We’re creating a more connected travel industry, underpinned by sustainability and long-term investor relations.
Today, Amadeus announced a highly positive set of financial results for the first nine months of 2014 – with positive contributions from both business lines combined with additional growth driven by recent acquisitions.
In the year to date, group Revenue increased by 9.4% to reach €2,585.0 million and EBITDA grew by 9.3% to become €1,037.5 million, driving Adjusted Profit growth of 9.0% to €557.2m. Excluding the recent acquisitions of Newmarket International, UFIS Airport Solutions, and i:FAO Aktiengesellschaft, comparable growth for Revenue and EBITDA stood at 6.8% and 7.0% respectively, and Adjusted Profit increased by 7.1%.
In Distribution our air travel agency bookings rose 4.5% to 356.2 million, outstripping the industry growth of 3.1%, whilst our overall market share expanded by 0.4 percentage points to 40.4%. Further industry outperformance (+4.0%) and market share growth (+0.8 percentage points) were achieved during the third quarter. All of this resulted in revenue for the first nine months from Distribution increasing by 4.2%, to total €1,861.5 million (excluding the impact of the above mentioned acquisitions).
We recently announced our breakthrough agreement reached in September with Ryanair, bringing a wide range of its fares and full ancillary services to Amadeus travel agency subscribers – in November the low-cost carrier began distributing through Amadeus’ innovative light ticketing technology, displaying fares available at parity with the Ryanair website.
In IT Solutions Passengers Boarded were up by 14.1% to total 519.7 million. This continued growth was mostly driven by recent airline implementations, in addition to the full-year impact of those implemented last year, with organic growth contributing 4.2%. It is worth emphasising that the Asia Pacific region now plays a larger role than previously, representing 22.9% of PBs Vs 16.1% in the same period last year. Overall, revenue for IT Solutions increased by 14.9% to €664.6 million (excluding acquisitions) during the first nine months.
There are now 132 airlines around the world that have contracted for both Altéa Reservation and Altéa Inventory. Based upon these contracts, Amadeus estimates that by 2017 the number of annual Passengers Boarded will be close to one billion.
Consolidated net financial debt stood at €1,530.8 million at the close of the period, representing leverage of 1.18x EBITDA. This partly reflects our recent M&A activity, including the acquisitions of Newmarket, UFIS and i:FAO; however it also reflects the payment of dividends to shareholders, following July’s complementary dividend of €111.2 million (gross) and the interim dividend paid earlier in the year. In total €279.7 million has been distributed to shareholders this year – representing a 50% pay-out ratio on 2013’s profit (and a 25% increase over the previous year).
If you would like to know more about our financial results, further details can be found in the press release and other documents posted this morning on the Investor Relations website. You will also find there a broad selection of presentations, facts and figures relevant to the investor community.