First of all, of course, one has to look at the investments Amadeus has made in research and development in technology. In order to remain a leader in its sector, the group must indeed offer innovative services that meet the needs of its customers.
It will of course be necessary to follow the transport sector very closely, particularly air transport. It should be remembered that most of the company's turnover comes from these activities and a crisis such as the one experienced during the pandemic could have negative consequences on its profits.
Of course, it is also necessary to take into account the strategic operations implemented by the Amadeus group, such as mergers and acquisitions, strategic partnerships or the creation of joint ventures, which can enable it to boost its activities.
The competition in this sector, although weak, is nonetheless important in the context of this fundamental analysis, and you should keep a close eye on the Sabre group, which is Amadeus' most dangerous adversary at the moment. Any news related to the latter can have an impact on the Amadeus share price.
Finally, you should of course be interested in the financial reports of the Amadeus group. Amadeus publishes its results every year and every quarter, and it is possible to compare them with analysts' expectations and with the objectives set out in the company's strategic plans.
Let's take a moment to learn more about Amadeus. In order to make a good analysis of this stock, you need to understand how the company works, what its main activities are and how it generates its income. Here is a complete presentation of this company.
Amadeus IT Group SA is a Spanish company that operates in the IT services sector and in the travel sector. Specifically, the company owns and operates the world's leading computerised online travel distribution and booking system.
The system developed by the group allows travel agencies and airline sales offices to make reservations with hotels, car rental agencies and service providers, including shipping companies, tour operators and cruise lines.
In addition to these activities, which generate most of the group's revenues, Amadeus also offers IT services and the marketing of online reservation and data flow management software.
It is also interesting to know the geographical distribution of the Amadeus Group's revenues. Indeed, the group currently generates only 2.6% of its total turnover in Spain. The rest of its turnover comes from the French market (4.7%), the rest of Europe and the Middle East and Africa (38.3%), the United States (29.4%), the rest of America (8.4%) and the Asia Pacific market (16.6%). The rest of the group's turnover comes from other countries and markets around the world and Amadeus is constantly expanding its international presence.
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In order to have a better view of the environment in which the Amadeus Group evolves, it is important to know its main competitors in its sector of activity. We now propose to discover the main players in this sector in a little more detail.
The Sabre group is undoubtedly the most important competitor of Amadeus at the moment. It offers a computerised reservation system, also known as a Global Distribution System or GDS, specialising in the air and rail passenger transport sector, but also in the hotel sector and other services related to tourism. It is thus positioned as one of the leaders in this sector along with Amadeus and Worldspan.
Another major competitor to Amedeus is the Travelport Worldwide Ltd group, which specialises in providing distribution, technology and payment solutions to the travel and tourism industry. In terms of turnover, the Travelport Group is smaller than its competitors Amadeus and Sabre Corporation in the GDS segment. However, it has gained market share by acquiring Galileo and Worldspan, which were two other players in this sector. It should be noted here that the Travelport group also offers IT services for airlines, including purchasing, ticketing and departure control.
Another competitor to Amadeus is Orbitz, which operates a travel fare aggregation website and a meta-travel search engine. It is a subsidiary of the Expedia group based in Chicago, Illinois. This company was created through a partnership between several major airlines and then owned by various entities. The group benefited from massive investments from Continental Airlines, Delta Airlines, Northwest Airlines and United Airlines and then American Airlines in order to start this project in 1999. Orbitz was then launched in June 2001.
Finally, the last major competitor of Amadeus is the IndiGo Group, which is an air transport service provider. Its services include passenger-related ancillary services such as service requests, ticket changes or cancellations, excess baggage management, lounge revenues and convenience fees, cargo services, in-flight sales, advertising, insurance products, or tours and packages.
In 2014, the Ryanair group signed a partnership with the Amadeus GSD in order to appear on its flight comparison and online booking platforms just like Lufthansa or Air France, which hold shares in the group.
In 2015, a partnership established between Amadeus and Plusgrade allowed passengers to bid on the price of seats aimed at being upgraded or not having a seat-mate.
In 2016, the Amadeus group joined forces with the Zingle company to allow hoteliers to send SMS and other instant messages to their customers in order to personalize their relationships as best as possible.
First of all, let's take a closer look at the rather positive elements regarding this share which reflect the strengths of the Amadeus group:
After learning about the strengths of the Amadeus group, take a look at its main weaknesses. The company also has some weak points which can have a negative influence on the price of its share, here are some tangible examples:
In April 2010, Amadeus went public on the Madrid financial market. Following this IPO, the Air France group was a shareholder with a 15% stake. Subsequently, i.e. in 2011, Air France will sell nearly half of its stake for nearly 500 million euros. Today, the main shareholders of Amadeus are British airlines and pension funds.
It is of course interesting to know the performance achieved by the Amadeus share over the last few years. Thus, we note that the performance of this share has been positive with + 33.57% over five years. Over the last three years, the share price has fallen by 8.75% and over one year, it has fallen by 32.79%. However, we note a return to a positive performance of 18.58% over the last three months in July 2020.
The Amadeus share is currently listed on the Bolsa de Madrid in Spain and on the Mercado Continuo. It is therefore listed continuously and during the opening hours of this financial centre. It is also known that this share is included in several major stock market indices, including the IBEX 35, the Eurostoxx 50, the Low Carbon 100 Europe and the Stoxx Spain 20.
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