Amadeus highlights the strength of its transaction-based model

Aug 31, 2010

Amadeus has witnessed growth across both distribution and IT business areas this year.

Published: 31 Aug 2010

Amadeus has witnessed growth across both distribution and IT business areas this year.

Both the Distribution and IT Solutions businesses have contributed to the company’s strong performance figures during the first half.

Revenue in the distribution area increased by 9.8 percent, rising from €944.9m to €1,037.0m. Year-on-year first half total bookings increased by 8.0 percent, up from 214.9m to 232.1m, and the volume of air travel agency (TA) bookings increased by 9.8 percent, up from 183.0m to 201.0m.

Amadeus says it has also maintained its global leadership position in market share of travel agency air bookings overall during the first half of 2010.

The IT Solutions business continued its growth record by increasing its revenue 20.9 percent during the period, increasing from €248.0m to €299.9m. Passengers Boarded (PBs) increased by a very strong 47.2 percent in the same period, rising from 104.6m to 153.9m as contracted airline migrations were completed successfully.

During the second quarter of 2010 compared with the same period in 2009, Amadeus continued to deliver strong results with an increase in adjusted net profit of 21.3 percent, up from €97.3m to €118.0m, an improvement in total revenues by 10.4 percent from €610.6m to €674.0m, and a rise in EBITDA by 14.2 percent from €242.0 to €276.5m.

Commenting on the first half results, David V. Jones, president & CEO of Amadeus, said that year-on-year total revenue has grown by 11.9 percent to €1,379.3m, along with an increase in EBITDA of 19.9 percent to €556.7m, and the adjusted net profit has grown by 38.0 percent to reach €246.8m.

“These results are underpinned by an encouraging growth in distribution bookings compared with the same period last year, coupled with the continuing evolution of our IT business. Our transaction-based model is both robust and profitable, and has shown that it can quickly benefit from a recovery in travel worldwide,” said Jones.

The group operates a transaction-based business model and processed more than 670 million billable travel transactions in 2009.