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Amadeus

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Strength of IT Solutions and diversification strategy supported Amadeus’ double-digit growth in 2019

Alba Redondo

Corporate Communications

English
English
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Amadeus today announced its financial results for 2019. The solid operating performances of its businesses, particularly IT Solutions, the consolidation of TravelClick (since October 4, 2018) and a positive foreign exchange effect contributed to double-digit growth both in revenue  and EBITDA1. Adjusted profit2 rose to €1,270.2 million, which represents an increase of 13.4% compared to the previous year. 

In Distribution, our air bookings once more outperformed the industry, remaining broadly stable (excluding India, our global air bookings grew 2.7%). This performance was supported by market share expansion across regions, except for Asia Pacific. Excluding India, Amadeus’ global competitive position expanded by 1.0 p.p. in the year. Our non-air bookings increased 5.1% in 2019 driven by several products, including hotel, rail and car bookings. Overall, our travel agency bookings grew 0.5% in 2019. 

Revenue in IT Solutions increased 26.2%, to €2,447.3 million, supported by the positive operating performance of Airline IT and our new businesses, as well as the consolidation of TravelClick.  Airline IT maintained its healthy growth trend. Passengers boarded increased 7.5% last year, supported by organic growth of 6.4% and the positive impact from customer implementations (including S7 Airlines, Maldivian Airlines, Cyprus Airways and Aeromar in 2018, and Philippine Airlines, Bangkok Airways, Flybe and Air Canada in 2019). This growth was negatively impacted by several customers ceasing operations, including Germania; bmi Regional; Avianca Brasil; Avianca Argentina; Thomas Cook UK; Aigle Azur; Adria Airways and XL Airways France, and the de-migration of LATAM Airlines Brasil from our platform during the second quarter of 2018. Excluding these impacts, Amadeus passengers boarded grew 8.5% in 2019.

Our upselling and cross-selling efforts continued bearing positive results during last year. We announced we have renewed and expanded our longstanding technology partnership with the Lufthansa Group (LHG). Qatar Airways signed up for additional functionality to improve its revenue optimization: Amadeus Altéa Revenue Availability with Active Valuation (RAAV) and Amadeus Altéa Booking Intelligence. Norwegian signed up for Amadeus Passenger Recovery. In April, All Nippon Airways (ANA) announced that it had implemented Amadeus Airline Cloud Availability.

Our new businesses also grew strongly, reporting double-digit growth (excluding TravelClick). We also made progress in our Hospitality business and continued expanding our reach both in Airport IT and Payments.

A sustained and consistent investment in technology has been key to our success. In 2019, we devoted 17.3% of our revenue to R&D, or €965.3 million. This investment was dedicated to support our mid to long-term growth.

Luis Maroto, President & CEO of Amadeus, said: “Our business demonstrated resilience in 2019 through constant innovation, diversification and the strengthening of our existing businesses. However, the Coronavirus outbreak will impact our industry and our business in 2020, with a sequential rebound if it replicates past episodes. Beyond the Coronavirus outbreak, we are confident that we are well positioned to continue delivering growth in profits and cash generation into the future”. 

 

To learn more about today’s results please read the press release or visit the Investor Relations website, where you will find all the documents filed with the stock exchange authorities this morning.

 

[1] Adjusted to exclude TravelClick’s acquisition related costs (amounting to €9.4 million and €19.5 million in 2019 and 2018, respectively, before taxes) and PPA effects (which reduced revenue and EBITDA by €7.8 million and €3.6 million, respectively, in 2019, and by €8.2 million and €7.7 million, respectively, in 2018. Adjusted profit is not impacted by PPA effects).

[2] Excluding after-tax impact of the following items: (i) accounting effects derived from PPA exercises and impairment losses, (ii) non-operating exchange gains (losses) and (iii) other non-operating items.

 

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Tags

Financial Results, Investor Relations