Half Year 2024 Amadeus IT Group SA Earnings Call Transcript
Key Points
- Amadeus IT Group SA (XMAD:AMS) reported a strong financial performance in the first half of 2024, with revenue increasing by 13%, EBITDA growing by 15%, EBIT rising by 19%, and adjusted profit expanding by 22%.
- The company generated robust free cash flow of EUR530 million, resulting in net financial debt of EUR2.6 billion, representing 1.15 times last 12-month EBITDA.
- Amadeus IT Group SA (XMAD:AMS) continues to advance well on its NDC strategy, with 60 NDC airline agreements signed and 27 implemented to date.
- The hospitality segment saw significant growth, with Accor implementing Amadeus' market-leading cloud-based Central Reservation System for its extensive portfolio of properties globally.
- The company is making significant strides in the airline retailing transformation with its next-generation airline IT product suite, Nevio, which has already secured contracts with Finnair, Saudia, and British Airways.
- Bookings in North America continue to be impacted by volumes channeled through direct connections between a large online travel agency and a few large carriers, affecting local bookings in the region.
- The bankruptcy of a large European tour operator, FTI Group, negatively impacted bookings in the second quarter.
- The company expects volume growth in Q3 2024 to be softer than in Q2 2024, due to a strong recovery in August 2023 and other comparison effects.
- Fixed costs are expected to increase in the second half of 2024, driven by customer implementations, R&D investments, and the consolidation of Vision-Box.
- The company faces challenges in maintaining its EBITDA margin due to increased transaction processing and cloud migration costs.
Good morning, ladies and gentlemen, and welcome to the Amadeus H1 2024 results conference call. (Operator Instructions) I would now like to turn the conference over to Luis Maroto, President and CEO. Please go ahead.
Good afternoon, and welcome to our '24 first half results presentation. Thank you for joining us today. I'm joined by our own business heads, Decius Valmorbida and Paco Perez-Lozao. I'll start today's presentation with a general overview of our most important developments. Decius and Paco will cover the business of use for our segments. I will end by reviewing the key financial aspects.
Our CFO executive search progress -- process is progressing well. We'll provide you with a more detailed update as soon as possible. Before we get started, I would like to thank you for your participation at our recent Investor Day in London. Over the years, we have debated Amadeus many times. Yet again, we had a highly collective and in depth discussion on our business and growth
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