Slight increase in revenue and operating gross profit of the Amadeus Fire Group after nine months in 2024

Frankfurt/Main, 23 October 2024

The Amadeus Fire Group increased the consolidated revenue for fiscal year 2024 by 1.9 percent to € 337.7 million at the end of September (previous year: € 331.5 million). Operating gross profit increased by 0.6 percent to € 184.5 million after nine months (previous year: € 183.4 million) despite the persistent recessionary trend in the German economy. This results in an approximately constant gross profit margin of 54.6 percent (9-month period 2023: 55.3 percent).

Economic development in Germany in the third quarter of 2024 was below general forecasts. An economic recovery remains unlikely in the fourth quarter of the year, so 2024 will be a further year of recession.

Despite the persistent shortage of skilled labour, the decrease in corporate demand resulting from the weak economic conditions had a noticeable impact on business development in the Personnel Services segment. The ongoing increase in revenue from interim/project management mitigates the decline in current revenue from temporary staffing and permanent placement, but is only able to compensate for this in part.

The Amadeus Fire Group generated operating EBITA* of € 46.4 million in the first nine months of the 2024 fiscal year, roughly 14.8 percent below the same period of the previous year. This results in an operating EBITA* margin of 13.8 percent (9-month period of 2023: 16.4 percent).

Earnings per share, based on the profit for the period attributable to ordinary shareholders of the parent company, amounted to € 4.79 in the first nine months of this year (previous year: € 5.67).

At € 150.7 million as of 30 September 2024, the Group's equity was slightly below the prior-year level of € 151.5 million as of 31 December 2023, but considerably above the comparable prior-year figure of € 143.3 million. The net profit for the period of € 26.4 million earned by
30 September 2024 was contrasted by the dividend payment of € 27.2 million implemented in May. This resulted in a slight increase in the equity ratio from 44.2% at year-end 2023 to currently 45.0% (comparable prior-year figure: 40.5%) due to the slight decrease in total assets as of 30 September 2024.

Personnel Services segment
In recent years, the shortage of skilled labour has established itself as the main driver of the personnel services market in Germany. However, the ongoing economic weakness and the unusually negative assessment of the business situation by companies are currently acting in the opposite direction. The economic downturn and decline in demand has impacted the commercial and IT professions relevant to the Amadeus Fire Group. Companies are noticeably reluctant to fill vacancies or new positions. The willingness of candidates to change jobs is also noticeably more restrained than in previous years. Segment revenue of € 208.9 million after nine months (previous year: € 218.2 million) was -4.3 percent down on the previous year. Segment gross profit decreased by -7.4 percent to € 104.3 million (previous year: € 112.6 million). The segment's operating gross profit margin fell accordingly to 49.9 percent (previous year: 51.6 percent).

The segment result for personnel services was noticeably affected by the economic development and, with an operating EBITA* of € 29.1 million, was -24.7 percent below the previous year's figure of € 38.7 million. In addition to the effects on gross profit, the operating result was also negatively impacted by the planned and necessary increase in expenses for digitalisation and software projects. Investments in the digital transformation and in the future viability of business applications will continue in the upcoming quarters.

Training segment
The measures implemented in 2023 to stimulate business had a significant positive impact, with the number of participants in training programmes significantly exceeding the previous year's level again after three quarters. The revenue for this segment increased significantly by 13.6 percent to € 129.1 million in the first nine months of 2024 (previous year: € 113.7 million). The significant 13.0% increase in gross profit to € 80.4 million (previous year: € 71.2 million) resulted in an approximately constant gross profit margin for the segment of 62.3% (previous year: 62.6%) despite increased expenses in teaching and other measures to improve the training organisation.

The ongoing growth resulted in a significant increase of 9.6 percent in the segment result for training with an operating EBITA* of € 17.3 million (previous year: € 15.8 million). Higher IT expenses for the modern infrastructure required and for a digital learning platform also had a negative impact on earnings in the Training segment.

Outlook 2024
According to recent forecasts, the currently noticeably weak economy is not likely to gradually recover and gain momentum until 2025 at the earliest. No positive change in the situation is expected in the fourth quarter of 2024. Inflation rates are expected to return to a moderate level. In general, however, forecasts are still influenced by numerous factors and actual developments are difficult to predict.

The earnings generated in the Personnel Services segment are significantly below the original plans, with the result the segment targets set at the end of the year are currently not expected to be achieved. As there are currently no signs of a market recovery, the Executive Board assumes that the recessionary trend will remain unchanged for the rest of the year.

In the Training segment, the earnings are within the own expectations, but a strained enquiry situation in the field of publicly funded training is limiting accelerated growth.

The Amadeus Fire Group was unable to fulfil internal expectations in the first nine months of 2024. The ongoing deterioration in the recessionary assessment of the corporate environment in the third quarter and the market impact were more severe than expected several months ago. As a result of the continuing pessimistic expectations and no sign of an economic upturn in the short term, the Executive Board's earnings expectations for the second half of the year have decreased once again. After the end of the third quarter of 2024, the Executive Board expects to achieve consolidated operating EBITA* in the range of € 58 million by the end of 2024.

* Definition of operating EBITA Amadeus Fire Group: Result from operating activities before goodwill amortisation and amortisation of intangible assets from the purchase price allocation and before effects from the measurement of the purchase price liability of the non-controlling interests in Amadeus FiRe Weiterbildung Verwaltungs GmbH.

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

Contact:
Jörg Peters
Head of Investor Relations
jpeters@amadeus-fire.de
+49 69 96 87 61 80