The first half of 2014 was good for Amadeus as it reports an 8.5% increase in revenue to €1,731 million.
The strong performance was supported by organic growth and the contribution of acquisitions, the company said in a media release.
Adjusted profit for the period grew 8.9% to €381 million, while earnings before interest, tax, depreciation and amortization (EBITDA) rose 8.8%, to €703.
The company maintained its strong organic growth in its core distribution and IT solutions businesses.
Key financial highlights:
Distribution
- Distribution revenue increased by 4.6% to €1,272 million, with air travel agency bookings rising 3.8%, to 242 million outperforming the industry. This was backed by the rise of air travel agency bookings by 3.8%, to 242 million
- Amadeus signed and extended content agreements with 21 airlines including United Airlines, the largest domestic carrier in the US.
- It inked new agreements with leading global travel companies such as Orbitz Worlwide and with TUI Travel
- It reaffirms commitment to corporate travel IT with the acquisition of i:FAO, the strategic agreement with SAP and the launch of Amadeus Corporate Suite.
IT Solutions
- Revenue grew 21%, to €459 million. Excluding Newmarket International and UFIS, revenue increased by 11.6% to €423.5 million
Luis Maroto / Image credit: Amadeus
- Passengers boarded increased by 15.6%, to 328.5 million
- The migration of Asian airlines such as Garuda Indonesia, Thai Airways, and Sri Lankan Airlines contributed to a 76.7% growth in the number of passengers boarded in the Asia Pacific region.
- The shift towards Asia will continue in the future in addition to the recently announced agreement with Japan Airlines.
Luis Maroto, president & CEO of Amadeus, said, Amadeus’ core business continued to deliver strong results despite improved but still challenging market conditions with the company’s distribution business outperforming the industry enabling us to continue to gain market share. The same also applies to the airline IT business.
He added the company would continue to implement its growth and diversification strategy into new IT areas. “The recent acquisitions of Newmarket International (Hotel IT) and UFIS (Airport IT) are already contributing positively to the execution of our strategy. In the Rail IT segment, the agreement signed with BeNe Rail this quarter represents our first step towards the creation of a community IT platform for the rail industry, aiming to replicate the success of our Altéa suite in the coming years.”
