Amadeus IT Group (AMS) Q2 2024 earnings summary

Executive summary

• Group revenue rose 13.4% year-over-year to €3,053 million, with double-digit growth across all segments.

• EBITDA increased 15% to €1,203 million, with margin up 0.6 points to 39.4%; EBIT/operating income up 18.6% to €871 million, margin up 1.2 points to 28.5%.

• Adjusted profit grew 22% to €683 million, and adjusted EPS rose 25.8% to €1.57.

• Free cash flow reached €530.3 million, up 19.9% year-over-year excluding prior year’s non-recurring tax collection.

• Strategic progress included major contracts with British Airways, Accor, and 60 NDC airline agreements, plus continued investment in airline retailing and NDC strategy.

Financial highlights

• Group revenue up 13.4% year-over-year, with double-digit growth in all segments.

• EBITDA margin expanded to 39.4% (+0.6 p.p.), EBIT margin to 28.5% (+1.2 p.p.).

• Adjusted profit increased 22% to €683 million; adjusted EPS up 25.8% to €1.57.

• Free cash flow: €530.3 million in H1 2024, up 19.9% excluding non-recurring items.

• Net financial debt at €2,594.7 million (1.15x LTM EBITDA) as of June 30, 2024.

Outlook and guidance

• 2024 outlook confirmed, with expectations for continued segment growth and margin expansion.

• Hospitality segment revenue expected to accelerate in H2, driven by customer implementations and Voxel's contribution.

• CapEx and fixed cost growth anticipated to be higher in H2 2024.

• Free cash flow in Q3 expected to be below prior year due to working capital effects, with Q4 resuming positive growth.

• Dividend policy maintained at 40–50% payout of consolidated net profit; €1.24 per share final gross dividend approved for 2023.