Diversification pays dividends for Amadeus as profits rise

Diversification pays dividends for Amadeus as profits rise

Amadeus IT Group has reported adjusted profit of €911 million for the full year of 2016, which represents growth of 21.2 per cent compared to 2015.

This growth was supported by an increase of 14.3 per cent in revenue, to €4,473 million, and 16 per cent in EBITDA to €1,700 million.

Luis Maroto, president, Amadeus, commented: “The strength of our core businesses, our diversification strategy and the positive contribution of recent acquisitions such as Navitaire drove Amadeus’ successful financial performance in 2016.

“Our distribution business maintained its strong performance and improved its competitive position by 0.8 percentage points to 43 per cent.

“During 2016, we signed or renewed content agreements with 46 carriers, including key industry players such as easyJet, Emirates and LATAM Airlines Group.

“Revenue growth was also supported by our customers’ continued interest in our solutions. KAYAK, the world’s leading travel search engine, implemented Amadeus Master Pricer with Instant Search technology.”

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Maroto added: “Growth in our IT Solutions area was supported by the consolidation of Navitaire as well as the migration of large carriers in Asia-Pacific.

“Among the airlines that chose to use Amadeus Altéa Passenger Service Systems and New Skies last year were China Airlines, Swiss International Air Lines, Brussels Airlines and Viva Group.

“In total, at the end of the year, more than 175 airlines had contracts with one of the two Amadeus Passenger Service Systems.

“In 2016 we have also crossed important milestones in business units such as Airport IT, for example the long-term partnership with Copenhagen Airports.” 

Consolidated net financial debt stood at €1,957.5 million as of December 31st, 2016, representing 1.14x ratio of covenant net debt to the last twelve months covenant EBITDA.

In December 2016 the board of directors proposed a 50 per cent dividend pay-out ratio for the year of 2016 (the maximum percentage within the approved range).

Accordingly, the board will submit a final gross dividend of €0.94 per share from the 2016 reported profit to the general shareholders meeting for approval in June 2017, representing an increase of 21.3 per cent compared to 2015.

An interim gross dividend of €0.40 per share was paid in February 2017.