Amadeus increases cash flow despite fewer distribution bookings
Spain’s travel technology company Amadeus increased nine-month revenue by 3.7 per cent and free cash flow by 8.5 per cent. Distribution bookings fell 2.8 per cent, while revenue per booking rose excluding currency effects. Net profit declined slightly. Management expected annual results near the lower end of its guidance ranges citing developments in the Middle East.
Economics & Markets··Evening
Revenue grows as net profit slips
Spain’s travel technology provider Amadeus reported a decline in nine-month net profit while retaining its annual forecasts.[1], [2]
Revenue increased 3.7 per cent to 5.08 billion euros, or 5.2 per cent excluding currency movements. Operating income rose 2.1 per cent to 1.45 billion euros, but the operating margin declined from 29 per cent to 28.6 per cent. Net profit fell 0.6 per cent to 1.08 billion euros. Adjusted net profit increased 3.5 per cent to 1.15 billion euros.[1]
Revenue per booking rises despite fewer bookings
Air distribution bookings declined 2.8 per cent to 359.2 million. Revenue per booking increased 5 per cent excluding currency movements, and distribution revenue rose 0.6 per cent to 2.39 billion euros. Air information technology revenue grew 6.3 per cent to 1.85 billion euros, with passengers boarded up 1.3 per cent to approximately 1.71 billion. Hospitality and other solutions revenue rose 7.2 per cent to 832.1 million euros.[1]
Cash flow grows and guidance stays near its lower end
Free cash flow increased 8.5 per cent to 1.04 billion euros. Net debt was 2.54 billion euros, approximately one times earnings before interest, taxes, depreciation and amortisation over the previous twelve months. Management identified share repurchases as contributing to per-share earnings growth. Chief executive Luis Maroto expected annual results near the lower end of the guidance ranges citing developments in the Middle East.[1]
