Half Year 2025 Amadeus IT Group SA Earnings Call Transcript
Key Points
- Amadeus IT Group SA (AMADF) reported an 8% revenue growth at constant currency, with profit growing faster than revenue.
- The company invested approximately $700 million in R&D, representing over 20% of group revenue, highlighting its commitment to future growth.
- Amadeus completed a significant cloud transformation, with 90% of applications now in the public cloud, enhancing flexibility and innovation potential.
- The company announced a strategic partnership with Google to explore AI-driven innovations, complementing its existing partnership with Microsoft.
- Amadeus signed 29 new contracts or renewals of distribution agreements in the first half, strengthening its leadership in online content distribution.
- Foreign exchange effects negatively impacted both revenue and EBIT, particularly in the second quarter.
- Free cash flow decreased by 12% compared to the previous year, attributed to increased capital expenditure and changes in working capital.
- The hospitality segment experienced a slowdown in growth, primarily due to a reduction in digital media spend by customers, especially in North America.
- Amadeus faced challenges from geopolitical situations and moderation in travel demand, impacting global traffic growth.
- The company anticipates revenue growth at the lower end of its guided range for 2025, reflecting a challenging macroeconomic and geopolitical environment.
Good day, ladies and gentlemen, and welcome to the Amadeus first half of 2025 results conference call. (Operator Instructions)
I would now like to turn the conference call over to Luis Maroto, President and CEO of Amadeus. Please go ahead.
Good afternoon. Welcome to our '25 first half results presentation. Thank you for attending today.
I'm joined by our CFO, Carol Borg, who will be presenting Amadeus results for the first time. Carol has had the opportunity to meet a lot of you as part of her onboarding and is ready to address your questions.
We have made some changes to our quarterly presentation and may make some more in the future. We aim to simplify how we communicate and to ensure that the strengths of our business are clear to the broadest group of investors. To start, I will focus on our most important business developments in the period, and Carroll will elaborate on key financial aspects.
The slide 4 for our headlines in the
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