Amadeus Surpasses Expectations with Strong Q4 Earnings
Feb 27 (Reuters) - Spanish travel technology company Amadeus reported a fourth-quarter core profit above market expectations on Friday, as revenue grew across its business lines.
Amadeus, which operates the world's largest travel booking system, said its three businesses delivered revenue growth in the fourth quarter against a difficult economic backdrop, and that its revenue per passenger was supported by customers buying additional solutions from them.
Amadeus' Financial Performance and Strategic Moves
"Amadeus once again delivered on its outlook while navigating a demanding macro environment," CEO Luis Maroto said in the earnings statement.
The company's adjusted earnings before interest, taxes, depreciation and amortisation reached 577.9 million euros ($682.2 million) in the quarter, beating analysts' average estimate of 555.6 million euros, according to LSEG data.
The board has also approved a 500-million-euro buyback plan to reduce the company's share capital, it said in a separate statement.
Challenges from AI and Market Uncertainty
A recent selloff of tech companies' shares due to AI-related fears highlights an uncertain outlook for Amadeus, as it is yet unclear which companies will benefit and which ones will suffer because of the disruptive technology.
Some analysts have suggested that artificial intelligence could allow smaller competitors to create similar and cheaper solutions to those of Amadeus, which could lead to increased pricing pressure, though Amadeus' scale and market position may shield it from this.
Maroto said Amadeus was "uniquely positioned to orchestrate the AI-enabled travel ecosystem".
Stock Performance and Market Reaction
The company's shares are around 9% lower since the beginning of February, set to record their tenth month in the red over the past 12 months. They have fallen 18% so far this year.
($1 = 0.8471 euros)
(Reporting by Javi West Larrañaga and Gemma Guasch in Gdansk, editing by Milla Nissi-Prussak)
