Valuation Update With 7 Day Price Move • Aug 14
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CL$430, the stock trades at a trailing P/E ratio of 20.5x. Average trailing P/E is 18x in the Entertainment industry in South America. Total loss to shareholders of 26% over the past three years. Reported Earnings • Jun 04
First quarter 2026 earnings released First quarter 2026 results: Revenue: CL$7.02b (up 14% from 1Q 2025). Net loss: CL$106.9m (loss narrowed 77% from 1Q 2025). Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Board Change • May 20
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 12 experienced directors. No highly experienced directors. No independent directors (12 non-independent directors). Director Hector Humeres Noguer was the last director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Board Change • Apr 23
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 12 experienced directors. No highly experienced directors. No independent directors (12 non-independent directors). Director Hector Humeres Noguer was the last director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. New Risk • Apr 05
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 1.7% Last year net profit margin: 5.2% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Profit margins are more than 30% lower than last year (1.7% net profit margin). Market cap is less than US$100m (CL$23.2b market cap, or US$25.3m). Board Change • Apr 02
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 12 experienced directors. No highly experienced directors. No independent directors (12 non-independent directors). Director Hector Humeres Noguer was the last director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Announcement • Mar 09
Azul Azul S.A., Annual General Meeting, Apr 28, 2026 Azul Azul S.A., Annual General Meeting, Apr 28, 2026. Location: 0939 el parron avenue, la cisterna commune, santiago metropolitan region, santiago Chile Board Change • Dec 24
No independent directors There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 10 experienced directors. No highly experienced directors. No independent directors (11 non-independent directors). Director Hector Humeres Noguer was the last director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. New Risk • Dec 05
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.9x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.9x net interest cover). Minor Risk Market cap is less than US$100m (CL$25.0b market cap, or US$27.3m). Reported Earnings • Dec 03
Third quarter 2025 earnings released Third quarter 2025 results: Revenue: CL$9.36b (up 39% from 3Q 2024). Net income: CL$657.4m (down 6.5% from 3Q 2024). Profit margin: 7.0% (down from 10% in 3Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 74% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Board Change • Nov 25
No independent directors There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 10 experienced directors. No highly experienced directors. No independent directors (11 non-independent directors). Director Hector Humeres Noguer was the last director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. New Risk • Sep 23
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.8x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.8x net interest cover). Minor Risks Profit margins are more than 30% lower than last year (4.7% net profit margin). Market cap is less than US$100m (CL$25.0b market cap, or US$26.2m). Reported Earnings • Sep 16
Second quarter 2025 earnings released: EPS: CL$30.00 (vs CL$11.00 in 2Q 2024) Second quarter 2025 results: EPS: CL$30.00 (up from CL$11.00 in 2Q 2024). Revenue: CL$13.2b (up 117% from 2Q 2024). Net income: CL$1.35b (up 183% from 2Q 2024). Profit margin: 10% (up from 7.8% in 2Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 85% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Board Change • Sep 04
No independent directors There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 10 experienced directors. No highly experienced directors. No independent directors (11 non-independent directors). Director Hector Humeres Noguer was the last director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Board Change • Jul 18
No independent directors There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 10 experienced directors. No highly experienced directors. No independent directors (11 non-independent directors). Director Hector Humeres Noguer was the last director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. New Risk • Jun 10
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.1x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.1x net interest cover). Minor Risk Market cap is less than US$100m (CL$24.6b market cap, or US$26.2m). Board Change • Jun 07
No independent directors There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 10 experienced directors. No highly experienced directors. No independent directors (11 non-independent directors). Director Hector Humeres Noguer was the last director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Board Change • May 14
No independent directors There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 10 experienced directors. No highly experienced directors. No independent directors (11 non-independent directors). Director Hector Humeres Noguer was the last director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Board Change • Apr 17
No independent directors There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 10 experienced directors. No highly experienced directors. No independent directors (11 non-independent directors). Director Hector Humeres Noguer was the last director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Announcement • Feb 03
Azul Azul S.A., Annual General Meeting, Apr 30, 2025 Azul Azul S.A., Annual General Meeting, Apr 30, 2025. Location: av el parron 0939 la cisterna, centro deportivo azul, santiago Chile Announcement • Jan 16
Michael Clark proposed to acquire remaining 90% stake in Azul Azul S.A. (SNSE:AZUL AZUL) from Tactical Sport Fund, a fund managed by Sartor Administradora General de Fondos S.A. for CLP 15.6 billion. Michael Clark proposed to acquire remaining 90% stake in Azul Azul S.A. (SNSE:AZUL AZUL) from Tactical Sport Fund, a fund managed by Sartor Administradora General de Fondos S.A. for CLP 15.6 billion on January 14, 2025. Michael Clark will acquire 40.2 million shares at a price of CLP 387.97 per share. Prior to the transaction, Michael Clark held 10% stake in Azul Azul S.A. The Voluntary Takeover Bid will be launched within the first quarter of 2025. Board Change • Dec 24
No independent directors There are 5 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: No independent directors. 11 non-independent directors. Director Hector Humeres Noguer was the last director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Lack of board continuity. Reported Earnings • Sep 15
Second quarter 2024 earnings released Second quarter 2024 results: Revenue: CL$6.10b (up 71% from 2Q 2023). Net income: CL$475.4m (up CL$1.37b from 2Q 2023). Profit margin: 7.8% (up from net loss in 2Q 2023). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 83% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Reported Earnings • Jun 04
First quarter 2024 earnings released First quarter 2024 results: Revenue: CL$4.76b (up 26% from 1Q 2023). Net income: CL$119.6m (down 88% from 1Q 2023). Profit margin: 2.5% (down from 26% in 1Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 68% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Board Change • Apr 24
No independent directors There are 9 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 9 new directors. 1 experienced director. No highly experienced directors. No independent directors (10 non-independent directors). Director Miguel Luis Lama is the most experienced director on the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Apr 01
Full year 2023 earnings released: EPS: CL$34.00 (vs CL$37.96 loss in FY 2022) Full year 2023 results: EPS: CL$34.00 (up from CL$37.96 loss in FY 2022). Revenue: CL$18.7b (up 29% from FY 2022). Net income: CL$1.54b (up CL$3.23b from FY 2022). Profit margin: 8.2% (up from net loss in FY 2022). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Reported Earnings • Dec 01
Third quarter 2023 earnings released Third quarter 2023 results: Revenue: CL$7.77b (up 94% from 3Q 2022). Net income: CL$2.05b (up CL$3.39b from 3Q 2022). Profit margin: 27% (up from net loss in 3Q 2022). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Reported Earnings • Sep 15
Second quarter 2023 earnings released Second quarter 2023 results: Revenue: CL$3.57b (down 11% from 2Q 2022). Net loss: CL$895.8m (loss narrowed 16% from 2Q 2022). Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Reported Earnings • Jun 06
First quarter 2023 earnings released First quarter 2023 results: Revenue: CL$3.77b (up 23% from 1Q 2022). Net income: CL$984.1m (up CL$2.10b from 1Q 2022). Profit margin: 26% (up from net loss in 1Q 2022). The move to profitability was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Reported Earnings • Dec 02
Third quarter 2022 earnings released Third quarter 2022 results: Revenue: CL$4.01b (up 43% from 3Q 2021). Net loss: CL$1.33b (loss widened 96% from 3Q 2021). Board Change • Nov 16
No independent directors There are 8 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 8 new directors. 2 experienced directors. No highly experienced directors. No independent directors (10 non-independent directors). President of the Board Michael Clark Varela is the most experienced director on the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Sep 14
Second quarter 2022 earnings released Second quarter 2022 results: Revenue: CL$4.01b (up 25% from 2Q 2021). Net loss: CL$1.06b (loss widened 135% from 2Q 2021). Reported Earnings • Jun 02
First quarter 2022 earnings released First quarter 2022 results: Revenue: CL$3.07b (down 6.8% from 1Q 2021). Net loss: CL$1.11b (loss widened 180% from 1Q 2021). Board Change • Apr 27
No independent directors There are 7 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 7 new directors. 2 experienced directors. No highly experienced directors. No independent directors (9 non-independent directors). Director Cristian Aubert Ferrer is the most experienced director on the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Apr 02
Full year 2021 earnings released Full year 2021 results: Revenue: CL$12.9b (down 2.6% from FY 2020). Net loss: CL$2.28b (loss widened CL$2.07b from FY 2020). Reported Earnings • Sep 12
Second quarter 2021 earnings released The company reported a soft second quarter result with increased losses and weaker control over costs, although revenues improved. Second quarter 2021 results: Revenue: CL$3.20b (up 12% from 2Q 2020). Net loss: CL$453.1m (loss widened 27% from 2Q 2020). Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Announcement • May 29
Latam Airlines Denies Sale Report Jerome Cadier, head of LatamBrasil, told local newspaper Valor Economico that LATAM Airlines Group S.A. (SNSE:LTM) is not considering a sale of its Brazilian operations, according to Bloomberg. The paper and Reuters reported earlier that Azul S.A. (BOVESPA:AZUL4) was in talks with aircraft leasing companies to prepare a bid for Latam Brazil. Trading in Latam Airlines shares was suspended on the Santiago Exchange after the shares dropped as much as 21.5% on 26 May 2021. The stock in afternoon trading is down 8% to $2.74 in the U.S. Announcement • Apr 28
Tactical Sport Fund managed by Sartor Administradora General de Fondos S.A. made an offer to acquire 63% stake in Azul Azul S.A. (SNSE:AZUL AZUL) from Carlos Heller and others for $15.5 million. Tactical Sport Fund managed by Sartor Administradora General de Fondos S.A. made an offer to acquire 63% stake in Azul Azul S.A. (SNSE:AZUL AZUL) from Carlos Heller and others for $15.5 million on April 26, 2021. The term of the operation will run from April 27 to May 26, after which period it will be declared successful if, among various requirements detailed in the prospectus, the subscription of all the shares to be acquired is reached. Reported Earnings • Apr 02
Full year 2020 earnings released The company reported a decent full year result with reduced losses and improved control over expenses, although revenues were weaker. Full year 2020 results: Revenue: CL$13.2b (down 9.3% from FY 2019). Net loss: CL$212.9m (loss narrowed 94% from FY 2019). Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Reported Earnings • Dec 03
Third quarter 2020 earnings released: EPS CL$9.00 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: CL$3.86b (up 7.1% from 3Q 2019). Net income: CL$405.5m (up CL$1.93b from 3Q 2019). Profit margin: 11% (up from net loss in 3Q 2019). The move to profitability was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. 
