Propose to the board a gross dividend of 1,175 euros per share, charged to 2018, 3.5% more
The Amadeus group achieved an adjusted profit of 1,122.8 million euros in 2018, which is 1% more than the previous year, reported on Thursday the technology provider of tourism services to the National Securities Market Commission (CNMV).
This growth was contributed by the increase in revenues, which rose by 6.6% in 2017, to 4,943.9 million euros, and the gross operating result (Ebitda), which increased by 9.7%, to register 2,040.6 million euros. The adjusted profit was 1,122.8 million euros, 1% more.
The group highlights that these results were based on both the positive evolution of the distribution business and technological solutions, as well as the consolidation of TravelClick, a company that the company acquired last year.
Specifically, distribution revenues amounted to 3,004.3 million euros in 2018, which represents an improvement of 2.8%, negatively affected by the effect of the exchange rate, while the turnover of its solutions unit technology amounted to 1,939.7 million euros, which represents an improvement of 13.1%.
“In 2018, Amadeus maintained its positive growth trajectory, both in terms of revenue and profitability, and our diversification efforts, including the expansion of our hotel offerings.
through the acquisition of TravelClick, they also boosted our growth, “said the CEO of the technology company, Luis Maroto, in view of the annual results achieved.
The executive stressed that during the year 2018 the company signed 50 new contracts or renewals of distribution agreements. “We are confident of having a solid financial evolution in 2019. We will continue to invest in our technology to support our long-term success,” he said.
During 2018, total air bookings through travel agencies grew by 2.1%, to 580.2 million, weighed down by the slowdown in the sector and the poor evolution of the market share of Amadeus in the segment of the agencies of travel ‘online’ in Western Europe.
WEAK FEE IN WESTERN EUROPE
“The weakness of our market share in Western Europe (-7%) influenced our global competitive position, which in 2018 registered a slight decrease of 0.2% points, to stand at 43.7%. (Except in this area, improved by 1.1 percentage points.) By markets, Asia Pacific (+ 11.7%) and North America (+ 9.3%) were the regions with the highest growth in 2018, growing at single digits.
On the other hand, on board passengers rose 11.9% to 1,853.9 million. Non-air reserves were 63 million euros, 1.5% less than a year ago. Altogether, the number of total reserves was 643.7 million euros, 1.7% more.
During 2018, Amadeus invested in R & D a figure equivalent to 17.8% of its revenues, which was used to support its growth in the medium and long term through the evolution of new products, the expansion of its portfolio, implementations of new clients, the optimization of the performance of their platforms and the gradual transition to cutting-edge technologies and architecture in the cloud.
During the fourth quarter of the year, the group continued to deploy its new Guest Reservation System tool with InterContinental Hotels Group, which it successfully concluded, for its implementation in the more than 5,600 hotel establishments of the British chain, which already use its reservation system.
ELEVATES 3.5% ANNUAL DIVIDEND
At December 31, Amadeus’ consolidated net debt stood at 3,074 million euros, 55% more than at the end of 2017. During the year, cash flow increased by 7.8%, up to the 989 million euros. In this way, it placed the debt / Ebitda ratio at 1.47 times registered in 2017.
In 2018, cash payments to shareholders amounted to 1,003.2 million euros, comprising a payment of 494.3 million euros relating to the ordinary dividend of 1,135 euros gross per share charged to the previous year, the repurchase of shares for 500 million euros and other acquisitions of securities to cover compensation plans based on shares.
In June, Amadeus will submit to its shareholders’ meeting the distribution of a gross dividend of 1,175 euros per share, charged to the 2018 accounts, which represents an increase of 3.5% compared to the amount paid in 2017 and 50% of the profit adjusted for the effects related to the purchase of TravelClick.