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Amadeus reports double-digit growth thanks to resilience of its business and TravelClick consolidation

Alba Redondo

Corporate Communications

Amadeus today announced its financial results for the first half of 2019. The solid operating performances of its Distribution and IT Solutions businesses and the consolidation of TravelClick (since October 4, 2018) contributed to double-digit growth both in revenue and EBITDA.

Adjusted profitrose to €666.7 million, which represents an increase of 9.9% compared to the same period of 2018.

Luis Maroto, President & CEO of Amadeus, explained: “The resilience of our businesses has allowed us to maintain a strong growth trend in the first half of the year despite a weaker travel industry. Amadeus’ IT Solutions and Distribution businesses continue to grow, thanks to an expanding customer base. Additionally, we are progressing with our diversification strategy following the acquisition of TravelClick and ICM, thereby enhancing our presence and reach in the hospitality and airport IT segments”. 

In Distribution, we outperformed the industry growth by 1.6 p.p thanks to market share gains across all regions, except Asia Pacific. Our bookings in this region were impacted by the GDS industry slowdown, the cancellation by an Indian GDS carrier of our distribution agreement at the end of 2018, and by the ceasing of operations of another Indian GDS carrier in April 2019. Excluding India, Amadeus’ global air bookings grew by 3.3% and our global competitive position2 expanded by 1.4 p.p. in the six month period. 

Revenue in IT Solutions increased 31.0%, driven by both Airline IT and our new businesses. Airline IT continued delivering healthy growth on the back of higher volumes of passengers boarding airlines using our Altéa or New Skies platforms. The higher number of passengers processed resulted from both organic growth and the customers implemented recently, such as Philippine Airlines and Flybe. The continued up-selling and cross-selling of our solutions portfolio amongst an expanded airline client base also contributed to the solid performance of our IT business in the first six months of the year. 

As for our New Businesses, they continue to progress well, boosted by the TravelClick consolidation and double-digit revenue growth of these businesses excluding TravelClick. Hospitality continued to evolve positively, and we also saw new signatures in Airport IT and Payments.

Despite this more complex environment, Luis Maroto said: “With our global presence and our strong focus on investments in technology, we should maintain this positive growth trend”.

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] 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-recurring items.

[2] Competitive position: takes into account Amadeus’ travel agency air bookings in relation to the travel agency air booking industry, defined as the total volume of travel agency air bookings processed by the three major global reservation systems (Amadeus, Sabre and Travelport). It excludes air bookings made directly through airlines’ direct distribution channels (airline offices and websites), single country operators (primary in China, Japan, Russia and Turkey, other content aggregators and direct connect applications between airline systems, travel agencies, corporations and meta-bookers, which together combined represent an important part of the industry. 

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Tags

Financial Results, Investor Relations