Amadeus

Assets

For 2018 in Amadeus more than 16,000 people work worldwide, and the company does business in more than 190 countries of the world. The head office is in Madrid (Spain). In France the developer center, and in Germany – a data processing center is located. Customer service is performed by means of Amadeus regional offices in 70 countries.

The business model of the company is based on transaction processing which volume in 2009 exceeded 670 million.

For 2010 Amadeus Altea Inventory is a key component of a complex of solutions Altéa and is used by about 100 airlines worldwide.

Performance Indicators

2018: Among the largest IT companies of Europe

Data for 2018

History

2020: Investments into the developer of technologies for pilotless cars of Five AI

On March 4, 2020 it became known that the Sistema VC venture fund (one of AFK "Sistema" funds) and group of the international investors invested $41 million in Five AI. The number of those who invested in the British startup included Trustbridge Partners, Direct Line Group, Lakestar, Amadeus Capital Partners, Kindred Capital and Notion Capital. Read more here.

2017: Global failure

On September 28, 2017 there was a delay of flights because of failure in work of the software of Amadeus company worldwide.

According to Bloomberg news agency, a problem concerned the largest airlines, including British Airways, Deutsche Lufthansa AG, Cathay Pacific Airways and Qantas Airways.

The airport in Melbourne during computer failure, on September 28, 2017.

The Singapore   airport Changi  through official Twitter blog reported that technical failures led to a delay of process of registration of passengers therefore boarding passes had to be issued manually.

Fault caused big queues at the London Heathrow airports and Gatvik. Failure also affected air harbors in Paris, Zurich, Melbourne, Johannesburg (Republic of South Africa) and Washington.

The airport in Tokyo during computer failure, on September 28, 2017.

Amadeus confirmed incorrect work in the software and declared the following:

Amadeus confirms that this morning we faced a network problem which broke work of some of our systems.

The company took urgent measures for determination of the reason of malfunctions, and work of services is gradually recovered, says Amadeus. At the same time the company did not specify problem scale.

Failure occurred in a global booking system of flights Amadeus Altea which, according to information from the website of the producer, more than 130 airlines use worldwide.

The airports in Frankfurt, Paris and Zurich reported that incorrect functioning of computer systems lasted not for long. The Southwest Airlines also said that the problem which affected several American airports was solved in short terms and long delays of runs managed to be avoided. Passengers wrote in social networks that the computer system did not work nearly two hours.^[1]

2015: Growth of revenue to 3.91 billion euros (+14%)

• Revenue grew by 14.5% and made 3,912.7 million euros.
• The profit before taxes, percent, wear and depreciation (EBITDA) increased by 12.2% and was 1,465.4 million euros.
• In a distribution segment the total volume of armorings of air tickets by travel agencies grew by 8.3% and was 505.0 million.
• In a segment of IT solutions the number of the passengers (Passengers Boarded) registered on run increased by 7.5% and reached digit in 747.3 million people.

The consolidated net financial debt made €1,611.6 million as of December 31, 2015. Thus, the coefficient of the relation of a net debt to EBITDA for the last 12 months is equal 1.09 (taking into account a covenant indicator), or approximately 1.56 taking into account Navitaire acquisition.

In November, 2015 Amadeus issued bonds for the amount of 500 million euros within the program of issue of medium-term eurobonds (Euro Medium Term Note Programme, EMTN) with repayment within six years, the annual coupon in the amount of 1.625% of nominal value and issue cost in the amount of 99.260% of nominal value. The received means were used including for financing of the transaction on Navitaire acquisition.

Changes of currency rates in comparison with 2014 promoted increase in positive effect of a difference of currency rates at revenue of Amadeus and at an indicator of EBITDA during 2015 and vice versa, the same factors led to reduction of profitability on EBITDA.

In December, 2015 the Board of Directors suggested to approve the ratio of payment of profit in the form of dividends in 2015 at the level of 50% (the maximum percent within the approved range). At General shareholder meeting in June, 2016 the Board of Directors will propose to approve final value of a dividend before payment of taxes at the level of 0.775 euros counting on an action, based on the published profit for 2015, thus, growth of dividends will be 10.7% of values of last year. Interim dividends in the amount of 0.34 euros for an action before payment of taxes, were paid in January, 2016.

2014: Sales growth to 3.4 billion euros

The adjusted earnings in a year, including transactions of merges and absorption, grew by 9.9% and were €681.1 million. Profit increase was promoted by increase in income by 10.1% to €3,417.7 million and increase in an indicator of EBITDA for 9.9% to €1,306.0 million.

Income increased by 10.1% to €3,417.7 million. Without acquisitions of Newmarket International, UFIS Airport Solutions and i: FAO Group comparable growth made 7.5%

The indicator of EBITDA increased by 9.9% to €1,306.0 million. Without acquisitions comparable growth was 7.7%

In a distribution segment the total number of armorings of air tickets by travel agencies increased by 5.2% to 466.5 million

In a segment of IT solutions the number of the passengers registered on run (Passengers Boarded, PB) increased by 12.9% to 695.4 million

The Amadeus company exceeded the industry average indicators of 2014 again: the volume of armorings of air tickets by travel agencies via the Amadeus system increased by 5.2% whereas the similar indicator on the industry increased by 3.2%. It, in turn, led to increase in a market share of Amadeus. As of December 31, 2014 the share of the company in global market made 40.7% that is 0.7 items more than an indicator of 2013. North America and the Pacific Rim became the most fast-growing regions in business of Amadeus that was promoted by development of the industry and increase in a market share.

Segment of IT solutions

• Income increased by 22.5%, having been €962.6 million (including transactions of merges and absorption)
• Without acquisitions income increased by 12.9% and was €887.3 million
• The number of the passengers (PB) registered on run increased by 12.9% to 695.4 million
• Growth was promoted by the implementing solutions Amadeus by airlines in 2014 and also cooperation with airlines, Amadeus connected to solutions in 2013, – including, to Asiana, Thai Airways and Garuda Indonesia. Organic growth was 3.5%

2013: Sales growth to 3.1 billion euros

• Income increased by 6.6% to €3,103.7 million
• The indicator of EBITDA increased by 7.2% to €1,188.7 million
• The adjusted earnings increased by 7.8% to €619.5 million
• In a distribution segment the total number of armorings of air tickets by travel agencies increased by 6.5% to 443.4 million against the background of steady growth in North America (+38.1%) and Latin America (+12.5%)
• In a segment of IT solutions the number of the passengers (PB) registered on run increased by 9.2% to 615.7 million, growth in the market of the Pacific Rim was 57.6%
• Amadeus actively enters the new markets, purchasing Newmarket International conducting IT provider of the hotel sector which is based in the USA for 500 million dollars

The net financial indebtedness decreased to €1,210.7 million as of December 31, 2013 (according to covenants). This indicator was 1.01kh to EBITDA for the last 12 months, having shown decrease by €284.5 million in comparison with December 31, 2012.

In December, 2013 the Board of Directors of the company expanded the current dividend policy assuming dividend payout in the range of 40 - 50% of the consolidated profit (excepting unforeseen items of expenditure). In particular, the Board of Directors proposed to increase a ratio of the paid dividends to the level of 50% for 2013 in comparison with 44.6% in 2012.

High financial performance for 2013 was also provided with the successful growth of comparable income in the fourth quarter. A total return increased by 9.5% to €741.7 million, the indicator of EBITDA increased by 9.9% to €239.7 million, and the adjusted earnings increased by 15.6%, having been €108.3 million.

2012: Sales growth to 2.91 billion euros

The adjusted earnings in a year grew by 18% and were €575.1 million. Profit increase was promoted by increase in income by 7.5% to €2910.3 million and increase in an indicator of EBITDA for 6.6% to €1,107.7 million.

Effective distribution of financial flows during the reporting period allowed to lower a net financial indebtedness as of December 31, 2012 to €1,495.2 million (according to covenants). This indicator was 1.34kh to EBITDA for the last 12 months, having shown decrease by €356.6 million in comparison with December 31, 2011, i.e. within a target ratio of EBITDA to the net debt which is earlier determined by the company in the range from 1.0kh to 1.5kh.

At the end of 2012 it will be offered to general shareholder meeting to approve the amount of dividend payouts at the level of €223.8 million (or €0.50 for an action). On January 30, 2013 intermediate payments of dividends in the amount of €0.25 for an action were performed; it is supposed what in July, 2013, after the approval by general shareholder meeting, will additional payments are performed. The ratio of the paid dividends will make 45% to profit for 2012 on operating activities, except for the activity connected with carrying out the IPO. Such approach corresponds the dividend policy approved in October, 2012 by Board of Directors assuming increase in the paid dividends up to the range of 40-45% (in relation to the year which ended on December 31, 2012 and to a subsequent period) in comparison with the range of 30-40% approved earlier.

The growing indicators are provided with growth both in a distribution segment, and in a segment of IT solutions. Income in a segment of distribution increased by 5.8% to €2,201.0 million while the total number of aviation armorings through travel agencies increased by 3.5% to 416.5 million. Amadeus share in global market of armorings of air tickets by travel agencies for complete 2012 increased by 0.9%, having made 38.6% that once again strengthened the leading positions of the company. Income in a segment of IT solutions increased by 13% to €709.4 million, and the number of the registered passengers (an indicator of PB) increased by 28.4%, up to 563.8 million. It was promoted by increase in number of the clients who performed transition to the Amadeus Altéa system up to 109. On the basis of already signed contracts the Amadeus company predicts growth of an indicator of PB to more than 800 million in 2015 that assumes growth of number of the passengers who were registered on run (PB) to 42% in comparison with an indicator of 2012.

High financial performance for 2012 was also provided with the successful growth of comparable income in the fourth quarter. Within these three months the adjusted earnings of Amadeus increased by 8.2%, having been €93.8 million; a total return increased by 4.6% to €677.2 million, and the indicator of EBITDA increased by 7.1% to €217.9 million.

2011: Louis Maroto is appointed the head of the company

Since January 01, 2011 Luis Maroto is appointed to a position of the president and CEO of Amadeus company. Maroto released David V. Jones from this duty (David V. Jones).

2010

72 representations cover 195 countries

The head office Amadeus is in Madrid (Spain). It defines the general marketing strategy, the corporate and financial directions. In Nice (France) the center of development of products, and in Erdinge (near Munich) – a data processing center is located. Regional offices of the company work in Miami, Buenos Aires, Bangkok and Dubai. Customer service is performed by means of 72 local representative offices of Amadeus in 195 countries.

Certification of IATA

On November 30, 2010 Amadeus announced that it of the first received full certification from IATA and gave to a travel to the agencies an opportunity for work with documents of the Electronic Miscellaneous Document (EMD) format. All suppliers of GDS systems should guarantee a travel to the agencies an opportunity for work with the industry standard of EMD in all markets where there are systems of settlement of ARC (Airlines Reporting Corporation) and BSP (Billing & Settlement Plan), until the end of 2013.

Amadeus became the first company in the industry which is completely supporting all possibilities of the solution. It not only replaced the existing tool with the new electronic version for document creation with separate tourist services, such as access to the VIP-hall, vouchers and other, but also having been ahead of the competitors, implemented functionality for collecting of payments for the different services directly connected with air flight such as, excess baggage or the order of a special power supply.

The Amadeus company already announced earlier the multifunction solution of EMD for airlines, having announced its implementation for Finnair on June 01, 2010. The solution allows carrier to work with EMD on the forward channels of sales. Expansion of agency network of users of Amadeus EMD on increasing number of the markets will open to airlines a possibility of distribution of wide range of products, including additional services, according to industry standards and on the channel providing to airlines the greatest profit with profitability more than 60%.

EMD, the first to functionality, will connect the agencies of Finland in the first quarter 2011. Within the same year of Amadeus plans start of EMD in 20 markets, following 70 - in 2012 and the remained 70 markets which are in the plan of Billing & Settlement Plan (BSP) - in 2013 that will allow to observe all fixed terms.

Sale of division to SoftBrands company on software development for management of hotels

In September, 2010 SoftBrands announced acquisition of division on development of systems of object management of property of Amadeus IT Group SA company. Due to this acquisition the company becomes the second in value software supplier for hotel business in the world. The CEO of division on development of systems of object management of hotel property of Amadeus Bruno de Fontaine will be a part of the management of SoftBrands and will be responsible for regional sales and transactions. The trademark of division PMS Amadeus will be combined with the SoftBrands brand.

2009: Sales of 2.46 billion euros, 9300 employees

In 2009 income of the company was €2461 million, and an indicator of EBITDA – €894 million. The company locates staff from 9,300 people worldwide representing 123 nationalities.

The Amadeus company is registered at the trade exchanges of Madrid, Barcelona and Valencia and has the character of 'AMS.MC'.

Among clients – providers (airlines, hotels, the railroads, the cruise companies and so forth), sellers (travel agencies and websites) and consumers of tourist's services (corporations and travelers). The company has wealth of experience in implementation of system migrations. Only for 2009 successful transition of 31 airlines to the Altéa platform was performed.