Growing market share drives profit increases at Amadeus

Growing market share drives profit increases at Amadeus

Amadeus IT Holding has reported adjusted profit excluding acquisition costs increased 9.6 per cent to €612 million in the nine months to September 30th.

This was driven by an increase in revenue of 14.7 per cent, to €2,965 million, and EBITDA excluding acquisition costs growth of 10.6 per cent, to €1,150 million.

Amadeus president Luis Maroto commented: “Our focus on delivering revenue-generating technology to our partners has improved our competitive position in the market, supporting growth in both revenues and profit.

“Asia-Pacific and North America growth resulted in a significant 1.9 p.p. enhancement of our competitive position in air travel agency bookings, driving strong revenue growth of 12.1 per cent in distribution; while IT Solutions delivered a 21.3 per cent revenue increase, supported by the full year effect of migrations – many of which were in Asia-Pacific, where other airlines are still to migrate.

“Our strong financial performance has allowed us to continue investing in key areas and during the quarter we announced our intention to acquire Navitaire, which is currently subject to regulatory approval. Additionally we acquired two companies in the Hotel IT sector, the Netherlands-based Itesso BV and US-based Hotel SystemsPro, which support our strategy.

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“These additions form part of our long-term Hotel IT vision of combining multiple systems into a cloud-based platform focused on improving the guest experience.

“I am proud to say that our commitment to shaping the future of travel was recently recognised by the Dow Jones Sustainability Indices through our inclusion for a noteworthy fourth consecutive year.

“We look forward with confidence to the completion of the full year.”

Consolidated net financial debt stood at €1,693 million at September 30th, 2015, representing 1.20x the ratio of covenant net debt to the last twelve months’ covenant EBITDA.

An appreciation of the US dollar versus the Euro compared to 2014 contributed a positive foreign exchange impact on the revenue and EBITDA of Amadeus during the first nine months of 2015; conversely, the same impact reduced the EBITDA margin.