H1 2014: Amadeus continues to outperform

Cristina Fernandez

Director, Investor Relations, Amadeus IT Group

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Amadeus today announced a strong set of results for the first half of 2014, maintaining its track record of good results and profitability.

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Revenue in the six months to June 30 increased 8.5% compared to the same period in 2013, to 1,730.9 million euros, while EBITDA grew 8.8%, reaching 702.6 million euros. This was achieved in the context of a sound financial structure. Excluding recent acquisitions, revenue and EBITDA registered a 6.3% and 6.0% increase respectively versus the first half of 2013. This strong financial performance was underpinned by solid operating performance across our business lines and positive contributions from our recent acquisitions.

In Distribution we experienced a +3.8% air volume growth in the first half of 2014, supported by a combination of industry growth and market share gains. Despite slower industry growth during the second quarter, marked by a negative impact from Easter being later than last year, we continued to capture global market share, with a 0.5p.p. gain in the quarter, driven by  our strong product offering and competitive positioning.

Our global market share at the end of H1 stood at 40.3%. North America and Middle East & Africa continue to be our fastest growing regions (+15.5% and +9.5% volume growth, respectively), driven by market share gains. Distribution in the first half of 2014 experienced a 4.6% increase in revenue, reaching 1,271.5 million euros.

During the first half of the year, we strengthened our position in the Corporate Travel IT space, through our acquisition of i:FAOand our industry-first partnership with SAP, which will allow us to offer an end-to-end travel management solution under a single contract, on a global scale. These initiatives make our offering more attractive and complete to corporations or reselling TMCs, allowing us to serve our customers better.

Our IT Solutions business also continued to grow and expand its profitability, driven by double-digit volume growth and sound operational performance. Revenue in the IT Solutions business increased 11.6% to 423.5 million euros.  In airline IT, we have continued to expand our customer base. We have added 2 new customers in the second quarter of 2014, Swiss International AirlinesandJapan Airlines, which we announced only yesterday. We continue to make progress in upselling DCS and our expanding portfolio of Airline IT solutions. On July 1, the first-ever scheduled international flights flown by Southwest Airlines took off, also marking the successful full implementation of Amadeus’ Altéa Suite for the US airline’s international operations. When domestic flights are added to the system, as signaled by our announcement of an agreement in May, Southwest Airlines will become the largest airline IT partner worldwide for Amadeus, in terms of passengers boarded.

With regards to our newest initiatives, Airport ITcontinues to make steady progress with now 75 customers contracted for Amadeus’ DCS solution for ground handlers. Hotel ITis pressing ahead with InterContinental Hotels Group following the announcement of our strategic technology relationship earlier in the year and Rail IThas a long-term strategic IT partnership with Bene Rail International to create a new rail community IT platform.

Leverage at the end of the first half of 2014 stood at 1.18x EBITDA, a slight increase from the end of 2013. This was a result of M&A activity, including Newmarket, UFIS and i:FAO, as well as from our interim dividend payment in January. These were partially offset by our free cash-flow generation over the first half of 2014 of over 300 million euros.

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