Q3 2023 Amadeus IT Group SA Earnings Call Transcript
Key Points
- Group revenue increased by 23% for the first 9 months of 2023.
- EBITDA grew by 34%, and adjusted profit expanded by 68%.
- Strong free cash flow generation resulted in net financial debt amounting to EUR 2.1 billion, representing 1.1x last 12-month EBITDA.
- Amadeus announced a new share repurchase program to acquire a maximum of 5.8 million shares, representing a maximum investment of EUR 625 million.
- Amadeus signed 11 new contracts or renewals of distribution agreements in the first quarter, totaling 47 for the first 9 months of the year.
- Bookings evolution in October was impacted by an increase in cancellations in several regions, including the Middle East, APAC, and Western Europe.
- International traffic remains below historical levels, affecting overall volume evolution.
- Revenue per PB in Air IT Solutions decreased by 6% due to a proportion of Air IT revenues not linked to passengers boarded growing at a softer rate.
- Cost of revenue grew by 25.5% in the 9-month period versus 2022, driven by volume expansion and several factors impacting Air Distribution variable costs.
- P&L fixed costs increased by 12% in the first 9 months of 2023 compared to last year, excluding the government grant in the second quarter of 2022.
Welcome to the Amadeus Q3, 2023 Presentation Webcast. The management of Amadeus will run you through the presentation, which will be followed by a question-and-answer session. (Operator Instructions) I'm now pleased to hand you over to Mr. Luis Maroto, President and CEO of Amadeus. Please go ahead, sir. Thank you.
Good afternoon. Welcome to our third quarter results presentation. Thank you for joining us today. I'm joined by Till. As usual, I will start with an overview of our most important developments, and Till will elaborate on the key financial details.
Please turn to Slide 4 to start with an overview of our results. For the first 9 months of '23, Amadeus continue to deliver steady financial performance. Group revenue increased by 23%, EBITDA grew 34% and adjusted profit expanded by 68%, supporting a 50% increase in free cash flow generation compared to prior year. Our strong free cash flow generation resulted in net financial debt amounting to EUR 2.1 billion at
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