Amadeus IT Holding, S.A. and Subsidiaries - Investor relations at ...

AMADEUS IT HOLDING, S.A. AND SUBSIDIARIES
DIRECTORS’ REPORT FOR THE YEAR ENDED DECEMBER 31, 2011
IT Solutions - Like-for-like Revenue
FY FY %
2011 2010 Change
IT transactional revenue 430.3 366.6 17.4%
Direct distribution revenue 138.4 164.6 (15.9%)
Transactional revenue 568.7 531.2 7.1%
Non transactional revenue 63.9 55.6 14.8%
Like-for-like Revenue 632.6 586.8 7.8%
IT Transactional revenue per PB (1) 0.98 0.98 0.0%
(1) Represents our IT Transactional revenue divided by the total number of PB
Transactional Revenue
IT Transactional Revenue
As shown in table 8, IT Transactional revenue increased by 17.4% in 2011 to €430.3 million
from €366.6 million in 2010. The growth in IT transactional revenue was supported by very
strong growth in all main revenue lines:
- Altéa: strong growth driven by the increase in PB (as described above)
- e-commerce: significant increase in Passenger Name Record volumes, both as a result
of organic growth and new implementations
- Stand-alone IT Solutions, mainly automatic ticket changer solutions and additional
functionality to the Altéa inventory module (such as Availability Calculator) and to the
Altéa departure control system module (such as the Self Service check-in or the Airport
link products), given the organic growth in existing customers, additional fees derived
from the implementation of new applications and new client cutovers.
Our IT transactional revenue per PB for the year 2010 was €0.98, in line with 2010: the
negative effect of the slightly lower growth rates of e-commerce and standalone IT solutions
(revenue streams which are not charged on a per PB basis and therefore do not grow in line
with PB) and the negative FX effect were offset by the increase in the Altéa average PB fee,
driven by the migrations to the Altéa DCS module and the inflation adjustment to the pricing
during the year.
Direct Distribution
Revenue from Direct Distribution fell by 15.9% in 2011 compared to 2010. This decrease in
revenue was driven by a drop in bookings as a consequence of the full year effect of the
migrations of some of our existing users of our Reservations module (notably Air France-KLM
and LOT) to, at least, the Inventory module of our Amadeus Altéa Suite in 2010. Once
migrated on to the Altéa Inventory module, these clients are charged a fee per PB, and
revenue is accounted for under IT Transactional revenue, rather than Direct Distribution. If
we do not exclude the impact of the change in the treatment of certain bookings, as explained
in the Q1 financial report, based on which the related revenue is recognised net of certain
costs in 2011, Direct Distribution revenue declined by 18.7%.
39