Amadeus FiRe (AAD) H1 2024 earnings summary

Executive summary

• Revenue rose 4.3% year-over-year to €226.1 million in H1 2024, driven by strong growth in the Training segment, while Personnel Services faced headwinds from a weak hiring environment.

• Operating EBITA declined 12.1% to €28.9 million, with profit for the period down 15.4% to €16.8 million, reflecting higher costs and margin pressure in Personnel Services.

• The Training segment outperformed expectations, while Personnel Services underperformed due to economic uncertainty and reduced client hiring activity.

• Management revised full-year guidance downward for Group and Personnel Services EBITA, but raised expectations for the Training segment.

Financial highlights

• Group revenue: €226.1m (+4.3% YoY); Operating EBITA: €28.9m (-12.1% YoY); Profit for the period: €16.8m (-15.4% YoY).

• Operating gross profit margin stable at 54.4% (-0.2pp YoY); Operating EBITA margin at 12.8% (-2.4pp YoY).

• Earnings per share: €3.06 (-11.3% YoY); Free cash flow: €27.6m (-18.4% YoY); Net cash from operating activities: €31.2m (-17.9% YoY).

• Equity ratio: 41.3% (down from 44.2% at year-end 2023); Leverage ratio: 1.0 (up from 0.8 at year-end 2023).

• Dividend of €5.00 per share paid in May 2024, totaling €27.2m.

Outlook and guidance

• Management expects full-year 2024 Group operating EBITA of €64–70m (vs. €70m in 2023), with Personnel Services segment results to fall short of prior targets.

• Training segment is expected to exceed previous forecasts, with continued strong demand in publicly funded training.

• Macroeconomic uncertainties and weak hiring environment are expected to persist, limiting recovery in Personnel Services.