Amadeus IT Group (AMS) Q3 2024 earnings summary

Executive summary

• Group revenue for the first nine months of 2024 rose 12.6% year-over-year to €4,600.6 million, with double-digit growth across all business segments and EBITDA up 13.3% to €1,806.3 million.

• Operating income increased 16.9% to €1,314.8 million, and adjusted profit grew 17.4% to €1,028.2 million, with adjusted EPS up 20.8%.

• Free cash flow reached €975.2 million, up 7.3% excluding non-recurring tax collections, and net financial debt stood at €2,511.0 million (1.09x LTM EBITDA).

• Management reaffirmed the 2024 outlook, citing robust business performance, ongoing investments in technology, and strategic airline and hospitality partnerships.

• Major acquisitions (Vision-Box, Voxel), share repurchases, and SBTi validation for GHG emissions reduction targets were completed.

Financial highlights

• Revenue: €4,600.6 million (+12.6% YoY); EBITDA: €1,806.3 million (+13.3% YoY); Operating income: €1,314.8 million (+16.9% YoY).

• Adjusted profit: €1,028.2 million (+17.4% YoY); Adjusted EPS: €2.36 (+20.8% YoY).

• Free cash flow: €975.2 million (+7.3% YoY, excl. non-recurring tax collections); CapEx: €526.1 million (+14.4% YoY).

• EBITDA margin: 39.3% (+0.3 p.p. YoY); Operating income margin: 28.6% (+1.0 p.p. YoY).

• R&D investment: €974.0 million (21.2% of revenue), up 18% YoY.

Outlook and guidance

• 2024 outlook confirmed, expecting group revenue growth of 11.0%–14.5%, margin expansion, and free cash flow of €1.20–€1.25 billion.

• Management highlights continued double-digit growth, strong free cash flow, and ongoing investments in technology and innovation.

• Hospitality & Other Solutions revenue growth expected in the low double-digit or teens range.

• EBITDA margin guidance for full year is broadly stable, with EBIT margin expected to expand.

• Revenue per booking growth expected to moderate in Q4.