resulting from higher investments;
  • 8.32% in cost of services, principally reflecting higher energy costs, surveillance and maintenance, and professional fees to third parties in connection with ASUR's participation in international bidding processes. Higher costs of sales derived from revenue growth at the convenience stores directly operated by ASUR also contributed to the increase;
  • 10.38% in administrative expenses, principally due to travel expenses in connection with international bidding projects;
  • 20.81% in technical assistance costs, reflecting the corresponding increase in EBITDA during the period;
  • 16.19% in concession fees, mainly due to the increase in regulated revenues (a factor in the calculation of the fee); and
  • 4.96% in depreciation and amortization mainly due to changes in the depreciation and amortization rates.

Operating margin increased to 53.48% for 1H12, from 51.43% in 1H11. This was mainly the result of the 18.72% growth in revenues which more than offset the 13.70% increase in operating expenses for the period.

Net income for 1H12 increased by 24.61% to Ps.1,001.20 million. Earnings per common share for the period were Ps.3.3373, or earnings per ADS (EPADS) of US$2.4890 (one ADS represents ten series B common shares). This compares with Ps.2.6781, or EPADS of US$1.9974, for the same period last year.

Table VII: Summary of Consolidated Results for 1H12
(in thousands)


1H11

1H12

% Change

Total Revenues

2,157,507

2,561,489

18.72

Aeronautical Services

1,272,096

1,460,960

14.85

Non-Aeronautical Services

688,520

841,819

22.27

Commercial Revenues

599,504

743,519

24.02

Construction Services

196,891

258,710

31.40

Operating Profit

1,109,547

1,369,911

23.47

Operating Margin %

51.43%

53.48%

3.98%

EBITDA

1,298,730

1,568,482

20.77

EBITDA Margin %

60.20%

61.23%

1.72%

Net Income

803,439

1,001,201

24.61

Earnings per Share

2.6781

3.3373

24.61

Earnings per ADS in US$

1.9974

2.4890

24.61

Note: U.S. dollar figures are calculated at the exchange rate of US$1 = Ps. 13.4084.

Table VIII: Commercial Revenues per Passenger for 1H12
(in thousands)


1H11

1H12

% Change

Total Passengers *('000)

9,135

9,935

8.76

Total Commercial Revenues

599,504

743,519

24.02

Commercial revenues from direct operations (1)

125,806

167,795

33.38

Commercial revenues excluding direct operations

473,698

575,724

21.54


1H11

1H12

% Change

Total Commercial Revenue per Passenger

65.63

74.84

14.03

Commercial revenue from direct operations per passenger (1)

13.77

16.89

22.66

Commercial revenue per passenger (excluding direct operations)

51.86

57.95

11.74

* For purposes of this table, approximately 106,100 and 102,800 transit and general aviation passengers are included for 1H11 and 1H12, respectively.

(1) Revenues from direct commercial operations represent ASUR's operation of convenience stores in airports and the direct sale of advertising space.

Table IX: Operating Costs and Expenses for 1H12
(in thousands)


1H11

1H12

% Change

Cost of Services

422,469

457,624

8.32

Construction Costs

196,891

258,710

31.40

Administrative

80,281

88,614

10.38

Technical Assistance

68,341

82,565

20.81

Concession Fees

90,795

105,494

16.19

Depreciation and Amortization

189,183

198,571

4.96

TOTAL

1,047,960

1,191,578

13.70

Tariff Regulation

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

ASUR's regulated revenues for 1H12 were Ps.1,618.05 million, resulting in an annual average tariff per workload unit of Ps.159.66. ASUR's regulated revenues accounted for approximately 63.17% 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, 2012, Airport Concessions represented 82.20% of the Company's total assets, with current assets representing 16.12% and other assets representing 1.67%.

Cash and cash equivalents on June 30, 2012, were Ps.1,569.09 million, a 2.57% increase from the Ps.1,529.67 million in cash and cash equivalents recorded on December 31, 2011.

Shareholders' equity at the close of 2Q12 was Ps.15,393.78 million and total liabilities were Ps.3,338.74 million, representing 82.18% and 17.82% of total assets, respectively. Deferred liabilities represented 63.74% of the Company's total liabilities.

Total bank debt at June 30, 2012 was Ps.511.2 million, including Ps.1.5 million in accrued interest. During August and September of 2010, Cancun Airport entered into two three-year credit agreements of Ps.350 million and Ps.570 million with two banks. The terms of the agreement include a floating interest rate based on the Tasa de Interes Interbancaria de Equilibrio (TIIE) plus 1.5% and quarterly principal payments. In addition, in September of 2011, Veracruz Airport entered into a three-year credit agreement of Ps.50 million. The terms include a floating interest rate based on the Tasa de Interes Interbancaria de Equilibrio (TIIE) plus 0.75% and quarterly principal payments.

During the quarter, ASUR made principal payments of Ps.92.5 million in connection with the Ps.350 million and Ps.570 million three-year credit agreements.

In August 2010 ASUR purchased a hedge against the risk of a significant increase in TIIE under its Ps.350 and Ps.570 million credit agreements. The interest rate was fixed for three years at 6.37%, 6.33% and 6.21% per annum. The interest rate hedge during the quarter resulted in a Ps.0.2 million gain as of May, 2012. This hedge agreement terminated in accordance with its terms at the end of May 2012, and ASUR has not entered into any new hedge agreements since that date.

In the fourth quarter of 2011, Cancun Airport obtained authorization for two new bank loans from Banamex and BBVA Bancomer of US$300 million and Ps.1,500 million, respectively. These loans remain subject to certain conditions precedent, including the negotiation of definitive documentation for the loans. To date, ASUR has not yet made use of the authorized credit lines.

Capital Expenditures

During 2Q12, ASUR made investments of Ps.130.54 million as part of ASUR's ongoing plan to modernize its airports pursuant to its master development plans.

Recent Events

ASUR-Highstar Consortium Named Winner of Bidding Process for LMM Airport

On July 19, 2012, the Puerto Rico Public-Private Partnership Committee declared Aerostar Airport Holdings the winner of a public bidding process to become the private operators of the Luis Munoz Marin international airport in San Juan, Puerto Rico ("LMM Airport"). Aerostar Airport Holdings is a limited liability company owned 50% by each of ASUR (through its Cancun Airport subsidiary) and Highstar Capital IV. Aerostar is expected to enter into a 40-year lease agreement for LMM Airport with the Puerto Rico Ports Authority.

Pursuant to the terms of its bid, Aerostar Airport Holdings will make an upfront payment of approximately $615 million to the Puerto Rico Ports Authority. This payment is expected to be funded at closing by a combination of debt financing and equity contributions on a 50-50 basis from each of ASUR and Highstar Capital IV. The closing of the lease remains subject to a number of conditions precedent, including the award of a Part 139 operating certificate by the Federal Aviation Authority (FAA). ASUR is currently evaluating the accounting treatment of its investment in Aerostar.

New Mexican Accounting Pronouncements

The following is a list of the new IFRS pronouncements which became effective as of January 1, 2012 as well as new pronouncements which will be effective as of January 1, 2013 and thereafter, in each case as issued by the IASB.

IFRS 10 Consolidated financial statements - This standard replaces IAS 27 and SIC 12. Its objective is to establish principles for determining when an entity should be consolidated without distinguishing between subsidiaries and special purpose entities. The principles include the analysis of the design and purpose of the entity, the relevant activities affecting the entity's results, and how they are managed. Effective on January 1, 2013, with early application permitted.

IFRS 12 Disclosure of interest in other entities - This standard includes the disclosure requirements for all forms of investment in other entities, including joint ventures, associated companies, special purpose entities and other arrangements. Effective on January 1, 2013, with early application permitted.

IFRS 13 Fair value measurement - This standard aims to improve consistency and reduce complexity by providing a precise definition of fair value, as well as a single source of requirements for measurement and disclosure of fair value. The inclusion of credit risk for fair value measurement of derivative financial instruments is mandatory. Effective on January 1, 2013, with early application permitted.

IFRS 9 Financial instruments- IFRS 9 retains but simplifies the measurement model and provides two main categories for measurement of financial assets: fair value and amortized cost. The basis for its classification is according to the business model. Effective for periods that begin on or starting from January 1, 2015, with early application permitted.

Amendment to IAS 1 Presentation of other comprehensive income - This amendment requires entities to split items presented in the comprehensive result in two groups based on whether the items are potentially reclassifiable to profit or loss in the future or not. Effective for annual periods starting on July1, 2012 (retrospective application), early application is accepted, if applied earlier should be disclosed.

The Company is in the process of reviewing this new accounting pronouncements to determine their applicability and their effect on its results of operations.

IFRS Adoption

In compliance with regulations established by the Mexican National Banking and Securities Commission (CNBV), as of January 1, 2012 the Company has adopted International Financial Reporting Standards (IFRS) as the accounting standards to prepare its financial statements.

Furthermore, and in compliance with INIF 19 "Changes derived from the adoption of IFRS", the most significant accumulated changes in net shareholders' equity as of January 1, 2011 are included in the table below:

Effects on the initial Shareholders' Equity
resulting from the adoption of IFRS as of January 1, 2011

(in thousands of Mexican Pesos)

Item

Description

Capital Stock

Retained Earnings

Legal Reserve

Total Shareholders' Equity

Labor liabilities

Elimination of severance liabilities according to NIF D-3 and creation of a liability under IAS 19 - Net


Ps. 7,835


Ps. 7,835

Deferred employee profit sharing

Reversal of deferred employee profit sharing as it is outside the reach of IAS 12


(2,905)


(2,905)

Creation of a reserve for vacation

Recognition of accrued vacation rights not used by year-end.


(18,339)


(18,339)

Deferred Assets (income tax and flat tax)

Impact on deferred IETU derived from the recognition of provisions for vacations and employee benefits


3,534


3,534

Capital Stock

Elimination of inflation accounting.

(5,031,928)



(5,031,928)

Legal Reserve

Elimination of inflation accounting



(23,025)

(23,025)

Capital Stock and Legal Reserve

Reclassification of inflation accounting of capital stock and legal reserve to retained earnings


5,054,953


5,054,953

TOTAL


Ps. (5,031,928)

Ps. 5,045,078

Ps. (23,025)

Ps. (9,875)

The following table presents the principal effects of IFRS on Shareholders' Equity as of June 30, 2012, December 31, 2011 and January 1, 2011.

(In thousands of Mexican Pesos)

June 30,

2012

December 31,

2011

January 1,
2011

Shareholders' Equity Under Mexican Financial Reporting Standards

$ 15,411,831

$ 15,487,813

$ 14,795,457

IFRS Adjustments:




Deferred Employee Profit Sharing (Note b)

(3,862)

(3,862)

(2,905)

Severance Liability and actuarial gains and losses (Note e)

11,039

10,342

7,835

Reserve for Vacations

(22,902)

(22,099)

(18,339)

Deferred IETU (Note c)

1,686

4,218

3,534

Total IFRS Adjustments

(14,039)

(11,401)

(9,875)

Shareholders' Equity Under IFRS

$ 15,397,792

$ 15,476,412

$ 14,785,582

See REVIEW OF THE IMPACT OF TRANSITIONING TO IFRS at the end of the release for notes on IFRS transition effects.

The following table presents the principal effects of IFRS on the Income Statement for the six-month periods ended June 30, 2011 and 2012.

(In thousands of Mexican Pesos)

1H12

1H11

Net Income Under Mexican Financial Reporting Standards

1,003,752

806,389

Elimination of severance liabilities according with NIF D-3 and creation of a liability under IAS 19 - Net (Note e)

783

1,573

Recognition of accrued rights not used

(802)

(2,009)

Effect on deferred IETU resulting from the recognition of a reserve for vacation and employee benefits (Note c)

(2,532)

(2,514)

Net Income Under IFRS

1,001,201

803,439

Actuarial Gains and Losses

179

(369)

Comprehensive Net Income Under IFRS

1,001,380

803,070

See REVIEW OF THE IMPACT OF TRANSITIONING TO IFRS at the end of the release for notes on IFRS transition effects.

2Q12 Earnings Conference Call



Day:

Tuesday, July 24, 2012



Time:

10:00 AM US ET; 9:00 AM Mexico City time



Dial-in number:

888.680.0869 (US & Canada) and 617.213.4854 (International & Mexico)



Access Code:

64834679



Pre-registration:

If you would like to pre-register for the conference call use the following link: https://www.theconferencingservice.com/prereg/key.process?key=PETAJXWMU


Pre-registering is not mandatory but is recommended as it will provide you immediate entry into the call and will facilitate the timely start of the conference. You will receive a code that allows you to enter the call directly. Pre-registration only takes a few moments, and you may do so at any time, including up to and after call start time. To pre-register, please click the link above. Alternatively, if you would rather be placed into the call by an operator, please call at least 10 minutes prior to call start time.



Replay:

Starting Tuesday, July 24, 2012 at 12:00 PM US ET, ending at midnight US ET on Tuesday, July 31, 2012. Dial-in number: 888.286.8010 (US & Canada); 617.801.6888 (International & Mexico). Access Code: 52428392.

Analyst Coverage

Actinver Casa de Bolsa, Barclays, BBVA Bancomer, Bofa Merril Lynch, Citi Investment Research, Credit Suisse, Grupo Bursatil Mexicano, HSBC, Intercam Casa de Bolsa, Itau BBA, INVEX, JP Morgan, Morgan Stanley, Mornigstar, Santander Investment, Scotia Capital, UBS Casa de Bolsa, Vector.

Note: ASUR is covered by the aforementioned analysts. Please note that any opinions, estimates or forecasts regarding the performance of ASUR issued by these analysts reflect their own views, and therefore do not represent the opinions, estimates or forecasts of ASUR or its management. Although ASUR may refer to or distribute such statements, this does not imply that ASUR agrees with or endorses any information, conclusions or recommendations included therein.

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 Minatitlán 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 # # #


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


Operating Results per Airport


Thousands of Mexican pesos












Item

2Q
2011

2Q 2011 Per Workload Unit

2Q
2012

2Q 2012 Per Workload Unit

1H
2011

1H 2011 Per Workload Unit

1H
2012

1H 2012 Per Workload Unit


Cancun (1)










Aeronautical Revenues

461,221

137.7

528,068

145.2

961,319

137.8

1,106,955

145.2


Non-Aeronautical Revenues

299,386

89.4

363,316

99.9

609,501

87.4

756,861

99.3


Construction Services Revenues

59,208

17.7

113,426

31.2

91,187

13.1

166,567

21.9


Total Revenues

819,815

244.8

1,004,810

276.3

1,662,007

238.2

2,030,383

266.4


Operating Profit

337,684

100.8

505,599

139.0

861,719

123.5

1,122,751

147.3


EBITDA

399,958

119.4

569,729

156.6

985,434

141.2

1,250,503

164.1


Mérida










Aeronautical Revenues

44,466

123.2

44,655

129.4

83,141

122.4

90,552

129.4


Non-Aeronautical Revenues

12,142

33.6

12,886

37.4

23,288

34.3

25,850

36.9


Construction Services Revenues

19,070

52.8

12,132

35.2

28,965

42.7

20,398

29.1


Other (2)

-

-

7

-

-

-

12

-


Total Revenues

75,678

209.6

69,680

202.0

135,394

199.4

136,812

195.4


Operating Profit

16,392

45.4

15,566

45.1

31,954

47.1

33,779

48.3


EBITDA

24,176

67.0

23,668

68.6

47,524

70.0

49,983

71.4


Villahermosa










Aeronautical Revenues

24,239

113.3

29,954

121.8

45,799

112.3

57,940

121.5


Non-Aeronautical Revenues

8,435

39.4

8,827

35.9

16,997

41.7

17,495

36.7


Construction Services Revenues

4,203

19.6

690

2.8

4,871

11.9

1,196

2.5


Other (2)

-

-

18

0.1

-

-

38

0.1


Total Revenues

36,877

172.3

39,489

160.5

67,667

165.9

76,669

160.7


Operating Profit

6,454

30.2

12,978

52.8

16,539

40.5

24,798

52.0


EBITDA

11,192

52.3

18,671

75.9

26,018

63.8

36,182

75.9


Other Airports (3)










Aeronautical Revenues

89,691

143.0

98,697

152.5

181,837

145.8

205,513

153.8


Non-Aeronautical Revenues

20,087

32.0

20,919

32.3

38,734

31.1

41,613

31.1


Construction Services Revenues

52,462

83.7

41,941

64.8

71,868

57.6

70,549

52.8


Other (2)

19,000

30.3

1,559

2.4

22,431

18.0

1,624

1.2


Total Revenues

181,240

289.1

163,116

252.1

314,870

252.5

319,299

239.0


Operating Profit

36,400

58.1

28,158

43.5

68,964

55.3

66,333

49.7


EBITDA

56,288

89.8

49,490

76.5

108,736

87.2

108,864

81.5


Holding & Service companies (4)










Construction Services Revenues

-

n/a

-

n/a

-

n/a

-

n/a


Other (2)

304,273

n/a

246,288

n/a

443,314

n/a

444,057

n/a


Total Revenues

304,273

n/a

246,288

n/a

443,314

n/a

444,057

n/a


Operating Profit

130,061

n/a

78,114

n/a

130,371

n/a

122,250

n/a


EBITDA

130,389

n/a

78,463

n/a

131,018

n/a

122,950

n/a


Consolidation Adjustment










Consolidation Adjustment

(323,273)

n/a

(247,872)

n/a

(465,745)

n/a

(445,731)

n/a


Group










Aeronautical Revenues

619,617

136.1

701,374

143.9

1,272,096

136.6

1,460,960

144.1


Non-Aeronautical Revenues

340,050

74.7

405,948

83.3

688,520

73.9

841,819

83.1


Construction Services Revenues

134,943

29.7

168,189

34.5

196,891

21.1

258,710

25.5


Total Revenues

1,094,610

240.5

1,275,511

261.6

2,157,507

231.7

2,561,489

252.7


Operating Profit

526,991

115.8

640,415

131.4

1,109,547

119.2

1,369,911

135.2


EBITDA

622,003

136.7

740,021

151.8

1,298,730

139.5

1,568,482

154.8












(1)Reflects the results of operations of Cancun Airport and two Cancun Airport Services subsidiaries on a consolidated basis.


(2) Reflects revenues under intercompany agreements which are eliminated in the consolidation adjustment.



(3) Reflects the results of operations of our airports located in Cozumel, Huatulco, Minatitlan, Oaxaca, Tapachula and Veracruz.



(4) Reflects the results of operations of our parent holding company and our services subsidiaries. Because none of these entities hold the concessions for our airports, we do not report workload unit data for theses entities.






















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

Consolidated Statement of Income from January 1 to June 30, 2012 and 2011

Thousands of Mexican pesos


































I t e m


1H


1H


%


2Q


2Q


%




2011


2012


Change


2011


2012


Change



















Revenues
















Aeronautical Services


1,272,096


1,460,960


14.85


619,617


701,374


13.19




















Non-Aeronautical Services


688,520


841,819


22.27


340,050


405,948


19.38




















Construction Services


196,891


258,710


31.40


134,943


168,189


24.64



















Total Revenues


2,157,507


2,561,489


18.72


1,094,610


1,275,511


16.53



















Operating Expenses
































Cost of Services


422,469


457,624


8.32


219,265


231,068


5.38




Cost of Construction


196,891


258,710


31.40


134,943


168,189


24.64




General and Administrative Expenses


80,281


88,614


10.38


41,007


46,117


12.46




Technical Assistance


68,341


82,565


20.81


32,700


38,947


19.10




Concession Fee


90,795


105,494


16.19


44,692


51,169


14.49




Depreciation and Amortization


189,183


198,571


4.96


95,012


99,606


4.84



Total Operating Expenses


1,047,960


1,191,578


13.70


567,619


635,096


11.89



















Operating Income


1,109,547


1,369,911


23.47


526,991


640,415


21.52



















Comprehensive Financing Cost


7,102


17,996


153.39


7,104


33,124


366.27



















Non-Ordinary Item
















Non-Ordinary Item


-


-


-


-


-


-



































Income Before Income Taxes


1,116,649


1,387,907


24.29


534,095


673,539


26.11




















Provision for IETU


7,434


6,924


(6.86)


(821)


2,673


(425.58)




Provision for Income Tax


311,098


410,513


31.96


140,886


209,047


48.38




Provision for Asset Tax


5,210


5,731


10.00


3,126


2,865


(8.35)




Deferred Income Taxes


(28,520)


(46,396)


62.68


(5,132)


(4,461)


(13.07)




Deferred IETU


17,988


9,934


(44.77)


9,982


185


(98.15)




















Net Income for the Year


803,439


1,001,201


24.61


386,054


463,230


19.99



















Earnings per share


2.68


3.34


24.61


1.2868


1.5441


19.99



Earnings per American Depositary Share (in U.S. Dollars)


2.00


2.49


24.61


0.9597


1.1516


19.99



Exchange rate per dollar Ps.13.4084














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

Consolidated Balance Sheet as of June 30, 2012 and 2011

Thousands of Mexican pesos



I t e m


June 2012


December 2011


January 2011













A s s e t s









Current Assets










Cash and Cash Equivalents


1,569,091


1,529,667


1,442,879




Trade Receivables, net


353,124


462,102


389,960




Recoverable Taxes and Other Current Assets


1,098,124


894,520


921,193



Total Current Assets


3,020,339


2,886,289


2,754,032













Non Current Assets










Machinery, Furniture and Equipment, net


313,702


306,504


305,629




Airports Concessions, net


15,398,487


15,405,490


14,945,330













Total Assets


18,732,528


18,598,283


18,004,991













Liabilities and Stockholders' Equity









Current Liabilities










Trade Accounts Payable


14,244


28,876


10,738




Bank Loans


403,369


374,640


243,102




Accrued Expenses and Other Payables


684,995


357,197


261,159



Total Current Liabilities


1,102,608


760,713


514,999













Long Term Liabilities










Bank Loans


107,786


321,950


647,503




Deferred Income Taxes


1,460,700


1,385,685


1,461,089




Deferred Flat Rate Business Tax


658,618


648,685


591,836




Labor Obligations


5,024


4,838


3,982



Total Long Term Liabilities


2,232,128


2,361,158


2,704,410













Total Liabilities


3,334,736


3,121,871


3,219,409













Stockholders' Equity










Capital Stock


7,767,276


7,767,276


7,767,276




Legal Reserve


412,878


333,261


264,092




Share Repurchase Reserve


-


-


-




Net Income for the Period


1,001,201


1,591,566


1,275,143




IFRS Conversion Adjustment


5,044,255


5,044,341


5,045,078




Retained Earnings


1,172,182


739,968


433,993




Total Stockholders' Equity


15,397,792


15,476,412


14,785,582













Total Liabilities and Stockholders' Equity


18,732,528


18,598,283


18,004,991




















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




Consolidated Statement of Cash flow from January 1 to June 30, 2012 and 2011




Thousands of Mexican pesos



















Related


1H


1H


%


2Q


2Q


%




2011


2012


Change


2011


2012


Change



































Operating Activities































Income Before Income Taxes


1,116,649


1,387,907


24


534,095


673,539


26



Items Related with Investing Activities:
















Depreciation and Amortization


189,183


198,571


5


95,012


99,606


5




Loss on Disposal of Fixed Assets


-




-


-




-




Interest Income


(40,186)


(41,424)


3


(20,024)


(27,704)


38




Provisions


(34,179)




(100)


(69,821)




(100)










-






-



Sub-Total


1,231,467


1,545,054


25


539,262


745,441


38



















Increase in Trade Receivables


21,573


108,978


405


68,080


110,369


62



Decrease in Recoverable Taxes and other Current Assets


34,096


121,591


257


167,033


152,003


(9)



Other Deferred Assets


-


(88,064)


-


-


(88,064)


-



Income Tax Paid


-


-


-


-


98,098


-



Trade Accounts Payable


2,643


(225,731)


(8,641)


(1,607)


(326,727)


20,231



Accrued Expenses and Other Payables


12,625


84,070


566


62,202


84,070


35



Long Term Liabilities


-




-


(1,000)


-


(100)



















Net Cash Flow Provided by Operating Activities


1,302,404


1,545,898


19


833,970


775,190


(7)



















Investing Activities















Investments in Machinery, Furniture and Equipment, net


(160,694)


(282,900)


76


(37,219)


(130,545)


251



Investments in Rights to Use Airport Facilities


-


-


-


-


-


-



Investments in Construction in Process


-


-


-


(56,922)


-


(100)



Investments in Others


-


-


-


(15,306)


-


(100)



Interest Income


40,186


41,424


3


20,024


27,704


38



















Net Cash Flow Provided by Investing Activities


(120,508)


(241,476)


100


(89,423)


(102,841)


15



















Excess Cash to Use in Financing Activities:


1,181,896


1,304,422


10


744,547


672,349


(10)



















Bank Loans


(58,334)


(184,998)


217


(29,167)


(92,499)


217



Dividends Paid


(900,000)


(1,080,000)


20


(900,000)


(1,080,000)


20



Tax on Dividends Paid


(300,000)




(100)


(300,000)


-


(100)



















Net Cash Flow Provided by Financing Activities


(1,258,334)


(1,264,998)


1


(1,229,167)


(1,172,499)


(5)



















Net Increase in Cash and Cash Equivalents


(76,438)


39,424


(152)


(484,620)


(500,150)


3



















Cash and Cash Equivalents at Beginning of Period


1,442,879


1,529,667


6


1,851,061


2,069,241


12



















Cash and Cash Equivalents at the End of Period


1,366,441


1,569,091


15


1,366,441


1,569,091


15



































Consolidated Statement of Income from January 1 to June 30, 2012 and 2011

Thousands of Mexican pesos










































I t e m


1H


1H


2Q


2Q




2011


2012


2011


2012






Mexican NIF

Transition effects

IFRS


Mexican NIF

Transition effects

IFRS


Mexican NIF

Transition effects

IFRS


Mexican NIF

Transition effects

IFRS



Revenues




















Aeronautical Services


1,272,096


1,272,096


1,460,960


1,460,960


619,617

0

619,617


701,374

0

701,374
























Non-Aeronautical Services


688,520


688,520


841,819


841,819


340,049

0

340,049


405,948

0

405,948
























Construction Services


196,891


196,891


258,710


258,710


134,943

0

134,943


168,189

0

168,189























Total Revenues


2,157,507

-

2,157,507


2,561,489

-

2,561,489


1,094,609

-

1,094,609


1,275,511

-

1,275,511























Operating Expenses








































Cost of Services (Note d,e)


422,712

(241)

422,471


415,260

65

415,325


44,063

(713)

43,350


(8,101)

(38)

(8,139)




Cost of Construction


196,891


196,891


258,710


258,710


134,943

0

134,943


168,189

0

168,189




General and Administrative Expenses


428,600


428,600


517,543


517,543


389,326

-

389,326


475,046

-

475,046



Total Operating Expenses


1,048,203

(241)

1,047,962


1,191,513

65

1,191,578


568,332

(713)

567,619


635,134

(38)

635,096























Operating Income


1,109,304

241

1,109,545


1,369,976

(65)

1,369,911


526,277

713

526,990


640,377

38

640,415























Comprehensive Financing Cost




















Interest Receivable


40,186


40,186


41,424


41,424


20,025

-

20,025


27,704

-

27,704




Interest Payable


(31,279)


(31,279)


(20,144)


(20,144)


(15,583)

-

(15,583)


(9,107)

-

(9,107)




Exchange (Losses) Gains, Net


(3,229)


(3,229)


(3,885)


(3,885)


2,163

-

2,163


14,332

-

14,332




Loss (Gains) on Valuation of Derivative








-


-

-

-


-

-

-




Financial Instruments


1,424


1,424


601


601


500

-

500


195

-

195























Non-Ordinary Item




















Non-Ordinary Item


(677)

677

-


46

(46)

-


(677)

677

-


61

(61)

-











































Income Before Income Taxes


1,117,083

(436)

1,116,647


1,387,926

(19)

1,387,907


534,059

36

534,095


673,440

99

673,539
























Provision for IETU


7,434


7,434


6,924


6,924


(821)

-

(821)


2,673

-

2,673




Provision for Income Tax


311,097


311,097


410,513


410,513


140,886

-

140,886