The Amadeus Fire Group closed the first half of 2024 on a positive note after a weak start into the year and in a significantly challenging economic situation. Group revenue rose by 4.3 percent to € 226.1 million in the first half of the year. In the second quarter, Group operating EBITA increased by 4.7 percent compared to the previous year. At the end of the first half of 2024, however, Group operating EBITA was still 12.1 percent down on the previous year at € 28.9 million. The Training segment continued its positive development, once again significantly increasing earnings and supporting the Group result. By contrast, the specialised personnel services market, and therefore Amadeus Fire in this segment, is under noticeable pressure.

The recruitment behaviour of many client companies in the personnel services segment has declined as a result of the recessionary economic situation and negative sentiment. Candidates are also acting more carefully in their willingness to change jobs. With demand declining but remaining at an acceptable level, the positive conclusion of placement processes has been noticeably hampered compared to previous years.

With revenue of € 140.1 million for the first half of the year, the previous year was missed slightly by 1.6 percent; in the second quarter, revenue was down 0.4 percent on the previous year.

Permanent placement revenue fell by 6.9 percent in the second quarter, exactly matching the level of the first quarter. Turnover from temporary staffing services in the second quarter was 2.1 percent down on the previous year. Interim and project management services have so far been unaffected by the slowdown in recruitment successes, with another clearly positive performance (+29.3 percent in the second quarter).

Gross profit in the segment was down 4.8 percent on the previous year at the half-year mark, with an improvement in the second quarter (-2.2 percent below the previous year).

The sales organisation, which has been significantly expanded in terms of personnel by mid-2023, will essentially be maintained in 2024 with a focus on higher productivity in order to make the best use of opportunities in the expected market recovery.

The operating EBITA fell slightly by -2.6 percent in the second quarter, after -41.4 percent in the first quarter. However, the results of the Personnel Services segment remain well below our own expectations. However, taking into account the challenging economic environment and a weak industry trend, they are within an acceptable range.

The Training segment was able to continue the successful course of the first quarter as the year progressed. Revenue increased by 15.4 percent to € 86.2 million at an unchanged rate of growth at the end of the first half of the year. As at the end of the first quarter, this development is largely due to the continued strong growth in turnover from publicly funded training services. These were once again increased by around 20 percent. Turnover in the private customer market increased slightly in the first half of 2024, while turnover development with corporate customers was below the previous year's level. Segment earnings increased by 17.3 percent in the first six months.

For the remainder of 2024, no general improvement in economic development is expected. The economy could improve marginally, but the economic situation will continue to be characterised by caution and restraint on the part of the company. As a result of the persistently challenging economic situation, the Management Board is adjusting the forecast made in the 2023 annual report.

At the current point in time, the Personnel Services segment is expected to fall well short of the segment target set for the end of the year and miss the previous year's result. Although the fundamental business drivers for the Personnel Services segment are intact, a significant improvement is no longer expected for the current year. Given the current low market level, the Management Board conservatively assumes that the market will not improve at all over the remainder of the year.

In the Training segment, the results for the first half of the year exceeded our own expectations. The positive trend is expected to continue in the second half of the year

The Management Board is reducing its forecast for the 2024 financial year and is now expecting to achieve Group operating EBITA in the range of € 64 million to € 70 million after € 70 million in the previous year. The adjusted forecast is linked to the expectation of closing the second half of the year at a comparable earnings level to the second half of the previous year.

The full report is published on our website under https://group.amadeus-fire.de/en/investor-relations/financial-reports/.