Spain's Amadeus beats profit forecast, says on track for full-year
Adds share move, Amadeus comment from call, analyst comment
By Mia Amaral and Javi West Larrañaga
Nov 7 (Reuters) -Spanish travel booking group Amadeus AMA.MC reported a bigger-than-expected 9.3% jump in third-quarter profit on Thursday after strong summer demand and said it was on track to meet its full-year forecast.
Amadeus has benefited from a rebound in global travel since the end of the COVID-19 pandemic, but unlike other Spanish tourism-related companies eDreams EDRE.MC, Aena AENA.MC and Melia MEL.MC, its shares have not recovered.
Shares in Amadeus were up 0.5% in afternoon trading, after rising as much as 2.3% earlier in the day.
"We expect to have a stronger Q4 than what we had in Q3", Decius Valmorbida, head of Amadeus' travel business, told analysts and investors, adding that he does not expect the Middle East situation to impact the final quarter of 2024.
Amadeus' adjusted net profit for the July to September period was 344.7 million euros ($370.38 million), ahead of forecasts of 332.2 million euros an LSEG analyst poll.
The company said higher debt costs and higher income tax partly offset its business growth in the quarter but reiterated its guidance from February, when it predicted revenue growth between 11% and 14.5% for the full year.
Revenues rose 11% to 1.55 billion euros in the third-quarter, boosted by a rise in the number of bookings and an 6.4% increase in revenue per booking.
Bookings rose 4.4% in the third quarter compared to a year ago to 118 million, although still far from 155 million bookings recorded in the period in 2019, before the pandemic.
"Longer-term impacts of COVID-19 could include permanently lower business travel, we could possibly see consolidation amongst European airlines, slower long-term air traffic growth rates, and pricing renegotiations," JPMorgan said in a note.
($1 = 0.9307 euros)
Reporting by Maria Luiza Amaral, Javi West Larrañaga and Natalia Siniawski, editing by Inti Landauro and Alexander Smith
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