Amadeus reports strong first half

BANGKOK Amadeus IT Holding SA reported an adjusted profit of €494.5 million for the first half of 2016.

It represents 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.

Amadeus President & CEO, Luis Maroto, commented: “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.”

“Our Distribution business continues to grow faster than the industry and its competitive position once again increased, to 43.2%.”

Asia & Pacific and North America are now the fastest growing regions for Amadeus.

In the distribution business revenue increased 7.5%, to €1,520.5 million.

Air travel agency bookings rose 5.0%, to 279.3 million – outperforming GDS industry growth of 2.2%.

“The Airline IT business has also experienced strong growth in the first half of 2016. The number of passengers boarded using our Altéa platform grew by 10.9% supported by the organic growth of our customer base and new customer implementations.”

“This strong performance was complemented by the acquisition of Navitaire from Accenture, finalised in January. Thanks to its contribution, the total number of passengers boarded using Amadeus’ PSS systems increased by 75.7%, to 622.4 million.”

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 (“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 worldwide. Bookings of this segment grew by 17% in the first half of 2016, compared to 2015.

Merchandising sales through the Amadeus indirect distribution channel had a record first half of the year, with an 80% increase in airline ancillary services sold through the Amadeus system, primarily through the more than 30 global online travel agencies (OTAs) that are integrating Amadeus merchandising solutions.

sourced:ttrweekly.com