Amadeus has reported positive growth for the three months ended March 31 2014 claiming its distribution business has outperformed the sector.
Highlights of Q1 include:
- A 9.1% increase in revenue to Euro 867.6 million but excluding the acquisitions Newmarket International and UFIS, growth would be 7.4%.
- EBITDA was up 8.7% to Euro 351.4 million, again 7.4% excluding the acquisitions.
- Adjusted profit increased 8.6% Euro 191.3 million.
- Revenue in the distribution business rose 6.5% to Euro 651.7 million and air travel agency bookings increased 5.3% with a particularly strong quarter in North America where bookings were up 17.6%.
- For the solutions part of the business, revenue increased 18% to Euro 215.9 million or 10.6% to Euro 202.3 excluding Newmarket and UFIS. The number of passengers boarded increased 15.8%, to 152.5 million with Asia Pacific showing the strongest growth at more than 85%.
- Consolidated net financial debt was Euro 1,534 million.
In a statement, Amadeus boss Luis Maroto highlights organic growth in both its IT solutions and distribution sides of the business. He also refers to the recent Southwest Airlines contract win to implement the Altea reservations system for the carrier.
Maroto goes on to say that growth is supported by the contribution of its recent acquisitions - hotel meetings and events technology specialist Newmarket International in December for $500 million and more recently airport solutions specialist UFIS in February.
Last month, Amadeus continued its shopping spree with plans to buy corporate travel technology specialist i:FAO, subject to regulatory and shareholder approval in Germany.
Further highlights on the distribution side include the signing and extension of content agreements with 16 airlines and distribution agreements with four new low-cost carriers.
Travelport is expected to announce its Q1 results later today.