Amadeus sees growth metrics in 2019 boosted by business expansion

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Amadeus has attributed gains in revenue and EBITDA for the first nine months of 2019 to its diversification strategy and "resilience" in core segments.

The travel technology giant reported a 15% increase in revenue year-over-year, to $4.64 billion, while EBITDA climbed just over 11%, to $1.99 billion.

Adjusted profit increased about 12% to $1.8 billion up to the end of September this year.

Revenue for the distribution division at Amadeus increased just over 5% to $2.65 billion, which the company puts down to an increase in bookings of almost 1%, "expansive" average revenue per booking and growth in its payment distribution business.

Amadeus says that despite a decline in industry-wide travel agency air bookings, its own figure has increased 0.5%.

It also points to quarter business highlights, such as the signing or renewal of seven new contracts bringing its total for 2019 so far to 19.

The company also claims it made progress in other elements of its distribution portfolio, with nine airlines signing up for its Fare Families technology and three signing contracts for Ancillary Services technology for indirect channels.

Revenue for the company's IT Solutions business, including airline IT and new businesses, increased more than 31% to $2.03 billion.

The results also show double-digit growth for both TravelClick (acquired in mid-2018) and its overall hospitality unit.

During an analyst call Luis Maroto, president and CEO, commented on the exiting of a deal announced between Premier Inn and Amadeus in November 2017.

He added that it was nothing to do with the Amadeus product but to do with Premier Inn's own focus. 

Maroto declined to provide further comment on the deal between Amadeus and IHG except to say that the two are "in the pilot phase of additional functionality."

Commenting on the results, Maroto, also said: "The positive financial performance was driven by the healthy evolution of our diversification strategy, particularly hospitality as well as the resilience of our core segments.

"In distribution, our booking volumes outperformed the industry, driven by market share gains in all regions except Asia Pacific."

Source: PhocusWire

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