Spain’s Amadeus records 5.2%-rise in profits

Amadeus IT Holding, S.A., parent company of the Spanish-based Amadeus Group announced year-on-year financial and operating results for the first half of 2013 (six months ended June 30, 2013). Adjusted profit for the first half increased 5.2% to reach €349.6 million. The company said this was backed by growth in revenue of 5.7% to €1,595.1 million and a 6.3% rise in earnings before taxes, depreciation amortisation (ebitda) to €645.9 million.

Consolidated net financial debt was further reduced to €1,319.8 million as of June 30, 2013 (based on covenants’ definition in our senior credit agreement). This was a reduction of €175.4 million vs. December 31, 2012 and represented 1.15x the last twelve months’ covenant ebitda.

Year-on-year growth continued in both the Distribution and IT Solutions businesses. Revenue in Distribution rose by 5.0%, to €1,215.6 million, with the number of air travel agency bookings increasing by 5.8%, to 233.1 million–backed by a 1.7 percentage points expansion of Amadeus’ market share of travel agency air bookings to reach 40.0%. Revenue from IT Solutions grew by 8.0%, to €379.5 million, supported by further migrations resulting in 9.7% more Passengers Boarded (PB), totalling 284.1 million.

Based upon existing contracts, Amadeus projects over 800 million Passengers Boarded for 2015, which would be an improvement of 42% vs. the number processed on the platform during 2012.

Year-on-year results from both the first and second quarters supported the overall financial performance for the first half. In the second quarter, adjusted profit increased by 5.4%, to €173.4 million, total revenues rose 7.4% to €800.1 million, and ebitda grew 7.4% to €322.5 million.

Amadeus received upgrades from two credit ratings agencies during the second quarter. Moody’s Investors Service rose to ‘Baa2’ (up from ‘Baa3’) the long-term issuer and senior unsecured ratings. Standard & Poor’s increased its long- and short-term rating to ‘BBB/A-2’ (up from ‘BBB-/A-3’). Both agencies maintained a stable outlook for Amadeus.

“Today’s results underline our consistent success in anticipating and developing cost-effective technology that benefits our customers,” said Luis Maroto, president & CEO of Amadeus. “Despite the sector’s considerable technological complexity and economic challenges, our innovation helps customers adapt and compete […] we remain committed to R&D to drive growth. Distribution, where we are pioneering merchandising and next-generation search, still represents real opportunity,” Maroto added.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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