Amadeus will consider acquiring Travel Tech next year

Amadeus It said Friday it was in a strong financial position to consider acquisitions despite the crisis, an extraordinary revelation despite the pandemic’s current buying prospects.

During a revenue call on Friday, a Madrid-based travel technology company said it would shop for businesses. Concerns that the debt-to-value ratio will be exceeded will not prevent the business from acquiring if the deal can be justified if it encourages long-term growth.

Indicates that Amadeus is positive about his ability to weather the changing storm of the coronavirus pandemic.

The main headwind price to close the acquisition right now, Maroto said. Despite the epidemic the company’s selling prices were high. This makes it a ploy for the company to find bargains with a high potential to create growth.

“Independently we could not find anything to tell you today, prices are still very high despite the crisis,” said President and CEO Luis Maroto.

“Coefficients are high on company values,” Maroto said. “So if we go ahead with any M&A, we have to make sure we can create value and pay the right price for it.”

Analyst found that before interest, taxes, depreciation and amortization, Amadeus had historically pushed its debt burden into revenues more than one and a half times its net debt.

“We need to find the right balance between opportunity and leverage,” he said. “If we find the right opportunity and we can justify it in terms of value creation, we will not wait until we reach a level [debt-to-earnings] The level of really moving forward with any acquisition. ”

Amadeus has recently focused on bridging gaps in rapidly evolving “new” business avenues such as airport IT and hotel software services.

“So will M&A be part of our future strategy and growth? The answer is yes,” said Maroto. “But we have to look for the right company at the right price.”

In it First quarter financial results Amadeus reported on Friday that the company had revenues of approximately 8,598 million (6,496.7 million). This is a significant drop from the comparable pre-pandemic first quarter of 2019, with the company generating revenue of approximately $ 7 1.57 billion (49 1.49 billion).

Amadeus reported net profit of about $ 115 million (.395.3 million) in the first quarter and approximately $ 350 million (8,298 million) in the same quarter in 2019.

Amadeus pointed out that it had lost some stake in Air Booking against rival Saber this quarter. It did not release a market share estimate for this quarter, as it did in the past when it was gaining share.

Maroto acknowledged that Amadeus had a relative weakness for its competitors in the North American air market, which had an impact on its share of the region during this period.

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