Amadeus reported a total revenue of €496.7 million for the quarter.
First quarter highlights (three months ended March 31, 2021 compared to Q1 2020)
– Revenue contracted by 51.4%, to €496.7 million
– EBITDA decreased by 84.6%, to €53.7 million
– Adjusted profit contracted by 158.6%, to a loss of €83.1 million
– In Distribution, our travel agency air bookings decreased by 60.3%, to 33.8 million
– In IT Solutions, our passengers boarded declined by 66.9%, to 127.2 million
– Free Cash Flow amounted to -€11.9 million, or +€31.4 if we exclude implementation costs from the cost-saving program
– Net financial debt4 was €3,045.4 million, while liquidity available5 amounted to c.€3.8 billion at March 31, 2021
Luis Maroto, President & CEO of Amadeus, commented:
“In January, the resurgence of the pandemic brought new movement restrictions in many parts of the world. However, as vaccination programs gathered pace in certain regions throughout the quarter, we saw an uptick in air bookings and passengers boarded in March. Volume-wise it was the best performing month since February 2020. Into April, we have seen further improvement.
“Despite this, we remain cautious as we focus on delivering planned efficiencies and our on-going commercial efforts. During the quarter, we launched new solutions to support the recovery of travel, such as adding health capabilities to our Traveler ID solution, or offering new biometrics boarding at airports, simplifying processes and helping our customers comply with social distancing rules”.
“Moving forward, we expect to maintain commercial momentum. This, alongside improving traveler sentiment and the continued progression of vaccination programs around the world, should help us navigate the current situation and will hopefully translate into a more consistent and stronger recovery”.
In the first quarter of 2021, Distribution revenue declined by 57.9%, compared to the first quarter of 2020, as a result of declining booking volumes. The revenue per booking increased compared to the previous year, thanks to a positive impact from the cancellation provision (accrued for by a higher amount in 2020) and the softer contractions experienced by other revenue lines, such as from travel agency IT solutions. These positive effects helped us offset the negative impact from the higher weight of local bookings, which are recovering faster than international air traffic.
Amadeus travel agency air bookings contracted by 60.3% in the first three months of the year compared to the same period of 2020 (or by 79.2% when compared to the first quarter of 2019, a slight improvement from the performance we saw in the fourth quarter of 2020). Although booking volumes in January were impacted by the effects of heightened COVID-19 cases across regions, as the quarter advanced our air booking growth rates gradually improved each month compared to 2019.
In the first quarter of 2021, IT Solutions revenue decreased by 46.1% compared to the same period of 2020, or by 46.3% compared to the same period in 2019. This revenue contraction was softer than the decline in our airline passengers boarded (PB) volumes thanks to the softer rate of decline in other revenue lines within our portfolio, particularly those which are non-transactional (such as services, subscription-based or license-based revenues), or linked to transactions that have been less impacted by the COVID-19 pandemic (such as in Hospitality).
Corporate update: Chairman of the Board succession plan
Amadeus will appoint William Connelly as Chairman of the Board. Connelly, who has been on Amadeus’ Board since the summer of 2019 and has served as Vice Chairman of the Board since 2020, will succeed José Antonio Tazón. The change will be effective after the Amadeus General Shareholders’ Meeting in June 2021. Tazón, one of the company’s original co-founders, will be retiring having served on Amadeus’ Board of Directors since December 2008 and previously as Amadeus President and CEO for 18 years. This move marks the continuation of a wider and progressive Board renewal and succession plan which commenced back in 2017 and has seen the appointment of new independent Directors at Amadeus over the past four years. In addition to William Connelly assuming the role of Chairman of the Board, two new independent Directors, Jana Eggers and Amanda Mesler, will also join the Board, subject to the approval of the General Shareholders’ Meeting. They will replace José Antonio Tazón and Pierre-Henri Gourgeon (other external) whose term of office expires also in June 2021.
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