Q3 2019 Amadeus IT Group SA Earnings Call Transcript
Key Points
- Amadeus IT Group SA (XMAD:AMS) reported double-digit growth in revenue, EBITDA, and adjusted profit for the first nine months of 2019, with increases of 15%, 11.1%, and 11.9%, respectively.
- The company saw strong performance in North America, with volumes growing at a double-digit rate.
- IT Solutions revenue increased by 31.1%, driven by high single-digit growth in IT Solutions and the consolidation of TravelClick.
- Amadeus IT Group SA (XMAD:AMS) continued to invest significantly in R&D, which amounted to 16.9% of revenue, supporting long-term growth and technological advancements.
- The company expanded its global competitive position by 0.5 percentage points, or 1.3% excluding India, demonstrating resilience in a weak GDS industry.
- The travel agency booking industry declined by 0.8% in the first nine months of 2019, and by 1.1% in the third quarter, excluding India.
- Amadeus IT Group SA (XMAD:AMS) faced challenges in Asia Pacific, particularly due to the situation in India, which negatively impacted bookings.
- The company experienced a high number of airline customer bankruptcies, including Germania, bmi Regional, Avianca Brasil, Avianca Argentina, Thomas Cook UK, Aigle Azur, Adria Airways, and XL Airways France.
- Net financial expenses increased to EUR 43.6 million, mainly due to the TravelClick acquisition, impacting both non-operating exchange losses and interest expenses.
- The company faced geopolitical and macroeconomic challenges in Western Europe and Asia Pacific, affecting overall performance in these regions.
Welcome to Amadeus Third Quarter 2019 Results Presentation Webcast.
The management of Amadeus will run you through the presentation, which will be followed by a question-and-answer session. (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 results presentation for the first 9 months of 2019, and thank you for being here with us today.
As always, Ana, our CFO, is here as well, and she will walk you through in terms of our financial performance, that we usually do, and I will focus on our most recent developments.
We start with Slide 4. We are pleased to report a solid set of results today. Our performance remained strong through the third quarter despite of persisting less robust at our industry. The strength and resilience demonstrated by our business this quarter, once more, allows us to continue to
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