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AMADEUS: FY2019 RESULTS (ANÁLISIS BANCO SABADELL)

4Q'19 vs. 4Q'18 Results
Sales: € 1.342 Bn (+6.5% vs. +5.5% BS(e) and +6.1% consensus);
EBITDA: € 486.0 M (+7.4% vs. +8.9% BS(e) and +6.3% consensus);
Net Profit: € 280.5 M (-2.8% vs. -17.8% BS(e) and -19.9% consensus);
FY2019 vs. FY2018 Results
Sales: € 5.578 Bn (+12.8% vs. +12.6% BS(e) and +12.7% consensus);
EBITDA: € 2.245 Bn (+10.0% vs. +10.4% BS(e) and +9.8% consensus);
Net Profit: € 1.27 Bn (+13.1% vs. +9.3% BS(e) and +8.7% consensus);

The company has released FY2019 results that were in line with expectations. By divisions, we highlight that revenues in Distribution (58% sales) grew somewhat below expectations (+4.2% vs. +4.9% BS(e) and consensus) due to a flat performance in agency airline bookings, which came in far below expectations (+0% vs. +0.8% BS(e) and consensus). The EBITDA margin as of YE2019 came in at 40.3%, in line with our estimates and those of the consensus.

For 2020, AMS has given the following guidance (pre coronavirus): (i) medium/high single-digit growth in revenues (vs. +4% BS(e) and +5.4% consensus), and (ii) medium/high single-digit growth in EBITDA (vs. +4.5% BS(e) and +6% consensus). With respect to the coronavirus, the company has confirmed that its business is slowing down for this reason, considering that it is too soon to determine the extent of the impact.

The fact that results came in below expectations and that the guidance was slightly better than the consensus and our estimates and not including the impact from the coronavirus explain that these results will not be a driver despite the -15% correction vs. IBEX from annual highs. Conference call at 13:00 (CET), where we will pay close attention to the possible additional information on the impact from the coronavirus. SELL, T.P. € 70.00/sh. (+13.86% upside).