Travel recovery accelerated – Amadeus shows strong financial performance
Second quarter highlights (three months ended June 30, 2022)
- Air Distribution bookings amounted to 109.2 million, representing 75.2% of Q2 2019 bookings, up 18.8 p.p. from prior quarter.
- Air IT Solutions passengers boarded amounted to 396.7 million, 77.7% of Q2 2019 passengers boarded, improving by 17.1 p.p. from prior quarter.
- Revenue was €1,182.6 million, representing 83.2% of Q2 2019 revenue, advancing 18.0 p.p. from prior quarter.
- EBITDA1amounted to €495.8 million, 84.2% of Q2 2019 levels, up 34.5 p.p. from prior quarter.
- Adjusted profit1,2 amounted to €246.9 million, 74.8% of Q2 2019 levels, up 46.3 p.p. from prior quarter.
- Free Cash Flow1,3 amounted to €182.0 million, or €188.1 million excluding cost saving program implementation costs paid4.
- Net financial debt5 was €2,723.3 million as of June 30, 2022 (2.2 times last-12-month EBITDA5).
In the second quarter of 2022, we saw an acceleration in the travel industry’s pace of recovery which drove our performance and brought us closer to pre-pandemic levels. This strong performance in the quarter included a non-refundable government grant amounting to €51.2 million (€38.9 million after tax) related to COVID-19 pandemic costs. Excluding this positive effect, Amadeus’ EBITDA and adjusted profit in the second quarter reached 75.5% and 63.0% of 2019 levels, representing significant progress over the previous quarter’s performance.
During the first half of 2022, Group revenue reached €2,099.7 million, which represents 74.3% of the revenue obtained in the same period of 2019. EBITDA6 in the first half of the year, amounted to €791.6 million, 66.8% of that of the first half of 2019, and adjusted profit6 was €341.8 million, 51.5% of that in the first half of 2019.
Luis Maroto, President & CEO of Amadeus, commented:
“We saw continued progress during the second quarter. Our travel agency bookings performance accelerated, supported by industry recovery and market share gains , driving our growth across regions, particularly in North America. Number of passengers boarded strengthened across regions as well, also led by North America, which grew positively compared to 2019. We were pleased to announce Air India as a new PSS customer and in Hospitality, we came closer to pre-pandemic levels, supported by volume growth and new customer implementations.
“The solid industry recovery in the second quarter has translated into stronger financial performance at Amadeus. We remain very focused on our investment programs and the growth opportunities ahead, and confident about the future of the travel industry”.
[1] In the second quarter of 2022, EBITDA, Adjusted profit and Free Cash Flow were positively impacted by a non-refundable grant from the German government, amounting to €51.2 million pre-tax (€38.9 million post tax), received in the second quarter of 2022. Excluding this grant, in the second quarter of 2022, EBITDA and Adjusted profit represented 75.5% and 63.0% of Q2 2019 levels, respectively, and Free Cash Flow amounted to €130.8 million, or €136.9 million also excluding cost saving program implementation costs paid4.
[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 €24.0 million was paid in the first half of 2022 (€6.1 million in the second quarter).
[5] Based on our credit facility agreements’ definition.
[6] First half of 2022 results and Free Cash Flow were positively impacted by a non-refundable grant from the German government, amounting to €51.2 million pre-tax (€38.9 million post tax), received in the second quarter of 2022. Excluding this grant, in the first half of 2022, vs. H1 2019, EBITDA was -37.5%, Adjusted profit was -54.4%.
Business evolution for the quarter
In the second quarter of 2022, we saw an acceleration of recovery in the travel industry which supported our operating and financial performance. Amadeus’ revenue, EBITDA1 and adjusted profit1,2 reached 83.2%, 84.2% and 74.8% of 2019 second quarter levels, respectively, advancing steadily from prior quarter’s performance.
In Air Distribution, our Q2 bookings were 75.2% of those in the second quarter of 2019 (which represents an 18.8 p.p. improvement from Q1 2022), supported by continued industry recovery and market share gains7. All regions reported performance improvements relative to the first quarter of 2022 (vs. 2019), most notably Asia-Pacific and Western Europe. North America continued to be our best performing region, with bookings growing by 11.3% vs. 2019. As for the first half of 2022, Amadeus’ bookings reached 65.3% of first half of 2019 bookings, with North America the best performing region with growth of 3.8% vs. 2019. It was also our largest region by bookings, accounting for 33.5%.
In Air IT Solutions, during Q2 2022, Amadeus passengers boarded (PB) reached 77.7% of those in the second quarter of 2019 (an important 17.1 p.p. performance improvement from Q1 2022). All regions reported large improvements in performance versus the previous quarter, most notably Western Europe and Asia Pacific. North America continued to report positive PB growth and is 11.7% above 2019 levels supported by positive organic PB growth, and the PB contribution from airline migrations, particularly Air Canada, migrated at the end of 2019. For the first half, passengers boarded reached 69.8% of the same period of 2019. Our best performing region in the period was North America, which reported 6.7% PB volume growth compared to H1 2019.
Finally, Hospitality & Other Solutions maintained its steady progress during the second quarter. Revenue in this segment reached 94.4% of the same period of 2019, a 9.6 p.p. enhancement over the previous quarter’s revenue performance. Within the Hospitality & Other Solutions segment, Hospitality, which generates the majority of the revenues, continued to outperform our air business supported by strong demand, faster recovery in North America and a greater weight of non-transactional based revenues.
For more information about our operating and financial performance during the second quarter and the first half of the year, please visit our Investor Relations website.
Summary of operating and financial information
Summary of KPI (€million) |
Jan-Jun 20221 |
Jan-Jun 20212 |
Change vs. H1'21 |
Change vs. Q1'19 |
Operating KPI |
|
|||
TA air bookings (m) |
200.9 |
80.8 |
148.5% |
(34.7%) |
Passengers boarded (m) |
660.7 |
292.1 |
126.2% |
(30.2%) |
| Financial results | ||||
Air Distribution revenue |
1,037.8 |
417.3 |
148.7% |
(32.9%) |
Air IT Solutions revenue |
714.8 |
469.2 |
52.3% |
(19.9%) |
| Hospitality & Other Solutions revenue | 347.1 | 234.5 | 48.0% | (10.2%) |
Revenue |
2,099.7 |
1,121.0 |
87.3% |
(25.7%) |
EBITDA |
791.6 |
199.0 |
297.7% |
(33.2%) |
| EBITDA margin (%) | 37.7% | 17.8% | 19.9 p.p. | (4.2 p.p.) |
Profit (loss) for the period |
318.5 |
(130.3) |
n.m. |
(46.4%) |
Adjusted profit (loss)3 |
341.8 |
(106.7) |
n.m. |
(48.5%) |
Adjusted EPS (euros)4 |
0.76 |
(0.24) |
n.m. |
(50.7%) |
| Cash flow | ||||
Capital expenditure |
(256.9) |
(214.2) |
19.9% |
(30.6%) |
Free cash flow5 |
307.4 |
(121.8) |
n.m. |
(30.5%) |
[1] First half of 2022 results and Free Cash Flow were positively impacted by a non-refundable grant from the German government, amounting to €51.2 million pre-tax (€38.9 million post tax), received in the second quarter of 2022. Excluding this grant, in the first half of 2022, vs. H1 2019, EBITDA was -37.5%, Profit was -53.0%, Adjusted profit was -54.4% and Adjusted EPS was -56.3%, and Free Cash Flow amounted to €256.2 million, or €280.2 million excluding also cost saving program implementation costs paid.
[2] 2021 Income statement figures have been adjusted to exclude costs, amounting to €19.3 million (€13.9 million post tax), incurred in the first half of 2021, related to the implementation of the cost saving program announced in 2020.
[3] 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.
[4] EPS corresponding to the Adjusted profit attributable to the parent company.
[5] Defined as EBITDA, minus capex, plus changes in our operating working capital, minus taxes paid, minus interests and financial fees paid.
- Results press release - H1 2022 The file will download automatically
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