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Operator
Good day, ladies and gentlemen, and welcome to the ASUR Second Quarter 2016 Results Conference. My name is Lenett and I'll be your operator today. At this time, all participants are in a listen-only mode. We will conduct a question-and-answer session towards the end of today's conference. (Operator Instructions) As a reminder, today's conference is being recorded.
For opening remarks and introductions, I'd like to turn the call over to Mr. Adolfo Castro, Chief Executive Officer. Please go ahead sir.
Adolfo Castro - CEO
Thank you and good morning everybody. Thank you for joining us today on our conference call to discuss our second-quarter 2016 results.
Allow me to remind you that certain statements made during the course of our discussion today may constitute forward-looking statements, which are based on current management expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially, including factors that may be beyond our Company's control. For an explanation of these risks, please refer to our filings with the Securities and Exchange Commission and the Mexican Stock Exchange.
Moving onto the results, I will start with briefly reviewing the operations in San Juan, Puerto Rico International Airport and then results for the quarter. Passenger traffic at San Juan, Puerto Rico airport was up 4.3% year-on-year, reaching 2.3 million passengers this quarter. Significantly above of the 2.5% increase reported in the previous quarter, as well as the 0.9% achieved in 2015.
The remodeled Terminal C at the Puerto Rico Airport has expanded our commercial offerings and created more attractive layout for our passengers. Resulting in a more efficient traffic flow. This quarter, we were able to shift passengers from Terminal B to Terminal C and have concluded the original project established three years ago.
We're pleased to report that we have met the original scenario of our remodeling program for the Puerto Rico Airport on time and on budget. This had two main objectives, to increase commercial revenue per passenger and to lower operational cost we were starting to achieve.
Consolidated results for the quarter benefited from at MXN58.17 million equity gain from our participation in Aerostar. The stockholders' equity was impacted by a MXN143.16 million (sic - see press release, MXN143.16 million) gain due to the transaction -- translation effect of Aerostar US dollar denominated financials against the Mexican peso.
Looking to our Mexican operations, domestic and international passenger traffic growth continued to decelerate this quarter. As we faced more difficult comparisons following the strong performance achieved last year, total traffic was up 5.4%, totaling 6.9 million passengers. Remember that second quarter traffic was negatively impacted by an entire whole week taking place in the first quarter, while international traffic is seasonally much higher in the first quarter of the year.
As anticipated, the domestic traffic growth slowed down to 5.7% year-on-year, reaching 3.1 million passengers, but still a record for the second quarter. Most of which, Veracruz Airport contributed to this growth, driven by more affordable airfares together with greater airline capacity and connectivity throughout Mexico. On the other hand, Minatitlan and Villahermosa remain affected by the same conditions facing the whole industry.
International traffic was strong, 5.1% year-on-year, reaching a record high of 3.9 million passengers for the second quarter. The depreciation of the Mexican peso against the US dollar continues to support most of the traffic dynamics, although it is lower growth rates than last year.
Passenger traffic between Mexico, Canada and the United States represented 87.9% of the total, down from 88.7% a year ago. We saw a strong passenger traffic from Mexico and US, partially offset by a weaker performance and traffic from Canada, reflecting a more challenging economic environment.
Now moving on to the income statement, total revenues excluding construction services rose 16.7% year-on-year. Commercial revenues per passengers were up 18.9% for the second quarter last year, reaching MXN97.18. This is just below the record high of MXN99.35 set last quarter, when the total traffic was 3.7% higher than this quarter, but we are seeing improvements in commercial revenues despite bearing traffic [growth].
The expansion of Terminal 3 at Cancun Airport last December, which decongested Terminal 2, making it significantly more efficient and allowing us to offer a better shopping experience, it was one of the key drivers behind this performance. Commercial revenues also benefited from the continued effort from our concessionaires.
Looking at the P&L, operating cost and expenses excluding construction costs rose 4.5% year-on-year, principally reflecting the higher cost of services, mainly resulting from the opening of new Terminal 3 expansion. EBITDA was up 18.4% year-on-year to MXN1.34 billion as we continued to leverage our highly big cost base. Excluding the impact of construction revenue, note that adjusted EBITDA margin increased 107 basis points to 71.83% from 70.76% in second quarter 2015.
Moving on to capital expenditures, we remain on track with our plans. We invested MXN240 million this quarter, in line with our master development plan, which was mainly allocated to the construction of Terminal 4. Let me rephrase with the details. Terminal 4 will have around 67,000 square meter about the same size as Terminal 3, after the recent expansion.
Terminal 4 has been designed specifically for international and domestic traffic and taking into account the lessons we have learned over the past ten years. Once we open Terminal 4, which we expect to do during the fourth quarter next year, we're planning to close Terminal 1 and to move those passengers to Terminal 2.
In terms of our balance sheet, we closed the quarter with cash and cash equivalents of MXN2.9 billion and bank debt of MXN3.7 billion. Now, note that in June we paid an ordinary cash dividend from accumulated earnings of MXN5.6 per share, bringing the total dividend payment to MXN1.68 billion.
Now, let me open the floor for questions, please, operator, go ahead.
Operator
(Operator Instructions) Pablo Barroso, Credit Suisse.
Pablo Barroso - Analyst
I just have a couple of questions. At last quarter, we witnessed a double-digit increase in cost of services, mainly explained by Terminal 3 expansion, I believe. Should we witness this tendency along the year? And my second question, could you give us more color if you are looking into M&A, maybe something in the Caribbean or in Colombia?
Adolfo Castro - CEO
Pablo, good morning. In the case of the cost of services, yes, we saw an impact from Terminal 3 and this is what we can expect from now on, because Terminal 3 is open. We added 25,000 additional square meters that we have to secure, maintaining, light et cetera. So, that is going to be there for the future.
We did some M&A, yes, we are seeing some projects today. I cannot disclose those to you right now, but of course once we have more information or we are more advanced in those processes, we will let you know.
Pablo Barroso - Analyst
Okay, well thank you, Adolfo. That was very helpful.
Operator
Mauricio Martinez, GBM.
Mauricio Martinez - Analyst
My question -- and congratulations on the results -- my question is regarding the non-aero revenue. We saw strong grow this quarter, in line with the first one. I was wondering if you see sustainable, such growth for the remaining of the year or if you see any possible slowdown?
Adolfo Castro - CEO
What we expect these levels to be maintained up to moment we open Terminal 4. Of course we have to consider the seasonality of every quarter, because we do not receive the same kind of passengers every quarter. So in other words, family [things] in the case of the summer, eases in the case of the third quarter, so the kind of passenger we receive at our airports is different, so please consider the case of the seasonality.
Mauricio Martinez - Analyst
Perfect, thank you very much.
Operator
Marcio Prado, Goldman Sachs.
Marcio Prado - Analyst
Two quick questions. One is on the relevant announcements you mentioned in the end of the press release. If you could give us more color on the contract extension with Dufry for the operations -- for the commercial operations at Cancun and Cozumel Airports. It says that this is a 10-year extension. Just wanted to understand if the previous contract was also of a 10-year tenure? And also if you could give us some color on some aspect with regards to the development of Terminal 3 and Terminal 4 of the commercial areas?
And second, it's only on the dividend paid in June, just wanted to understand if this is really only for the first six months of 2016 and if we should expect an additional partial being announced at the -- as we close 2016 results? And any color on additional dividend plans from ASUR? Thank you.
Adolfo Castro - CEO
In the case of what you were mentioning, the extension of the contract of Dufry. The regional contract was a 10-year and that contract was to expire May 31, next year. So, this contract was made before we opened Terminal 3 in 2007. We have decided to extend the contract for, I would say, nine years, because we signed this agreement with 10 years today, but of course if the contract expires next year that is in reality a nine year extension.
The only thing that I can say to you is that we're happy with the terms we got in the contract and we are happy to work today with Dufry in the case of the construction of the space for Terminal 4. So, now we have someone firm to start this process.
In terms of Terminal 4, as I said, basically we are expecting to open that during the fourth quarter next year. We are more or less in time in terms of the construction process. If you go today to Cancun airport, you will be able to see the skeleton of the building it is being constructed and is there.
In terms of additional payments, we normally will not pay more than one dividend every year. In the past, it was the case of, in the year 2012, if I don't remember wrong or 2013, when the Mexican tax laws changed and we started to pay the second payment at the end of the year, but that was mainly the reason why we paid twice.
Operator
Ravi Jain, HSBC.
Ravi Jain - Analyst
Just two quick questions from my end. First one is, on the traffic trends that we saw in the first half, as you mentioned, the comps were tougher and the first half is about 7% traffic growth. How do you see the back half of the year? Are you seeing relatively stable trends or any positive momentum in relation to the US-Mexico agreement or even on the domestic front, if you can give us your thoughts on the traffic.
And the second question is, after the remodeling of the terminals at Puerto Rico, are there any other additional initiatives that we should expect and just how do we kind of expect the earnings from Puerto Rico in the next few quarters? Thank you so much.
Adolfo Castro - CEO
In the case of the traffic, as I have mentioned during the previous quarters, is that I'm seeing a more normalized traffic, so not the case that we showed last year with almost 13% growth. So, on one side you have tougher comparisons and on the other side I am seeing some effects on world economics.
I mentioned one of them which is Canada. The current economic situation there is, I believe, is one of the reasons why we're seeing a weak traffic from this region. So, in summary, what I would expect for the second half of the year is more like the same numbers we are seeing in during the first one.
In the case of Puerto Rico, while we have concluded with the project, that doesn't mean that this is over and that's it. So, it means basically that this is the first day of the new way of operating that with a better layout, with more commercial and better commercial offers.
So, what we do from now on is basically what we call fine-tuning, which is start seeing what is the real result of our original proposal and to adjust it in accordance with what the passenger is expecting in terms of price, product and service. So, this is not the end, this is just the first day.
Of course and this was an important moment for us, because finally we concluded what we designed originally three years ago. And as I said during the initial remarks, we concluded these on time and budget.
Operator
(Operator Instructions) Stephen Trent, Citi.
Stephen Trent - Analyst
Just two questions from me. The first, also related to M&A, but more looking at Puerto Rico. Do you see any long-term potential that ASUR could buyout at least, some of Highstar's stake in that asset?
And then my second question pertains to what I thought you had mentioned in the past plans for possible airport hotel in Cancun and where that is now? Thanks.
Adolfo Castro - CEO
In the case of your question on M&A and the case of Highstar, you know that Highstar is a fund and that they will have to sell this someday in the future, and we have said that before. Once they are ready to do this, we will of course see that as a possibility.
In the case of the hotel, we have concluded with, I would say first, the permits; second, the business plans and the design of the facility; and now we're in the process to get someone to invest on this project. What we intend to do there is basically to make a lease for the land, and then they should construct this and operate that, and we will be receiving the payments from the lease of the land and that's it.
I don't believe that this is going to be a major income for the airport or something significant that we need to discuss, but the process is there and we are basically almost ready to conclude with this process, and then they will have to start constructing this facility.
Stephen Trent - Analyst
Okay. That's very helpful. Thanks, Adolfo. And just one last follow-up, as you're going to open Terminals 4 and then close Terminal 1, is there any view as to what's going to happen at Terminal 1, some sort of recreation spot or something else?
Adolfo Castro - CEO
No, no, Terminal 1 will be closed and will be there as a spare part. I think it was, before we opened that in November 2013, so in reality, Terminal 1 was closed since -- basically since 2005. And we had to open that in November 2013 as an emergency plan due to the huge growth in passenger traffic we experienced.
Operator
Francisco Suarez, Scotiabank.
Francisco Suarez - Analyst
A follow-up on Puerto Rico. And thank you for the color provided at the beginning of the call. You already have a wonderful structure on really with San Juan, Puerto Rico. And of course the LIBOR plus 185 basis, it's okay.
But I'm not sure if you see any potential refinancing at the moment that may actually provide more value for us all? I mean, and of course the question here relates with this potential hidden value that is not that obvious in San Juan? Thank you.
Adolfo Castro - CEO
Hi, Francisco. I don't believe we have conditions right now to do what you are mentioning. One, of course, has to do where the current economic conditions there and the uncertainties on what is going to happen with their economic situation.
And the second one, basically what we need to be sure is that what we design is going to work. So, we are ready to start proving the new concept to see how this works. I would say the next 12 months will be crucial. So the only way is to be able to refinance and prove that this concept is working is once we are able to provide the results and that's what we are trying to see for the next 12 months.
Francisco Suarez - Analyst
So in other words, even though that you already finished the works there on schedule and on budget and to have the guarantee of the rest of the operations that are doing great. That is not enough to do to get a better cost, in other words, isn't it? Is that the way that we should be understanding?
Adolfo Castro - CEO
No, no, that's not exactly. One of the major risks of course was the construction, so remodeling concept itself, okay? So, because we were -- we didn't have any experience of constructing that. So, I would say, the first parts we did constructing and remodeling, it's over, so the first risk has in that sense disappeared.
The objective, as I say during the conference call, is to reduce operational cost and to increase commercial revenue per passenger. This is, let's say, we have created infrastructure to achieve those results. So now, we have to achieve those and in the case of commercial revenues per passenger, once again, we need to make the fine-tuning and see that the new concept -- with the new commercial concepts we have included there are working and that is what the passenger was expecting and see how this works.
Francisco Suarez - Analyst
Got it. Thank you.
Adolfo Castro - CEO
You're welcome.
Operator
And at this time, we have no further callers in the queue. However, we would like to give everyone an opportunity to signal. (Operator Instructions)
And Mr. Castro, at this time there are no additional callers in the queue, I'll turn the conference back over to you for any additional or closing comments.
Adolfo Castro - CEO
Well, thank you and thank you everybody to be here with us for this second-quarter results conference and have a great day. Goodbye.
Operator
And that does conclude today's teleconference. We thank you all for your participation.