Following the tragic events of 11th September, and the associated impact on international travel, Madrid-based Amadeus can now provide some initial comments on its results for the 3rd quarter ended 30th September 2001.
Bookings for the 3rd quarter until 10th September 2001 met market expectations, achieving 4% growth over the previous period in 2000. This rate of growth leads the industry and, together with ongoing gains in market share, demonstrates the underlying strength of Amadeus` global spread of business. In the period from 11th to 30th September 2001, global Amadeus bookings were down 27.5% per cent on the equivalent period in 2000. Further details of the impact are given in the table below.
Amadeus expects to report around 90 million total (including non-air) bookings for the 3rd quarter 2001, representing a decline of 3.6% over the previous year. For the nine months to 30th September 2001, total booking growth is expected to be around 1.2% above the previous year.
Revenue for the 3rd quarter 2001 is expected to be some EUR 423 million (USD 386 million), or 9% higher than the same period in 2000. For the nine months to 30th September 2001, revenue is expected to be EUR 1,374 million (USD 1,253 m), a 17% increase over the same period in 2000.
EBITDA for the 3rd quarter 2001 is expected to be in the range of EUR 85 to 90 million (USD 77 to 82 m), which includes a provision for bad debts of EUR 11 million (USD 10 m) for the 3rd quarter. Net earnings (excluding special items) are expected to be in the range of EUR 15 to 18 million (USD 14 to 16 m) for the 3rd quarter 2001.
Commenting on the news, José Antonio Tazón, President and CEO of Amadeus, said: “The tragic events of 11th September 2001 have touched the hearts of everyone at Amadeus. The resulting political and economic uncertainty means it is not yet possible to predict the impact these events will have on our 4th quarter performance and business for the year. We do not, however, expect to meet our original growth targets for 2001. At the time of our 3rd quarter results announcement, in early November, Amadeus will be in a better position to comment on the outlook for the 4th quarter. At Amadeus we are taking appropriate action to conserve cash and minimise costs, in order to adjust to the short-term uncertainty facing the travel industry, to be sure we are in the strongest possible position to benefit from the upturn in travel, when it comes. We remain optimistic about the long-term prospects for our industry and the ability of Amadeus to continue to deliver market leading service and results.”