EUR 100.00 For Business Accounts Only

AMADEUS: 3Q'19 RESULTS (ANÁLISIS BANCO SABADELL)

3Q'19 vs. 3Q'18 Results
Sales: € 1.403 Bn (+16.3% vs. +15.7% BS(e) and +14.7% consensus);
EBITDA: € 566.0 M (+11.0% vs. +11.8% BS(e) and +10.2% consensus);
Net Profit: € 323.0 M (+42.0% vs. +39.8% BS(e) and +31.9% consensus);
9M'19 vs. 9M'18 Results
Sales: € 4.236 Bn (+15.0% vs. +14.8% BS(e) and +14.5% consensus);
EBITDA: € 1.759 Bn (+10.8% vs. +11.0% BS(e) and +10.5% consensus);
Net Profit: € 989.7 M (+18.6% vs. +18.0% BS(e) and +15.9% consensus);

The company released 3Q’19 results in line with our estimates and slightly above those of the consensus in Sales. EBITDA also beat the consensus estimates, with the margin coming in at 40.4% (-1.8pp vs. 3Q’18), impacted by the integration of TravelClick. We underscore the good performance of Distribution (56% of revenues; +4.8% vs. +5.3% BS(e) and +4.1% consensus), where AMS continues to gain market share (+0.5pp) against a complicated backdrop (with agency bookings falling by -0.8% in the sector). In IT Solutions, sales grew +31.3% (vs. +30% BS(e) and +29.9% consensus), with Passengers Boarded (PB) increasing by +6.1%, and Hotels growing sharply (by double-digit rates), following the trend from previous quarters.
In short, the results underscored the company’s solid competitive position, as it has gained market share in a complicated scenario that, in our view, will continue over the next few months. This is the main risk we see in the stock in the short-term, which in addition to the little upside potential leads us to maintain our SELL recommendation. T.P. € 70.00/sh. (upside +2.07%).