Full Year 2019 Amadeus IT Group SA Earnings Call Transcript
Key Points
- Amadeus IT Group SA (XMAD:AMS) delivered strong financial results in 2019, with revenue, EBITDA, and adjusted profit growth of 12.8%, 10%, and 13.4%, respectively.
- The company achieved higher-than-expected market share gains in distribution and pricing expansion, contributing to its robust performance.
- Amadeus IT Group SA (XMAD:AMS) saw significant growth in its IT Solutions segment, with a 26.2% increase in revenue, driven by high single-digit growth in Airline IT Solutions and double-digit growth in new businesses.
- The acquisition of TravelClick positively impacted the company's financial performance, further boosting revenue and EBITDA growth.
- Amadeus IT Group SA (XMAD:AMS) maintained a sound financial structure with a leverage ratio of 1.23x last 12 months EBITDA and generated free cash flow of EUR 1,044 million, an 8.1% pretax increase relative to 2018.
- The company faced challenges due to the slowdown in the Indian aviation sector and the Indian GDS industry, which negatively impacted growth rates.
- Global trade activity was weaker, and political and geopolitical tensions, along with the 737 MAX grounding, affected the overall industry performance.
- Amadeus IT Group SA (XMAD:AMS) experienced a higher-than-usual number of airlines ceasing operations, which impacted its passenger boarded (PB) growth.
- The company saw margin dilution in its Distribution segment, mainly due to competitive pressure and the strong growth of the lower-margin payment distribution business.
- The coronavirus outbreak in early 2020 introduced significant uncertainty, making it difficult to predict the impact on global GDP and traffic, potentially affecting the company's performance.
Welcome to the Amadeus Full Year 2019 Results Presentation Webcast. (Operator Instructions)
I am now pleased to hand over to you, Mr. Luis Maroto, President and CEO of Amadeus. Please, sir, go ahead.
Good afternoon, ladies and gentlemen, and welcome to our 2019 results presentation. Thank you very much for joining us today. As always, Ana, our CFO, is here as well, and she will walk you through the details of our financial performance. I will focus on our most recent developments.
We start the presentation. Before we review our performance, let me do a brief recap on the year. In 2019, our business was impacted by the important slowdown we saw in the Indian aviation sector and the Indian GDS industry. Both industries had grown double digit in 2018, that is around 20% or 15%, respectively, growing now in 2019, to single digit, 4% and negative growth, minus 15%, respectively.
In 2019, we also saw weaker global trade activity, political and
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