Half Year 2020 Amadeus IT Group SA Earnings Call Transcript
Key Points
- Amadeus IT Group SA (XMAD:AMS) has seen a gradual improvement in air travel bookings, particularly in domestic markets like China and the U.S.
- The company has implemented a comprehensive cost reduction plan, aiming to save approximately EUR 550 million in 2021 relative to 2019 costs.
- Amadeus IT Group SA (XMAD:AMS) has maintained strong liquidity, with EUR 4.1 billion available, ensuring financial stability through 2020 and 2021.
- The company continues to secure new contracts and renewals, including significant deals in Distribution, Airline IT, and Hospitality sectors.
- Amadeus IT Group SA (XMAD:AMS) is accelerating its digitalization and integration programs, which are expected to enhance operational efficiency and customer engagement.
- The COVID-19 pandemic has severely impacted Amadeus IT Group SA (XMAD:AMS)'s financial performance, with a significant decline in revenue and EBITDA.
- Air bookings and Distribution revenues decreased by 78.6% and 73%, respectively, in the first six months of 2020 compared to the previous year.
- The company experienced a negative free cash flow of EUR 462 million in the second quarter of 2020.
- Amadeus IT Group SA (XMAD:AMS) has had to increase its bad debt provision due to the reassessment of credit risk among its customers.
- The company is facing challenges in predicting the recovery of air travel, making it difficult to forecast future financial performance accurately.
Welcome to the Amadeus First Half 2020 Results Presentation webcast. (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, ladies and gentlemen. Welcome to our first-half 2020 results presentation. Thank you very much for being with us today. As always, Ana, our CFO, is here as well and she will walk you through the details of our financial performance, and I will focus on our most relevant developments.
If I start on Slide 4, I would like to start today by making a few remarks on the market activity we have seen over the last few months and its impact on our segments. April was the first full month of large-scale shutdowns across regions, and all regions recorded air traffic contractions close to minus 95% rates versus 2019, rates which mostly persisted through May, which closed at minus 91% growth compared to the prior year.
At the end of May, we
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