Amadeus increases its profit by 9.9% in the first half

The Amadeus group achieved an adjusted profit of 666.7 million euros in the first half, which is 9.9% more compared to the same period last year, the tourism service provider informed the National Market Commission on Wednesday of Securities (CNMV).

The increase in revenues contributed to this growth, which rose 14.4% in the first half, to 2,833.6 million euros, and the gross net operating result (Ebitda) increased by 10.7%, to register 1,193.4 million euros.

During the first semester, total air reservations through travel agencies grew 0.9%, to 307.8 million, while transported passengers rose 6.6%, to 947 million.

AGENCY RESERVATIONS INCREASE ALMOST 1%

In the distribution business, revenue increased to 1,637 million euros, 4.7% more than in the same period of 2018. These revenues grew thanks to the increase in reserve volumes, the improvement of the average income per reservation and Positive exchange rate effects.

Air reservations through Amadeus user travel agencies increased 0.1% in the second quarter of 2019, which resulted in a 0.9% growth in the first half of the year.

Amadeus reserves were higher than the growth of the sector, thanks to the continuous improvement of the market share in the different regions in the second quarter, except in Asia and the Pacific. In the first semester Amadeus reserves grew in all regions (except Asia and the Pacific and the Middle East and Africa) and, above all, in North America, where the reserves experienced a double-digit increase.

In Western Europe, Amadeus reserves continued their positive growth trend thanks to the increase in market shares. On the other hand, Amadeus reserves in Asia and the Pacific and the Middle East and Africa, weighed down by the decline in reserves in the sector, registered a contraction. Amadeus’ reserves in Asia and the Pacific were also affected by the cancellation of the distribution contract they had with an Indian airline.

Revenue from the distribution business grew 3.8% in the second quarter of 2019, which places the year-on-year growth of the first half at 4.7%. These first half results benefited from fluctuations in exchange rates.

During the second quarter of the year, new contracts or renewals of five content agreements with airlines were signed, 12 in total in the first six months of the year. Users of the Amadeus system can access the content of approximately 115 hybrid and low-cost airlines worldwide.

TECHNOLOGICAL INCOME GROWED 31%

In the first six months of 2019, Amadeus Technology Solutions revenues increased 31% to 1,196 million euros. This evolution was propitiated by the growth in the Technology Solutions business for airlines, the sustained growth of our new businesses, which drove a double-digit increase in revenues, the consolidation of TravelClick and positive exchange rate effects.

In the area of ​​Technological Solutions for airlines, embarked passengers increased 6.6% during the first half of the year. This growth was driven by customer implementations (including S7 Airlines, Maldivian Airlines, Cyprus Airways and Aeromar in 2018, as well as Philippine Airlines and Flybe in 2019) and an organic growth of 6.6%.

The growth of the volume of passengers embarked in the first half of 2019 was negatively affected by the departure of LATAM Airlines Brasil from the platform in the second quarter of 2018 and the cessation or suspension of activity of several client airlines in 2019, such as Germania , bmi Regional, Avianca Brasil and Avianca Argentina. INCREASE OF 3.5% OF THE DIVIDEND.

INCREASE OF 3.5% OF THE DIVIDEND

At the Ordinary General Meeting held on June 19, the shareholders approved a total gross dividend of 1,175 euros per share from the year 2018, representing 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).

At the Ordinary General Meeting held on June 19, the shareholders approved a total gross dividend of 1,175 euros per share from the year 2018, representing 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, a dividend on account of 0.51 euros (gross) per share was paid, and the complementary dividend of 0.665 euros (gross) per share was paid on July 12.