Amadeus increases its profit by 9.5% in the first quarter

Propose a total gross dividend of 1,175 euros per share charged to 2018, 3.5% more

The Amadeus group achieved an adjusted profit of 334.7 million euros in the first quarter of the year, which is 9.5% more than in the same period of 2018, reported on Wednesday the tourist services provider to the National Commission of the Stock Market (CNMV), after making adjustments for accounting effects derived from the purchase of TravelClick and the exchange rate and other items.

In the first quarter, excluding these adjustments, the profit amounted to 311.2 million euros, which represents an increase of 8.2% compared to the same period of the previous year.

To this result, the rise in ordinary income contributed by 14.6%, to 1,409.9 million euros, and the increase in the gross operating result (Ebitda) by 11.3%, to reach close to 600 million euros. of euros. This result excludes costs related to the acquisition of TravelClick, amounting to 1.2 million before taxes, among other effects.

Within the revenues, and by business areas, technological solutions increased by 31.2% between January and March, to 570 million euros, while Amadeus distribution revenues reached 600 million euros, with a growth of 5.6% compared to the first quarter of 2018.

The CEO of Amadeus, Luis Maroto, stressed that he expects to maintain this positive dynamism «and weather the current market conditions» thanks to the resilience of the company’s business and the «solidity» of its offer.


The total volume of air bookings made through travel agencies increased by 1.6% in the first quarter, to 162.6 million. Likewise, the number of passengers on board increased by 4.6% in this period and stood at 436.1 million. In total, its reserves totaled 179.8 million euros, 1.5% more.

Amadeus explains that the global slowdown in the growth of air bookings through travel agencies continued during the first quarter and remained flat at the global level, compared to the 1.1% increase in the last quarter of 2018.

Excluding North America and Latin America, the rest of the regions registered declines in the sector due to geopolitical and macroeconomic factors, where the Asia-Pacific region led the most advanced slowdown, largely driven by the weak evolution in India. At the end of the first quarter, the company increased its market share in all regions except Asia-Pacific.

In Western Europe, reserves fell by 2.1% with respect to the first quarter of 2018. On the other hand, Asia-Pacific (-12.9%) recorded the largest fall, compared to the advance in the center, east and south of Europe (+ 3.8%) and Latin America (+ 4.3%), while in North America they grew by 14.6%.

63.9% of passengers on board were generated outside Europe, compared to 60.3% registered at the end of 2018. In the first quarter, a total of 214 airlines had contracted one of the two passenger management platforms of Amadeus (Altéa or New Skies) and 2015 were already migrated.


As for the so-called new businesses, the company strengthened its offer of solutions for airports with the acquisition of ICM Airport Technics, based in Sydney (Australia) and a client portfolio of 25 airports, an operation that expects to close during the second quarter of the year. year.

With regard to hotels, it signed an agreement with Restel, the Spanish hotel reservation platform, through which it becomes a distributor for a portfolio of 200,000 establishments. With this agreement, it already offers more than 4 million hotel contracting options.

By train, in March signed a new distribution contract with China Ctrip so that customers of the Asian can book and pay Renfe tickets and introduced a new booking engine with Deutsche Bahn that will allow passengers to book train journeys by all of Europe in a single channel.

As of March 31, net financial debt amounts to 3,038.2 million euros, 35.8% less, and its debt / Ebitda ratio stands at 1.43 times (vs. 1.47 times). Its free cash flow is 281.5 million euros, 7.3% less.


The board of directors of Amadeus will submit to the approval of the general meeting next June the distribution of a gross total dividend of 1,175 euros per share, a figure 3.5% higher than that distributed in 2017 and 50% of the profit adjusted by excluding the effects related to the purchase of TravelClick. Last January, Amadeus paid a dividend of 0.51 euros gross per share.

In this way, it will distribute a total of 515.6 million euros among its shareholders via a dividend charged to the year 2018.

For 2018, a cash generation of close to 1,000 million euros is foreseen, accompanied by a revenue growth rate of between 5% and 9%. Regarding Ebitda, the company expects to grow between 8% and 9%, he said at a conference on the occasion of the presentation of its results.