Amadeus reports profit rise as global tourism climbs
Spanish travel technology company Amadeus, the world's biggest processor of travel transactions, said Thursday its profit rose due to its expanding market share and a revival in global travel.
In the third quarter of 2013, Amadeus' adjusted profit rose 8.6 percent from the same period a year earlier to 161.6 million euros ($218.2), it said in a statement.
Amadeus, which provides technology to travel companies, increased market share in airline travel agency bookings to 39.7 percent in the third quarter from 37.7 percent a year earlier.
The Madrid-listed company, set up by European airlines in 1987 to create a computer reservations system shared by the parent carriers and travel agents, saw bookings on its system by low-cost carriers rise 18 percent during the third quarter.
"Distribution continues to benefit from pockets of growth, supporting our market share expansion, with gains in North America through a large online travel agency deal in addition to our increased activity in the low-cost carrier segment," said Amadeus CEO Luis Maroto.
During the first nine months of the year Amadeus' adjusted profit rose 6.3 percent to 511.2 million euros while its revenues rose 5.8 percent to 2.26 billion euros.
The net profit was adjusted to strip out the impact of one-off items related to the sale of assets and equity investments.
The company cut net financial debt to 1.29 billion euros by the end of September, compared to 1.49 billion euros a year earlier.
The rise in Amadeus' net profit comes as international tourism has climbed this year, driven by strong results in Europe and Asia.
International tourist arrivals reached 747 million worldwide between January and August, a five percent increase over the same period last year, according to the United Nation's World Tourism Organisation.
© 2013 AFP