Amadeus reports strong H1 results
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Travel technology giant Amadeus has reported an adjusted profit of €494.5 million for the first half of 2016. That meant a growth of 17.9% compared to the same period of 2015.
This was supported by a revenue increase of 15.1%, to €2,275.5 million, and EBITDA growth of 16.5%, to €907.1 million. Free cash-flow generation grew 23.2% in the first half, with the debt ratio at 1.31x EBITDA.
“The strong first half of 2016 is the result of the continued, solid organic growth of our core businesses, and the positive contribution of our recent acquisitions,” said Amadeus president and CEO Luis Maroto.
“Our distribution business continues to grow faster than the industry and its competitive position once again increased, to 43.2%. Our geographical diversification strategy continues to bear fruit and Asia & Pacific and North America are the fastest growing regions for Amadeus. We continue to invest in making the GDS the most efficient system for the distribution of travel products, as shown by the success of our merchandising solutions: 157 airlines trust us for the distribution of their ancillaries through the direct and indirect channels.
Around 75% of airline bookings made through the Amadeus system worldwide are with airlines that have a content agreement with Amadeus. Since the beginning of the year, new contracts or renewals of existing content agreements were signed with 21 carriers, including LATAM Airlines Group S.A. (“LATAM”), Virgin Australia, Emirates, Air Cairo and Etihad Airways.
Growth also continued in the low-cost carrier segment. Chinese low cost carrier Spring Airlines made its content available through the Amadeus system. Also, travel agents using the Amadeus system can now book Ryanair’s Business Plus Fare. Subscribers to the Amadeus system have access to the inventory of more than 80 low cost and hybrid carriers from all over the world. Bookings of this segment grew by 17% in the first half of 2016, compared to 2015.
Air travel agency bookings rose 5%, to €279.3 million in H1, outperforming GDS industry growth of 2.2%.
The Middle East’s travel agency bookings represented 12.3% of the total at €34.2 million.
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