Yahoo Finance

• 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.

Positive 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.

Negative Points

• 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.