Amadeus reports financial results for full year 2015
In its latest report on financial results for full year 2015, Amadeus had its total air travel agency bookings rose 8.3%, to 505.0 million.
On February 26, Amadeus IT Holding, S.A. reports year-on-year financial and operating results for the full year of 2015 (twelve months ended December 31, 2015). Adjusted profit for the period grew 10.4%, to €751.8 million supported by a revenue increase of 14.5%, to €3,912.7 million and EBITDA growth of 12.2%, to €1,465.4 million.
Full year highlights (twelve months ended December 31, 2015)
_ Revenue increased 14.5%, to €3,912.7 million.
_ EBITDA grew 12.2%, to €1,465.4 million.
_ In the Distribution business, total air travel agency bookings rose 8.3%, to 505.0 million.
_ In the IT Solutions business, Passengers Boarded increased 7.5%, to 747.3 million.
Luis Maroto, President & CEO of Amadeus, commented:
“Amadeus enjoyed a highly successful 2015 with strong operational and financial performances. We remained highly focused on technology and deployed a consistent strategy of investment in 2015 to support our long term growth and profitability goals.
“Both our Distribution and IT Solutions businesses delivered increases in revenues. Revenue growth in Distribution of 11.5% was underpinned by growth in North America and Asia-Pacific. In IT Solutions, revenue growth was 22.1%, driven by the continued migration of large carriers in Asia-Pacific, as well as upselling and contribution from new areas such as Airport IT and Payments.
"Despite recent economic concerns we are positive for 2016 based upon the expansion of our offering to travel providers, the continuous improvement of our competitive position, the migration of additional carriers to the Altéa platform, the growth of New Businesses, and our strengthened position in the low-cost carrier and hybrid segment with the addition of Navitaire.”
Business highlights during the full year
_ Revenue increased 11.5%, to €2,737.8 million
_ Air travel agency bookings rose 8.3%, to 505.0 million – outstripping GDS industry growth of 3.9%
_ Air travel agency competitive position expanded by 1.7 percentage points, reaching 42.5%
_ Revenue grew 22.1%, to €1174.9 million
_ Passengers Boarded rose by 7.5% to total 747.3 million – driven by the implementation of new airlines such as Thomas Cook Group Airlines and the international passengers business of All Nippon Airways
_ Acquisition of Navitaire from Accenture announced during the year and closed in January 2016
After the close of the 2015 year, on January 26, 2016 Amadeus announced that, following regulatory approval,
it had closed the deal to acquire Navitaire, a provider of technology and business solutions to the airline industry,
from Accenture for €766.5 million.
In the Hotel IT sector, InterContinental Hotels Group PLC (IHG) and Amadeus announced a partnership to develop a next-generation Guest Reservation System (GRS) that will revolutionise the technological foundations of the global hospitality industry. Working on a new cloud-based ‘Community Model’ similar to the model Amadeus developed for the global airline industry, the system will be a first in the hotel sector.
Amadeus expanded its technology offering to the hotel industry with the acquisition of Netherlands-based Itesso BV, a provider of cloud-native property management systems (PMS). With its new cloud-native Itesso Enterprise Lodging System (Itesso ELS), the company is leading the industry towards a new generation of property management solutions and also currently provides PMS technology to 1,800 properties worldwide.
Characterised by an award-winning customer service and an ‘easy-to-do-business-with‘ mentality, Itesso is a strong addition to the Hotel IT portfolio.
In addition, the Amadeus sales and catering offering to the hotel industry was increased with the acquisition of Hotel SystemsPro by Newmarket, an Amadeus company. This acquisition brings a complementary product set targeted at mid-tier hotels. Hotel SystemsPro is a US-based provider of sales, catering and maintenance software to the hotel and hospitality industry and delivers high-performance, Application Server Provider (ASP)-based enterprise and property solutions to more than 4,500 hotels in North America and beyond.
Together, these two deals brought Amadeus closer to its vision of uniting systems known today as Central Reservation Systems (CRS), Property Management Systems (PMS), Revenue Management Systems (RMS), Sales & Catering and others, into a cloud-based platform which is fully centered around the guest experience.
In the largest airport IT market globally, North America, Amadeus accelerated its expansion through the acquisition of Florida-based Air-Transport IT Services Inc. (AirIT).
Amadeus contributed to Munich Airport reducing runway waiting time by 50% and inbound delays by 24%, whilst improving flight slot adherence by 22%, through the adoption of Amadeus Airport Sequence Manager.
The solution improves flight departure sequencing and runway capacity to reduces environmental impact, bringing benefits to the whole airport ecosystem.
Elavon, a leading global payments provider that works with more than 50 of the world’s leading airlines and the top global acquirer for the global travel industry, will integrate its payment processing solutions into the Amadeus Payments Platform (APP), which is used by more than 300 airlines and ensures a fast and easy authorisation process integrated into ticketing and selling.
During the first quarter of 2016 Amadeus launched B2B Wallet Prepaid, a virtual payment solutions for travel agencies that helps them maximise cash flow. The solution consists of two virtual cards linked to the same account, one for earning a rebate on the amount spent, and one to help avoid payment card surcharges applied by some travel providers. B2B Wallet Prepaid complements Amadeus’ existing virtual credit card offer.
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