Amadeus 2Q Results Beat Expectations

Amadeus Global Travel Distribution (AMS: Madrid), the leading Global Distribution System (GDS) and travel industry technology provider, today reported its second quarter 2002 results for the period ended 30 June 2002.


Total revenue for the second quarter ended 30 June 2002 was EUR 474.6m, an increase of 1.1 per cent on the same period in 2001.


Overall bookings for the second quarter were 103.3 million, an increase of 0.5 per cent on the same period in 2001.  Outside Europe and North America, which have been most impacted by the slowdown in travel which began last year, Amadeus increased bookings by 10.4 per cent. 


Operating expenses for the second quarter 2002 were EUR 389.7m, 1.6 per cent higher than the same period in 2001.


Operating income for the second quarter was EUR 84.8m, 0.9 per cent down on the quarter ended 30 June 2001.  EBITDA for the second quarter 2002 was EUR 126.9m, 2.6 per cent ahead of the equivalent period in 2001.

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Net income for the second quarter ended 30 June 2002, excluding special items, was EUR 45.7m, an increase of 9.2 per cent on the same period in 2001.

Commenting on the results, Jose Antonio Tazon
, President and CEO of Amadeus, said:
“Against a challenging industry background, Amadeus has been able to increase net income, excluding special items, by 9.2 per cent in the second quarter through bookings growth, careful cost control and continued diversification of revenue.
“Amadeus travel bookings for the quarter grew by 0.5 per cent, compared to the same period last year, against an estimated GDS sector decline of 6.1** per cent.  Amadeus reservations in Asia Pacific and Eastern Europe grew by 19.7 per cent and 9.5 per cent respectively.
“In corporate and online travel (e-Commerce), our second quarter revenues increased by 127.1 per cent to EUR 21.8 million, with online bookings for the quarter up 137.5 per cent on the same period in 2001.

“Amadeus is maintaining its target of 1.2 per cent bookings growth for 2002.  Target EBITDA for the year is unchanged at EUR 458m.  We remain confident of continuing to outperform the industry in bookings growth for the full year.”

Operating highlights for the second quarter ended 30 June 2002 include:

- Reaching a break-through agreement with TravelSky Technology Ltd., whereby Amadeus becomes the first GDS to enable 7,000 Chinese travel agencies to book hotels, car rental and related products worldwide.

- The introduction of Dynamic Access, with launch partner Marriott International, to transform hotel distribution by offering travel agents direct access to the reservation systems of participating hotels, at all stages of the booking process.

- In June, with global launch partner Avis, Amadeus announced its enhanced Complete Access Plus solution which allows travel agents to search for and fully price cars from the car rental company’s own database.  Apart from enhanced data accuracy, the launch brings greater pricing transparency for both agents and travellers.

- The industry leading Amadeus Cruise, which provides travel agents with “point and click” technology to serve their cruise customers quickly and efficiently, was further enhanced when Norwegian Cruise Line and Orient Lines began distribution through it.  This brought to seven the number of cruise lines available for booking in Amadeus Cruise.

- LanChile highlighted the progress it has made in electronic ticketing thanks to Amadeus. In general, airlines can save a minimum of 80 per cent on their electronic ticketing maintenance costs with Amadeus.

- In June, Thai Airways International (Thai) renewed its partnership agreement with the company, that includes using Amadeus as its internal reservation system.

- JAT Yugoslav Airlines joined a community of over 110 airlines that use the Amadeus sales system to make reservations and issue tickets in all its offices worldwide.  This followed the successful migration of its sales and reservation system to Amadeus in April.  In the same month French carrier Air Littoral migrated to the Amadeus sales system, and was followed in June by the Cuban airline Cubana de Aviacion.

- In a move that further extends the company’s global reach, Amadeus Gulf was inaugurated as a new National Marketing Company to serve the United Arab Emirates. This adds to the company’s existing regional presence in Egypt, Qatar and Saudi Arabia.

- In May, Amadeus announced it had teamed with Groupe Galeries Lafayette to launch a new online travel portal in France later this year.  This portal will enable French customers to purchase a wide variety of international and domestic travel products.

- During the quarter e-Travel, the online travel solutions unit of Amadeus, strengthened its offering with the debut of Planitgo Version 7. 
Amadeus is maintaining its forecast of 1.2 per cent growth in bookings for the year to 31 December 2002, despite the challenging market conditions which are expected to remain for the rest of the year.  The company’s earlier revenue target of EUR 1,842m for 2002 has been revised downwards to EUR 1,822m. This reflects the recent weakness of the US dollar which may continue for the remainder of the year.  Target EBITDA remains EUR 458m for the current year.
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