Revenue increased by 15%, reaching 4,236.6 million
The Amadeus group achieved an adjusted benefit of 992.5 million euros in the first nine months of the year, which is 11.9% more than the same period last year, the tourism service provider informed the Commission on Thursday National Stock Market (CNMV).
According to the company, the results of its distribution businesses and technological solutions, the consolidation of the Travelclick acquisition (October 2018) and positive exchange rates contributed to this growth.
Amadeus revenues rose 15% between January and September, to 4,236.6 million euros, and its gross operating result (Ebitda) increased 11.1%, to 1,763.8 million euros.
During the first nine months of this year, total air reservations through travel agencies grew 0.5%, to 447 million, while embarked passengers rose 7.1%, to 1,496.6 million.
“Amadeus maintained its growth trend in the first nine months of the year and both revenues, such as EBITDA and adjusted profit registered double-digit increases. These positive financial results are supported by the favorable evolution of our diversification strategy, especially in the hotel sector, as well as the strength of our strategic segments, “explained Amadeus CEO Luis Maroto.
5.1% DISTRIBUTION INCOME GROWS
In the distribution business, revenue increased to 2,394.8 million euros, 5.1% more than in the same period of 2018. The 0.9% increase in reserves, as well as the increase in revenue reserve media, and the double-digit growth obtained by the payment business included in the distribution segment, contributed to the revenue growth, which also benefited from the positive evolution of exchange rates.
The airline reservation industry through travel agencies decreased 0.8% (if India is excluded, it maintained a flat trend). North America and the regions of central, eastern and southern Europe were the fastest growing. On the other hand, Western Europe, Asia-Pacific and the Middle East and Africa registered a contraction due to several factors, such as macroeconomic events and geopolitical events. Latin America showed a slight growth during the period.
Amadeus air reservations through travel agencies grew 0.5% thanks to the constant growth of its market share in all regions except Asia-Pacific (excluding India, Amadeus reserves grew by 3.2 % and the global competitive position3 improved 1.3 percentage points).
During the third quarter, Amadeus signed new contracts or renewals of seven distribution agreements with airlines – including the airline under Thai Lion Air cost – 19 in total in the first nine months of the year. Users of the Amadeus system can access the content of more than 110 hybrid and low-cost airlines worldwide.
TECHNOLOGICAL REVENUES GROWED 31.1%.
Technological revenues grew 31.1% between January and September, to 1,841.8 million euros. This evolution was due, in the first place, to the growth of the Technological Solutions business for single-digit airlines; second, the continued growth of new businesses, whose revenues showed double-digit growth; thirdly, to the consolidation of TravelClick and finally to positive effects on exchange rates.
Amadeus also warns that its technology solutions business for airlines was affected by the “unusually high number of airline bankruptcies that occurred during the period.”
The embarked passengers grew by 7.1% at the close of the first nine months of the year, driven by 6.5% organic growth and the positive impact of customer implementations (among them, S7 Airlines, MaldivianAirlines, Cyprus Airways and Aeromar in 2018, and Philippine Airlines, Bangkok Airways and Flybe in 2019).
INCREASE OF 3.5% OF THE DIVIDEND
In June 2019, Amadeus shareholders approved a final gross dividend of 1,175 euros per share during the Ordinary General Meeting of Shareholders. This represents an increase of 3.5% compared to the 2017 dividend and 50% of the profit, adjusted to exclude the effects related to the acquisition of TravelClick.
On January 17, 2019, a dividend of 0.51 euros (gross) per share was paid in full, and the complementary dividend of 0.665 euros (gross) per share was paid on July 12, 2019.
The net financial debt according to the terms of the financing agreement amounted to 2,940.1 million euros as of September 30, 2019.