At Amadeus, we are committed to creating value for our stakeholders. This commitment to growth and maintaining profitability is reflected in the results for 2012:
Data on the distribution of economic value provides an indication of how the company has created wealth for stakeholders. Amadeus’ distributed economic value in 2012 was a total of 2,240 million Euros.
Despite a challenging economic environment and difficulties in the travel industry, 2012 was overall a very successful year for Amadeus during which it maintained growth and further consolidated its leading position in the industry.
This growth was attributable to successful expansion across distribution and IT Solutions business lines. In Distribution, our global market share in travel agency air bookings expanded 0.9 percentage point versus 2011 to become 38.6%, helping grow revenue by 5.8%. In IT Solutions, as the number of migrated Altéa customers increased to 109 airlines, Passengers Boarded rose by 28.4% versus 2011 and revenue went up by 13%. As a proportion of revenues, 76% of revenues came from the Distribution area while 24% came from the growing IT Solutions business area.
Amadeus’ overall customer portfolio evolved significantly during the year to diversify by both product area and geography. Landmark customer wins in North America with Expedia, Southwest Airlines, and Kayak deserve special mention. So too does the fact that the number of airlines contracted for both Altéa Reservation and Altéa Inventory increased to 121, raising our estimated passengers boarded for 2015 to 800 million. In Distribution, whilst many contracts with key airlines were re-signed, we also signed many new Low Cost Carriers (LCCs) and made great progress in the growth area of ancillary services. Our new businesess unit also continued to tap into the significant growth potential for the provision of IT Solutions to rail providers, hotels and airports, with many important customer wins.
We attribute these successes directly to our leading customer offering and once again our tireless dedication to innovation remained core throughout the year, launching products such as Amadeus Featured Results and increasing total R&D investment by 20% to €414 million.