Q1 2020 Amadeus IT Group SA Earnings Call Transcript
Key Points
- Amadeus IT Group SA (XMAD:AMS) acted decisively to protect its liquidity position by implementing cost-saving programs and securing additional capital.
- The company enhanced its competitive position in the Distribution segment by 0.3% in the first quarter.
- Despite the pandemic, Amadeus IT Group SA (XMAD:AMS) continued to sign new distribution agreements and grow its airline customer base.
- The Hospitality segment showed resilience with several revenue lines still growing double digits in the quarter.
- Amadeus IT Group SA (XMAD:AMS) generated free cash flow of EUR 290 million in the first quarter, a 3% increase compared to the previous year.
- Travel agency bookings declined by 44.6% and passengers boarded (PBs) by 12% in the first quarter due to the COVID-19 pandemic.
- Revenue, EBITDA, and adjusted profit contracted by 27%, 41%, and 57%, respectively, in the first quarter.
- The Distribution segment saw a 47% decline in travel agency bookings, leading to a 45% reduction in Distribution revenue.
- The company had to cancel its complementary dividend payment and share buyback program.
- Amadeus IT Group SA (XMAD:AMS) increased its bad debt provision due to the COVID-19 crisis, impacting its financial performance.
Welcome to the Amadeus First Quarter 2020 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'm now pleased to hand over to you, Mr. Luis Maroto, President and CEO of Amadeus. Please go ahead, sir. Thank you.
Good afternoon, ladies and gentlemen, and welcome to our first quarter results presentation. Thank you very much again for joining us today. As always, I'm here with Ana that will walk you through the details of our financial performance, and I will focus on our most relevant developments.
Before we get started with our quarter 1 performance overview, I would like to make a few remarks on the current market context. As you know, the COVID-19 pandemic has advanced through the quarter and progressively impacted more regions. In January, the GDS industry had a good start. However, after the closing of Wuhan, we saw a decline in APAC bookings
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