Amadeus sees IT and distribution growth slow but revenue numbers still big

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Amadeus has hit over €3.5 billion (about $4 billion) in revenue for the first nine months of year for the second year in a row.

The travel distribution and IT giant saw a 4.6% increase in overall to about $4.22 billion, compared to the same period in 2017.

Income from its distribution business makes up around 60% of the company's takings, it says in its third quarter earnings report released this week.

EBITDA climbed 8.6% to about $1.82 billion in the year to date.

Although the Amadeus numbers show growth across all core metrics in the business, 2018 has not been as strong when put alongside 2017.

Distribution revenue increased by 2.8% in the first nine months of 2018 compared to 7.3% in 2017.

IT has experienced a similar slowing, too, with revenue up by 7.6%, whereas in 2017 it was 11.8%.

Still, passengers boarded through the GDS increased by 13.8% to 1.4 billion in the year to date, and total bookings saw a rise of 2% to 491.7 million.

Regional analysis

The strongest performing area in terms of passengers boarded in the first nine months of 2018 is North America, with a massive 55% jump to 183.7 million.

Amadeus's heartland of Europe increased by just 1.3% to 475.8 million over the same period compared to 2017.

Asia Pacific is another high-performing region with an increase of 21.4% to 443.2 million. At current growth levels, Asia Pacific could become the largest area for the company over the course of the next few quarters.

North America and Asia Pacific's travel agency air bookings increased by 8.3% and 14.4% respectively but Europe saw a decline of 6.7%.

Amadeus says its financial performance is currently being hit by the Dollar/Euro exchange rate, alongside the fluctuation of other "multiple currencies."

President and CEO Luis Maroto says the company is "optimistic" about positive growth trends for the rest of 2018.

Source: Phocuswire

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