José Benito de Vega | Amadeus has seen a revaluation in 2019 of 12.2% including dividends, compared to 5% for the Ibex 35 with dividends. This relatively strong performance partially compensates for the poor close to 2018, when it fell 24% in the last quarter compared to -8% for the index.
As a consequence, the relative evolution of the shares over the last 12 months has been a negative -9.8% compared to the Ibex with dividends (-15.7% compared to -5.9% for the index), the fruit of the uncertainties in the distribution business because of the slowdown in air traffic and the effects of disintermediation.
Description of the company
Amadeus is the leading supplier of technological solutions for the travel sector, putting providers of travel in touch with distributors and travellers. The company counts on two different business lines:
1. Distribution (61% of 2018 income): it operates a Global Distribution System (GDS). In this activity, acts as an international network for the distribution of travel products and services, offering real time search functions, pricing, reservation and issue of tickets. The company is the global leader in the GDS business with a market share of 45%. It is a mature business, with limited growth but generates attractive cash flows.
2. IT solutions (39% of 2018 income): Offers travel suppliers, especially airlines, a broad range of technological solutions which automate certain strategic business processes: sales and reservations, control of flight departures etc Amadeus is also the leader in this business, where it has a market share of 52% following the acquisition of Navitare.
