Amadeus, Travelport Unveil 2015 First Quarter Results
Major travel technology and solutions providers Amadeus and Travelport have released their first quarter results, revealing details across several key performance metrics.
Amadeus reported numerous increases across several areas—including revenue and EBITDA—while Travelport revealed mixed results as 2015 continues to be a transition year for the company.
Here’s a look at each company’s results for the first quarter of 2015 (all changes compared to the first quarter of 2014).
Amadeus reported several strong figures for the first quarter of 2015.
Adjusted profit for the period grew 9.7 percent (to €209.9 million), compared to the first quarter of 2014. This was aided by increases in revenue—up 14 percent to €989.4 million—and EBITDA, up 10.9 percent to €389.6 million.
In terms of distribution, revenue jumped 10.7 percent to €721.6 million, air travel agency bookings rose 11.4 percent to 139.9 million, and market share expanded by 2.4 percentage points to 42.3 percent.
Air travel agency bookings dropped slightly in two regions (Middle East & Africa and Central, Eastern & Southern Europe), but increased in every other monitored region, including major spikes in North America (up 30 percent) and Asia & Pacific (up 49 percent).
In terms of IT solutions, revenue increased 24 percent to €267.7 million and passengers boarded rose 8.4 percent to 165.3 million.
Revenue was driven by Altea migrations and growth, airline IT upselling activity and implementation fees, a growing contribution from airport IT and payments, and contributions from the recently acquired Newmarket and UFIS, according to Amadeus.
Growth in passengers boarded can largely be attributed to Latin American and Asia and Pacific airlines (most notably, Korean Air and China Airlines). Passengers boarded jumped by 15.6 percent in Latin America, and 23 percent in the Asia and Pacific region.
InterContinental Hotels Group (IHG) also announced on April 29 that it would be partnering with Amadeus to develop a Guest Reservation System (GRS). The GRS includes a cloud-based “community model,” a first in the hotel sector (similar to the model Amadeus developed for the airline industry). It was driven by a joint study by IHG and Amadeus that examined potential technologies for the future.
Global payments provider Elavon, which was already working with more than 50 airlines around the world, will integrate its payment procession solutions into the Amadeus Payments Platform (APP). More than 300 airlines currently use the APP.
Net revenue for Travelport in the first quarter of 2015 was flat at $572 million, while revenue per segment sold increased by 2 percent to $5.73, compared to the first quarter of 2014.
Also, adjusted EBITDA fell by 9 percent, while adjusted income per share (diluted) rose from $0.05 to $0.24.
The adjusted EBITDA drop of $14 million was primarily due to lower volumes, increased expenses from acquisitions and expansion, higher non-cash pension costs and incremental public company administrative expenses, according to Travelport.
Air revenue was down by 3 percent in the first quarter of 2015, as well (to $432 million). The company experienced “good growth” in the Asia Pacific region, but lower volumes in the U.S. and Europe ultimately led to a drop.
This being said, the company expects changes in air in the second half of the year, with more than 100 airlines signed up for Travelport’s Rich Content & Branding merchandising solution (60 airlines already have content live).
On the flip side, Travelport’s Beyond Air (or non-air) results for the first quarter were strong. Net revenue increased by 14 percent (or $13 million) to $110 million, accounting for 20 percent of Travel Commerce Platform revenue. This was largely driven by continued growth in hospitality, car rental bookings and payments.
In hospitality, hospitality segments booked per 100 airline tickets (issued via Travelport’s platform) increased from 37 to 41. This was reflective of a jump in Travelport content.
Travelport’s corporate hotel booking app, Hotelzon, increased is presence in Europe to 11 countries (from four) since the company acquired it in May 2014. Booking activity through the app is expected to increase moving forward.
Travelport’s long-term distribution agreement with Accor Hotels also bodes well for the company.
Car rental bookings increased by 11 percent, year-on-year. In March 2015, Travelport recorded the highest number of car rentals in a single month in the company’s history.
In terms of payments, eNett continued progressing, with its Virtual Account Number transactions (VAN GDV) growing by 45 percent (67 percent on a constant currency basis). Net revenue for eNett also grew by 25 percent to $19 million.
During the period, it was announced that Optal Financial Limited is now the primary issuer of eNett VANs globally. This is expected to bring increase flexibility of eNett’s product capabilities.
Travelport recently appointed Steven Chambers to its Board of Directors as an independent director. Chambers has held leadership positions with ACI Worldwide, First Data Resources and—most recently—Visa Europe.
More by Ryan Rudnansky
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