Amadeus profits rise in Q1 2014

Amadeus' profits climbed 8.7% to EUR351.4 million in Q1 2014
Amadeus’ profits climbed 8.7% to EUR351.4 million in Q1 2014

Amadeus achieved steady growth in the first quarter of the year.

The travel technology company revealed today (8 May 2014) that its EBITDA (earnings before interest, tax, depreciation and amortisation) climbed 8.7% to EUR351.4 million (US$489m) in Q1 2014, driven by a 9.1% increase in revenue, to EUR867.6m.

In terms of its distribution business, Amadeus’ revenues climbed 6.5% to EUR651.7m, as air travel agency bookings increased 5.3% to 125.5m – 39.9% of the total global market. This was fuelled by especially strong growth in North America (+17.6%) and the Middle East & Africa (+11.4%).

The company’s IT Solutions business achieved an 18.0% jump in revenues, to EUR215.9m. The number of passengers boarded increased 15.8%, to 152.5m, fuelled by strong growth in Asia Pacific (+85.2%). This was largely due to the fact that several Asian carriers have moved to Amadeus’ Altéa IT platform over the past 12 months, including Thai Airways. Korean Air and ANA are also due to adopt the system in the near future.

In terms of the hotel IT sector, Amadeus completed the acquisition of US-based Newmarket International for US$500m and formed a new IT partnership with IHG.

“Amadeus has maintained its record of delivering strong organic growth in its core businesses,” said Luis Maroto, president & CEO of Amadeus.

“This organic growth is now also reinforced by the positive contribution of our recent acquisitions. Our commitment to our stated ambition in hotel IT, to build a community model for the hotel industry, has been evidenced by the Newmarket International acquisition and the recently signed partnership with InterContinental Hotels Group (IHG) to develop technology solutions to enhance the guest experience.

“These results clearly prove that Amadeus is fully equipped to continue to deliver on its strategy, backed by its financial strengths and technology expertise,” he added.

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