Luis Maroto, President & CEO of Amadeus, commented: “2022 was a strong year for Amadeus. Global air traffic continued to recover, and we had important customer wins and market share gains during the year. We remained highly focused on our investment plans, particularly to support customer implementations and advance in key strategic areas. Our financial performance strengthened considerably.
“Looking ahead, we are optimistic about the future of the travel industry and the opportunity for Amadeus. Into 2023, as volumes recover, our financial performance is expected to advance further”.
Highlights for the twelve months ended December 31, 2022
- Air Distribution bookings were 396.3 million, 92.0% over the bookings of 2021 or 68.3% of 2019 bookings.
- Air Distribution revenue was 2,147.8 million euros, an improvement of 102.3% versus 2021 revenue, or 73.0% of 2019 revenue.
- Air IT Solutions passengers boarded amounted to 1,539.5 million, 81.4% versus 2021, or 77.2% of 2019.
- Air IT Solutions revenue was 1,565.4 million euros, an increase of 46.4% from 2021, representing 86.0% of 2019 revenue.
- Hospitality & Other Solutions revenue was 772.7 million euros, an expansion of 43.5% versus 2021, or 95.8% of 2019 revenue.
- Group Revenue was 4,485.9 million euros, a 68.0% increase compared to the previous year, representing 80.5% of 2019 revenue.
- EBITDA amounted to 1,640.3 million euros, an improvement of 161.4% from 2021, or 73.5% of 2019 levels.
- Adjusted profit1 amounted to 742.2 million euros, versus a loss of 44.7 million euros in 2021, or 58.8% of 2019 levels.
- Free Cash Flow amounted to 805.0 million euros, an increase of 724% from 2021, or 834.1 million euros excluding implementation costs paid.
- Net financial debt was 2,284.5 million euros as of December 31, 2022 (1.4 times last-twelve-month EBITDA3).
Business evolution for the year
In Air Distribution, in the fourth quarter of 2022, Amadeus’ bookings were 28.3% less than in the fourth quarter of 2019. For the whole year, Amadeus’ bookings were 31.7% below 2019 (and up 92.0% compared to 2021). Our best performing region in 2022 was North America, which grew 2.9% compared to 2019, and it is now our largest region by bookings, representing 30.8% of Amadeus’ total bookings. In the year, revenue in this segment was 27.0% below 2019, due to lower booking volumes. Despite the negative effect from a higher weight of local bookings compared to 2019, in 2022 the revenue per booking increased, supported by various positive pricing effects and a positive foreign exchange impact.
In Air IT Solutions, in the fourth quarter Amadeus passengers boarded (PB) were 15.6% lower than in the same period of 2019. For 2022, PB were 22.8% below 2019. Our best performing region in the year was North America, which reported 11.1% PB volume growth compared to 2019. Revenue per PB grew in 2022 by 11.4% versus 2019, mainly due to revenue lines not linked to the PB evolution reporting healthier growth rates than airline passengers boarded, and positive pricing partially offset by mix impacts. The revenue per PB was also impacted by positive foreign exchange effects, relative to 2019. For the whole of 2022, Air IT Solutions revenue was 1,565.4 million euros, 14.0% below 2019 revenue.
Finally, in the fourth quarter Hospitality & Other Solutions revenue was 3.6% higher than in the same period of 2019. For the whole of 2022, revenue in the Hospitality & Other Solutions decreased by 4.2% compared to 2019, impacted by the effects of the COVID-19 pandemic. Within Hospitality, we registered quarter-on-quarter performance improvements compared to 2019 across all revenue lines:
- Hospitality IT delivered an enhanced performance from 2021 (compared to 2019), supported by new customer implementations and strengthening transaction growth rates.
- Media and Distribution revenues grew notably quarter-on-quarter in 2022, driven by media and booking volumes performance advances, and were above 2019 revenues in the second half of 2022.
- Business Intelligence revenue performance (versus 2019) also improved, compared to the previous year, backed by customer implementations.
- As with the other segments, Hospitality & Other Solutions revenue was impacted by positive foreign exchange effects in 2022, compared to 2019.
Shareholder remuneration
As announced during our Q3 2022 financial results presentation, we expect to resume shareholder remuneration this year. In June 2023, the Board of Directors will submit to the General Shareholders’ Meeting for approval a final gross dividend of 0.74 euros per share, representing 50% of the reported profit. Based on this, the proposed appropriation of the 2022 results included in our 2022 audited consolidated financial statements includes a total amount of 333.4 million euros corresponding to dividends pertaining to the financial year 2022.
Tags: Luis Maroto, Amadeus
