Q3 2024 Amadeus IT Group SA Earnings Call Transcript
Key Points
- Amadeus IT Group SA (AMADF) reported a 13% increase in group revenue for the first nine months of 2024, with EBITDA and operating income both growing by 13% and 17%, respectively.
- The company achieved nearly EUR 1 billion in free cash flow generation, maintaining a leverage ratio of approximately 1 times net debt to last 12 months EBITDA.
- Amadeus IT Group SA (AMADF) saw double-digit growth across all segments, including Air Distribution, Air IT Solutions, and Hospitality & Other Solutions.
- The company is progressing well with its NDC strategy, signing agreements with major airlines like Delta, Virgin Australia, and Indigo, and aims to become a leading aggregator in NDC bookings.
- Amadeus IT Group SA (AMADF) continues to invest in technology and innovation, leveraging cloud-native architecture, AI, and data-centric capabilities to maintain a competitive advantage.
- The CFO executive search process is ongoing, with no concrete updates provided during the earnings call.
- The Hospitality segment's growth was slightly softer than expected due to delays in the payments business, impacting the overall revenue growth in this segment.
- Amadeus IT Group SA (AMADF) faced challenges in the North American market, with local bookings impacted by reconnections between a large OTA and several carriers.
- The company experienced delays in onboarding new customers for its payments business, particularly in the Asia Pacific region, affecting expected growth rates.
- Amadeus IT Group SA (AMADF) anticipates a moderation in revenue per booking growth into the fourth quarter, influenced by booking mix and pricing effects.
Good morning, ladies and gentlemen, and welcome to the Amadeus Q3 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 9-month results presentation. Thank you very much for joining us today. I'm joined by our business heads, Decius Valmorbida and Paco Prez-Lozao. I will start today's presentation with a general overview of our results and the most important recent developments at Amadeus. Decius and Paco will then cover our segment business reviews, and I will end the presentation by reviewing the key aspects of our financial performance.
Before we get started, I wanted to update you on our CFO executive search process. This process is well underway and receiving all the attention and resources it merits. At Amadeus, we are fully committed to attracting the best talent. However, we have nothing more concrete to share with
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