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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