Q1 2025 Amadeus IT Group SA Earnings Call Transcript
Key Points
- Amadeus IT Group SA (AMADF) reported a 9% increase in group revenue for Q1 2025, with operating income and adjusted operating income both increasing by 10%.
- The company generated EUR 262 million in free cash flow during the quarter, maintaining a leverage ratio of 0.8 times net debt to last 12 months EBITDA.
- Air Distribution revenue grew by 8%, with bookings processed through the Amadeus platform experiencing year-on-year growth of around 3% and revenue per booking advancing by 5%.
- IT Solutions revenue increased by 11%, supported by a 6% growth in Amadeus passengers boarded and a 5% increase in revenue per passenger boarded.
- Amadeus continues to expand its leadership in Airline Distribution, with significant progress in its NDC strategy and new agreements with major airlines like Emirates, Etihad, and Indigo.
- Despite positive financial performance, Amadeus IT Group SA (AMADF) faced softer volumes than expected, with some regions underperforming due to external factors such as severe weather conditions and geopolitical events.
- The company noted macroeconomic uncertainty and high US euro exchange rate volatility, which could impact global traffic growth and financial performance.
- Amadeus' free cash flow in Q1 2025 was down 22% compared to the previous year, attributed to increased CapEx, higher working capital outflow, taxes, and interest paid.
- The company faces challenges in the US market, which is currently experiencing softness, impacting overall industry performance.
- Amadeus' Hospitality and Other Solutions segment reported softer growth in Digital Media due to a reduction in customers' media spend.
Good morning, ladies and gentlemen. Welcome to Amadeus Q1 2025 results conference call. (Operator Instructions) This call is being recorded on Thursday, May 8, 2025.
I would now like to turn the conference over to Luis Maroto, President and CEO of Amadeus. Please go ahead.
Good afternoon. Welcome to our first quarter '25 results presentation. Thank you for joining us today.
Our business heads, Decius and Paco are here, too, and they will be covering our business overviews. I will first recap on the quarter's performance and its key developments, and then I will also update you on our views for '25. Our new CFO, Caroline Borg, joined Amadeus earlier this week and he's here with us today as well.
Hello, everyone. My name is Caroline Borg, and I'm delighted to be here today and to have joined Amadeus, a highly unique tech player and a leading specialist in
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