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Research Tree provides access to ongoing research coverage, media content and regulatory news on AMADEUS IT HOLDING SA-A SHS. We currently have 7 research reports from 1 professional analysts.
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AMADEUS IT HOLDING SA-A SHS
AMADEUS IT HOLDING SA-A SHS
Good key indicators
04 Nov 16
The positive trend seen in the previous quarters continued in Q3 16. The Amadeus GDS platform gained market share (+0.5pt), the Altéa platform showed satisfactory organic volume growth (+4.6%) and the group benefited from the integration of Navitaire. Q3 16 figures: Group revenue reached €1,111m (+12.5%) including that from acquired companies, mainly Navitaire which was integrated on 26 January 2016. The breakdown of revenue was as follows: €699m (+4%) in the Distribution activity,and €412m (+30.5% including Navitaire) in the IT Solutions business. EBITDA increased to €425m (+16.2%) and corresponded to a margin rate of 38.3% of revenue (+1.2pt). The improvement was related to the positive key indicators in both businesses (volume growth, pricing except for the distribution activity), the integration of Navitaire and a positive currency effect on costs. Net profit was €219m (+26%) after lower net financial expenses (€-11.3m vs €-18.2m in Q3 15) and income taxes (-8% to €71.4m). 9-months 2016: Revenue reached €3,386m (+14.2%, o/w Distribution +6.3%, IT Solutions +33%), EBITDA increased to €1,332m (+16.4%) corresponding to a margin rate of 39.3% of revenue (+0.7pt), net profit was €670m (+18.4%) taking into account the lower income tax rate (28% vs 31% reported in 9m15) due to a lower corporate tax rate in Spain and tax deductions related to non-recurring items. FCF (before net financial expenses) increased by 19% to €758m after higher capital expenditure (€429m, +9%). Investments in shares were significant (€761m) mainly due to the acquisition of Navitaire. Other cash out-flows included a lower return to shareholders (€362m, -39%) as there were share buy-backs in 2015. At 30 September 2016, net financial debt amounted to €2.04bn in the balance sheet (vs €1.61bn at year-end 2015). The covenant net financial debt (€2.05bn)/recurring-EBITDA ratio was 1.21x (vs 1.09x at year-end 2015).
Strong key indicators in both businesses
01 Aug 16
Amadeus IT Holding benefited from strong key indicators in both activities and improved its EBITDA margin in H1 16. H1 16 earnings. - Revenue reached €2,275m (+15.1% including Navitaire). Both activities grew (Distribution: +7.5% to €1,520m; IT Solutions: +34.4% to €755m including Navitaire). - EBITDA increased to €907m (+16.5%) corresponding to an improvement of the margin rate to 39.9% of revenue (+0.5pt). Excluding the positive currency effects and Navitaire, EBITDA growth was double-digit and the margin rate was rather stable. - Operating income increased to €680m (+15%) at the same pace as revenue. Cost of revenue and staff cost increased respectively by +10.2% including a positive currency effect and +15.8%. There was a strong increase in depreciation and amortisation (+20.6%) and other operating expenses (+25.7%) which included contractors’ costs, higher computing expenses (Navitaire platform hosted in the Accenture data centres) and consultancy, integration costs and M&A fees related to the acquisition. - Group net profit was €451m (+15.2%) after higher net financial expenses (€-45m vs €-25m in H1 15) due to exchange losses (€-7.3m vs €+7.3m in H1 15) and lower income tax rate (-1.5pts to 29.5%) due to the reduction in corporate tax rate in Spain. FCF (before net financial expenses) increased by 27% to €444m after an increase in capital expenditure at €288m (+14.6%). Investments in shares were significant at €768m, including the acquisition of Navitaire. Other cash out-flows included a lower return to shareholders (€173m vs €431m in H1 15 which included share buy-backs). At 30 June 2016, net financial debt amounted to €2.17bn in the balance sheet (vs €1.61bn at year-end 2015). The covenant net financial debt (€2.15bn)/recurring-EBITDA ratio was 1.31x (vs 1.09x at year-end 2015).
Growth and margin increase
05 May 16
Q1 16 earnings Revenue reached €1,120m (+13% including Navitaire since 26 January 2016), o/w €752m (+4.2%) for the Distribution activity and €369m (+37.6% including Navitaire) for the IT Solutions business. EBITDA increased to €449m (+15.2%) leading to a higher margin rate (+0.7pt to 40.1% of revenue). This margin improvement was attributable to business growth, the integration of Navitaire and positive currency effects. On a constant basis, the EBITDA margin improved. The operating income was €335m (+13.1%) and the operating margin was stable reflecting an increase in the cost of revenue at a lower pace than revenue (+8.5% to €295m), staff costs under control (+14% to €307m), higher Other operating expenses (+18% to €66.5m including integration costs, M&A fees and computing expenses related to the Navitaire platform hosted in Accenture’s data centres), higher depreciation and amortisation (+21% to €117m). Group net profit was €217m (+7%) after higher net financial expenses (€-28m vs €-1m in Q1 15) due to the funding by debt of the acquisition of Navitaire. FCF (before net financial expenses) increased by 23% to €286m after an improvement in the change of WCR and higher capital expenditure at €142m (+4%). Investments in shares were significant at €765m, including the acquisition of Navitaire. Other cash out-flows included a lower return to shareholders (€148m vs €342m in Q1 15 which included share buy-backs). At 31 March 2016, net debt amounted to €2.28bn in the balance sheet (vs €1.61bn at year-end 2015). The covenant net financial debt (€2.27bn)/recurring-EBITDA ratio was 1.43x (vs 1.09x at year-end 2015).
Good Q4 15 that ended a strong year
29 Feb 16
Amadeus IT Holding had a good year in 2015, in line with expectations. +FY2015 figures+: Revenue reached €3,913m (+14.5%) including the change in perimeter (AirIT, Itesso, Hotel SystemsPro, Pyton in 2015) and a positive currency effect. EBITDA increased to €1,465m (+12%), corresponding to 37.5% of revenue (-0.8pt). Total growth was driven by both activities: - Distribution: revenue of €2,738m (+11.5%), EBITDA of €1,177m (+8.8%), on the back of strong bookings on the GDS system (+7.7%) driven by the development in North America. - IT Solutions: revenue of €1,175m (+22.1% including the change of the perimeter), EBITDA of €761m (+16.9%) thanks to a strong increase in the number of passengers boarded (+7.5%) which determined the IT transactional revenue. Growth was driven by Asia-Pacific. Operating income increased to €1,053m (+10%) after higher ordinary depreciation and amortisation charges (higher amortisation of capitalised development expenses, investments in hardware and software acquired in the data processing centre in Erding, new equipment for office buildings in Nice and Bad Homburg). Net profit was €686m (+8.5%) after lower net financial expenses (€-51m, -10%) due to the decrease in the average cost of debt (debt refinancing in Q1 15) and higher income tax rate (+2pts to 32%). FCF increased by 9.6% to €722m (+10.5% to €659m including interest paid) after strong capex growth (+29% to €550m). FCF exceeded cash to shareholders of €598m (+89% - dividend and share buy-backs) and partly covered investments in shares (€117m). Amadeus IT Holding ended the year with higher net financial debt at €1.61bn (+11%) on the balance sheet, or 70% of total equity. The ‘covenant net debt’/'LTM covenant EBITDA' ratio decreased to 1.09x in 2015 (vs 1.32x in 2014).
Strong growth, lower margin rate
13 Nov 15
*+Q3 2015 figures+:* - Revenue reached €988m (+15.7% including a positive effect of the dollar vs the euro and a change in the perimeter). Both activities had an increase in revenue (+14% in the Distribution activity, +19.5% in the IT Solutions business). - EBITDA increased to €366m (+9.2%) and there was a significant decrease in the EBITDA margin (-2.2pts to 37% of revenue) due to negative currency effects, the acquisition cost related to Navitaire (€5.1m representing 0.5pt of revenue) and some provisions for receivables in countries with risk and for potential local tax payments. - The operating income was €270m (+9.9%) after higher depreciation/amortisation charges (€98.5m vs €91m in Q3 14). - Net profit was €174m (+7%) after a significant increase in net financial costs (€-18m vs €-8m in Q3 14) and a minor change in the income tax rate (-0.5pts to 31.0%). *+9M 2015+:* - Based on revenue of €2,965m (+14.7%), EBITDA rose to €1,144m (+10.3%), the margin rate declined by 1.5pts to 38.6% of revenue and was rather stable at constant currency and excluding the acquisition costs and the provisions for receivables and potential local tax payments. The operating result increased to €861m (+8.1%) and net profit was €565m (+9%). - FCF (post-tax) increased strongly to €634m (+19%) thanks to the improvement in the change of WCR (€+3m vs €-34m in 9M 14) and lower tax paid (-23% to €120m) and despite higher capex (+25% to €393m) reflecting the purchase of hardware for the data centre and the purchase of equipment for new buildings in Germany and France. Cash-out flows included lower investments in shares than last year (€117m vs €386m in 9M 14) considering that the acquisition of Navitaire ($830m) was still subject to customary regulatory approvals on 30 September 2015. - On 30 September 2015, net debt amounted to €1.69bn (vs €1.74bn at year-end 2014) and the net debt/EBITDA ratio was 1.2x (vs 1.32x at year-end 2014).
03 Aug 15
H1 15 earnings: Revenue reached €1,977m (+14.2% including the companies acquired during 2014 and a positive currency impact), o/w €1,415m (+11.3%) for the Distribution activity and €562m (+22.3%) for the IT Solutions business. EBITDA increased to €779m (+10.8%) and corresponded to 39.4% of revenue (-1.2pts). The operating income was €591m (+7.2%), representing 29.9% of revenue (-1.9pts). There were significant increases in cost of revenue (+18.1% including a negative currency impact, higher distribution fees and average unit incentive paid), staff costs (+18.4%) and depreciation/amortisation (+25%). Group net profit was €391m (+9.9%) after lower net financial expense (€-25m, -22%) and income tax rate (31.0%, -0.5pts). FCF (before interests/financial fees paid) increased to €350m (+7.6%) after an increase in the change of WCR (+33%), a decrease in taxes paid (-17%) and higher capex at €252m (+27%). Investments in shares were not significant (€13m vs €386m in H1 14) unlike last year which included the acquisition of Newmarket, UFIS and i:FAO. On 30 June 2015, net debt amounted to €1.67bn (vs €1.45bn at year-end 2014) in the balance sheet. The covenant net financial debt/recurring-EBITDA ratio was 1.19x (vs 1.32x at year-end 2014).
Emerging from the clouds
16 Feb 17
Rolls-Royce’s underlying performance in FY16 was ahead of both its own and market expectations. Media focus on the non-cash £4.4bn headline FX loss is missing what looks to be the basis for optimism. As the civil model starts to move from investment in engines for the A350 and A330neo into the aftermarket delivery phase over the remainder of the decade, we think cash flow is likely to improve, particularly if supported by an eventual recovery in Marine.
15 Feb 17
At the current market capitalisation of £29m, we believe the shares are significantly undervalued. We estimate that the highly profitable Maritime business is alone worth at least £40m. With net cash of £9m at end-2016, this implies that the market is currently ascribing a combined negative value of £17m to the rest of the group, which together account for c.54% of group revenues. This is very harsh given the management actions to transform TP Group to a profit-driven Tier 2 specialist services and engineering company are bearing fruits across the divisions. TPG Managed Solutions is expected to more than double its profits in 2017, while TPG Engineering and Design & Technology are on course to deliver sustainable profits from 2019. Even if we ascribe zero value to Engineering, Design & Technology and Managed Solutions, the shares are worth 9.5p a share, a 38% upside from the current share price. BUY.
Taking the bull by the horns
15 Feb 17
Avon Rubber announced this morning that CEO Rob Rennie has left and been replaced with Paul McDonald, formerly managing director of Avon’s Dairy division. This news comes as a surprise and is likely to raise some questions over the CEO and CFO transition, with the CEO only being in post for just over a year. However, the group has appointed an executive already known to many who have followed the business, and as such should be seen as a good appointment with a track record of decisiveness and getting things done.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Share & share alike
14 Feb 17
The rally in the last fortnight, highlighted in the table, reflects a continued flow of positive updates and economic news. The FTSE 250, Small cap and Fledgling indices have reached record highs. We are in the lull ahead of results for those companies with a December year end, a welter of economic data regarding the UK economy, the State of the Union address in the US on 28 February and the UK Budget on Wednesday 8 March. We will learn at that stage the latest forecasts from the Office of Budget Responsibility. As highlighted previously, the reaction to corporate updates will continue to set the tone.