Q3 2023 Financial Results video
Our CFO, Till Streichert, discusses Amadeus' Q3 2023 Financial Results with Ana Burton, Amadeus Corporate Communications.
Highlights for the nine months ended September 30, 2023 (relative to prior year):
- Air Distribution bookings increased 15.7%, to 348.0 million.
- Air IT Solutions passengers boarded increased 29.7%, to 1,452.8 million.
- Air Distribution revenuegrew 25.9%, to €2,027.6 million.
- Air IT Solutions revenueincreased 22.0%, to €1,408.5 million.
- Hospitality & Other Solutions revenuegrew 17.8%, to €650.4 million.
- Group Revenueincreased 23.2%, to €4,086.5 million.
- EBITDA grew 33.8%1, to €1,593.8 million1.
- Adjusted profit2increased 67.6%1, to €875.8 million1.
- Free Cash Flow3increased 49.8%4, to €940.5 million.
- Net financial debt5was €2,121.7 million at September 30, 2023 (1.1 times last-twelve-month EBITDA4).
During the first nine months of 2023, Amadeus continued to deliver strong financial performance. Relative to the previous year, our group revenue increased by 23.2%, EBITDA grew 33.8%1, and adjusted profit expanded by 67.6%1, supporting a 49.8% increase in Free Cash Flow3. Net Financial Debt amounted to €2,121.7 million at September 30, 2023, which represented 1.1 times the last-twelve-months' EBITDA5.
Luis Maroto, President & CEO of Amadeus, commented:
“Amadeus continued its growth trajectory over the first nine months of the year. This was driven by strong operating performances by each of our reported segments. Throughout the third quarter, the progressive strengthening of the travel industry and our commercial wins bolstered our businesses. Our revenue, EBITDA, and adjusted profit continued to grow, which has supported a strong cash flow generation. Thanks to this financial strength, we are launching our new share repurchase program covering over 8.8 million Amadeus shares or about €625 million.
“Although we continue to monitor the macroeconomic and geopolitical situation, we can confirm our outlook for the year and remain optimistic about the growth opportunities ahead of us.”
1Excluding (i) in the first nine months of 2023, impacts from movements in the tax provision, which resulted in an increase in Adjusted profit of €22.6 million, with no impact on EBITDA, and (ii) in the first nine months of 2022, a non-refundable government grant, which resulted in an increase in EBITDA and Adjusted profit of €51.2 million and €38.9 million, respectively.
2Excluding 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 income (expense).
3Defined as EBITDA, minus capital expenditure, plus changes in our operating working capital, minus taxes paid, minus interests and financial fees paid.
4Free Cash Flow grew by 48.6% in the first nine months of 2023, vs. the same period of 2022, if we exclude the following non-recurring effects: (i) in Q2’23, a collection of €42.8 million from the Indian tax authorities, (ii) in Q2’22, a non-refundable government grant of €51.2 million, and (iii) in the first nine months of 2022, €27.4 million cost saving program implementation costs paid.
5Based on our credit facility agreements’ definition.
Business evolution in the quarter
During the first nine months of the year, Air Distribution revenue reported an increase of 25.9% relative to 2022, resulting from a 15.7% increase in Air Distribution bookings and an expanded average revenue per booking. Over this period, Asia-Pacific was our fastest growing region, where bookings expanded by 75.3%, followed by Western Europe, which grew by 15.7%. North America and Western Europe were our largest regions, each representing close to 30% of our bookings.
Air India has extended its partnership with Amadeus to include domestic content for travel sellers at points of sale in India. In addition, Air India’s NDC content will be available to travel sellers through the Amadeus Travel Platform in 2024.
In Air IT Solutions, our revenue grew by 22.0% during the first nine months of the year, supported by a 29.7% growth in passengers boarded relative to the same period of 2022. Asia-Pacific was our best performing region, delivering 68.2% growth, and Western Europe was our largest region, representing 33.6% of Amadeus’ passengers boarded.
In October, we introduced Amadeus Nevio, which will bring a new generation of better, smarter and more open airline technology and solutions, offering advanced retailing capabilities and allowing airlines to further focus on the traveler experience. Saudia, the flag carrier of Saudi Arabia, has shared its plan to become even more traveler-centric as it launches Amadeus Nevio. Powering business solutions, Amadeus Nevio will help Saudia grow revenue, differentiate itself and better serve its guests. Amadeus and Saudia will work together on Saudia’s transition from the Amadeus Altéa Passenger Service System based on today’s existing industry standards to Amadeus Nevio, which goes beyond new offer and order principles.
Regarding Hospitality & Other Solutions, revenue was 17.8% higher in this period when compared to the first nine months of 2022. Both Hospitality, which generates the majority of the revenues in this segment, and Payments, delivered strong growth when compared to the same period of 2022, supported by new customer implementations and volume expansion. During this quarter, we announced several new transactions with Langham Hospitality Group, Hilton and Pan Pacific Hotels Group, among others.
Latest corporate news
Amadeus announces a new share repurchase program with a maximum investment of €625,297,000 not exceeding 8,807,000 shares (1.955% of Amadeus share capital). The purpose of the program is to address the conversion at maturity, or the early redemption, of our outstanding convertible bonds.
For more information about our operating and financial performance during the first nine months of 2023, please visit our Investor Relations website.
Summary of operating and financial information
Summary of KPI |
Jul-Sep 2023 | Jul-Sep 2022 |
Change |
Jan-Sep 20231 |
Jan-Sep 20221 |
Change |
Operating KPI (millions) |
||||||
Bookings (m) |
112.5 |
99.8 |
12.7% |
348.0 | 300.7 | 15.7% |
Passengers boarded (m) |
549.2 |
459.1 |
19.6% |
1,452.8 | 1,119.8 | 29.7% |
| Financial results (€millions) | ||||||
Air Distribution revenue |
667.1 |
573.1 |
16.4% |
2,027.6 | 1,610.9 | 25.9% |
Air IT Solutions revenue |
506.1 |
439.7 |
15.1% |
1,408.5 | 1,154.5 | 22.0% |
| Hospitality & Other Solutions revenue | 221.2 | 204.8 | 8.0% | 650.4 | 552.0 | 17.8% |
Revenue |
1,394.4 |
1,217.6 |
14.5% |
4,086.5 | 3,317.4 | 23.2% |
EBITDA |
547.7 |
450.4 |
21.6% |
1,593.8 | 1,190.9 | 33.8% |
| EBITDA margin (%) | 39.3% | 37.0% | 2.3 p.p. | 39.0% | 35.9% | 3.1 p.p. |
Profit for the period |
301.2 |
202.7 |
48.6% |
841.9 | 482.2 | 74.6% |
Adjusted profit2 |
315.5 |
219.6 |
43.6% |
875.8 | 522.5 | 67.6% |
Adjusted EPS (euros)3 |
0.71 |
0.49 |
44.6% |
1.95 | 1.16 | 67.9% |
| Cash flow (€millions) | ||||||
Capital expenditure |
152.9 |
145.5 |
5.1% |
462.6 | 402.4 | 15.0% |
Free cash flow4 |
458.1 |
320.5 |
42.9% |
940.5 | 627.9 | 49.8% |
| Indebtedness5 (€millions) - At month end |
|
Sep23 | Dec22 | Change | ||
| Net financial debt | 2,121.7 | 2,284.5 | (162.8) | |||
| Net financial debt/LTM EBITDA | 1.1x | 1.4x |
1EBITDA, Profit, Adjusted profit and Adjusted EPS have been adjusted to exclude: (i) in Q2’23, impacts from movements in the tax provision, which resulted in an increase in both Profit and Adjusted profit of €22.6 million, with no impact on EBITDA, and (ii) in Q2’22, a non-refundable government grant, which resulted in an increase in EBITDA of €51.2 million, and in Profit and Adjusted profit of €38.9 million.
2Excluding 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 income (expense).
3EPS corresponding to the Adjusted profit attributable to the parent company.
4Defined as EBITDA, minus capital expenditure, plus changes in our operating working capital, minus taxes paid, minus interests and financial fees paid. Free Cash Flow grew by 48.6% in the first nine months of 2023, vs. the same period of 2022 (and by 41.4% in Q3’23, vs. Q3’22), if we exclude the following non-recurring effects: (i) in Q2’23, a collection of €42.8 million from the Indian tax authorities, (ii) in Q2’22, a non-refundable government grant of €51.2 million, and (iii) in the first nine months of 2022, €27.4 million cost saving program implementation costs paid (€3.4 million in Q3’22).
5Based on our credit facility agreements’ definition.
- Results press release - Q3 2023 The file will download automatically
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Q3 2023 Financial Results video
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