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Amadeus announces results for first nine months of 2012

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Posted by Stuart Brocklehurst (Group Communications Director, Amadeus IT Group)

Today we have published our financial results for the first nine months of 2012 (January 1 until September 30).

Comparing these results with the first nine months of 2011:

  • Global market share of travel agency air bookings expanded by 0.9 percentage point
  • Passengers Boarded (PB)[1]

    grew by 28.4% to 420.4 million

  • Investment in R&D increased by 15.4%
  • Revenue grew 8.4%[2]

    to €2,233.1 million

  • EBITDA rose 6.5%[2]

    to €889.8 million

  • Adjusted profit [3]

    increased 20.2% to €481.3 million

  • Net debt reduced further to 1.43x last twelve months’ EBITDA

This consistent growth record was supported by significant year-on-year growth from both the Distribution and IT Solutions businesses.

Revenue in the Distribution business increased by 6.4%, rising to €1,690.5 million whilst the number of total bookings, including both air and non air travel agency bookings, improved by 3.3%, to 365.8 million. In the IT Solutions business revenue increased by 15.1%, rising to €542.6 million, and the Passengers Boarded (PB) figure was lifted by 28.4%, rising to 420.4 million. Currently Amadeus projects over 760 million[4] PB for 2014, based upon existing contracts.

Our commitment to innovation continued with an increase of 15.4% in total R&D expenditure (including both capitalised and non-capitalised expenses), with our level of R&D as a percentage of revenue also growing by 0.7 percentage point to reach 13%. Since 2004 Amadeus has invested over €2 billion in R&D.

The financial performance for the first nine months of the year was also backed by strong year-on-year results in the third quarter. During these three months, Amadeus’ adjusted profit increased by 8.8%, to €148.8 million, total revenues were up by 8.0% to €724.2 million, and EBITDA rose by 7.4% to €282.9 million.

Luis Maroto, our President & CEO, commenting on the results said:

“In spite of continued global macro-economic challenges, Amadeus has maintained its consistent growth record during the first nine months of the year, including the third quarter.

At the financial level, year-on-year during these nine months we have grown revenues by 8.4% and adjusted profit by 20.2% to €481.3 million.

We have continued to reduce our financial leverage to 1.43x Net debt to EBITDA. Amadeus’ Board of Directors has agreed to increase our dividend payout ratio to 40%-50% for the year ended December 31, 2012 and onwards, and expects to propose the payment of a total dividend of €0.50 (gross) per ordinary share carrying dividend rights.

Whilst traffic and GDS volumes have shown some weakness this year, driven by the still uncertain economic environment, we nonetheless believe our geographically diverse business model remains resilient. We confidently await the results for the full financial year.”

As on previous occasions, our financial results were filed with the CNMV (the Spanish stock market regulator) in both Spanish and English.

If you would like to find out more information about our financial performance, you can discover further details in the press release issued this morning, which is published on our Investor Relations website.

In February we will publish our results for the 2012 full year – and will provide you with another update then.

[1]

Passengers Boarded (PB): actual passengers boarded onto flights operated by airlines using at least the Amadeus Altéa Reservation and Inventory modules. A PB is the key metric for charging in the Amadeus IT transactional revenue business line

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[2]

For purposes of comparability, the revenue associated to the IT contract resolution with United Airlines in Q2 2011, as well as certain costs of migration that were incurred in relation to this contract, were reclassified from the Revenue and Other operating expenses captions, respectively, to the Other income (expense) caption in the 2011 figures. The growth rates shown above take into account this reclassification. EBITDA adjusted to exclude extraordinary items related to the IPO

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[3]

Excluding after-tax impact of the following items from continuing operations: (i) amortisation of the purchase price allocation (PPA) and impairment losses, (ii) changes in fair value and cancellation costs of financial instruments and non-operating exchange gains (losses) and (iii) extraordinary items related to the sale of assets and equity investments, the debt refinancing, the United Airlines contract resolution and the IPO

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[4]

2014 estimated annual PB calculated by applying IATA’s regional air traffic growth projections to the latest available annual PB figures, based on public sources or internal information (if already on our platform)

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