Amadeus IT Group SA (AMADF) (FY 2024) Earnings Call Highlights: Strong Financial Performance ...

In This Article:

  • Revenue Growth: 13% increase for the full year 2024.

  • EBITDA Growth: 13% increase for the full year 2024.

  • Operating Income Growth: 18% increase for the full year 2024.

  • Adjusted Profit Growth: 20% increase for the full year 2024.

  • Free Cash Flow: EUR 1.3 billion, a 16% increase versus prior year.

  • Leverage: 0.9 times EBITDA.

  • Air Distribution Revenue Growth: 11% for the full year 2024; 14% in Q4 year-on-year.

  • Bookings Growth: 9% year-on-year in Q4.

  • Air IT Solutions Revenue Growth: 16% for the full year 2024.

  • Hospitality and Other Solutions Revenue Growth: 12% for the full year 2024.

  • EBITDA Margin: 38% for the full year 2024.

  • CapEx: EUR 173 million increase, 28.9% growth, 12.5% of revenue.

  • 2025 Revenue Outlook: EUR 6.69 billion to EUR 6.94 billion, 9% to 13% growth.

  • 2025 EBITDA Outlook: EUR 2.49 billion to EUR 2.61 billion, 7% to 12% growth.

  • 2025 Free Cash Flow Outlook: EUR 1.27 billion to EUR 1.35 billion.

Release Date: February 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Amadeus IT Group SA (AMADF) reported a strong financial performance for 2024, with revenues growing by 13% and adjusted profit increasing by 20%.

  • The company achieved significant growth in its Air IT Solutions segment, with a 16% revenue increase, driven by air traffic growth and new customer implementations.

  • Amadeus IT Group SA (AMADF) is advancing its cloud transformation, with 60% of applications now activated in the public cloud, aiming for completion by early 2026.

  • The company is leveraging AI and machine learning to enhance user experience and optimize operations, integrating GenAI into its platform.

  • Amadeus IT Group SA (AMADF) announced a EUR1.3 billion share buyback program to be executed over the next 12 months, reflecting confidence in its financial position.

Negative Points

  • The company faces challenges in the gradual adoption of NDC (New Distribution Capability) content, with only 31 out of 70 agreements implemented, impacting the pace of growth.

  • Amadeus IT Group SA (AMADF) anticipates slower global traffic growth in 2025 compared to 2024, which may affect booking volumes.

  • The ongoing cloud transformation incurs non-recurring costs, impacting fixed cost growth in 2025.

  • The hospitality and other solutions segment's revenue growth is expected to be closer to the lower end of the 15% to 18% CAGR guidance due to slower-than-expected payments growth.

  • The company expects free cash flow in the first quarter of 2025 to be lower than the previous year due to higher capital expenditure and increased cash taxes.