Amadeus (AMS) Q3 2024 earnings summary

Executive summary

• Group revenue for the first nine months of 2024 rose 13% year-over-year to €4,601 million, with double-digit growth across all business segments and margin expansion.

• EBITDA increased by 13.3% to €1,806.3 million, operating income grew 17% to €1,315 million, and adjusted profit rose 17.4% to €1,028.2 million; diluted adjusted EPS up 21%.

• Free cash flow reached €975.2 million, up 7.3% excluding non-recurring tax collections; leverage stood at 1.09x net debt to EBITDA.

• Net financial debt was €2,511 million as of September 30, 2024, up €370 million from December 2023.

• Strategic initiatives included major NDC airline agreements, expansion of hospitality partnerships, and completion of Vision-Box and Voxel acquisitions.

Financial highlights

• Group revenue up 12.6% to €4,600.6 million for Jan–Sep 2024; EBITDA margin expanded to 39.3%, EBIT margin to 28.6%.

• Adjusted profit reached €1,028.2 million (+17.4%); adjusted EPS at €2.36 (+20.8%).

• Free cash flow: €975.2 million for Jan–Sep 2024 (+7.3% excluding non-recurring tax collections); CapEx: €526.1 million (+14.4% YoY).

• Net debt at €2,511 million (1.09x LTM EBITDA) as of September 30, 2024.

• R&D investment: €974 million (21.2% of revenue), up 18% YoY.

Outlook and guidance

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

• Management reaffirmed positive outlook, citing robust business performance and continued investment in technology and strategic initiatives.

• Revenue per booking growth expected to moderate in Q4; HOS revenue growth expected in the low double-digit or teens range.

• CapEx expected to accelerate in Q4, but as a percentage of revenue, growth will slow in 2025.