We’re creating a more connected travel industry, underpinned by sustainability and long-term investor relations.
This morning we have announced our financial results for the first quarter of 2013 (the three months ended 31 March, 2013). Overall, results were good, and importantly, this positive group performance was supported by both our business lines, Distribution and IT Solutions, as you will see below.
Although there is plenty of detail available and clearly many moving pieces that contribute to our results, I would like to highlight for you some of the key financial metrics (all figures are on a year-on-year basis, compared to the first quarter of 2012):
As mentioned above, this was backed by both our Distribution and IT Solutions businesses maintaining their records of consistent operational growth (again, all figures are year-on-year):
expanded 1.6 percentage points to 39.8%. As a result, the number of air travel agency bookings improved by 2.9% to 119.3 million and revenue improved by 2.4%.
processed through Altéa increased by 13.6% to 131.7 million. Together with a healthy performance in all our other transaction-driven revenue lines, this PB growth led total IT Solutions revenue growth to a very good 9.8% in the period.
In addition to growth in the operating results of our business, profit growth was also helped by the lower financial expenses (as we reduce our average cost of debt and partially pay-down our debt outstanding). However, we also had higher D&A expenses and a higher tax rate in the period. The net effect of all the above means that adjusted profit grew by 5.0%.
Our President & CEO, Luis Maroto, commented:
The markets we operate in continue to be highly challenging, but our strong business model and unrivalled product portfolio continue to allow us to make good progress. Our transaction-based business model of recurring revenues has proven to be resilient while our global customer footprint remains a strength.
Growth was driven by both our Distribution and IT Solutions businesses continuing their track record of consistent growth in revenues, which in turn was supported by equally consistent improved group operational performance – whether you measure by absolute figures, market growth or market share. As a result, in the first quarter our EBITDA was 5.3% higher, reaching €323.4 million, and our adjusted profit was up by 5.0%, totaling €176.3 million.
We remain cautiously optimistic about the rest of 2013 and feel well positioned to benefit from the likely macro-economic recovery, which would allow revenue and contribution to grow further across both businesses.
Today’s results follow the news last week that theEuropean Investment Bank (EIB) granted a loan, for the second time in less than one year, worth €150 million to Amadeus to finance research and development (R&D) activities in our Distribution business line between 2013 and 2015.
For those of you interested in finding out more information, you can look at the press release and other documents published today on ourInvestor Relations website – where you will also find many other documents and facts relevant to the investor community.
Over the coming weeks, ahead of our Shareholder General Meeting (SGM) in June, we will also be publishing our Annual Report for 2012, which will be available for download from our website. This is another important source of information about the company, and particularly our business and financial performance during 2012.
With regards to quarterly financial results such as those published today, our next release is expected in August, when we will be discussing the performance for the first half of 2013.
If you would like to contact us, please do not hesitate toemail our Investor Relations team . We'd be pleased to reply to any questions you might have.