Amadeus reports revenue and profit growth for first half of 2018

Amadeus has reported increases in revenue and EBITDA for the first half of 2018, with the company optimistic for the rest of the year.

Revenue increased 4% to almost €2.5 billion with EBITDA up 8% to almost €1.1 billion and growth in adjusted profit up 6% to €607 million for the six months to June 30 year-on-year.

In the distribution division, revenue increased 2.6% to €1.6 billion, with Asia Pacific, Eastern and South Europe and North America reported as the fastest-growing regions for travel agency air bookings.

Amadeus points to its IATA NDC Level 3 certification as an aggregator as one of the highlights of the past six months and says it is also working, via its NDC-X initiative, to connect to the Qantas Distribution Platform to deliver NDC content to travel intermediaries

In a call to discuss the financial report with analysts, CEO Luis Maroto says, “NDC is part of the evolution of Amadeus’ travel platform, which will bring together all relevant content… from any source… to be distributed via any user interface or device.”

The company also says 116 airlines are now using its airline ancillaries technology, while 60 carriers have implemented using its fare families technology.

Within the IT Solutions business, revenue was up almost 7% to €914 million with an 18% increase in passengers boarded compared with the first six months of 2017.

Amadeus attributes the passenger increase to 2017 migrations and organic growth.

In its new business division (airports, hospitality and rail), Amadeus says the roll-out of the Guest Reservation System with InterContinental Hotels Group is progressing with more than half of properties now migrated to the platform. Full roll-out is expected for later this year or early 2019.

When asked if he expects to announce another client for the Guest Reservation System before the end of the year, Maroto says, “We have a pipeline, a portfolio, but it is absolutely impossible to  tell you if any of these conversations may end in something concrete. Of course one of the objectives is to sell our solutions as we continue in the implementation phase of IHG and Premier Inn.”

Meanwhile, in the rail unit, the company is designing a flexible booking solution for Swiss Federal Railways to be used across direct online and intermediary channels as well as at stations.