Third quarter highlights (three months ended September 30, 2022)
- Air Distribution revenue was €573.1 million, representing 80.7% of Q3 2019 revenue, advancing 1.8 p.p. from prior quarter. Air Distribution bookings amounted to 99.8 million, representing 71.7% of Q3 2019 bookings, 3.5 p.p. below prior quarter.Revenue evolution was supported by an expansionary revenue per booking.
- Air IT Solutions revenue was €439.7 million, representing 90.5% of Q3 2019 revenue, advancing 5.1 p.p. from prior quarter. Air IT Solutions passengers boarded amounted to 459.1 million, 83.5% of Q3 2019 passengers boarded, improving by 5.9 p.p. from prior quarter.
- Hospitality & Other Solutions revenue was €204.8 million, representing 99.2% of Q3 2019 revenue, advancing 4.8 p.p. from prior quarter.
- Group Revenue was €1,217.6 million, representing 86.8% of Q3 2019 revenue, advancing 3.6 p.p. from prior quarter.
- EBITDA amounted to €450.4 million, 79.5% of Q3 2019 levels, up 4.0 p.p. from prior quarter’s level (excluding the government grant1 received in the second quarter).
- Adjusted profit2 amounted to €219.6 million, 68.0% of Q3 2019 levels, up 5.0 p.p. from Q2 2022 (excluding the government grant1 received in the second quarter).
- Free Cash Flow3 amounted to €320.5 million, or €323.9 million excluding cost saving program implementation costs paid4.
- Net financial debt5 was €2,387.4 million as of September 30, 2022 (1.6 times last-twelve-month EBITDA5).
In the third quarter of 2022, as the airline industry continued advancing towards recovery, our revenue, EBITDA, and adjusted profit continued to strengthen and improve when compared to the previous quarter performance. Amadeus Q3 2022 revenue reached 86.8% of its 2019 level, supported by improvements in revenue in all our segments. Most notably, revenues in Hospitality and Other Solutions almost fully recovered relative to the third quarter of 2019 (99.2% of Q3 2019 revenue). Free Cash Flow generation remained strong, which contributed to reducing our net debt: our leverage continued to decrease, reaching 1.6 times last-twelve-month EBITDA5, coming close to our leverage target range of 1.0x-1.5x.nt progress over the previous quarter’s performance.
Luis Maroto, President & CEO of Amadeus, commented:
“Amadeus continued to advance during the third quarter, with solid operating and financial performances across segments. Our revenue, EBITDA and adjusted profit continued to strengthen, supporting strong cash generation. We are pleased to confirm that, based on our progress, we expect to resume shareholder remuneration next year.
“We continue to monitor the macroeconomic situation, while remaining focused on our investment programs to capture the growth opportunities ahead. Our strong operating performance, solid commercial activity and the ongoing recovery in travel volumes make us confident for the future.”
[1] Second quarter 2022 results were positively impacted by a non-refundable government grant, received in the second quarter of 2022, amounting to €51.2 million pre-tax (€38.9 million post tax). Excluding this grant, in the second quarter of 2022, EBITDA and Adjusted profit represented 75.5% and 63.0% of Q2 2019 levels, respectively.
[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-operating, non-recurring effects.
[3] Defined as EBITDA, minus capex, plus changes in our operating working capital, minus taxes paid, minus interests and financial fees paid.
[4] In 2021, we completed the implementation of our cost saving program, announced in 2020. Costs related the implementation of this program were incurred in 2020 and 2021, and no further costs are expected for 2022. At the end of 2021, there were costs amounting to €46.7 million still to be paid, of which, an amount of €27.4 million was paid in the first nine months of 2022 (€3.4 million in the third quarter).
[5] Based on our credit facility agreements’ definition.
Business evolution for the quarter
In Air Distribution, in the third quarter of 2022 our bookings reached 71.7% of Q3 2019 levels. North America continued to be our best performing region in the quarter, with bookings growing 2.3% vs. 2019. Asia-Pacific, an important region for Amadeus, registered the highest improvement in volumes when compared to the previous quarter performance.
In Air IT Solutions, passengers boarded (PB) improved to 83.5% of Q3 2019 levels, which represents a 5.9 p.p. advance from the performance of the second quarter of 2022. In the third quarter, all regions (except for Latin America) reported improvements in performance compared to the previous quarter, most notably, North America, Middle East and Africa, and Asia-Pacific. North America continued to report positive PB growth in the quarter vs. 2019 (21.1% PB growth vs. 2019), supported by (i) positive organic PB growth, and (ii) the PB contribution from airline migrations6 .
Finally, third quarter revenue in Hospitality & Other Solutions was 99.2% of same period of 2019, which represents a 4.8 p.p. improvement over the second quarter 2022 revenue performance. Within the Hospitality & Other Solutions segment, Hospitality, which generates most of the revenues, continued to advance, supported by improvements relative to prior quarter, across its revenue lines.
For more information about our operating and financial performance during the third quarter, please visit our Investor Relations website.
Summary of operating and financial information
Summary of KPI (€million) |
Jul-Sep 2022 |
Jul-Sep 20211 |
Change vs. Q3'21 |
Change vs. Q3'19 |
Operating KPI (millions) |
|
|||
Bookings (m) |
99.8 |
57.9 |
72.5% |
(28.3%) |
Passengers boarded (m) |
459.1 |
270.8 |
69.5% |
(16.5%) |
| Financial results (€millions) | ||||
Air Distribution revenue |
573.1 |
300.4 |
90.8% |
(19.3%) |
Air IT Solutions revenue |
439.7 |
294.6 |
49.3% |
(9.5%) |
| Hospitality & Other Solutions revenue | 204.8 | 144.2 | 42.1% | (0.8%) |
Revenue |
1,217.6 |
739.1 |
64.7% |
(13.2%) |
EBITDA |
450.4 |
206.7 |
118.0% |
(20.5%) |
| EBITDA margin (%) | 37.0% | 28.0% | 9.0 p.p. | (3.4 p.p.) |
Profit (loss) for the period |
202.7 |
9.0 |
n.m. |
(30.6%) |
Adjusted profit (loss)2 |
219.6 |
23.8 |
823.6% |
(32.0%) |
Adjusted EPS (euros)3 |
0.49 |
0.05 |
830.3% |
(34.8%) |
| Cash flow | ||||
Capital expenditure |
145.5 |
98.8 |
47.3% |
(16.4%) |
Free cash flow4 |
320.5 |
83.6 |
283.4% |
(12.7%) |
| Indebtedness5 (€millions) | ||||
| Net financial debt | 2,387.4 | 3,048.7 | (661.3) | |
| Net financial debt/LTM EBITDA | 1.6x | 5.1x | ||
[1] 2021 Income statement figures have been adjusted to exclude costs, amounting to €3.4 million (€2.5 million post tax), incurred in the third quarter of 2021, related to the implementation of the cost saving program announced in 2020.
[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-operating, non-recurring effects.
[3] EPS corresponding to the Adjusted profit attributable to the parent company.
[4] Defined as EBITDA, minus capex, plus changes in our operating working capital, minus taxes paid, minus interests and financial fees paid.
[5] Based on our credit facility agreements’ definition.
- Results press release - Q3 2022 The file will download automatically
- infographic_financials_2022 Amadeus Q3 The file will download automatically
TO TOP