Amadeus IT Group SA (AMADF) Q1 2025 Earnings Call Highlights: Strong Revenue Growth Amid Market ...
Group Revenue Growth: Increased by 9% in Q1 2025.
Operating Income Growth: Increased by 10%.
Profit Growth: Increased by 13%.
Free Cash Flow: EUR 262 million generated in the quarter.
Leverage: 0.8 times net debt to last 12 months EBITDA.
Air Distribution Revenue Growth: Increased by 8%.
Bookings Growth: Year-on-year growth of around 3%.
Revenue per Booking Growth: Increased by 5%.
IT Solutions Revenue Growth: Increased by 11%.
Passenger Boarded Growth: Increased by around 6%.
Hospitality and Other Solutions Revenue Growth: Increased by 11%.
EBITDA Margin: 38.5%, 0.4 points below prior year.
Adjusted Profit Growth: Increased by 12.3%.
Diluted Adjusted EPS Growth: Increased by 12.2%.
CapEx Growth: Increased by 30.9%, representing 12.7% of revenue.
Warning! GuruFocus has detected 4 Warning Signs with BOM:500495.
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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.
Q: Could you comment on the Distribution business outlook and your confidence in holding the guidance given the market conditions? A: Luis Maroto Camino, CEO, explained that the Distribution business is influenced by industry trends, commercial success, and pricing evolution. While industry growth is uncertain, Amadeus is confident in its commercial capabilities and pricing strategies. The top end of the guidance range would require stronger traffic recovery, but the company remains confident in its ability to meet the guidance based on current conditions.
Q: How is the sales pipeline for Nevio in the Air IT business, and are airlines more interested now? A: Decius Valmorbida, President - Travel Unit, noted that the pipeline for Nevio is accelerating, with increased interest from airlines following recent agreements with major carriers. The company expects continued interest and potential new agreements in the future.
Q: Can you provide an update on the progress of Marriott and Accor migrations to the CRS in the Hospitality segment? A: Luis Maroto Camino, CEO, stated that the migrations are progressing well. Marriott's impact will start this year with a bigger impact in 2026, while Accor will see some impact in 2026 and a larger impact in 2027. This is expected to positively accelerate the hospitality business in the latter half of the year.
Q: What measures are you considering to adjust costs in case of a downturn, and how have unexpected events impacted bookings? A: Luis Maroto Camino, CEO, mentioned that cost adjustments are considered based on revenue evolution, with a focus on protecting medium-term investments and commitments. Unexpected events like climate and geopolitical issues are difficult to predict, but the company tries to assess underlying growth excluding one-offs.
Q: How should we think about the structural improvement in pricing per booking in the long term? A: Luis Maroto Camino, CEO, explained that while recent years have seen extraordinary pricing improvements due to contract changes, future growth will depend on inflation and business mix. The company expects positive booking fee growth in the medium term, though specific effects from new negotiations may not recur.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
21 minutes ago
- Yahoo
These Return Metrics Don't Make Robert Walters (LON:RWA) Look Too Strong
Ignoring the stock price of a company, what are the underlying trends that tell us a business is past the growth phase? When we see a declining return on capital employed (ROCE) in conjunction with a declining base of capital employed, that's often how a mature business shows signs of aging. This indicates to us that the business is not only shrinking the size of its net assets, but its returns are falling as well. So after we looked into Robert Walters (LON:RWA), the trends above didn't look too great. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. The formula for this calculation on Robert Walters is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.027 = UK£5.2m ÷ (UK£356m - UK£161m) (Based on the trailing twelve months to December 2024). Thus, Robert Walters has an ROCE of 2.7%. In absolute terms, that's a low return and it also under-performs the Professional Services industry average of 17%. See our latest analysis for Robert Walters In the above chart we have measured Robert Walters' prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering Robert Walters for free. In terms of Robert Walters' historical ROCE movements, the trend doesn't inspire confidence. Unfortunately the returns on capital have diminished from the 23% that they were earning five years ago. On top of that, it's worth noting that the amount of capital employed within the business has remained relatively steady. Since returns are falling and the business has the same amount of assets employed, this can suggest it's a mature business that hasn't had much growth in the last five years. If these trends continue, we wouldn't expect Robert Walters to turn into a multi-bagger. On a separate but related note, it's important to know that Robert Walters has a current liabilities to total assets ratio of 45%, which we'd consider pretty high. This effectively means that suppliers (or short-term creditors) are funding a large portion of the business, so just be aware that this can introduce some elements of risk. Ideally we'd like to see this reduce as that would mean fewer obligations bearing risks. In the end, the trend of lower returns on the same amount of capital isn't typically an indication that we're looking at a growth stock. Investors haven't taken kindly to these developments, since the stock has declined 32% from where it was five years ago. Unless there is a shift to a more positive trajectory in these metrics, we would look elsewhere. On a separate note, we've found 1 warning sign for Robert Walters you'll probably want to know about. While Robert Walters isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
37 minutes ago
- Forbes
FC Barcelona Receives Offer For First Team Star
FC Barcelona has received an offer for one of its captains according to SPORT, which cited anonymous ... More sources. FC Barcelona has received an offer for one of its captains according to SPORT, which cited anonymous sources. The Catalans need to raise money this summer to stay on the right side of Financial Fair Play (FFP) limits and make new signings of their own. In recent months, we've seen Sporting Director Deco and President Joan Laporta secure the likes of Lamine Yamal, Pedri and Raphinha in contract renewals, while the defending La Liga champions also paid Joan Garcia's $29 million (€25 million) release clause to get him out of his Espanyol contract. Players that are surplus to requirements such as Pablo Torre and Ansu Fati have already been shortlisted, and are candidates to be loaned out with obligations to buy, or sold with buyback clauses. Ronald Araujo could be an interesting potential sale considering his own release clause drops from $1.15 billion (€1 billion) to $58 million (€50 million) for the first 10 days of July. After that, though, the Uruguayan who was strongly linked with a January switch to Juventus will go back to being worth his original price. Back to the goalkeeping position, Ter Stegen previously claimed ignorance about being sold if Garcia arrives, but that is something that the club will try to make happen. SPORT has reported on interest in Ter Stegen from the Saudi Pro League, where Neymar's former employers Al-Hilal, currently preparing to take on Real Madrid in the Club World Cup, want to make him a big name signing. Staying in Europe, however, the same newspaper says that Galatasaray has already approached the veteran and his camp, and offered Ter Stegen a deal worth $5.8 million (€5 million) a season. As for what the arrangement is worth to Barca, the Turkish club is reportedly ready to negotiate a small transfer fee or a loan with the option to buy at the end of the 2025/2026 season. With no room for Ter Stegen under Hansi Flick thanks to landing Garcia, FC Barcelona might be willing to accept a loan proposal. Though that would be merely kicking the can down the road, such a deal gets his salary off the books for the financial year and gives Barca another 12 months or so to find an alternative buyer for the 2015 Champions League winner.
Yahoo
37 minutes ago
- Yahoo
Is There Now An Opportunity In Zalando SE (ETR:ZAL)?
Zalando SE (ETR:ZAL), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the XTRA over the last few months, increasing to €35.77 at one point, and dropping to the lows of €28.50. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Zalando's current trading price of €28.50 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Zalando's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. According to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average, the stock currently looks expensive. We've used the price-to-earnings ratio in this instance because there's not enough visibility to forecast its cash flows. The stock's ratio of 27.39x is currently well-above the industry average of 14x, meaning that it is trading at a more expensive price relative to its peers. But, is there another opportunity to buy low in the future? Given that Zalando's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility. Check out our latest analysis for Zalando Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. Zalando's earnings over the next few years are expected to increase by 80%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder? ZAL's optimistic future growth appears to have been factored into the current share price, with shares trading above industry price multiples. At this current price, shareholders may be asking a different question – should I sell? If you believe ZAL should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed. Are you a potential investor? If you've been keeping an eye on ZAL for a while, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the optimistic prospect is encouraging for ZAL, which means it's worth diving deeper into other factors in order to take advantage of the next price drop. Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. Luckily, you can check out what analysts are forecasting by clicking here. If you are no longer interested in Zalando, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
