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Amadeus

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Amadeus reports double-digit growth thanks to its diversification strategy and business resilience

Alba Redondo

Corporate Communications

English
English
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Amadeus today announced its financial results for the first nine months of 2019. The solid operating performances of its Distribution and IT Solutions businesses, 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 €992.5 million, which represents an increase of 11.9%1 compared to the same period of 2018

Luis Maroto, President & CEO of Amadeus, explained: “Amadeus’ positive financial performance was driven by the healthy evolution of our diversification strategy, particularly Hospitality, as well as the resilience of our core segments”.  

In Distribution, we outperformed the industry growth, with our travel agency air bookings increasing by 0.5%, supported by continued market share expansion across all regions, except for Asia-Pacific (excluding India, Amadeus’ bookings grew by 3.2% and global competitive position  expanded by 1.3 p.p.). 

Revenue in IT Solutions increased 31.1%, driven by both Airline IT and our new businesses. Airline IT continued delivering healthy growth, on the back of higher passengers boarded volumes of airlines using our Altéa or New Skies platforms. This increased resulted from both organic growth and the customers implemented in 2018 (such as S7 Airlines) and so far this year, such as Philippine Airlines, Bangkok Airways and Flybe.  Our upselling and cross-selling efforts continued during the third quarter. 

Our new businesses grew strongly in the first nine months of the year, boosted by the TravelClick consolidation and a double-digit revenue growth rate delivered by our businesses excluding TravelClick. Within our new businesses, both Hospitality excluding TravelClick, and TravelClick standalone, grew at a double-digit growth rate.

This positive performance of our business leads us to be positive about the whole of 2019. Luis Maroto said: “The strength and resilience shown by our businesses allow us to continue to reiterate our confidence in the outlook we issued at the beginning of the year”.

 

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 €7.3 million before taxes) and PPA effects (which reduce revenue and EBITDA by €7.8 million and €5.5 million, respectively. 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-recurring items. 

[3] Competitive position: our 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 (primarily 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