Amadeus leaves losses behind and earns 664 million in the midst of a tourism boom

26-02-23

Amadeus leaves losses behind and earns 664 million in the midst of a tourism boom

The global tourism recovery allowed the company to record a very positive year-end 2022

Amadeus posted a profit of 664.3 million euros in 2022, compared with a loss of 122.6 million euros in the previous year, the travel services technology provider told the Spanish Securities and Exchange Commission (CNMV) on Friday.

The recovery of tourism worldwide allowed the company to record a very positive year-end 2022. A year in which it returned to adjusted profit and to its net debt target in 2022, returning to the dividend path.

In 2022, global air traffic continued to recover compared to 2019 and this air traffic performance, combined with commercial activity, contributed to strengthening Amadeus' revenues, EBITDA and adjusted profit compared to 2021.

Annual revenue reached €4,485.9 million, a 68% improvement compared to 2021 and 19.5% below the 2019 figure. EBITDA amounted to €1,640.4m, 161.4% higher than in 2021 and 26.5% lower than in 2019.

Adjusted profit amounted to €742.2m, compared to a loss of €44.7m in 2021, or 58.8% of 2019 levels.Adjusted profit amounted to €742.2m, compared to a loss of €44.7m in 2021, or 58.8% of 2019 levels.

The free cash flow generation allowed the degree of financial leverage to decrease. Free cash flow was €805.0m, an increase of 724% over 2021, or €834.1m excluding implementation costs.

At 31 December 2022, net financial debt was €2,284.5 million (1.4 times EBITDA for the last twelve months).

Gross operating profit (Ebitda) reached €1.64 billion, an increase of 161.4% compared to 2021, although down 26.5% compared to 2019

"Global air traffic continued to recover, while we achieved significant commercial successes, gaining market share. We remain very focused on our investment plans, particularly to support our customer solutions and make progress in key strategic areas," said Amadeus CEO Luis Maroto.

"We are optimistic about the future of the travel industry and the opportunities that lie ahead for Amadeus. In 2023, as volumes recover, we expect our financial results to continue to improve," he added.

Air bookings double

In air distribution, bookings rose to 396.3 million, representing 92% above 2021 bookings or 68.3% of the 2019 figure.

Air distribution revenues amounted to €2,147.8m, an improvement of 102.3% over 2021 revenues, or 73% of 2019 revenues.

"Despite the negative impact from the higher weight of local bookings compared to 2019, booking revenue increased in 2022, thanks to certain positive pricing effects and a favourable foreign exchange impact," the technology company said.

The best performing region in 2022 was North America, which grew 2.9% compared to 2019 and is already the largest region by bookings, accounting for 30.8% of total bookings.

While in airline industry technology solutions, passengers boarded totalled 1,539.5 million, 81.4% of the 2021 figure or 77.2% of the 2019 figure.

Revenue from technology solutions for the airline industry totalled €1,565.4m, up 46.4% on 2021, and accounted for 86% of that achieved in 2019. The best performing region in the year was North America, which recorded an 11.1% growth in boarded passenger volume compared to 2019.

Revenue from hotels and other solutions reached €772.7m in 2022, up 43.5% on 2021, or 95.8% on 2019.

Resume dividend payments

As announced during the presentation of the third quarter 2022 financial results, the company will resume shareholder remuneration this year.

In June 2023, the Board of Directors will submit for approval by the Annual General Meeting a full dividend of EUR 0.74 per share, representing 50% of the consolidated profit for the period.

Therefore, the proposed appropriation of the 2022 results as reflected in the audited consolidated financial statements for the financial year 2022, represents the distribution of a total dividend of EUR 333.4 million out of the results for the financial year 2022.