EUR 100.00 For Business Accounts Only

AMADEUS: 2Q’20 RESULTS (ANÁLISIS BANCO SABADELL)

2Q'20 vs. 2Q'19 Results
Sales: € 259.5 M (-81.8% vs. -84.9% expected and -81.3% expected by the market consensus);
EBITDA: € -155.0 M (€ 593.0 M in 1H'19 vs. € -120.0 M expected and € -166.0 M expected by the market consensus);
Net Profit: € -231.0 M (€ 331.7 M in 1H'19 vs. € -259.0 M expected and € -268.0 M expected by the market consensus);
1H'20 vs. 1H'19 Results
Sales: € 1.281 Bn (-54.8% vs. -56.4% expected and -54.5% expected by the market consensus);
EBITDA: € 194.4 M (-83.7% vs. -80.8% expected and -84.6% expected by the market consensus);
Net Profit: € -89.2 M (€ 666.7 M in 1H'19 vs. € -117.2 M expected and € -126.2 M expected by the market consensus).

2Q’20 Results in line in sales and slightly better than those expected by the consensus in EBITDA (€ -155.4 M; vs. € -120 M BS(e) and € -166 M consensus), although the high dispersion complicates the comparison. By divisions, Distribution was the hardest hit, where travel bookings fell by -110.3% to negative territory given cancellations, and thus, revenues dropped by -102% to € -16 M. In IT Solutions, the fall was lower (-56%) with a strong slowdown in passengers boarded. As a whole, 2Q’20 sales fell by -81.7% (vs. -85% BS(e) and -81% consensus). EBITDA decreased by -126%, although excluding the effect of cancellations and doubtful debts as a result of Covid-19, EBITDA would fall by -109.4%.
Separately, AMS has announced a new plan to reduce recurring costs by €-250 M (~10% of EBITDA’19) in 2021 vs. 2019 (with associated implementation costs of €-200 M), additional to the current cost-saving programme of € 300 M.
Following this set of results, very much in line with expectations, we do not expect a significant reaction by the share price, which has fallen -25% vs. ES50 since the beginning of the Covid-19 crisis. BUY. Target Price: € 54.00/sh (upside 24.48%)