Amadeus IT Group will not pay a dividend in 2022

Spanish travel software giant Amadeus IT Group will not pay a dividend to shareholders for the second year in a row. Before covid-19 the company had one of the best dividend track records in Europe.

Amadeus IT Group was known for its outstanding dividend hikes, with double digit increases every year between for at least a decade through FY 2016. Because of the corona pandemic the company, hit hard by travel restrictions, did not pay a dividend for two consecutive years. On February 25, 2022, Amadeus declared that it will not pay a dividend this year.

During 2021, Amadeus has not distributed dividends. The Board of Directors approved on March 23, 2020, the cancellation of the complementary dividend amounts €320 million (€0.74 per share) initially scheduled for the General Shareholders’ Meeting of June 18, 2020. On June 18, 2020, the Ordinary General Shareholders’ Meeting of the Company approved the distribution of a final dividend against 2019 profit for the year, amounting to €0.56 per share. This dividend was paid on January 17, 2020, for a total amount of €241.4 million.

The company’s dividend policy goal is to pay-out up to a range of 40% to 50% of the consolidated net profit for the year (excluding extraordinary impacts). The amount of dividends Amadeus decides to pay, if any, and the future dividend policy will however depend on a few factors, including earnings, financial conditions, debt service obligations, cash requirements, prospects or market conditions. The amount of dividends to pay, is proposed by the Board of Directors and approved by the shareholders at General Shareholders' Meeting.

Amadeus IT Group SA from Spain is engaged in the provision of information technology (IT) services primarily for the tourism and travel industries. Business segments are Distribution and IT Solutions with activities including a worldwide computerized reservation system (CRS) used as a single point of access for booking airline seats, hotel rooms and other travel-related services by travel agencies and travel management companies and a range of technology solutions that automate core processes for travel providers. Amadeus customers include full service carriers and low-cost airlines, hotel managers, rail operators, cruise and ferry operators, travel insurers and car rental companies, among others. Amadeus operates through its subsidiaries in Europe, the Americas, Asia, Africa and Australia. Amadeus IT Group had raised its dividend 9 consecutive years before a suspension was announced because of COVID-19.