Amadeus publishes first half results for 2012

Amadeus publishes first half results for 2012

Year-on-year first half highlights (six months ended June 30, 2012)
• Global market share of travel agency air bookings expanded by 1.0 percentage point
• Passengers Boarded (PB)1 lifted by 27.0% to 259.0 million
• Revenue grew 8.6%2 to €1,508.9 million
• EBITDA rose 6.1%2 to €606.9 million
• Adjusted profit3 increased 26.1% to €332.5 million
• Net debt reduced further to 1.53x last twelve month’s EBITDA

August 3, 2012 - Amadeus IT Holding, S.A. (Amadeus: “AMS.MC”), parent company of the Amadeus Group, a leading transaction processor and provider of advanced technology solutions for the global travel and tourism industry, has announced year-on-year financial and operating results for the first half of 2012 (six months ended June 30, 2012).

Adjusted profit for the first half increased 26.1% to reach €332.5 million, due principally to the substantial reduction in interest expense. This was backed by growth in revenue of 8.6% to €1,508.9 million and a 6.1% rise in EBITDA to €606.9 million. This growth record is supported by significant year-on-year growth from both the Distribution and IT Solutions businesses. Revenue in the Distribution business increased by 7.2%, rising to €1,157.4 million whilst the number of total bookings, including both air travel agency and non air bookings, improved by 4.2%, to 252.2 million. Amadeus also expanded its global market share of travel agency air bookings by 1.0 percentage point to reach 38.3%, thus further extending its leadership position. In the IT Solutions business revenue increased by 13.6%, rising to €351.4
million, and the Passengers Boarded (PB) figure was lifted by 27.0%, rising to 259.0 million.

Currently Amadeus projects over 750 million4 PB for 2014, based upon existing contracts. The financial performance for the first half of the year was backed by strong year-on-year results from both quarters. During the second quarter, Amadeus’ adjusted profit increased by
30.3%, to €164.6 million, total revenues were up by 8.8% to €744.7 million, and EBITDA rose by
6.8% to €299.7 million.

The strong cash flow generation in the period drove consolidated net financial debt down to €1,654.7 million as of June 30, 2012 (based on covenants’ definition). This represented 1.53x the last twelve months’ EBITDA and was down by €197.1 million vs. December 31, 2011. In May the European Investment Bank (EIB) granted Amadeus a €200 million senior unsecured loan with a nine year maturity for investment in R&D. Separately Amadeus also later announced the signature of a club deal with eleven banks for a €200 million revolving credit facility, with a two-and-a-half year maturity from completion date. Both facilities were signed on favourable

Luis Maroto, President & CEO of Amadeus, commented on the first half of the year: “Despite the ongoing challenges of the global economic environment, this has been a successful first half of the year and we have continued our growth record. At the financial level, year-on-year during the first half we have grown revenues by 8.6% and adjusted profit by 26.1% to €332.5 million. Once again this sustained improved performance was underpinned by growth across both our businesses: Distribution’s revenue increased 7.2%, backed by a 1.0 p.p.
expansion of global market share; whilst IT Solutions’ revenue rose 13.6%, supported by a 27.0% growth in Passengers Boarded.
“We also continued our long-term corporate financing strategy of maintaining flexibility and adequate maturities, along with cost efficiencies from diverse funding sources. In May we were granted a €200 million R&D loan from the European Investment Bank, and we also announced the signature of a €200 million revolving credit facility. We continued deleveraging to reach a net debt of 1.53x last twelve month’s EBITDA and recently Standard & Poor’s raised its outlook on Amadeus to ‘positive’.

“At an operational level, our long-term commitment to developing innovative customer-focused solutions and consolidating our global presence, has again proven successful with two landmark contracts in North America: the Altéa contract with Southwest Airlines and the Expedia contract for content and technology in North America. These were followed by further noteworthy agreements such as those with KAYAK and Hipmunk, also in North America, plus significant agreements with both SNCF and Trenitalia. “The global economic outlook remains uncertain, and air traffic and GDS volumes have shown weakness in recent months, driven by the economic environment. Nonetheless, we believe that our business model will continue to prove resilient and support good results for the second half
of this year.”


1 Passengers Boarded (PB): actual passengers boarded onto flights operated by airlines using at least the Amadeus Altéa
Reservation and Inventory modules. A PB is the key metric for charging in the Amadeus IT transactional revenue business line.
2 EBITDA adjusted to exclude extraordinary items related to the IPO. In addition, for purposes of comparability, the revenue
associated to the IT contract resolution with United Airlines in Q2 2011, as well as certain costs of migration that were incurred in
relation to this contract, have been reclassified from the Revenue and Other operating expenses captions, respectively, to the Other
income (expense) caption in the 2011 figures. The growth rates shown above take into account this reclassification.
3 Excluding after-tax impact of the following items from continuing operations: (i) amortisation of the purchase price allocation (PPA)
and impairment losses, (ii) changes in fair value and cancellation costs of financial instruments and non-operating exchange gains
(losses) and (iii) extraordinary items related to the sale of assets and equity investments, the debt refinancing, the United Airlines
contract resolution and the IPO.
4 2014 estimated annual PB calculated by applying IATA’s regional air traffic growth projections to the latest available annual PB
figures, based on public sources or internal information (if already on our platform).