Spain-based Amadeus has reported a positive 2013 performance, with revenue increased by 6.6% year-on-year to €3,103.7 million, and adjusted profit for the year up 7.8% to €619.5 million.
Revenue increased by 6.6%, to €3,103.7 million, and earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 7.2%, to €1,188.7 million.
In the distribution business, total air travel agency bookings increased by 6.5%, to 443.4 million, on the back of strong growth in North America (+38.1%) and Latin America (+12.5%).
The company’s IT solutions business reported the number of passengers boarded increased by 9.2% to 615.7 million, with a 57.6% rise in Asia Pacific.
Last year also saw Amadeus accelerated its move into new business areas with the acquisition of Newmarket International, a leading US-based Hotel IT provider, for US$500 million.
Luis Maroto, president and chief executive of Amadeus, said, “Our transaction-based business model has continued to be resilient in the face of industry challenges, while our investment in R&D, which drives product evolution and portfolio expansion, has contributed to our continued growth.
“Even in the context of slow growth in the wider market, Amadeus continued to outperform the travel distribution industry and reinforce its leading position in the air distribution segment, with a market share increase to 40.1% in total air travel agency bookings. This was most apparent in North America, one of our strategic targets for expansion, where despite contraction in the region we achieved a 38.1% increase.”
Distribution business update
- Revenue increased by 5.3%, to €2,317.8 million.
- Air travel agency bookings rose 6.5%, to 443.4 million.
- Market share expanded by 1.5%, reaching 40.1%
- During the year, distribution contracts with airlines due for renewal were extended with British Airways, Iberia, Iberia Express and Air France-KLM.
- Content agreements were also signed with American Airlines, China Airlines, LATAM Airlines Group (including both LAN and TAM) and Thai Airways.
- Content available for travel agency subscribers continued to expand, as 10 new low cost carriers were added to the platform.
- UK’a EasyJet was the first carrier to become a light ticketing airline in the Amadeus system, a solution that improves the way in which travel agents access, book and provide service when selling the flights of low cost carriers flights.
- During the fourth quarter, Amadeus implemented its Amadeus Ancillary Services solution for Lufthansa and Austrian Airlines. With these additions, a total of 23 airlines distribute their ancillary services through the Amadeus travel agency channel using the solution across 62 countries.
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IT solutions business update
- Revenue increased by 10.8%, to €785.9 million
- Passengers boarded strengthened 9.2% to total 615.7 million
- Western Europe remained the biggest market for the Airline IT services, with 50.1% of total passengers boarded.
- The biggest region of growth was Asia Pacific, with an increase of 57.6%, driven by the addition of Asian airlines to the Altéa Suite.
- At the end of the year, a total of 125 airlines were contracted for both Altéa Reservations and Altéa Inventory, 104 of which were contracted to use the full Altéa Suite.
- Amadeus estimates that by 2015 the number of passengers boarded will be around 800 million, an increase of almost 30% vs the 616 million passengers processed on the Altéa platform during 2013, or a compound annual growth rate (CAGR) of around 14%.
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Hotel IT business update
- In December 2013, Amadeus acquired US based Newmarket International for US$500 million.
Airport IT business update
- In the first quarter of 2014 Amadeus acquired UFIS, a leading airport information technology player, to enhance the company’s position in the Airport IT industry.
- In June it launched a new suite of solutions for airport operations, with two agreements inked with Munich Airport and Copenhagen Airport.
• Photo courtesy of Amadeus website
