Luis Maroto, President & CEO of Amadeus, commented:
“We are pleased to report that our positive progress continued in the first quarter of 2022. The slower start to the year due to the Omicron variant was offset by solid performances across all our segments during the rest of the quarter, making it our best quarterly performance since the start of the pandemic.
“This encouraging progress was possible thanks to recovering travel volumes, and the positive momentum across our businesses with consistent improvements in air bookings and passengers boarded, with North America leading both metrics. In Air Distribution, we continued to have market share gains during the quarter and in Air IT we started the year with a number of new PSS deals. Hospitality registered the strongest revenue growth rate compared to the previous quarter and is the segment closest to full recovery. We are hopeful this trend will continue throughout the year”.
[1] Excluding after-tax impact of the following items: (i) accounting effects derived from PPA exercises and impairment losses, (ii) non-operating exchange gains (losses), (iii) costs related to the implementation of the cost saving program and (iv) other non-operating, non-recurring effects.
[2] Defined as EBITDA, minus capex, plus changes in our operating working capital, minus taxes paid, minus interests and financial fees paid.
[3] Based on our credit facility agreements’ definition.
[4]Industry and market share defined as: our air bookings in relation to the 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.
During the first quarter of 2022, our Air Distribution revenue maintained its positive progress and reached €446.0 million, which represents an enhancement of 5.8 p.p from the fourth quarter of 2021 revenue performance versus 2019. The continued recovery of our bookings across regions, supported by market share gains, combined with an improving revenue per booking performance (as the weight of local bookings continues to decline towards its pre-pandemic level) were the main drivers of revenue in this segment.
Compared to the first quarter of 2019, we registered a 44.1% revenue contraction. This was largely driven by the reduction in air booking volumes compared to that period, and to a lesser extent, by a limited Air Distribution revenue per booking dilution due to a higher weight of local bookings and an increase in the cancellation provision. These effects were partly offset by several positive impacts, including the softer contraction in several revenue lines, such as revenues from IT solutions provided to travel sellers and corporations.
In terms of our air bookings evolution, in the first quarter of 2022 we maintained the quarter-on-quarter progress based on industry recovery and higher market share4, as explained above, relative to 2019. All our regions reported performance improvements. North America continued to be the best performing region and is now only 2.9% below Q1 2019 levels. The region is also the largest in size for us now, with 36.0% of our total air bookings generated in North America, followed by Western Europe, which represented 27.6%.
Change versus same period of 2019 |
Oct-Dec 2021 |
Jan-Mar 2022 |
% of total Q1 2022 |
% of total Q1 2019 |
North America |
(19.9%) |
(2.9%) |
36.0% |
20.9% |
Western Europe |
(58.4%) |
(56.1%) |
27.6% |
35.4% |
Middle East & Africa |
(39.9%) |
(35.6%) |
12.7% |
11.2% |
Asia Pacific |
(75.1%) |
(73.4%) |
8.4% |
17.8% |
CESE1 |
(50.0%) |
(47.1%) |
7.9% |
8.4% |
Latin America |
(37.0%) |
(34.1%) |
7.5% |
6.4% |
Amadeus TA air bookings |
(49.2%) |
(43.6%) |
100.0% |
100.0% |
Some of the key commercial announcements in this segment during the first quarter were:
Air IT Solutions
In the first quarter of 2022, Air IT Solutions revenue growth improved by 4.9 p.p. from the previous quarter. Compared to the first quarter of 2019, revenue in this segment contracted by 25.9%, impacted by the lower airline passengers boarded volumes because of the COVID-19 pandemic, which were partly offset by a 22.5% higher Air IT Solutions revenue per PB. This increase in the revenue per PB mainly resulted from several revenue lines not linked to PB evolution (such as services and Airport IT, among others) reporting healthier growth rates than airline passengers boarded.
In the first quarter of 2022, Amadeus passengers boarded improved by 3.1 p.p from the previous quarter. PB are 39.5% below first quarter of 2019 levels.
In the first quarter of 2022, several regions reported large improvements in performance versus the prior quarter.
Notably, North America has been the first region to report positive PB growth in a quarter when compared to 2019 since the pandemic started, supported by the PB contribution from airline migrations, most notably Air Canada, which migrated at the end of 2019. In the first quarter of 2022, Western Europe had the highest weight over our total PB, representing 30.3% of Amadeus’ passengers boarded..
Change versus same period of 2019 |
Oct-Dec 2021 |
Jan-Mar 2022 |
% of total Q1 2022 |
% of total Q1 2019 |
Western Europe |
(39.1%) |
(39.3%) |
30.3% |
30.2% |
North America |
(12.4%) |
1.0% |
22.9% |
13.7% |
Asia & Pacific |
(65.2%) |
(61.6%) |
22.0% |
34.6% |
Middle East & Africa |
(37.4%) |
(29.2%) |
9.2% |
7.9% |
Latin America |
(34.4%) |
(37.3%) |
8.0% |
7.7% |
CESE1 |
(22.9%) |
(21.8%) |
7.7% |
5.9% |
Amadeus passengers boarded |
(42.5%) |
(39.5%) |
100.0% |
100.0% |
At the close of March, 211 customers had contracted either of the Amadeus Passenger Service Systems (Altéa or New Skies) and 199 customers had implemented either of them.
Some key commercial deals in the quarter were:
Some key customer wins in this business were:
In the first quarter of 2022, Hospitality & Other Solutions revenue contracted by 15.2% compared to the first quarter of 2019, an enhancement of 9.8 p.p. over the fourth quarter of 2021 revenue performance. Revenue in this segment, which includes Hospitality and Payments, continued to be impacted by the effects of the COVID-19 pandemic, although Hospitality performed better as it is supported by a greater weight of non-transaction-based revenue.
Hospitality’s positive revenue evolution was supported by steady progress across all business lines: 1) In Hospitality IT, revenue evolution was mostly driven by an increase in CRS revenues, compared to the previous quarter, and performance improvements in subscription-based revenues. 2) The progress in hotel and car bookings growth rates contributed to the performance of Media and Distribution revenue. 3) Finally, Business Intelligence revenue, which has a higher weight of non-transaction-based revenues, benefitted from customer implementations.
Some of the key commercial deals in this business were:
In April, we announced changes to the Board of Directors, which will be submitted for approval at the next General Shareholder Meeting.
Summary of KPI (€million) |
Jan-Mar 2022 |
Jan-Mar 20211 |
Change vs. Q1'211 |
Change vs. Q1'19 |
Operating KPI |
|
|||
TA air bookings (m) |
91.7 |
33.8 |
171.6% |
(43.6%) |
Passengers boarded (m) |
264.0 |
127.2 |
107.6% |
(39.5%) |
| Financial results | ||||
Air Distribution revenue |
446.0 |
174.9 |
155.0% |
(44.1%) |
Air IT Solutions revenue |
313.1 |
212.6 |
47.3% |
(25.9%) |
| Hospitality & Other Solutions revenue | 158.1 | 109.2 | 44.8% | (15.2%) |
Revenue |
917.2 |
496.7 |
84.7% |
(34.8%) |
EBITDA |
295.8 |
53.7 |
450.5% |
(50.3%) |
| EBITDA margin (%) | 32.3% | 10.8% | 21.4 p.p. | (10.1 p.p.) |
Profit (loss) for the period |
81.3 |
(95.3) |
n.m. |
(72.8%) |
Adjusted profit (loss)2 |
95.0 |
(83.1) |
n.m. |
(71.6%) |
Adjusted EPS (euros)3 |
0.21 |
(0.18) |
n.m. |
(72.7%) |
| Cash flow | ||||
Capital expenditure |
117.6 |
104.1 |
13.0% |
(41.0%) |
Free cash flow4 |
125.4 |
(11.9) |
n.m. |
(55.4%) |
Indebtedness5 |
Mar 31, 2022 |
Dec 31, 2021 |
Change |
|
Net Financial Debt |
2,933.9 |
3,048.7 |
(114.8) |
|
| Net Financial Debt/LTM EBITDA | 3.4x | 5.1x | ||
[1]1 2021 Income statement figures have been adjusted to exclude costs, amounting to €15.1 million (€10.9 million post tax) in the first quarter of 2021, related to the implementation of the cost saving program announced in 2020. See section 3 for more detail.
[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.
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