Published on : Friday, August 1, 2014
Revenue in the six months to June 30 increased 8.5% compared to the same period in 2013, to 1,730.9 million Euros, while EBITDA grew 8.8%, reaching 702.6 million euros. This was achieved in the context of a sound financial structure. Excluding recent acquisitions, revenue and EBITDA registered a 6.3% and 6.0% increase respectively versus the first half of 2013.
This strong financial performance was underpinned by solid operating performance across our business lines and positive contributions from our recent acquisitions.
In Distribution Amadeus experienced a +3.8% air volume growth in the first half of 2014, supported by a combination of industry growth and market share gains. Despite slower industry growth during the second quarter, marked by a negative impact from Easter being later than last year, Amadeus continued to capture global market share, with a 0.5p.p. Gain in the quarter, driven by the strong product offering and competitive positioning.
Amadeus’ global market share at the end of H1 stood at 40.3%. North America and Middle East & Africa continue to be their fastest growing regions (+15.5% and +9.5% volume growth, respectively), driven by market share gains. Distribution in the first half of 2014 experienced a 4.6% increase in revenue, reaching 1,271.5 million Euros.
During the first half of the year, Amadeus strengthened their position in the Corporate Travel IT space, through their acquisition of i:FAO and their industry-first partnership with SAP, which will allow them to offer an end-to-end travel management solution under a single contract, on a global scale. These initiatives make Amadeus’ offering more attractive and complete to corporations or reselling TMCs, allowing them to serve their customers better.
The IT Solutions business of Amadeus also continued to grow and expand its profitability, driven by double-digit volume growth and sound operational performance. Revenue in the IT Solutions business increased 11.6% to 423.5 million euros. In airline IT, they have continued to expand their customer base. Amadeus added 2 new customers in the second quarter of 2014, Swiss International Airlines and Japan Airlines, which they announced only yesterday.
Amadeus continues to make progress in up selling DCS and our expanding portfolio of Airline IT solutions. On July 1, the first-ever scheduled international flights flown by Southwest Airlines took off, also marking the successful full implementation of Amadeus’ Altéa Suite for the US airline’s international operations. When domestic flights are added to the system, as signalled by their announcement of an agreement in May, Southwest Airlines will become the largest airline IT partner worldwide for Amadeus, in terms of passengers boarded.
With regards to these newest initiatives, Airport IT continues to make steady progress with now 75 customers contracted for Amadeus’ DCS solution for ground handlers. Hotel IT is pressing ahead with InterContinental Hotels Group following the announcement of their strategic technology relationship earlier in the year and Rail IT has a long-term strategic IT partnership with Bene Rail International to create a new rail community IT platform.
Leverage at the end of the first half of 2014 stood at 1.18x EBITDA, a slight increase from the end of 2013. This was a result of M&A activity, including Newmarket, UFIS and i:FAO, as well as from their interim dividend payment in January. These were partially offset by their free cash-flow generation over the first half of 2014 of over 300 million Euros.
Source: Amadeus Blog.