Amadeus FiRe (AAD) H2 2024 earnings summary

Executive summary

• The company faced a challenging macroeconomic environment in Germany, with 15 quarters of GDP stagnation and a 0.4% GDP decline in 2024, leading to a recession and increased unemployment at 6.4%.

• FY 2024 saw revenue decline by 1.2% to €436.9m and net result drop 21.2% to €32.8m, with double-digit operating margins maintained despite economic headwinds.

• Despite these headwinds, the business maintained double-digit operating margins, though both margin and earnings declined year-over-year.

• Leadership changes included the addition of a new board member, Monika Wiederhold as COO for Training, and the CEO's contract extension through 2030.

• Management expects 2025 to remain challenging with further earnings decline anticipated.

Financial highlights

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

• Earnings per share fell from €7.12 to €6.01 year-over-year; net result for the period decreased 21.2% to €32.8m.

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

• Equity ratio improved to 46.9% from 44.2% year-over-year.

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

Outlook and guidance

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

• Personnel Services segment revenue expected at €219m–€239m, EBITA €20m–€26m; Training segment revenue €168m–€178m, EBITA €16m–€18m.

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

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