Amadeus recorded €3.69 billion (US$4.27 billion) in revenue in the first three quarters of the year, up 8.9 per cent, with growth seen across its three business segments namely distribution, IT solutions and new businesses.
Overall, EBITDA grew 10.1 per cent to €1.47 billion, while adjusted profit was up 14.7 per cent to €846.7 million. Financial debt at end September was €1.69 billion, compared to €1.96 billion at end December 2016.
Revenue from its distribution segment increased 7.3 per cent to €2.38 billion. Notably, travel agency air bookings grew six per cent to 434.4 million – outperforming GDS industry growth of 4.4 per cent.
Travel agency air bookings grew across all regions, with Asia-Pacific and Latin America registering higher growth levels at 11.6 per cent and 11.5 per cent respectively. As a result, travel agency air competitive position increased by 0.6 percentage points, to 43.6 per cent.
Bookings originating from Asia-Pacific made up a 18 per cent share, the second largest after Western Europe (37.8 per cent).
According to Amadeus, the positive performance was supported by an increase in volumes and average unit revenue expansion. Non-booking revenue also increased thanks to the positive contribution from search solutions, tools for corporations, advertising solutions and our payment solutions for travel agencies.
During the third quarter of 2017, Amadeus signed eight new contracts or renewals of content agreements with airlines, bringing airline agreements to a total of 29 for the first nine months of the year.
Signs of enhanced distribution capabilities going forward from the reporting period include Amadeus’ achievement of IATA’s New Distribution Capability (NDC) Level 1 certification in October. It expects to become Level 3 certified in 2018.
Turning to IT solutions, revenue grew 11.8 per cent to reach €1.30 billion. Amadeus passengers boarded totalled over 1.2 billion, representing an increase of 19.4 per cent.
Amadeus said revenue growth in this segment was driven by the positive performance of airline IT, supported by 19.4 per cent higher volumes, and the growing trend of our new businesses.
Even excluding the favourable impact of Navitaire New Skies passengers boarded, Amadeus said its airline IT business grew at a double-digit rate, fuelled by 7.8 per cent organic growth and new carrier implementations.
At the close of September, 136 airlines had signed up to Amadeus Airline Ancillary Services for the indirect channel, with 104 of them already implemented. Also, 62 airlines had contracted Amadeus Fare Families, which allows airlines to distribute branded fares, 48 of whom had implemented the solution. As of September 30, close to 70 per cent of the global air bookings processed through the Amadeus system were eligible to carry an attached ancillary service.
Meanwhile, achievements in Amadeus’ new business segment include take-up of its airport IT solutions. Baku’s Heydar Aliyev International Airport signed up for Amadeus’ full suite of airport solutions, and both Calgary International Airport and Pittsburgh International Airport contracted the Airport Operational Database and Resource Management System solutions. In September, Amadeus also announced a partnership with Off Airport Check-In Solutions to launch the world’s first ‘pop up’ check-in service.