Amadeus reports good business growth in 1H2018

posted on 30th July 2018 by Justin Burns
Amadeus reports good business growth in 1H2018

Amadeus IT Group has reported good performances across its business segments as they bolstered revenues and profitability in the first six months of the year ending 30 June 2018.

Revenue increased 4.1 per cent to €2,477.0 million, and EBITDA grew 8.2 per cent, to €1,078.2 million, leading to an adjusted profit of €606.8 million – growth of 6.1 per cent compared to the same period in 2017.

Passengers boarded increased 18 per cent to 888.8 million from the 753.4 million last year. At the end of June, 205 customers had contracted either of the Amadeus passenger service systems (Altéa or New Skies) and 196 had implemented them.

Demand for distribution services was good and during the second quarter of 2018, Amadeus signed 15 new contracts or renewals of content agreements with airlines, including United Airlines, Alitalia, Scandinavian Airlines (SAS) and Ethiopian Airlines.

Customers wanting merchandising systems also remained strong. At the close of June, 145 airlines had signed up for Amadeus Airline Ancillary Services (and 116 of them had already implemented it) and 75 had contracted Amadeus Fare Families (of which 60 had already implemented it).

On the Airline IT side of the business, Russia’s second largest airline, S7 Airlines, recently signed for the full Altéa suite. Royal Jordanian renewed in May for the full Altéa Suite. SAS renewed its multi-year partnership in June, and LATAM has implemented the Altéa departure control flight management.

Amadeus president and chief executive officer, Luis Maroto said: “Amadeus’ financial results continue their positive trend in the first half of the year. Our businesses again showed solid growth with both revenue and EBITDA growing at high single-digit rate excluding foreign exchange effects with a broadly stable EBITDA margin.

“We remain optimistic on the outlook for the rest of the year. We continued to secure and expand the content available for our subscribers through the Amadeus system, with content agreements signed or renewed with 15 carriers.

“The 18% increase in the number of passengers boarded of our IT Solutions business (which amounted to 888.8 million in the first half of 2018) was supported by a 7.8% organic growth and by our latest migrations. We also continued to progress successfully in our diversification strategy into new businesses.”