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• Revenue Growth: Increased by 13% in the first nine months of 2024.

• EBITDA Growth: Grew by 13% with a margin expansion of 0.3 percentage points to 13.3%.

• Operating Income: Increased by 17%.

• Adjusted Profit: Grew by 17.4%.

• Free Cash Flow: Nearly EUR 1 billion generated in the first nine months.

• Leverage: Stood at 1.09 times net debt to last 12 months EBITDA.

• Air Distribution Revenue: Increased by 10% year-to-date.

• Bookings Growth: 4.4% in Q3, 3.4% year-to-date.

• Air IT Solutions Revenue: Grew by 16.2%.

• Passengers Boarded Growth: 8.8% in Q3, 12% year-to-date.

• Hospitality Solutions Revenue: Grew by 13% in the first nine months.

• CapEx: Increased by 14.4%, representing 11.4% of revenue.

• R&D Investment: Grew by 18% over prior year.

• Warning! GuruFocus has detected 3 Warning Sign with AMADF.

Release Date: November 07, 2024

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 13% increase in group revenue for the first nine months of 2024, with EBITDA and operating income both growing by 13% and 17%, respectively.

• The company achieved nearly EUR 1 billion in free cash flow generation, maintaining a leverage ratio of approximately 1 times net debt to last 12 months EBITDA.

• Amadeus IT Group SA (AMADF) saw double-digit growth across all segments, including Air Distribution, Air IT Solutions, and Hospitality & Other Solutions.

• The company is progressing well with its NDC strategy, signing agreements with major airlines like Delta, Virgin Australia, and Indigo, and aims to become a leading aggregator in NDC bookings.

• Amadeus IT Group SA (AMADF) continues to invest in technology and innovation, leveraging cloud-native architecture, AI, and data-centric capabilities to maintain a competitive advantage.

Negative Points

• The CFO executive search process is ongoing, with no concrete updates provided during the earnings call.

• The Hospitality segment's growth was slightly softer than expected due to delays in the payments business, impacting the overall revenue growth in this segment.

• Amadeus IT Group SA (AMADF) faced challenges in the North American market, with local bookings impacted by reconnections between a large OTA and several carriers.

• The company experienced delays in onboarding new customers for its payments business, particularly in the Asia Pacific region, affecting expected growth rates.

• Amadeus IT Group SA (AMADF) anticipates a moderation in revenue per booking growth into the fourth quarter, influenced by booking mix and pricing effects.