Amadeus FiRe (AAD) H2 2024 earnings summary

Executive summary

• Operating margins remained above market average at 12.7% in 2024, though below historical levels, with earnings per share declining from €7.12 to €6.01 and net result dropping 21.2% to €32.8m.

• Revenue declined by 1.2% to €436.9m, with double-digit margins maintained despite economic headwinds and a challenging German business environment.

• Personnel Services segment experienced stagnation and declining earnings for the first time, while Training segment achieved revenue growth but faced margin pressure.

• Management changes included a new board member, COO appointment for Training, and a five-year contract extension for the CEO, reinforcing leadership stability.

• Dividend proposal of €4.03 per share, maintaining a two-thirds (67%) payout ratio of consolidated net profit.

Financial highlights

• Group revenue fell 1.2% year-over-year to €436.9m; operating EBITA margin at 12.7% (down from 15.9%).

• Net result for the period decreased 21.2% to €32.8m; EPS at €6.01, down from €7.12.

• Free cash flow remained stable; operating cash flow increased post-COVID and from training acquisitions.

• Dividend of €4.03 per share proposed, in line with policy to distribute 67% of net profit.

• Cash flow was impacted by a one-off tax payment of €26.7 million, reflecting accrued taxes from previous years.

Outlook and guidance

• FY 2025 revenue expected between €387m and €417m, with operating EBITA forecasted at €36m–€44m (margin ~10%).

• No significant improvement anticipated in 2025 due to ongoing economic challenges.

• Continued investment in technology and cost-saving initiatives are planned, with cautious cost management.