Half Year 2021 Amadeus IT Group SA Earnings Call Transcript
Key Points
- Amadeus IT Group SA (XMAD:AMS) reported a positive trend in adjusted profit loss, showing improvement from the prior quarter.
- The company achieved a fixed cost reduction of EUR 168 million compared to 2020, demonstrating effective cost optimization efforts.
- Distribution revenue showed progress, declining by 66.4% versus 2019, an improvement from the 77% decline in the first quarter.
- The company signed 16 new contracts or renewals of distribution agreements with airlines, including Virgin Australia, indicating strong commercial momentum.
- Amadeus IT Group SA (XMAD:AMS) continues to see commercial momentum and positive engagement with existing and potential new customers.
- Group revenue declined by 56% in the second quarter of 2021 relative to 2019, reflecting ongoing challenges.
- Free cash flow performance amounted to a EUR 79 million cash outflow in the second quarter, impacted by unexpected working capital effects.
- Travel agency air bookings declined by 67.6% in the quarter compared to the same period in 2019, indicating a slow recovery in travel demand.
- Passengers boarded contracted by 67.7% in the quarter compared to the second quarter of 2019, showing a significant drop in airline traffic.
- IT Solutions revenue decreased by 42.8% versus 2019, driven by lower PB volumes, highlighting the impact of reduced airline traffic on the company's revenue.
Welcome to the Amadeus First Half 2021 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.
Hello, everyone, and welcome to our second quarter results presentation. Thank you very much for being with us today. Till is here with me. And as usual, I will focus on our most important developments in this quarter, and Till will elaborate on the key financial aspects. So let's start with an overview of our results in the quarter.
In the second quarter of the year, our group revenue amounted to EUR 624 million, decreasing by 56% with respect to the second quarter of 2019, advancing from the evolution we saw in the first quarter. This progress is driven by improvements in our volumes evolution, coupled with cost efficiency, supported
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