Full Year 2020 Amadeus IT Group SA Earnings Call Transcript
Key Points
- Amadeus IT Group SA (XMAD:AMS) saw a gradual improvement in air travel agency bookings each month in Q4 2020, supported by both gross booking evolution and a continued normalization of the cancellation ratio.
- The company's Hospitality CRS transactions outperformed air volumes, indicating a strong performance in relation to air travel market conditions.
- Amadeus IT Group SA (XMAD:AMS) signed 11 new contracts or renewals of distribution agreements with airlines in Q4 2020, totaling 67 for the full year.
- The company announced a strategic partnership with Microsoft to boost technological capabilities and innovate together, aiming to operate in the public cloud within the next 3 to 5 years.
- Amadeus IT Group SA (XMAD:AMS) achieved a fixed cost reduction of EUR 506.1 million for the full year 2020, exceeding initial expectations.
- Global air traffic declined by 70.2% in Q4 2020 compared to the prior year, with Amadeus air travel agency bookings decreasing by 79.4% relative to 2019.
- Distribution revenue declined by 77.9% in Q4 2020 versus the prior year, significantly impacting overall financial performance.
- EBITDA in Q4 2020 amounted to EUR 31.6 million, a 93% decrease relative to the prior year, or a decline of 85% excluding cancellations and bad debt effects linked to COVID-19.
- Free cash flow in Q4 2020 resulted in a EUR 214 million cash outflow, with an adjusted profit loss of EUR 88 million.
- Net financial debt closed the year at EUR 3.074 billion, reflecting the financial strain caused by the pandemic.
Ladies and gentlemen, welcome to the Amadeus Full Year 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 full year 2020 results presentation, and thank you very much for joining us today. Till is here with me as well. I will focus on our most important developments in the quarter, and Till will elaborate on the key financial aspects.
Let's start to Slide 4. I will start with a brief overview of the market's evolution in the fourth quarter and how our segments have performed. As you know, in the last months of 2020, air traffic remained constrained as the pandemic gained momentum in the fall. Overall, during the fourth quarter, global air traffic declined by 70.2% relative to prior year, improving over the 76% traffic contraction we saw in the third quarter. The progress we had seen each month
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