Amadeus Earnings: Solid Sales and EBITDA Despite Some Recent Direct Connections in North America

We see two key investment takeaways from narrow-moat Amadeus’ full-year 2023 results. First, the company continues to execute well, evidenced by solid 2023 sales and EBITDA results and 2024 revenue guidance. Second, it is seeing a negative near-term volume impact from recent direct connections in North America, something narrow-moat peer Sabre highlighted on its recent earnings call. This creates incremental uncertainty on the volume recovery for global distribution system, or GDS, operators. Our Amadeus fair value estimate is EUR 64.