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Section 1: 6-K (FORM 6-K)

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20546

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of August, 2019

 

Commission File Number: 333-221916

 

 

 

Corporación América Airports S.A.

(Name of Registrant)

 

4, rue de la Grêve
L-1643, Luxembourg
Tel: +35226258274
Fax: +35226259776

(Address of Principal Executive Office)

 

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  x          Form 40-F  ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

 

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

 

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

 

 

 

 

 

 

UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2019 AND 2018

 

This report of foreign private issuer on Form 6-K (this “Form 6-K”) is being filed by Corporación América Airports S.A. (“CAAP” or the “Company”) with the Securities and Exchange Commission. The Company is filing this report on Form 6-K for the purpose of filing a copy of the Company’s unaudited condensed consolidated interim financial statements for the six-month period ended June 30, 2019 and 2018 (the “Consolidated Financial Statements”) as Exhibit 99.1. The Consolidated Financial Statements are presented in U.S. Dollars and prepared in accordance with IAS 34, “Interim Financial Reporting”. These Consolidated Financial Statements, should be read in conjunction with the audited Consolidated Financial Statements for the year ended December 31, 2018, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) of the International Accounting Standards Board (“IASB”) and the interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”).

 

 

 

 

Exhibit Index

 

Exhibit No.   Description
99.1   CAAP Unaudited Condensed Consolidated Interim Financial Statements for the six-month period ended June 30, 2019 and 2018.

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date: August 26, 2019

 

  Corporación America Airports S.A.
         
  By:  /s/ Andres Zenarruza  
  Name: Andres Zenarruza  
  Title: Legal Manager  
         
  By: /s/ Raúl Guillermo Francos  
  Name:  Raúl Guillermo Francos  
  Title: Chief Financial Officer  

 

 

(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit 99.1

 

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the six-month period ended June 30, 2019 and 2018 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

 

Corporación América Airports S.A.

 

 

CONDENSED CONSOLIDATED

INTERIM FINANCIAL STATEMENTS

 

 

For the six-month period ended June 30, 2019 and 2018

  

 

R.C.S. Luxembourg B 174.140

 

4, rue de la Grève

L-1643, Luxembourg

 

 

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the six-month period ended June 30, 2019 and 2018 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF INCOME

 

      For the three-month period
ended June 30,
   For the six-month period
ended June 30,
 
      2019   2018   2019   2018 
   Notes  Unaudited   Unaudited   Unaudited   Unaudited 
Continuing operations                       
Revenue  4   412,563    397,052    798,806    787,936 
Cost of services  5   (303,070)   (263,543)   (569,365)   (504,645)
Gross profit      109,493    133,509    229,441    283,291 
Selling, general and administrative expenses  6   (37,150)   (43,511)   (77,695)   (87,544)
Other operating income  7   4,326    4,565    9,146    9,643 
Other operating expense      (143)   (485)   (943)   (1,716)
Operating income      76,526    94,078    159,949    203,674 
Share of (loss) / income in associates      (371)   127    (831)   257 
Income before financial results and income tax      76,155    94,205    159,118    203,931 
Financial income  8   11,764    49,632    29,019    63,519 
Financial loss  8   (12,271)   (198,868)   (80,211)   (284,656)
Inflation adjustment  8   (7,175)   -    (16,365)   - 
Income / (Loss) before income tax expense      68,473    (55,031)   91,561    (17,206)
Income tax  9   (13,122)   20,109    (6,292)   8,591 
Income / (Loss) for the period      55,351    (34,922)   85,269    (8,615)
Attributable to:                       
Owners of the parent      49,123    (22,674)   84,175    3,821 
Non-controlling interest      6,228    (12,248)   1,094    (12,436)
       55,351    (34,922)   85,269    (8,615)
                        
Earnings per share attributable to the owners of the parent                       
Weighted average number of ordinary shares (thousands)      160,022    160,022    160,022    157,654 
                        
Basic and diluted earnings per share      0.31    (0.14)   0.53    0.02 

 

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements. These Condensed Consolidated Interim Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and notes for the year ended December 31, 2018.

 

 - 1 - 

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the six-month period ended June 30, 2019 and 2018 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME

 

   For the three-month period
ended June 30,
  

For the six-month period
ended June 30, 

 
   2019   2018   2019   2018 
   Unaudited   Unaudited   Unaudited   Unaudited 
Income / (Loss) for the period   55,351    (34,922)   85,269    (8,615)
                     
Items that will not be reclassified subsequently to profit or loss:                    
Remeasurement of defined benefit obligation   (184)   199    (421)   208 
                     
Items that may be subsequently reclassified to profit or loss:                    
Share of other comprehensive (loss) / income from associates   (931)   (493)   256    (378)
Currency translation adjustment   88,017    (138,525)   54,863    (162,782)
Other comprehensive income / (loss) for the period, net of income tax   86,902    (138,819)   54,698    (162,952)
Total comprehensive income / (loss) for the period   142,253    (173,741)   139,967    (171,567)
Attributable to:                    
Owners of the parent   107,651    (122,407)   121,048    (116,535)
Non-controlling interest   34,602    (51,334)   18,919    (55,032)
    142,253    (173,741)   139,967    (171,567)

 

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements. These Condensed Consolidated Interim Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and notes for the year ended December 31, 2018.

 

 - 2 - 

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the six-month period ended June 30, 2019 and 2018 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

CONDENSED cONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

 

   Notes 

At June 30, 2019
Unaudited

   At December 31, 2018
Audited
 
ASSETS             
Non-current assets             
Intangible assets, net  10   3,110,291    2,933,542 
Property, plant and equipment, net      77,340    74,299 
Right-of-use asset      10,213    - 
Investments in associates      13,425    10,886 
Other financial assets at fair value through profit or loss      3,352    3,372 
Other financial assets at amortized cost      2,418    2,339 
Deferred tax assets      154,326    153,486 
Other receivables      144,614    133,193 
Trade receivables      1,288    1,419 
       3,517,267    3,312,536 
Current assets             
Inventories      7,588    9,769 
Other financial assets at fair value through profit or loss      31,376    38,007 
Other financial assets at amortized cost      10,176    42,972 
Other receivables      92,410    66,531 
Current tax assets      320    13,701 
Trade receivables      134,440    116,897 
Cash and cash equivalents  11   221,464    244,865 
       497,774    532,742 
Total assets      4,015,041    3,845,278 
              
EQUITY  14          
Share capital      160,022    160,022 
Share premium      180,486    180,486 
Free distributable reserve      385,055    385,055 
Non-distributable reserve      1,351,883    1,351,883 
Currency translation adjustment      (341,668)   (378,803)
Legal reserves      176    176 
Other reserves      (1,324,993)   (1,324,731)
Retained earnings      478,331    394,156 
Total attributable to owners of the parent      889,292    768,244 
Non-controlling interests      460,380    454,453 
Total equity      1,349,672    1,222,697 
              
LIABILITIES             
Non-current liabilities             
Borrowings  12   986,661    1,027,751 
Deferred tax liabilities      242,283    271,175 
Other liabilities  13   924,981    871,596 
Lease liabilities      9,416    - 
Trade payables      1,167    1,508 
       2,164,508    2,172,030 
Current liabilities             
Borrowings  12   149,567    98,907 
Derivative financial instruments      405    - 
Other liabilities  13   213,048    225,448 
Lease liabilities      1,642    - 
Current tax liabilities      8,532    11,555 
Trade payables      127,667    114,641 
       500,861    450,551 
Total liabilities      2,665,369    2,622,581 
Total equity and liabilities      4,015,041    3,845,278 

 

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements. These Condensed Consolidated Interim Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and notes for the year ended December 31, 2018.

 

 - 3 - 

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the six-month period ended June 30, 2019 and 2018 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

 

   Attributable to owners of the parent         
   Share
Capital
   Share
premium
   Free
Distributable
Reserves
   Non-
Distributable
Reserves
   Legal
Reserves
   Currency
Translation
Adjustment
   Other
Reserves
   Retained
Earnings (1)
   Total   Non-
controlling
interests
   Total 
Balance at January 1, 2019   160,022    180,486    385,055    1,351,883    176    (378,803)   (1,324,731)   394,156    768,244    454,453    1,222,697 
Income for the period   -    -    -    -    -    -    -    84,175    84,175    1,094    85,269 
Other comprehensive income / (loss) for the period   -    -    -    -    -    37,135    (262)   -    36,873    17,825    54,698 
Changes of non-controlling interests (Note 14)   -    -    -    -    -    -    -    -    -    (12,992)   (12,992)
Balance at June 30, 2019   160,022    180,486    385,055    1,351,883    176    (341,668)   (1,324,993)   478,331    889,292    460,380    1,349,672 
                                                        
Balance at December 31, 2017   1,500,000    -    385,055    -    2    (217,300)   (1,344,008)   138,034    461,783    335,359    797,142 
Adjustment on adoption of IFRS 9 (net of tax)   -    -    -    -    -    -    -    2,356    2,356    542    2,898 
Adjusted balance at January 1, 2018   1,500,000    -    385,055    -    2    (217,300)   (1,344,008)   140,390    464,139    335,901    800,040 
Shareholders contributions (Note 14)   -    -    -    -    -    -    -    -    -    43,703    43,703 
Income / (loss) for the period   -    -    -    -    -    -    -    3,821    3,821    (12,436)   (8,615)
Transfer to legal reserve   -    -    -    -    174    -    -    (174)   -    -    - 
Reverse stock split (Note 1)   (1,351,883)   -    -    1,351,883    -    -    -    -    -    -    - 
Initial Public Offering (Note 1)   11,905    180,486    -    -    -    -    -    -    192,391    -    192,391 
Other comprehensive (loss) / income for the period   -    -    -    -    -    (120,460)   104    -    (120,356)   (42,596)   (162,952)
Changes of non-controlling interests (Note 14)   -    -    -    -    -    -    (8,058)   -    (8,058)   (46,163)   (54,221)
Balance at June 30, 2018   160,022    180,486    385,055    1,351,883    176    (337,760)   (1,351,962)   144,037    531,937    278,409    810,346 

 

(1) Retained Earnings calculated according to Luxembourg Law are disclosed in Note 15.

 

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements. These Condensed Consolidated Interim Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and notes for the year ended December 31, 2018.

 

 - 4 - 

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the six-month period ended June 30, 2019 and 2018 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

 

        For the six-month period
ended June 30,
 
    Notes   2019
Unaudited
    2018
Unaudited
 
Cash flows from operating activities                    
Income / (loss) for the period         85,269       (8,615 )
Adjustments for:                    
Amortization and depreciation         95,259       68,112  
Deferred income tax   9     (39,248 )     (27,123 )
Income tax accrued   9     45,540       18,532  
Share of (loss) / income in associates         831       (257 )
Loss on disposals of property, plant and equipment         -       173  
Unpaid concession fees         30,116       28,637  
Low value, short term and variable lease payments         (1,278 )     -  
Changes in liability for Brazil concessions         46,868       50,364  
Interest expense         46,210       46,134  
Other financial results, net         (20,942 )     (6,368 )
Net foreign exchange         (20,862 )     131,132  
Leases financial cost         292       -  
Other accruals         1,146       1,512  
Inflation adjustment         24,921       -  
Acquisition of Intangible assets         (167,829 )     (115,022 )
Income tax paid         (29,418 )     (30,720 )
Changes in working capital   17     (99,956 )     (79,552 )
Net cash (used in) / provided by operating activities         (3,081 )     76,939  
                     
Cash flows from investing activities                    
Cash contribution in associates         (3,179 )     (1,689 )
Acquisition of other financial assets         (4,321 )     (10,390 )
Disposals of other financial assets         42,229       24,313  
Purchase of Property, plant and equipment         (8,817 )     (4,952 )
Acquisition of Intangible assets         (411 )     (178 )
Loans with related parties         3,672       221  
“Piana di Castello” land advance         -       (4,504 )
Advance payments of Property, plant and equipment         (766 )     -  
Other         650       (88 )
Net cash provided by investing activities         29,057       2,733  
                     
Cash flows from financing activities                    
Proceeds from cash contributions         -       43,703  
Additional acquisitions in subsidiaries   14     -       (40,731 )
Proceeds from borrowings   12     36,612       196,790  
Initial Public Offering   14     -       195,601  
Initial Public Offering expenses paid         -       (4,253 )
Release of guarantee deposits         -       92,913  
Leases payments         (2,772 )     -  
Loans paid   12     (32,631 )     (477,766 )
Interest paid   12     (40,475 )     (43,134 )
Dividends paid         (7,992 )     (15,403 )
Net cash used in financing activities         (47,258 )     (52,280 )
                     
(Decrease) / Increase in cash and cash equivalents         (21,282 )     27,392  
                     
Movements in cash and cash equivalents                    
At the beginning of the period         244,865       221,601  
Exchange rate loss and inflation adjustment on cash and cash equivalents         (2,119 )     (28,863 )
(Decrease) / Increase in cash and cash equivalents         (21,282 )     27,392  
At the end of the period   11     221,464       220,130  

 

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements. These Condensed Consolidated Interim Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and notes for the year ended December 31, 2018.

 

 - 5 - 

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the six-month period ended June 30, 2019 and 2018 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

 

1   General information, reverse stock split and initial public offering
2   Basis of presentation and accounting policies
3   Segment information
4   Revenue
5   Cost of services
6   Selling, general and administrative expenses
7   Other operating income
8   Financial results, net
9   Income tax
10   Intangible assets, net
11   Cash and cash equivalents
12   Borrowings
13   Other liabilities
14   Equity
15   Contingencies, commitments and restrictions on the distribution of profits
16   Related party balances and transactions
17   Cash flow disclosures
18   Fair value measurement of financial instruments
19   Subsequent events

 

 - 6 - 

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the six-month period ended June 30, 2019 and 2018 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

 

1        General information, reverse stock split and initial public offering

 

Corporación América Airports S.A. (the “Company” or “CAAP”) is a holding company primarily engaged through its operating subsidiaries in the acquisition, development and operation of airport concessions. The Company and its operating subsidiaries are collectively referred to hereinafter as the “Group”.

 

The Company was formed as a private limited liability company under the laws of the Grand Duchy of Luxembourg on December 14, 2012. The Company is ultimately controlled by Southern Cone Foundation (“SCF”), a foundation, organized under the laws of the Principality of Liechtenstein. The address of its registered office is in Vaduz.

 

The Group currently has operations in Argentina, Brazil, Uruguay, Armenia, Italy, Ecuador and Peru.

 

A list of the principal Group’s subsidiaries is included in Note 2 of the Consolidated Financial Statements as of December 31, 2018.

 

Reverse Stock Split

 

On January 19, 2018, the Shareholder approved a 1-to-10.12709504 reverse stock split of its common shares, consequently decreasing the outstanding common shares from 1,500,000,000 common shares to 148,117,500 common shares (the “Reverse Stock Split”). The nominal value of USD 1.00 of each common share did not change as a result of the Reverse Stock Split. It implied a reduction of share capital of USD 1,351,883 and an increase in Non-Distributable Reserves. In accordance with the provisions of the amended and restated articles of association of the Company, the non-distributable reserve may be distributed to its shareholders, from time to time, on a pro rata basis.

 

Initial Public Offering

 

On February 2, 2018, CAAP submitted the final prospectus to the U.S. Securities and Exchange Commission as an initial public offering of common shares of Corporación América Airports S.A. which was declared effective by such commission. The offering was of 11,904,762 common shares with a nominal value of USD 1 and the Shareholder offered 16,666,667 common shares which were fully subscribed. As a consequence of the Initial Public Offering, the share capital of CAAP has increased to 160,022,262 shares. The initial public offering price per common share was USD 17.00. As a result, CAAP had proceeds of USD 195,601 net of underwriting discounts and commissions but before other issuing expenses.

 

On February 5, 2018, the Executive Committee; in accordance with (i) the provisions of the articles of associations of the Company, and (ii) the resolutions taken by the Company´s board of directors which determined and confirmed the creation and composition of the Executive Committee and also the powers delegated to it with respect of the Initial Public Offering; resolved to approve the issuance of the new shares, acknowledged having received sufficient evidence showing that the subscription price of the new shares had been paid, and the amendment of the articles of associations in respect of the new share capital of USD 160,022,262.

 

These condensed consolidated interim financial statements have been approved for issuance by the Company on August 23, 2019.

 

 - 7 - 

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the six-month period ended June 30, 2019 and 2018 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

2         Basis of presentation and accounting policies

 

The principal accounting policies applied in the preparation of these Condensed Consolidated Interim Financial Statements are consistent with the Consolidated Financial Statements ended at December 31, 2018. These policies have been consistently applied to all the years presented, unless otherwise stated.

 

2.1 Basis of presentation

 

These Condensed Consolidated Interim Financial Statements have been prepared in accordance with IAS 34, “Interim Financial Reporting”. The accounting policies used in the preparation of these Condensed Consolidated Interim Financial Statements are consistent with those used in the audited Consolidated Financial Statements for the year ended December 31, 2018, except for changes explained in Note 2.2. These Condensed Consolidated Interim Financial Statements should be read in conjunction with the audited Consolidated Financial Statements for the year ended December 31, 2018, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) of the International Accounting Standards Board (IASB) and the Interpretations of the International Financial Reporting Interpretations Committee (IFRIC).

 

Elimination of all material intercompany transactions and balances between the Company and the other companies and their respective subsidiaries have been made.

 

The preparation of Condensed Consolidated Interim Financial Statements in conformity with IFRS requires management to make certain accounting estimates and assumptions that might affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the reporting dates, and the reported amounts of revenues and expenses during the reporting years. Actual results may differ from these estimates.

 

In the preparation of these Condensed Consolidated Interim Financial Statements, the significant areas of judgment by management in the application of the Group’s accounting policies and the main areas of assumptions and estimates are consistently as those applied in the Consolidated Financial Statements for the year ended December 31, 2018.

 

Assets and liabilities are classified as current if settlement is expected within 12 months.

 

Application of IAS 29 in financial reporting of Argentine subsidiaries and associates

 

IAS 29 “Financial Reporting in Hyperinflationary Economies” requires that the financial statements of entities whose functional currency is that of a hyperinflationary economy to be adjusted for the effects of changes in a suitable general price index and to be expressed in terms of the current unit of measurement at the closing date of the reporting period, regardless of whether they are based on the historical cost method or the current cost method. Accordingly, the inflation produced from the date of acquisition or from the revaluation date, as applicable, must be computed in the non-monetary items.

 

In order to conclude on whether an economy is categorized as hyperinflationary in the terms of IAS 29, the standard details a series of factors to be considered, including the existence of a cumulative inflation rate in three years that approximates or exceeds 100%. Considering that the inflation in Argentina has exceed the 100% three-year cumulative inflation rate in July 2018, and that the rest of the indicators do not contradict the conclusion that Argentina should be considered a hyperinflationary economy for accounting purposes, the Group understands that there is sufficient evidence to conclude that Argentina is a hyperinflationary economy under the terms of IAS 29 as from July 1, 2018, and, accordingly, it has applied IAS 29 as from that date in the financial reporting of its subsidiaries and associates with the Argentine peso as functional currency.

 

The estimated price index as of June 30, 2019 was 225.28 (184.25 as of December 31, 2018) and the conversion factor derived from the indexes for the period ended June 30, 2019, was 1.22.

 

Comparative amounts are the figures presented as current year amounts in the relevant prior year consolidated financial statements, according to IAS 21, considering that were translated into the currency of a non- hyperinflationary economy.

 

 - 8 - 

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the six-month period ended June 30, 2019 and 2018 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

2         Basis of presentation and accounting policies (Cont.)

 

2.1 Basis of presentation (Cont.)

 

Application of IAS 29 in financial reporting of Argentine subsidiaries and associates (Cont.)

 

The ongoing application of the re-translation of comparative amounts to closing exchanges rates under IAS 21 and the inflation adjustments required by IAS 29 will lead to a difference because the rate at which the hyper-inflationary currency depreciates against a stable currency is rarely equal to the rate of inflation. The inflation adjustment and the translation of comparative amounts in the current period is included in Other comprehensive (loss) / income for the period line.

 

This re-translation changes every prior reported quarterly consolidated statement of income in U.S. dollars, as a result, the impact of quarterly inflation adjustments and quarterly translation adjustments vary the results of operation quarter to quarter until year end.

 

There were no changes in valuation techniques during the period, except for changes explained in Note 2.2, and there were no changes in risk management policies since the end of the year ended December 31, 2018.

 

2.2 Changes in the accounting polices

 

The group has applied the following standard for the first time for their quarter reporting period commencing January 1, 2019:

 

IFRS 16, “Leases”

 

The group has adopted IFRS 16 retrospectively from January 1, 2019, but has not restated comparatives for the 2018 reporting period, as permitted under the specific transitional provisions in the standard. The reclassifications and the adjustments arising from the new leasing rules are therefore recognized in the opening balance sheet on January 1, 2019.

 

(a) Adjustments recognized on adoption of IFRS 16

 

On adoption of IFRS 16, the group recognized lease liabilities in relation to leases which had previously been classified as ‘operating leases’ under the principles of IAS 17 Leases. These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of January 1, 2019. The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on January 1, 2019 was 5.2%.

 

For leases previously classified as finance leases the entity recognized the carrying amount of the lease asset and lease liability immediately before transition as the carrying amount of the right of use asset and the lease liability at the date of initial application. The measurement principles of IFRS 16 are only applied after that date.

 

   Lease liabilities 
Operating lease commitments as at December 31, 2018   14,167 
Discounted using lessee’s incremental borrowing rate   (2,204)
Operating lease commitments discounted at the date of initial application   11,963 
Add: finance lease liabilities recognized as at December 31, 2018   1,715 
(Less): short-term leases recognized on a straight-line basis as expense   (59)
(Less): low-value leases recognized on a straight-line basis as expense   (70)
Lease liability recognized as at January 1, 2019   13,549 
Of which are:     
Current lease liabilities   4,942 
Non-current lease liabilities   8,607 
    13,549 

 

 - 9 - 

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the six-month period ended June 30, 2019 and 2018 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

2         Basis of presentation and accounting policies (Cont.)

 

2.2 Changes in the accounting polices (Cont.)

 

IFRS 16, “Leases” (Cont.)

 

Right-of use assets were measured at the amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognized in the balance sheet as at December 31, 2018. There were no onerous lease contracts that would have required an adjustment to the right-of-use assets at the date of initial application.

 

The recognized right-of-use assets as at January 1, 2019 relate to the following types of assets:

 

   At January 1,
2019
 
Right-of-use asset     
Land, building and improvements   10,103 
Plant and production equipment   1,224 
Vehicles, furniture and fixtures   519 
    11,846 

 

The change in accounting policy affected the following items in the balance sheet on January 1, 2019:

- right-of-use assets – increase by USD 11,846

- prepayments – decrease by USD 12

- borrowings – decrease by USD 1,715

- lease liabilities – increase by USD 13,549

 

There was no impact on retained earnings on January 1, 2019.

 

(b) Practical expedients applied

 

In applying IFRS 16 for the first time, the group has used the following practical expedients permitted by the standard:

- reliance on previous assessments on whether leases are onerous

- the accounting for operating leases with a remaining lease term of less than 12 months as at January 1, 2019 as short-term leases

- the exclusion of initial direct costs for the measurement of the right-of-use asset at the date of initial application, and

- the use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease.

 

(c) The group’s leasing activities and how these are accounted for

 

The group as a lessee

 

The group acts as a lessee renting various offices, equipment and cars.

 

Until the 2018 financial year, leases of property, plant and equipment were classified as either finance or operating leases. Payments made under operating leases (net of any incentives received from the lessor) were charged to profit or loss on a straight-line basis over the period of the lease.

 

From January 1, 2019, leases are recognized as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the group. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.

 

 - 10 - 

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the six-month period ended June 30, 2019 and 2018 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

  

2         Basis of presentation and accounting policies (Cont.)

 

2.2 Changes in the accounting polices (Cont.)

 

IFRS 16, “Leases” (Cont.)

 

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:

- fixed payments (including in-substance fixed payments), less any lease incentives receivable

- variable lease payment that are based on an index or a rate

- amounts expected to be payable by the lessee under residual value guarantees

- the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and

- payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.

 

The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the lessee’s incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions.

 

Right-of-use assets are measured at cost comprising the following:

- the amount of the initial measurement of lease liability

- any lease payments made at or before the commencement date less any lease incentives received

- any initial direct costs, and

- restoration costs.

 

Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less.

 

The group as a lessor

 

The group acts as a lessor regarding leases and sub-concession of spaces with third parties at its airports facilities.

 

The Group’s accounting policy under IFRS 16 has not changed from the comparative period. As a lessor the Group classifies its leases as either operating or finance leases. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of the underlying asset, and classified as an operating lease if it does not.

 

Derivative financial instruments and market risk management

 

As of May 29, 2019, CAAP’s subsidiary in Brazil entered into a currency swap in order to manage the exchange rate exposure generated by loan future payables in U.S. dollars.

 

This financial instrument was not entered into for speculative purposes, but neither was formally designated and therefore did not qualify as hedging instrument for accounting purposes and as a result changes in its fair value is recognized in profit or loss within finance cost.

 

§Derivative financial instruments accounting policies

 

Derivatives are initially recognized at fair value on the date a derivative contract is entered into, and they are subsequently remeasured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged.

 

Changes in the fair value of any derivative instrument that does not qualify for hedge accounting are recognized immediately in profit or loss and are included in “Other financial income/loss” line.

 

Derivatives are classified as ‘held for trading’ for accounting purposes and are accounted for at fair value through profit or loss. They are presented as current assets or liabilities to the extent they are expected to be settled within 12 months after the end of the reporting period.

 

 - 11 - 

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the six-month period ended June 30, 2019 and 2018 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

2         Basis of presentation and accounting policies (Cont.)

 

2.2 Changes in the accounting polices (Cont.)

 

Derivative financial instruments and market risk management (Cont.)

 

Derivative financial instruments are classified within Level 2 of the fair value hierarchy.

 

§Foreign exchange risk management

 

The Group operates in a number of countries throughout the world and consequently is exposed to foreign exchange rate risk. In addition, the Group has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk. In order to manage foreign exchange risk, the Group has added to its strategy the use of derivative financial instruments together with its previous policy of minimizing net positions of assets and liabilities denominated in foreign currencies.

 

CAAP’s subsidiaries may use derivative contracts in order to cover its exposure to foreign exchange rate risk derived from their financial operations.

 

Other standards and amendments

 

Several other amendments and interpretations apply for the first time in 2019 but do not have an impact on the interim condensed consolidated financial statements of the Group.

 

New and amended standards not yet adopted for CAAP.

 

Certain new accounting standards and interpretations have been published that are not mandatory for June 30, 2019 reporting periods and have not been early adopted by the group. The group’s management is currently evaluating the potential impact of the new standards and interpretations that are set out below.

 

Other standards and interpretations non-significant for the Company’s financial statements:

- Amendments to IAS 1 and 8 – Definition of Material. These amendments must be applied prospectively for annual periods beginning on or after January 1, 2020.

- Amendments to IFRS 3 – Definition of a Business. Entities are required to apply the amendments to transactions for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2020.

- Amendments to references to the conceptual framework in IFRS standards (issued in March 2018). These amendments must be applied as from January 1, 2020.

 

There are no other standards that are not yet effective and that would be expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.

 

 - 12 - 

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the six-month period ended June 30, 2019 and 2018 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

 

3        Segment information

 

Operating segments are components of an enterprise where separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Group’s chief operating decision maker is its Board of Directors. The Group’s operating segments are managed separately because each operating segment represents a strategic business unit providing airport and non-airport services (“others”) to clients in different countries. The Group’s reportable operating segments are the seven countries in which the Group currently operates, which are Argentina, Brazil, Uruguay, Armenia, Ecuador, Italy and Peru.

 

Within each reportable segment, the Group develops and operates airport concessions (“Airports”) and provides other services not directly related to airport concessions (“Others”).

 

Assets, liabilities and results of sub-holding and/or holding companies are not allocated and are reported within the “Unallocated” column. This column also includes head office and group services.

 

The elimination of any intersegment revenues and other significant intercompany operations are included in the “Intersegment Adjustments” column.

 

The information regarding the Company’s reportable operating segments is consistent with the information presented in Notes 2.V and 4 included in our audited Consolidated Financial Statements for the year ended December 31, 2018 and should be read in conjunction with them.

 

The performance of each reportable segment is measured by its adjusted EBITDA, defined, with respect to each segment, as net income before financial income, financial loss, income tax expense, depreciation and amortization for such segment. The Adjusted EBITDA for the Brazil segment does not exclude the amortization of the intangible asset related to the fee payable to the Brazilian government for the operation of the Brazilian airport concessions.

 

Effective April 1, 2018, the CODM revised the current segment reporting to also include another metric of performance. In addition, the CODM considers each reportable segment’s Adjusted EBITDA before Construction Services margin as a relevant performance measure. Prior periods information has been revised to conform to the current period presentation.

 

Adjusted EBITDA excluding Construction Services is defined, with respect to each segment, as net income before construction services revenue, financial income, construction services cost, financial loss, income tax expense, depreciation and amortization for such segment. The Adjusted EBITDA excluding construction services revenue and construction services cost for the Brazil segment does not exclude the amortization of the intangible asset related to the fee payable to the Brazilian government for the operation of the Brazilian airport concessions.

 

 - 13 - 

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the six-month period ended June 30, 2019 and 2018 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

3        Segment information

 

   Argentina   Brazil   Uruguay   Armenia   Ecuador   Italy   Perú             
  Airports   Others   Airports   Others   Airports   Others   Airports   Airports   Airports   Airports   Intrasegment
Adjustments
   Unallocated   Total 
For the three-month period ended June 30, 2019 (Unaudited)                                                                 
Revenue   260,224    69    28,428    -    24,394    4,451    32,728    24,878    39,071    -    (3,176)   1,496    412,563 
Cost of services   (200,635)   (6)   (24,345)   -    (12,406)   (3,502)   (20,796)   (15,372)   (24,875)   -    2,397    (3,530)   (303,070)
Gross profit / (loss)   59,589    63    4,083    -    11,988    949    11,932    9,506    14,196    -    (779)   (2,034)   109,493 
Selling, general and administrative expenses   (16,164)   (140)   (4,347)   (48)   (3,492)   (287)   (2,966)   (4,158)   (3,424)   -    779    (2,903)   (37,150)
Other operating income   4,153    -    85    -    37    -    48    2    -    -    -    1    4,326 
Other operating expenses   (362)   -    434    -    (67)   -    (135)   (12)   -    -    -    (1)   (143)
Operating income / (loss)   47,216    (77)   255    (48)   8,466    662    8,879    5,338    10,772    -    -    (4,937)   76,526 
Share of income / (loss) in associates   -    -    -    -    -    -    -    -    35    (406)   -    -    (371)
Amortization and depreciation   25,202    -    2,840    -    2,763    251    3,246    1,154    3,091    -    -    3,749    42,296 
Adjusted Ebitda   72,418    (77)   3,095    (48)   11,229    913    12,125    6,492    13,898    (406)   -    (1,188)   118,451 
Construction services revenue   (92,065)   -    -    -    (194)   -    (4,144)   (1,355)   (2,183)   -    -    -    (99,941)
Construction services cost   92,001    -    -    -    189    -    4,024    1,355    1,764    -    -    -    99,333 
Adjusted Ebitda excluding Construction Services   72,354    (77)   3,095    (48)   11,224    913    12,005    6,492    13,479    (406)   -    (1,188)   117,843 
Construction services revenue   92,065    -    -    -    194    -    4,144    1,355    2,183    -    -    -    99,941 
Construction services cost   (92,001)   -    -    -    (189)   -    (4,024)   (1,355)   (1,764)   -    -    -    (99,333)
Adjusted Ebitda   72,418    (77)   3,095    (48)   11,229    913    12,125    6,492    13,898    (406)   -    (1,188)   118,451 
Financial income                                                               11,764 
Financial loss                                                               (12,271)
Inflation adjustment                                                               (7,175)
Amortization and depreciation                                                               (42,296)
Income before income tax expense                                                               68,473 
Income tax                                                               (13,122)
Income for the period                                                               55,351 
                                                                  
For the three-month period ended June 30, 2018 (Unaudited)                                                                 
Revenue   246,712    152    30,319    -    24,343    4,458    28,085    22,056    42,000    -    (2,536)   1,463    397,052 
Cost of services   (158,908)   (35)   (27,222)   -    (13,347)   (3,442)   (15,880)   (12,894)   (30,710)   -    2,536    (3,641)   (263,543)
Gross profit / (loss)   87,804    117    3,097    -    10,996    1,016    12,205    9,162    11,290    -    -    (2,178)   133,509 
Selling, general and administrative expenses   (20,495)   (58)   (4,601)   -    (3,191)   (346)   (2,915)   (4,263)   (3,532)   -    -    (4,110)   (43,511)
Other operating income   4,449    -    7    -    46    31    17    16    -    -    -    (1)   4,565 
Other operating expenses   (149)   (1)   (70)   -    (51)   (31)   (159)   (8)   -    -    -    (16)   (485)
Operating income / (loss)   71,609    58    (1,567)   -    7,800    670    9,148    4,907    7,758    -    -    (6,305)   94,078 
Share of income / (loss) in associates   -    -    -    -    -    -    -    -    43    (564)   -    648    127 
Amortization and depreciation   7,279    -    4,149    -    3,210    197    2,973    1,864    2,926    -    -    4,308    26,906 
Adjusted Ebitda   78,888    58    2,582    -    11,010    867    12,121    6,771    10,727    (564)   -    (1,349)   121,111 
Construction services revenue   (65,488)   -    -    -    (203)   -    (1,792)   -    (5,184)   -    -    -    (72,667)
Construction services cost   65,439    -    -    -    197    -    1,740    -    4,756    -    -    -    72,132 
Adjusted Ebitda excluding Construction Services   78,839    58    2,582    -    11,004    867    12,069    6,771    10,299    (564)   -    (1,349)   120,576 
Construction services revenue   65,488    -    -    -    203    -    1,792    -    5,184    -    -    -    72,667 
Construction services cost   (65,439)   -    -    -    (197)   -    (1,740)   -    (4,756)   -    -    -    (72,132)
Adjusted Ebitda   78,888    58    2,582    -    11,010    867    12,121    6,771    10,727    (564)   -    (1,349)   121,111 
Financial income                                                               49,632 
Financial loss                                                               (198,868)
Amortization and depreciation                                                               (26,906)
Loss before income tax expense                                                               (55,031)
Income tax                                                               20,109 
Loss for the period                                                               (34,922)

 

 - 14 - 

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the six-month period ended June 30, 2019 and 2018 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

3        Segment information (Cont.)

 

   Argentina   Brazil   Uruguay   Armenia   Ecuador   Italy   Peru             
   Airports   Others   Airports   Others   Airports   Others   Airports   Airports   Airports   Airports   Intrasegment
Adjustments
   Unallocated   Total 
For the six-month period ended June 30, 2019 (Unaudited)                                                    
Revenue   506,271    123    58,097    -    56,648    8,539    57,984    48,575    65,887    -    (6,349)   3,031    798,806 
Cost of services   (368,839)   (11)   (48,893)   -    (27,020)   (6,654)   (37,237)   (29,426)   (49,079)   -    4,861    (7,067)   (569,365)
Gross profit / (loss)   137,432    112    9,204    -    29,628    1,885    20,747    19,149    16,808    -    (1,488)   (4,036)   229,441 
Selling, general and administrative expenses   (35,320)   (196)   (9,199)   (67)   (6,951)   (634)   (5,786)   (8,743)   (6,865)   -    1,489    (5,423)   (77,695)
Other operating income   8,754    -    292    -    60    -    48    8    -    -    (17)   1    9,146 
Other operating expenses   (457)   -    (91)   -    (100)   -    (293)   (18)   -    -    16    -    (943)
Operating income / (loss)   110,409    (84)   206    (67)   22,637    1,251    14,716    10,396    9,943    -    -    (9,458)   159,949 
Share of income / (loss) in associates   -    -    -    -    -    -    -    -    35    (866)   -    -    (831)
Amortization and depreciation   49,612    -    5,948    -    6,544    488    6,417    2,281    6,115    -    -    7,953    85,358 
Adjusted Ebitda   160,021    (84)   6,154    (67)   29,181    1,739    21,133    12,677    16,093    (866)   -    (1,505)   244,476 
Construction services revenue   (154,474)   -    -    -    (847)   -    (6,533)   (1,355)   (3,976)   -    -    -    (167,185)
Construction services cost   154,365    -    -    -    822    -    6,344    1,355    2,930    -    -    -    165,816 
Adjusted Ebitda excluding Construction Services   159,912    (84)   6,154    (67)   29,156    1,739    20,944    12,677    15,047    (866)   -    (1,505)   243,107 
Construction services revenue   154,474    -    -    -    847    -    6,533    1,355    3,976    -    -    -    167,185 
Construction services cost   (154,365)   -    -    -    (822)   -    (6,344)   (1,355)   (2,930)   -    -    -    (165,816)
Adjusted Ebitda   160,021    (84)   6,154    (67)   29,181    1,739    21,133    12,677    16,093    (866)   -    (1,505)   244,476 
Financial income                                                               29,019 
Financial loss                                                               (80,211)
Inflation adjustment                                                               (16,365)
Amortization and depreciation                                                               (85,358)
Income before income tax expense                                                               91,561 
Income tax                                                               (6,292)
Income for the period                                                               85,269 
                                                                  
June 30, 2019 (Unaudited)                                                                 
Current assets   173,096    157    55,811    51    20,867    4,466    43,132    24,650    55,443    -    (62,379)   182,480    497,774 
Non-current assets   1,257,277    25    1,223,121    -    150,219    5,187    173,567    52,448    244,367    11,120    (778)   400,714    3,517,267 
Capital Expenditure   154,477    -    2,058    -    5,798    400    8,344    3,167    7,683    -    (33)   13    181,907 
Current liabilities   180,546    29    122,514    2    21,736    2,471    21,489    37,208    113,718    -    (62,379)   63,527    500,861 
Non-current liabilities   460,802    -    1,175,803    -    53,787    2,033    64,869    2,302    60,550    -    (778)   345,140    2,164,508 

 

 - 15 - 

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the six-month period ended June 30, 2019 and 2018 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

3        Segment information (Cont.)

 

   Argentina   Brazil   Uruguay   Armenia   Ecuador   Italy   Peru             
   Airports   Others   Airports   Others   Airports   Others   Airports   Airports   Airports   Airports   Intrasegment
Adjustments
   Unallocated   Total 
For the six-month period ended June 30, 2018 (Unaudited)                                                    
Revenue   494,988    168    62,368    -    56,496    8,924    49,762    43,582    73,708    -    (4,963)   2,903    787,936 
Cost of services   (303,742)   (67)   (55,547)   -    (26,878)   (6,711)   (28,744)   (25,066)   (55,528)   -    4,963    (7,325)   (504,645)
Gross profit / (loss)   191,246    101    6,821    -    29,618    2,213    21,018    18,516    18,180    -    -    (4,422)   283,291 
Selling, general and administrative expenses   (42,544)   (116)   (8,346)   -    (6,920)   (701)   (5,511)   (8,537)   (6,812)   -    -    (8,057)   (87,544)
Other operating income   9,471    -    7    -    62    41    45    16    -    -    -    1    9,643 
Other operating expenses   (454)   (1)   (210)   -    (79)   (30)   (286)   (15)   -    -    -    (641)   (1,716)
Operating income / (loss)   157,719    (16)   (1,728)   -    22,681    1,523    15,266    9,980    11,368    -    -    (13,119)   203,674 
Share of income / (loss) in associates   -    -    -    -    -    -    -    -    43    (434)   -    648    257 
Amortization and depreciation   14,253    -    8,510    -    6,610    385    5,956    3,724    5,886    -    -    8,663    53,987 
Adjusted Ebitda   171,972    (16)   6,782    -    29,291    1,908    21,222    13,704    17,297    (434)   -    (3,808)   257,918 
Construction services revenue   (110,006)   -    -    -    (341)   -    (2,224)   -    (6,712)   -    -    -    (119,283)
Construction services cost   109,888    -    -    -    331    -    2,159    -    5,916    -    -    -    118,294 
Adjusted Ebitda excluding Construction Services   171,854    (16)   6,782    -    29,281    1,908    21,157    13,704    16,501    (434)   -    (3,808)   256,929 
Construction services revenue   110,006    -    -    -    341    -    2,224    -    6,712    -    -    -    119,283 
Construction services cost   (109,888)   -    -    -    (331)   -    (2,159)   -    (5,916)   -    -    -    (118,294)
Adjusted Ebitda   171,972    (16)   6,782    -    29,291    1,908    21,222    13,704    17,297    (434)   -    (3,808)   257,918 
Financial income                                                               63,519 
Financial loss                                                               (284,656)
Amortization and depreciation                                                               (53,987)
Loss before income tax expense                                                               (17,206)
Income tax                                                               8,591 
Loss for the period                                                               (8,615)
                                                                  
December 31, 2018 (Audited)                                                                 
Current assets   202,187    251    45,042    116    21,925    3,660    51,264    44,145    51,192    -    (60,077)   173,037    532,742 
Non-current assets   1,061,352    23    1,224,475    -    149,418    5,396    168,465    46,009    239,489    8,640    (600)   409,869    3,312,536 
Capital Expenditure   176,525    -    8,264    -    1,832    1,552    8,026    2,127    21,142    -    -    64    219,532 
Current liabilities   150,971    36    106,907    -    22,874    2,341    25,525    45,130    89,414    -    (59,909)   67,262    450,551 
Non-current liabilities   504,934    -    1,121,409    -    52,904    2,450    74,457    2,098    65,552    -    (768)   348,994    2,172,030 

 

 - 16 - 

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the six-month period ended June 30, 2019 and 2018 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

4        Revenue

 

  

For the three -month period ended
June 30,

  

For the six -month period ended

June 30,

 
  

2019

(Unaudited)

  

2018

(Unaudited)

  

2019

(Unaudited)

  

2018

(Unaudited)

 
Aeronautical revenue   185,406    185,616    382,654    390,418 
Non-aeronautical revenue                    
Commercial revenue   126,741    138,106    247,989    275,316 
Construction service revenue   99,941    72,667    167,185    119,283 
Other revenue   475    663    978    2,919 
    412,563    397,052    798,806    787,936 
                     

Timing of revenue recognition                    
Over time   344,713    323,647    665,229    641,921 
At a point in time   11,353    9,283