Explanatory notes on the outlook for the financial year 2025

Frankfurt/Main, 20^th March 2025

The Amadeus Fire Group does not anticipate any significant improvement in the economic environment in 2025. A rapid revitalisation of the market environment is not expected.

Based on the declining earnings trend during 2024, the weak business development in the months from November 2024 to February 2025 and the continuously negative sentiment of German companies the following outlook happens.

The Amadeus Fire Group expects revenue for the financial year 2025 in a range between € 387 and € 417 million. This corresponds to an averaged decline of eight percent to the previous year 2024.

The operating EBITA* for the financial year 2025 is expected to be between € 36 and € 44 million; which would be a decline on an averaged value of around 28 percent. Based on the expectations described above, the operating EBITA* margin would be on an averaged value of around ten percent.

The Amadeus Fire Group is very well positioned in the medium term in view of the continuing shortage of skilled workers, the ongoing demographic change and the high demand for professional qualifications in a dynamically changing labour market. However, 2025 will be another challenging financial year.

The German economy has been in an unusually long phase of economic stagnation for around four years. Growth in real gross domestic product (GDP) has consistently and exclusively remained around zero since the third quarter of 2021. Industrial and export problems remain a key challenge. Uncertain geopolitical conditions, rising inflation and restrictive financing conditions are also complicating a rapid economic recovery.

The ongoing decline in employment is pressuring the labour market, with the unemployment rate rising to 6.4 percent in January 2025, following an increase to 6.0 percent in the previous month of December 2024, while demand for labour fell significantly. The number of unemployed people in Germany has reached around 3.0 million for the first time in a long period, despite a high level of employment on the other hand. Once again, the manufacturing industry and business services are particularly affected.

Targeted economic policy measures are required in order to remain competitive in the long term. These include reforms to strengthen industry, measures to secure skilled workers and investments in digitalisation and infrastructure. The German economy requires a clear economic policy strategy in order to emerge from the current stagnation and return to a more sustainable growth path.

The market opportunities for the Personnel Services segment remain generally positive in the medium term. A tight labour market for specialists and managers supports the business model of Amadeus Fire. Companies remain cautious about filling new or vacant positions, and candidates' willingness to change jobs continues to be limited. Furthermore, the conversion of inquiries into successful placements in temporary staffing and recruitment has progressively deteriorated throughout 2024. However, the downturn and declining demand due to the worsening business climate have now impacted the commercial and IT job sectors relevant to the Amadeus Fire Group.

The absolute urgency to fill a vacant position is significantly less pronounced in times of economic uncertainty. At the start of 2025, as in previous years, the amount of temporary employment contracts has decreased due to seasonal factors. As in the past, the average salaries of temporary staff are expected to increase, as are the average hourly rates. As in the previous year, the sickness rate is expected to return to normal. The ongoing decline in demand from client companies for temporary staffing, particularly towards the end of 2024, indicates an expected decrease in revenue in 2025.

In consideration of the prevailing business climate, the fundamental goal of sustainably strengthening the sales and recruitment organisation within the 22 existing locations each year, driving forward regional market penetration and continuing to improve the market position is not planned for 2025 in terms of expansion. The number of employees is expected at a lower level than in the previous year. In 2025, activities will increasingly focus on increasing the efficiency and productivity of the existing organisation.

Sales, administration and marketing costs are expected to develop largely in line with business performance in the 2025 financial year. However, as in the previous year, IT investments will remain high in 2025 in order to drive forward the improvement of systems and processes.

The constantly growing training segment can be broken down into the relevant sub-markets of publicly funded training (B2G), training for business clients (B2B) and the market for private individuals (B2C), in particular courses and degree programmes.

The publicly funded training segment (B2G) expects slight growth in 2024 following the positive revenue development, which will be driven by the further development of the training organisation and environment as well as the renewal of the learning infrastructure despite the partial restrictions in visibility on the German Federal Employment Agency's information platform. The expansion of marketing and sales activities as well as the consistent expansion of the range of courses and seminars at economically strong locations with their own training facilities, multimedia and digital training concepts are expected to gain further market share.

The corporate customer (B2B) and private self-paying customer (B2C) segments expect constant to slightly increasing revenue.

Significant investment priorities in the Training segment are also the expansion of the IT infrastructure, the development of training rooms and participant technology and the digital learning environment. The aim of the investment activities is, on the one hand, to achieve a significant increase in the quality of the training on offer for all participants and, on the other hand, to systematically improve and digitalise the training processes even further. Resources are also earmarked to launch new training products and to identify and drive forward opportunities for inorganic growth in a structured manner. The forecasted development of the Training segment is purely based on organic growth and excludes potential acquisitions.

 
* Please refer to the Annual Report 2023 on page 3 down to the first footnote for the definition of the operating EBITA
of the Amadeus Fire Group.

Publication of the 2024 consolidated financial statement on 26^th March 2025 post trading hours.
The dial-in details for the explanatory conference call on 27^th March 2025 at 08.30 a.m. CET
you’ll receive by individual invitation.


The corresponding ad-hoc announcement is published on our homepage at:


 

Contact:
Jörg Peters
Head of Investor Relations

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