Amadeus Makes Gains in Branching Out Into Software Services
Photo Credit: An overhead view of Madrid's international airport, near the headquarters of Amadeus, a software firm that helps airlines with their enterprise software needs. Amadeus reported its earnings on Thursday. Amadeus
Skift Take
Amadeus has long talked about diversifying its business, branching out from distribution into software services for hotels, airlines, and airports. But 2019 looks like it will finally be the year that the new businesses gain nearly equal importance to the old ones.
Travel technology giant Amadeus is best-known for helping airlines distribute their airfares to travel agencies. However, its newer software services for travel suppliers are growing overall about three times as fast. It looks like 2019 will be the year the newer software services gain nearly equal weight with the classic distributor business in their contributions to the company.
On Thursday, Amadeus reported full-year 2018 revenues of $5.61 billion (€4.93 billion), a rise of 6.4 percent year-over-year. That figure includes the transaction costs and revenue gains related to its buying hotel solutions provider TravelClick last year.
Excluding TravelClick, Amadeus generated $5.53 billion (€4.85 billion) in revenue.
Of that, the company's information technology business unit, called IT Solutions, generated $2.1 billion (€1.85 billion) in revenue, or 38 percent of total revenue.
