Half Year 2022 Amadeus IT Group SA Earnings Call Transcript
Key Points
- Amadeus IT Group SA (XMAD:AMS) saw an acceleration in travel industry recovery, with significant improvements in both international and domestic traffic.
- Revenue, EBITDA, and adjusted profit reached 83%, 84%, and 75% of pre-COVID levels, respectively, indicating strong quarter-on-quarter improvement.
- The company generated a free cash flow of EUR 182 million in Q2, with leverage decreasing to 2.2x last 12-month EBITDA, approaching pre-pandemic levels.
- Amadeus IT Group SA (XMAD:AMS) signed 8 new or renewed Air distribution agreements in Q2, totaling 29 in the first half of the year, expanding its NDC reach.
- Hospitality & Other Solutions revenue was up 94% of Q2 2019 levels, showing strong recovery and new customer implementations across its portfolio.
- Despite improvements, revenue, EBITDA, and adjusted profit are still below pre-COVID levels, indicating a full recovery has not yet been achieved.
- The company experienced a slowdown in bookings in July compared to June, driven by an increase in cancellations due to airport disruptions and supply-side frictions.
- Fixed costs in Q2 2022 were 15.5% higher compared to the same quarter last year, driven by increased R&D investment and non-R&D spend.
- The Air Distribution contribution margin, while back to 2019 levels, may face challenges due to the evolving booking mix and associated costs.
- The company is still dealing with the impact of EU travel disruptions, flight cancellations, and associated higher cancellation provisions, which could affect financial performance.
Welcome to the Amadeus Second Quarter 2022 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, everyone, and welcome to our second quarter results presentation. Thanks a lot for joining us today. I'm here with Till, as usual, I will focus on our most important developments in the quarter and Till will elaborate on the key financial aspects.
Starting with Slide 4. In the second quarter, we saw an acceleration in travel industry space of recovery. Travel restrictions continue to ease, particularly in many parts of Asia, strengthening international traffic and domestic traffic markets had significant improvements in the quarter as well. (inaudible) Amadeus operating and financial performance. In the second quarter, Amadeus revenue,
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