Q3 2021 Amadeus IT Group SA Earnings Call Transcript
Key Points
- Amadeus IT Group SA (XMAD:AMS) reported a positive free cash flow of EUR 104 million in Q3 2021, marking the first positive result since the pandemic began.
- The company saw a 9-point improvement in revenue performance from Q2 to Q3 2021, driven by better performance across all three segments.
- Amadeus IT Group SA (XMAD:AMS) signed 14 new contracts or renewals with airlines, including major names like JetBlue and Etihad, indicating strong commercial performance.
- The company achieved a fixed cost reduction of EUR 186 million in the first nine months of 2021 compared to 2020, exceeding their target.
- Positive trends in hospitality metrics, such as reservations and bookings, continued to improve, reflecting a steady recovery in the hospitality sector.
- Group revenues in Q3 2021 were EUR 739 million, representing a 47% decline compared to Q3 2019, indicating that the company is still recovering from the pandemic's impact.
- Air distribution revenue declined by 57.7% versus 2019, despite improvements in volume performance.
- The GDS industry contracted by 59.1% in Q3 2021, with slower recovery in regions like Western Europe and Asia-Pacific impacting global market share.
- Despite positive free cash flow, the company incurred EUR 33 million in cost-saving program implementation costs in the first nine months of 2021.
- The average revenue per PB (passenger boarded) in Q3 2021 diluted relative to Q2, indicating that revenue per PB is trending towards 2019 levels as PBs grow.
Welcome to the Amadeus third quarter 2021 presentation webcast. The management of Amadeus will run you through the presentation. (Operator Instructions)
I'm pleased to hand over to you, Mr. Luis Maroto, President and CEO of Amadeus. Please sir, go ahead.
Good afternoon, ladies and gentlemen, and welcome to our '21 Third Quarter Results Presentation. Thank you very much for joining us today. As usual, Till is here with me to elaborate on the key financial aspects of this quarter.
So let us start with Slide 4 for review of our financial results in the period. Our volumes continue to improve in the third quarter in this row of a strengthening of our financial results. For the second consecutive quarter, we saw important improvements in revenue and EBITDA growth versus 2019, which also supported cash generation. We have positive free cash flow in the 9 months period excluding cost-saving program implementation cost and expect to increase quarterly free cash flow
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