Amadeus maintains growth trend in first nine months of 2015
November, 6: Amadeus IT Holding, S.A. reports year-on-year financial and operating results for the first nine months of 2015 (nine months ended September 30, 2015).
Year-to-date highlights (nine months ended September 30, 2015)
_ Revenue increased 14.7%, to €2,964.8 million.
_ EBITDA excluding acquisition costs1 grew 10.6%, to €1,149.6 million.
_ In the Distribution business, total air travel agency bookings increased 9.4%, to 389.7 million.
_ In the IT Solutions business, Passengers Boarded2 increased 8.2%, to 562.3 million.
Adjusted profit excluding acquisition costs1 for the period grew 9.6% to €611.9 million. This was driven by an increase in revenue of 14.7%, to €2,964.8 million, and EBITDA excluding acquisition costs1 growth of 10.6%, to €1,149.6 million.
Luis Maroto, President & CEO of Amadeus, comments:
¨Our focus on delivering revenue-generating technology to our partners has improved our competitive position3 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 posi-tion in air travel agency bookings, driving strong revenue growth of 12.1% in Distribution; whilst IT Solutions delivered a 21.3% 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 U.S.-based Hotel Sys-temsPro, which support our strategy. 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 (DJSI) through our inclusion for a noteworthy fourth consecutive year.
¨We look forward with confidence to the completion of the full year.¨
Business highlights in the third quarter
_ Revenue increased 14.0%, to €672.5 million.
_ Air travel agency bookings rose 8.2%, to 123.8 million.
_ Our competitive position improved by 1.8 percentage points.
Over 80% of the airline bookings made through the Amadeus system worldwide are made with airlines that have a content agreement. During the third quarter new signings, or renewals of existing content agreements, were reached with 9 full-service carriers including Air Canada, which serves 38 million passengers a year, and Aeromexico, the largest airline in Mexico.
The trend for customers contracting merchandising solutions continued and currently 129 airlines have signed for Amadeus Airline Ancillary Services, which supports airlines to deploy ancillary services now in almost all markets worldwide. Additionally Amadeus Fare Families Solution, which allows airlines to distribute branded fares, now has 25 contracts in place and already 18 airline customers have implemented the solution.
Included within these is Air Canada, which will take advantage of both Amadeus Fare Families and Amadeus Ancillary Services, providing travel agency customers with access to the airline’s complete range of merchandis-ing content via XML. This will enable full access to the airline’s products with seamless integration to the efficiency and transparency offered by the GDS. Additionally Amadeus will also work together with Air Canada to leverage existing features of the Amadeus point-of-sale retailing platform.
Further signings included Aeromexico for both Amadeus Airline Fare Families and Amadeus Airline Ancillary Services; and Etihad Airways, the national airline of the United Arab Emirates, will become the first Middle Eastern carrier to implement Amadeus Fare Families in the indirect channel.
Meanwhile both Lufthansa and Austrian have now implemented Amadeus Fare Families. They join other LH Group airlines Swiss International Air Lines and Brussels Airlines as the first airlines to go live with ATPCoi Branded Fares – a technology which Amadeus is the first provider to support. Amadeus subscribers can book Lufthansa and Austrian’s new branded fares, Light, Classic and Flex, across the direct and indirect chan-nels through all Amadeus retailing interfaces, across worldwide points of sale, and for all customer segments to provide a consistent offer to both intermediaries and travellers.
Within the subscriber part of the Amadeus business, a multi-year agreement was reached with Shijie99, China’s leading travel e-commerce aggregator, to support its growth in international markets. The multi-year agreement will include the provision of extensive air content via Amadeus’ advanced Master Pricer search technology for points of sale outside of mainland China. Catering to inbound tourism and Chinese travellers in overseas markets, the agreement will enable expansion and diversification of the product portfolio by adopting the same technology used by leading global online travel agents. Additionally, prepaid and postpaid hotel and car rental, as well as rail content, will be available for customers in all markets, including China.