Fresh from IPO, Amadeus reports solid first quarter

Amadeus IT Holding is trumpeting solid first quarter results, ending March 31 – an increase in adjusted net income of 58.1% to reach €128.9m is backed by a growth in revenues of 13.4% to €705.3m and an improvement in adjusted EBITDA by 26.1% to €280.3m.

The company said this continues Amadeus’ trend for steady growth, following an increase in adjusted EBITDA every year between 2004 and 2009.

Year-on-year the adjusted EBITDA margin grew from 35.7% to 39.7% and the adjusted EPS increased by 58.2% to €0.361 per share. Net financial debt was down by €120.3 million at 31st March 2010.

This steady growth is underpinned by double digit increases in both the Distribution and IT solutions businesses.

Revenues within the Distribution area increased by 12.4% whilst the volume of air travel agency (TA) bookings increased by 9.6% in the first quarter of 2010, primarily driven by the performance of emerging markets (Middle East and Africa, CESE[5] and Asia & Pacific).

Amadeus maintained its global leadership position in market share of close to 37% of air travel agency bookings. The IT Solutions business grew its revenues by 17.9% during the period, continuing its track record of solid growth as contracted migrations[6] took place.

President & CEO of Amadeus, Mr David Jones, said: “Our year-on-year growth of total revenues by 13.4%, increased adjusted EBITDA of 26.1% and substantial growth of net income by 58.1% to reach €128.9m is further proof of the strength and profitability of Amadeus’ transaction-based business model.

“We are encouraged by the recent industry-wide increase in global air traffic and travel bookings and this is a strong indicator of our growth potential as the global travel industry continues to recover.”

The company went public on April 29 in what was Europe’s largest initial public offering – worth 1.32 billion euros ($1.75 billion) — in two years.

A few minutes after the shares started trade, Jones said in a ceremony at Madrid’s stock exchange that he was very satisfied with the demand for the IPO and confident about the company’s future stock performance.

Before the IPO, BC Partners and Cinven Group owned 52.76% of Amadeus, while Air France held 23.14% and Iberia Lineas Aereas de Espana and Deutsche Lufthansa, 11.57%.

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