Amadeus Global
Report 2022
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Amadeus Global
Report 2022
A business, financial and sustainability overview
The objective of this Global Report is to
provide a comprehensive and transparent view of Amadeus' activities, operations and performance during 2022. We've taken into consideration a broad perspective, including economic, social and environmental matters.
The PDF version of this report is | |
designed to be accessible to all users. |
It's compliant with Level AA of the current European standard EN 301 549, the Web Content Accessibility Guidelines (WCAG 2.1) and the PDF/UA standard.
For a more interactive reading of this report, visit the online version at amadeus.com/global-report-2022
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3 | Amadeus Global Report 2022 |
GRI 2-22
April 2023
Message from the
Chairman of the board
The travel industry continues to prove its resilience, providing opportunities for adventure, exploration and growth, and continuing on its journey to recovery. Restrictions were eased in 2022 and, in some cases, lifted. Volumes picked up as, increasingly, people once again began to plan family holidays and work trips. Packing a suitcase and embarking on a journey speaks to our human desire to expand our horizons.
But at the same time, new challenges impacted both the travel industry and the global economy.
There was of course first the threat then the terrible reality of war in Europe for the first time in decades. Amadeus reacted swiftly to guarantee the safety of all our people in Ukraine. Tireless efforts were made to ensure business continuity and, most importantly, the support of our teams at both the personal and professional level.
And partially as a consequence of war, the global economy faced a new risk, unknown for more than a decade: high inflation. And with it, sharp hikes in interest rates from central banks, followed by the renewed risk of decreased consumer spending and, in turn, of a global recession.
But even under these conditions, our financial strength and the measures we took during the pandemic meant that we were in a strong position to retain and attract top talent and support our customers, while continuing to invest in the future.
GRI 2-22
Packing a suitcase and embarking on a journey speaks to our human desire to expand our horizons.
Amadeus Global Report 2022 | 4 |
Late in 2022 we launched our new People & Culture strategy to ensure that Amadeus continues to be a top employer and great partner. It's thanks to the talent of our people that we continued to build trust with our customers and partners, working together to solve travel's biggest challenges and scale ideas quickly.
Today, as we look ahead, our sector has the ambitious goal of delivering on net-zero emissions by 2050; of thriving in a changing economic and geopolitical landscape; and above all, of restoring the joy of travel globally. These are big challenges. Ones that need to be addressed together, as part of a more connected world. By bringing our deep expertise to our customers and partners worldwide, we can make the experience of travel better-for everyone, everywhere.
In this report, you'll find detailed information about the journey we've been on and our path ahead. I hope you find it of interest.
William Connelly,
Chairman of the Board
Amadeus
5 | Amadeus Global Report 2022 |
GRI 2-22
April 2023
Message from the
President & CEO
The travel industry is proving that it's as resilient as ever. Demand for travel has remained strong, and over the past year we've seen travel volumes improve across all our segments quarter-on-quarter. Looking ahead, our optimism about the future is shared by international bodies, customers and travelers alike, and is fueled by our purpose: to make the experience of travel better for everyone, everywhere.
During 2022, in partnership with our customers, we worked hard to deliver on our commitments, and we reinforced our position with important customer wins across all our businesses. We continued expanding the content available for travel agencies via the Amadeus Travel Platform, and among the customers who signed up or renewed their distribution agreements with us were Lufthansa Group, Ryanair and Hopper.
In Airline IT, we welcomed new airlines to Altéa and New Skies, including Air India, ITA Airways, Iraqi Airways and Allegiant Air. We also unveiled our new airline retail offering with Finnair. In Hospitality & Other Solutions, we saw continued interest in our reservation, business intelligence and media solutions from hotels and destination management organizations (DMOs) around the globe.
The trust placed in us by all these customers is testament to the great work and commitment of our commercial teams and the unrivaled quality of our engineers. Our talented teams are what truly sets us apart. Their drive and their commitment to improving the travel experience and our industry overall is inspiring and is a continuous source of pride for me and my colleagues on the Executive Committee. Ensuring we provide them with the resources necessary to continue to innovate and develop new solutions is crucial to us. In 2022 we increased our R&D investment by almost 30% so we can continue to implement new customers; progress in strides toward the cloud and develop new solutions with Microsoft; and explore the benefits that artificial intelligence, the metaverse and many other new technologies can bring to the travel industry and the traveler experience.
GRI 2-22
Our talented teams are what truly sets us apart.
Amadeus Global Report 2022 | 6 |
This has been possible thanks to the recovery of travel volumes and their positive impact on our financials, but also thanks to the efficiency measures we took in previous years. Our focus on strengthening our financial situation remained constant throughout 2022. Our free cash flow generation was strong, and we also executed several bond redemptions to lower our debt. We're now close to our target debt/EBITDA ratio, and pending the approval of our Annual General Meeting we expect to resume shareholder remuneration this year. This is an important milestone for us. Our investors have supported us in these three years of the pandemic, and being able to give back to them again is important to us.
I would also like to thank our customers for their trust, our partners for their support and our employees for their dedication. By creating a connected, sustainable and traveler-centric ecosystem and by inspiring innovation at scale, we can power progress across the entire travel industry and continue to make the experience of travel better.
We have great plans for the future and we can't wait to see what 2023 and the years ahead bring next!
Luis Maroto,
President & CEO
Amadeus
Captions
Following global reporting trends and best practices, we've included the following marks throughout this Global Report.
GRI 000
GRI disclosure label.
Indicates that a GRI Sustainability Reporting Standards disclosure is reported on the page where the label has been placed.
Cross-references.
Further information provided in another section.
Sustainable Development Goals
These icons highlight Amadeus' specific actions contributing to key United Nations Sustainable Development Goals.
1 No poverty | 2 Zero hunger |
5 Gender equality | 6 Clean water |
and sanitation | |
9 Industry, innovation | 10 Reduced |
and infrastructure | inequalities |
13 Climate action | 14 Life below water |
17 Partnerships for | |
the goals |
3 Good health and | 4 Quality education |
well-being | |
7 Affordable and | 8 Decent work and |
clean energy | economic growth |
11 Sustainable cities | 12 Responsible |
and communities | consumption |
and production | |
15 Life on land | 16 Peace, justice and |
strong institutions |
8
Table of contents
Introduction | Business | ESG | Stakeholders | Annexes | ||||||||||
Chapter 2 | Chapter 5 | Chapter 9 | Annex 1 | |||||||||||
Business areas | 28 | Amadeus people | Shareholders and | About this report | 153 | |||||||||
and culture | 77 | financial institutions | 131 | |||||||||||
→ | Air Distribution | Annex 2 | ||||||||||||
Chapter 10 | ||||||||||||||
→ | Air IT solutions | Chapter 6 | Quantitative information | |||||||||||
→ | Travel industry outlook | → | Hospitality and | Social responsibility | 87 | Amadeus industry | and GRI Content Index | 157 | ||||||
affairs | 137 | |||||||||||||
→ | Amadeus profile | transversal solutions | ||||||||||||
Chapter 7 | Annex 3 | |||||||||||||
Chapter 11 | ||||||||||||||
Environmental | Task Force on | |||||||||||||
Chapter 3 | ||||||||||||||
sustainability | 95 | Materiality | Climate-related Financial | |||||||||||
Technology | 60 | and stakeholder | Disclosures Index | 172 | ||||||||||
Chapter 8 | engagement | 144 | ||||||||||||
Chapter 4 | Corporate governance | 110 | Annex 4 | |||||||||||
Innovation | 70 | Glossary | 177 |
9 | Introduction Business ESG Stakeholders Annexes | 01 | Amadeus profile and corporate performance | Amadeus Global Report 2022 | |
Chapter 1
Amadeus profile | In this chapter |
and corporate | Corporate performance |
Travel industry outlook | |
performance | |
Amadeus profile |
Total workforce (figures in FTEs)* | |||
19,422 | 18,077 | ||
16,779 | |||
16,433 | * Scope: all fully owned | ||
Amadeus companies. | |||
Figures in full-time | |||
equivalents (FTEs) as of | |||
December 31. FTE is the | |||
headcount converted | |||
to a full-time basis, e.g. | |||
an employee working | |||
part-time covering 80% | |||
of a full-time schedule is | |||
considered 0.8 FTE. | |||
2019 | 2020 | 2021 | 2022 |
Revenue breakdown (figures in € million)
5,570 | 2,174 | 2,670 | 4,486 |
806 | ||||
1,820 | 773 | |||
1,565 | ||||
2,944 | 539 | Caption: | ||
549 | 2,148 | Air Distribution | ||
1,069 | ||||
986 | Air IT solutions | |||
639 | 1,062 | Hospitality & | ||
transversal solutions | ||||
2019 | 2020 | 2021 | 2022 |
Travel agency air bookings* (figures in millions)
580 | |||
396 | |||
206 | |||
* Bookings processed | |||
108 | by travel agencies | ||
using Amadeus | |||
distribution platforms. | |||
2019 | 2020 | 2021 | 2022 |
EBITDA1 (figures in € million)
2,232 | |||
1,640 | |||
628 | |||
228 | |||
2019 | 2020 | 2021 | 2022 |
Passengers boarded* (figures in millions) | Adjusted profit1,2 (figures in € million) |
1,994 | |||||||
1,263 | |||||||
1,540 | |||||||
742 | |||||||
691 | 849 | * Actual passengers boarded | |||||
onto flights operated by | |||||||
airlines using at least the | 2020 | 2021 | |||||
Amadeus Altéa® Reservation | |||||||
and Inventory modules or | |||||||
Navitaire New Skies®. | -45 | ||||||
2019 | 2020 | 2021 | 2022 | 2019 | 2022 | ||
-302
Introduction Business ESG Stakeholders Annexes | 01 | Amadeus profile and corporate performance | Amadeus Global Report 2022 | 10 | |
R&D investment* (figures in € million)
1,071 | 1,017 | ||
876 | |||
787 | |||
* Gross R&D investment. | |||
2019 | 2020 | 2021 | 2022 |
Net debt evolution* (figures in € million)
3,074 | 3,049 | ||
2,758 | |||
2,285 | |||
* Net financial debt as | |||
defined by our credit | |||
facility agreements. | |||
2019 | 2020 | 2021 | 2022 |
Amadeus share structure
0.11%
Treasury shares
0.02%
Board members
99.87%
Free float
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.
Travel agency air bookings
Amadeusʼ total travel agency air bookings were 31.7% below 2019 (and up 92.0% compared to 2021). Our best-performing region in 2022 was North America, which grew by 2.9% compared to 2019, and it's now our largest region by bookings, representing 30.8% of Amadeus' total bookings.
Passengers boarded
Passengers boarded (PBs) in 2022 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
Revenue grew by 68.0% compared to 2021, driven by growth rate enhancements across our businesses, and was 19.5% below 2019. Air Distribution revenue improved by 102.3% versus 2021 revenue, and was 27.0% below 2019, driven by the lower booking volumes. Air IT Solutions revenue increased by 46.4% from 2021, representing 86.0% of 2019 revenue. Revenue per passenger boarded 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 PBs, and positive pricing partially offset by mix impacts. The revenue per PB was also impacted by positive foreign exchange effects. Hospitality & Other Solutions revenue (comprising Hospitality and Payments) decreased by 4.2% compared to 2019, impacted by the effects of the COVID-19 pandemic.
R&D investment
Gross R&D investment increased by 29% compared to 2021. Some of our most relevant projects include customer implementations, the evolution of our hospitality platform, Airline IT digitalization and enhanced shopping, retailing and merchandizing tools, and our
partnership with Microsoft, including our shift to cloud services and the application of artificial intelligence and machine learning to our product portfolio co-innovation program.
EBITDA1 and adjusted profit1,2
EBITDA amounted to €1,640.3 million, an improvement of 161.4% versus 2021, or 73.5% of 2019 levels. EBITDA evolution, relative to 2019, was driven by a 26.7% decrease in Air Distribution contribution, a 17.3% contraction in Air IT Solutions contribution, a 16.9% reduction in Hospitality & Other Solutions contribution and a 6.2% decline in net indirect costs, impacted by the €51.2 million government grant received in the second quarter of 2022.
Net debt
The main changes to our debt in 2022 included the redemption of outstanding notes issued in February 2021 for an amount of €500 million the issuance of a €500 million floating-rate note in February, increased by €250 million in April, the early redemption in February 2023 of these €750 million outstanding notes, and the amortization of €500 million bonds that reached maturity in March 2022.
- 2021 and 2020 figures adjusted to exclude costs, amounting to €28.6 million (€19.8 million post tax) in 2021, and €169.1 million (€120.9 million post tax) in 2020, related to the implementation of the cost saving program announced in 2020. Figures for 2019 include TravelClickʼs related acquisition costs.
- Excluding the after-tax impact of the following items: (1) accounting effects derived from purchase price allocation (PPA) exercises and impairment losses, (2) non-operating exchange gains (losses) and (3) other non-operating,non-recurring effects.
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Disclaimer
Amadeus IT Group SA published this content on 07 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 November 2023 12:10:59 UTC.