Q3 2020 Amadeus IT Group SA Earnings Call Transcript
Key Points
- Amadeus IT Group SA (XMAD:AMS) saw a gradual improvement in global air traffic and air bookings throughout the third quarter, despite the ongoing impact of COVID-19.
- The company achieved positive EBITDA in the third quarter, excluding cost-saving program implementation costs, demonstrating resilience in a challenging environment.
- Amadeus IT Group SA (XMAD:AMS) signed 24 new contracts or renewals of distribution agreements with airlines in the third quarter, showing continued business development.
- The hospitality segment outperformed air volumes, with CRS transactions declining by only 34% in the third quarter, indicating stronger performance relative to the overall market.
- The company has implemented significant fixed cost reduction plans, achieving a 16.8% decline in P&L fixed costs in the third quarter, excluding bad debt effects.
- Amadeus IT Group SA (XMAD:AMS) experienced a significant decline in air TA bookings, which decreased by 89.8% relative to the previous year in the third quarter.
- Distribution revenue declined by 85.3% in the third quarter compared to the previous year, heavily impacted by the reduction in air bookings.
- The company reported an adjusted profit loss of EUR 125 million in the third quarter, reflecting the severe impact of the pandemic on its financial performance.
- IT Solutions revenue contracted by 52.4% in the third quarter, driven by a 74.9% decline in airline passengers boarded volumes.
- Amadeus IT Group SA (XMAD:AMS) faced an increase in bad debt provisions, negatively impacting the combined personnel and other operating expense cost line.
Welcome to the Amadeus Third Quarter 2020 Link 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. Welcome to our first 9 months of 2020 results presentation. Thank you very much for joining us today. Till and Ana are also here with me. I will focus on our most important developments in the quarter, and they will elaborate on the key financial aspects.
On Slide 4, I would like to start by making a few remarks on the market activity we have seen over the past months and its impacts on our segments. As you will have seen, travel remained depressed over the summer period, heavily impacted by the COVID-19 pandemic. However, following the initial signs of activity resuming in May, June, global air traffic continued improving through the quarter across regions on the back of travel restrictions being lifted in parts of the
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