Grupo Aeroportuario del Sureste, S. A. B. de C. V. (ASR): Boston Consulting Group Matrix [10-2024 Updated]
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Grupo Aeroportuario del Sureste, S. A. B. de C. V. (ASR) Bundle
In the dynamic world of airport operations, Grupo Aeroportuario del Sureste, S. A. B. de C. V. (ASR) showcases a diverse portfolio that reflects its strategic positioning within the market. Based on the Boston Consulting Group Matrix, ASR's business segments are categorized into Stars, Cash Cows, Dogs, and Question Marks, highlighting the company's strengths and challenges as of 2024. From impressive revenue growth in aeronautical services to the ongoing struggles in certain airports, understanding these classifications provides a clearer picture of ASR's operational landscape. Read on to uncover the detailed insights behind each category and what they mean for ASR's future.
Background of Grupo Aeroportuario del Sureste, S. A. B. de C. V. (ASR)
Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASUR) is a prominent international airport operator based in Mexico. The company manages a portfolio of 16 airports across the Americas, which includes nine airports in southeast Mexico, notably the Cancun Airport, a leading tourist destination in Mexico and the Caribbean. Additionally, ASUR operates six airports in northern Colombia, including the José María Córdova International Airport, the second busiest in Colombia. Moreover, ASUR holds a 60% joint venture stake in Aerostar Airport Holdings, LLC, which operates the Luis Muñoz Marín International Airport in San Juan, Puerto Rico, a critical gateway for international and U.S. mainland flights.
Founded in 1998, ASUR has established itself as a key player in the airport management sector, focusing on the operation, maintenance, and development of airport infrastructure. The company is listed on both the Mexican Bolsa under the ticker symbol ASUR and the New York Stock Exchange (NYSE) under the symbol ASR, where one American Depositary Share (ADS) represents ten series B common shares. As of September 30, 2024, ASUR reported a consolidated net income of Ps.3,474.5 million, reflecting a significant increase of 23.8% from the previous year, alongside a substantial growth in cash and cash equivalents, which reached Ps.18,483.6 million.
In terms of operational performance, ASUR's airports collectively served approximately 17.2 million passengers in the third quarter of 2024, showcasing a year-over-year increase of 2.1%. However, traffic dynamics varied by region, with a notable decline of 10.1% in passenger traffic at the Mexican airports, contrasted by a growth of 4.6% in Puerto Rico. The company’s revenues are primarily derived from aeronautical services, which accounted for 71.1% of total revenues in 3Q24, while non-aeronautical services contributed 15.5% from Puerto Rico and 12.8% from Colombia.
ASUR's financial health is bolstered by its diversified revenue streams across multiple geographic locations. The company has made significant investments in its infrastructure, with capital expenditures in Mexican operations totaling Ps.876.7 million in the third quarter of 2024, aimed at modernizing its facilities. Furthermore, ASUR's operating profit reached Ps.4,097.2 million in 3Q24, reflecting an operating margin of 54.8%, although slightly down from the previous year's margin of 58.0%.
ASUR is subject to regulatory oversight by the Mexican Ministry of Communications and Transportation, which sets maximum rates for aeronautical services. This regulatory framework is critical in shaping the company's operational strategies and revenue generation capabilities. Overall, Grupo Aeroportuario del Sureste remains a vital entity in the infrastructure sector, with a strategic focus on enhancing airport services and expanding its operational footprint across the Americas.
Grupo Aeroportuario del Sureste, S. A. B. de C. V. (ASR) - BCG Matrix: Stars
Significant Revenue Growth in Aeronautical Services
Aeronautical services revenues increased by 19.4% year-over-year (YoY), reaching Ps.4,527.1 million in 3Q24. The breakdown of revenues includes Ps.3,321.1 million from Mexico, Ps.557.8 million from Puerto Rico, and Ps.648.2 million from Colombia.
Strong Operating Profit
Grupo Aeroportuario del Sureste reported an operating profit of Ps.4,097.2 million in 3Q24, with a robust operating margin of 54.8%.
Positive Net Income Growth
The company achieved a net income of Ps.3,474.5 million for 3Q24, reflecting a 23.8% increase compared to Ps.2,807.1 million in 3Q23.
Robust Cash and Cash Equivalents
As of September 30, 2024, Grupo Aeroportuario del Sureste had cash and cash equivalents totaling Ps.18,483.6 million, marking a significant 33.2% increase from Ps.13,872.9 million at the end of 2023.
Continued Expansion in Construction Revenues
Construction revenues saw a remarkable increase of 96.6% YoY, reaching Ps.600.8 million in 3Q24, primarily driven by growth in Mexico.
| Financial Metrics | 3Q23 (Ps. million) | 3Q24 (Ps. million) | Growth (%) |
|---|---|---|---|
| Aeronautical Services Revenues | Ps.3,790.7 | Ps.4,527.1 | 19.4% |
| Operating Profit | Ps.3,678.5 | Ps.4,097.2 | 11.4% |
| Net Income | Ps.2,807.1 | Ps.3,474.5 | 23.8% |
| Cash and Cash Equivalents | Ps.13,872.9 | Ps.18,483.6 | 33.2% |
| Construction Revenues | Ps.305.7 | Ps.600.8 | 96.6% |
Grupo Aeroportuario del Sureste, S. A. B. de C. V. (ASR) - BCG Matrix: Cash Cows
Established airports in Mexico generating consistent revenue streams.
Grupo Aeroportuario del Sureste, S.A.B. de C.V. operates several established airports in Mexico, contributing to its strong revenue generation. In the third quarter of 2024, total revenues from these operations reached Ps.5,386.4 million, an increase of 17.1% year-over-year.
Non-aeronautical revenues stable with a 5.0% increase.
Non-aeronautical revenues amounted to Ps.2,355.4 million in Q3 2024, reflecting a 5.0% increase compared to the previous year. This growth indicates a stable demand for services beyond aeronautical activities.
High EBITDA margin of 62.8%, reflecting efficient operational management.
The consolidated EBITDA for ASUR in Q3 2024 was recorded at Ps.4,700.4 million, resulting in an EBITDA margin of 62.8%. This indicates effective operational management and high profitability from core operations.
Solid interest coverage ratio of 12.1x, indicating strong ability to meet interest obligations.
ASUR's interest coverage ratio stood at 12.1x as of September 30, 2024, reflecting a robust ability to meet interest obligations from its earnings.
Retained earnings of Ps.29,977.7 million, supporting ongoing operations and investments.
As of Q3 2024, retained earnings for Grupo Aeroportuario del Sureste amounted to Ps.29,977.7 million, providing a significant financial cushion to support ongoing operations and future investments.
| Financial Metric | Value (Q3 2024) |
|---|---|
| Total Revenues | Ps.5,386.4 million |
| Non-Aeronautical Revenues | Ps.2,355.4 million |
| EBITDA Margin | 62.8% |
| Interest Coverage Ratio | 12.1x |
| Retained Earnings | Ps.29,977.7 million |
Grupo Aeroportuario del Sureste, S. A. B. de C. V. (ASR) - BCG Matrix: Dogs
Airports with Declining Passenger Traffic
The Cancun airport reported a 13.8% decline in passenger traffic year-over-year (YoY) in 3Q24, with total passengers dropping to 6,875,035 from 7,978,078 in 3Q23.
Overall, total passenger traffic in Mexico decreased by 10.1% to 9,624,910 passengers.
Non-Aeronautical Revenue from Direct Operations
Non-aeronautical revenue from direct operations decreased by 5.8%, totaling Ps.1,442.9 million in 3Q24 compared to Ps.1,463.0 million in 3Q23.
High Operational Costs
Total operating expenses increased by 26.5% YoY, reaching Ps.3,386.1 million in 3Q24, up from Ps.2,660.3 million in 3Q23.
Limited Growth in Regional Operations
In Colombia, ASUR's operations showed limited growth, with total revenues increasing by 29.9% to Ps.881.3 million, but the overall growth remains constrained compared to other regions.
Decreased Commercial Revenues per Passenger
Commercial revenues per passenger in 3Q24 were Ps.124.9, up from Ps.116.5 in 3Q23, indicating some potential inefficiencies despite an overall increase.
| Metric | 3Q23 | 3Q24 | % Change |
|---|---|---|---|
| Passenger Traffic (Cancun) | 7,978,078 | 6,875,035 | -13.8% |
| Non-Aeronautical Revenue (Direct Operations) | Ps.1,463.0 million | Ps.1,442.9 million | -5.8% |
| Total Operating Expenses | Ps.2,660.3 million | Ps.3,386.1 million | +26.5% |
| Colombia Total Revenues | Ps.678.5 million | Ps.881.3 million | +29.9% |
| Commercial Revenues per Passenger | Ps.116.5 | Ps.124.9 | +7.2% |
Grupo Aeroportuario del Sureste, S. A. B. de C. V. (ASR) - BCG Matrix: Question Marks
Airports in Colombia Showing Potential
In 3Q24, ASUR reported a revenue increase of 29.9% in Colombia, reaching Ps.881.3 million compared to Ps.678.5 million in 3Q23. However, this growth is still accompanied by unproven profitability, as the market share remains low despite the high growth rate.
New Construction Projects Requiring Significant Investment
ASUR's capital expenditures in 3Q24 amounted to Ps.1,042.4 million, a significant increase of 183.8% year-over-year. These investments are primarily allocated towards modernizing airports in Mexico, Puerto Rico, and Colombia. The uncertain returns on these projects pose a challenge to ASUR's profitability, as the investments are substantial but the outcomes are not guaranteed.
Ongoing Challenges in Managing Costs
ASUR faces rising operational expenses, with consolidated operating costs increasing by 27.3% year-over-year to Ps.3,386.1 million in 3Q24. The increase in concession fees, which rose by 71.4% on a consolidated basis, is particularly notable. This trend highlights the pressure on margins as costs outpace revenue growth in certain areas.
Need for Strategic Focus on Improving Passenger Traffic Numbers
Passenger traffic in Colombia increased by 15.5% year-over-year, totaling 4.3 million passengers in 3Q24. However, the need for a strategic focus on improving traffic numbers in underperforming airports remains critical, as overall traffic in ASUR's broader portfolio declined by 2.1%.
Potential for Increased Competition in the Regional Airport Sector
ASUR is likely to face heightened competition in the regional airport sector, which could further impact market share. The operational profit for Colombia was reported at Ps.417.6 million with an operating margin of 47.4% in 3Q24. This competitive landscape necessitates effective marketing strategies to enhance market presence and share.
| Metric | Q3 2023 | Q3 2024 | % Change |
|---|---|---|---|
| Total Revenues (Colombia) | Ps.678.5 million | Ps.881.3 million | 29.9% |
| Capital Expenditures | Ps.367.4 million | Ps.1,042.4 million | 183.8% |
| Operating Profit (Colombia) | Ps.315.4 million | Ps.417.6 million | 32.4% |
| Operating Margin (Colombia) | 46.5% | 47.4% | 90 bps |
| Passenger Traffic (Colombia) | 3.7 million | 4.3 million | 15.5% |
In summary, Grupo Aeroportuario del Sureste, S. A. B. de C. V. (ASR) showcases a diverse portfolio of airport operations illustrated by the BCG Matrix. The company’s Stars are thriving with substantial growth in aeronautical services and impressive profit margins, while its Cash Cows maintain stable revenue streams from established airports. However, the Dogs highlight challenges with declining traffic and increased costs, and the Question Marks indicate potential in Colombian airports, albeit with significant investment risks. Overall, ASR's strategic focus on enhancing performance across its segments will be crucial for sustained success in the competitive airport industry.
Article updated on 8 Nov 2024
Resources:
- Grupo Aeroportuario del Sureste, S. A. B. de C. V. (ASR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Grupo Aeroportuario del Sureste, S. A. B. de C. V. (ASR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Grupo Aeroportuario del Sureste, S. A. B. de C. V. (ASR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.