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Amadeus financial results for 2012

Elena Ávila

Executive Vice President, Head of Americas, Airlines, Amadeus IT Group

As you may be aware, yesterday we published our financial results for 2012.

Our President & CEO Luis Maroto and our CFO Ana de Pro presented these results in London, which were greeted with a significant amount of interest. Following this presentation, we will now spend the next few days in London, and then the United States, in a roadshow with investors, going through the details of the year, as well as the outlook for 2013.

I would like to share with you some key financial metrics that might be of interest (growth rates on a year-on-year basis):

  • Revenue grew 7.5% [1] to €2,910.3 million
  • EBITDA rose 6.6% [1] to €1,107.7 million
  • Adjusted profit [2] increased 18.0% to €575.1 million
  • Total dividend for the year 35% higher at  €0.50 per share or €223.8 million [3] , representing a payout of 45% of the 2012 profit [4]
  • Net debt further reduced by €356.6 million to 1.34x last twelve months’ EBITDA

This strong financial performance was supported by an equally strong operational performance. Indeed, 2012 was a successful year:

  • Global share of travel agency air bookings [5] expanded 0.9 percentage point to 38.6%
  • We successfully renewed all relevant content agreements due for renegotiation, and signed many new Low Cost Carriers (LCCs), ensuring we deliver the right content for our travel agency subscribers, and made important progress in delivering innovation, notably in the area of marketing and ancillary services
  • Passengers Boarded (PB) [6] grew by 28.4% to 563.8 million
  • Number of migrated Altéa customers increased to 109, whilst the number of contracts at the end of the year was up to 121 airlines. Based upon existing contracts, Amadeus projects over 800 million PB [7] for 2015, which implies an increase of 42% in the number of PB processed through our platform vs. 2012.
  • Growth in North America with landmark customer wins, including Southwest International, Expedia and Kayak
  • We also continued to take further steps in our New Business units, where we aim to tap into the significant growth potential for the provision of IT solutions to rail providers, hotels and airports
  • Innovation remained central to our business as we launched products such as Amadeus Featured Results and increased our total R&D investment by 20% to €414 million.

Our President & CEO, Luis Maroto, commented on these results:

“Despite another year of global macro-economic challenges, Amadeus’ proven business model and geographically diverse base again allowed us to maintain our growth record and increase our year-on-year revenues by 7.5% to €2,910.3 million, and adjusted profit by 18.0% to €575.1 million.

2012 has been an outstanding year all round, with a strong financial performance, as well as landmark customer wins such as the Southwest and Expedia contracts in North America.

In 2013 we are focusing on further consolidating our leading position by evolving our competitive offering, whilst also selectively investing in growth areas such as IT solutions for airports, hotels and rail providers. We are cautiously optimistic about 2013 and expect revenue and contribution to continue to grow across both businesses, based upon our experience and taking into account the resiliency of our business model.”

If you would like to know more, further information can be found in the press release and other documents posted yesterday on our Investor Relations website – along with a wide selection of other facts and figures relevant to the investor community.

Later in the year, in May, we will announce our financial results for the first quarter of 2013, followed shortly after with the publication of our Annual Report for 2012, ahead of our Shareholder General Meeting (SGM) in June.

 

[1] 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.  In constant currency, i.e. adjusting for positive FX impact, revenue growth would have been 5.7% in the year.
[2] 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.
[3] Included within this sum is the interim dividend of €0.25 per share announced on December 13, 2012<.
[4] Reported profit for the year from continuing operations excluding extraordinary items related to the IPO.
[5] Market share figures are based on GDS-processed air bookings and therefore exclude air bookings processed by the single country operators (primarily in China, Japan, South Korea and Russia) and GDS-processed bookings of other types of travel products, such as hotel rooms, car rentals and train tickets.
[6] 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.
[7] 2015 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).