Analyst Note| Dan Wasiolek |
Pandemic headwinds continue to batter narrow-moat Amadeus, even as the firm begins to show signs of an impending demand recovery. Revenue was down 51.4%, to EUR 496.7 million, undershooting FactSet’s consensus of EUR 511 million, and EBITDA contracted 84.6% to EUR 53.7 million. The company reported an adjusted loss of EUR 0.18 per share, greater than consensus’s projected adjusted loss of EUR 0.11 per share. However, management indicated that March and April were the best performing months since the beginning of the pandemic in terms of bookings, and we still believe Amadeus’ revenue can near 2019 levels by 2023. As a result, we don’t plan material changes to Amadeus’ EUR 52 fair value estimate and see shares as overvalued.