Amadeus IT Holding SA, parent company of the Amadeus Group, has reported year-on-year financial and operating results for the full year to 31st December 2013. Adjusted profit for the year increased by 7.8% to €619.5 million, supported by an increase in revenue of 6.6% to €3,103.7 million, and by a 7.2% growth in EBITDA to €1,188.7 million.
During the year, distribution contracts with airlines due for renewal were successfully extended, most notably with IAG (British Airways, Iberia, Iberia Express) and Air France-KLM. Content agreements were also signed with American Airlines, China Airlines, LATAM Airlines Group (including LAN and TAM), and Thai Airways.
Content available for travel agency subscribers continued to expand, as 10 new low-cost carriers were added to the platform. EasyJet, the UK’s largest airline per passengers carried, was the first carrier to become a light ticketing airline in the Amadeus system, a solution that improves the way in which travel agents access, book and provide service when selling the flights of low-cost carriers. This development is expected to increase bookings with the new pricing, ticketing and booking functionality offering the same look and feel as for traditional or flag carriers. Low-cost carriers continued to be an area of growth for Amadeus in 2013, with an increase in travel agency bookings of 21% during the year.
During the fourth quarter, Amadeus implemented its Amadeus Ancillary Services solution for Lufthansa and Austrian Airlines. With these additions, a total of 23 airlines distribute their ancillary services through the Amadeus travel agency channel using the solution across 62 countries.
The increase in market share, of 1.5 percentage points to 40.1%, was fueled by a rise of 38.1% in air travel agency bookings in North America, despite the negative growth of the industry in the region. This contributed to offset the contraction of the air travel agency booking industry in key markets for Amadeus in Western Europe (Germany, Spain and France).
Success in Revenues and Profitability
Luis Maroto, President and Chief Executive, said: “Amadeus has maintained its record of delivering success both in revenues and profitability. Our transaction-based business model has continued to be resilient in the face of industry challenges, while our investment in R&D, which drives product evolution and portfolio expansion, has contributed to our continued growth.
“Even in the context of slow growth in the wider market, Amadeus continued to outperform the travel distribution industry and reinforce its leading position in the air distribution segment, with a market share increase to 40.1% in total air travel agency bookings. This was most apparent in North America, one of our strategic targets for expansion, where despite contraction in the region we achieved a 38.1% increase.
“Our commitment to growth in new regions was also evident in the IT Solutions business, where the number of Passengers Boarded in the Asia Pacific markets increased by 57.6%. The region became the second biggest market for the IT Solutions business, and this shift will continue as migrations of Asian carriers take place during 2014 and 2015.
“We continued to execute on our strategy of developing new business areas, and made particular progress in the airport and hotel segments. With the acquisition of Newmarket International, a leader in the Hotel IT industry, we have enhanced our presence in a key growth area for Amadeus. Meanwhile our airports unit made progress in the ground-handling area as well as signing key agreements with Copenhagen and Munich airports.
“Overall I am confident that Amadeus has the financial strength, the portfolio and the right strategy for continued success in the travel technology industry.”