German-based Amadeus FiRe (AADX:GER) reported revenue today for the first quarter of 2024 of €114.8 million, an increase of 3.4% when compared to the same period a year ago.

The group said that as was the case throughout 2023, training revenue continued to develop positively. On the other hand, personnel services revenue was slightly below the previous year's level at the start of the year.

Group operating EBITA after the first quarter was 24.3 percent below a strong comparator year. The working days available in the quarter were less than in the previous year, the group noted.

The first national Easter holiday week this year was also in the first quarter, with traditionally significantly lower business activities. Despite these effects, the operating EBITA of the Training segment exceeded the first quarter of the previous year. By contrast, the Personnel Services segment fell below the previous year's result.

The consolidated net income for the period as of March 2024 was €9.1 million (previous year: €11.9 million).

Amadeus FiRe said consolidated revenue in the first quarter slightly exceeded forecasts. However, overall, the Amadeus FiRe Group's earnings performance in the first three months of 2024 was slightly below expectations.

Personnel Services segment revenue

In the first three months of 2024, the Personnel Services segment was unable to match the previous year's quarter. This was due to the noticeable economic decline and a lower number of billable days. The early Easter date also had a negative impact on revenue and gross profit.

The downward trend in temporary staffing services is in accordance with current industry trends. The number of billable days has a significant impact on revenue and gross profit in temporary staffing services. Year-on-year, there were two billable days fewer in the first quarter of 2024, resulting in a negative effect on revenue, gross profit and earnings before taxes of around € 1.4 million.

In general, the demand for personnel services remains high due to the noticeable shortage of skilled labour. The customer requests recorded were approximately at the previous year's level. However, the economic trend is resulting in increased uncertainty in the recruitment processes for temporary staffing and permanent placement services and a decline in the willingness of companies to hire new staff, as well as a decreasing willingness of candidates to leave the company. This results in a lower conversion rate of enquiries into orders.

Training segment

Publicly funded training developed positively over the first quarter of 2024. In the first quarter of 2024, the market volume for publicly funded training was significantly above the previous year's level, the group noted. In addition to the positive general market trend in publicly funded training, this development is due to the expansion of Comcave and GFN's market position through an extended network of locations and the expansion of the product portfolio. Revenue growth in publicly funded training was in excess of 20%.

Courses and seminars for private customers in the first three months of 2024, saw slight growth. The different types of training available ensure access to broad customer groups while maintaining attractive margin structures. Training revenue with corporate clients was slightly below the previous year's level in the first quarter of 2024. Overall, revenue at Steuer-Fachschule Dr Endriss increased slightly by 0.6 percent compared to the previous year.

Outlook

In 2024, the focus will be on increasing productivity and the associated improvement in the profit situation.

For the remaining course of 2024, there is no general trend reversal to be expected in terms of economic development. A slight recovery is only expected to occur in the second half of the year. “The dominant shortage of skilled labour continues to stand in the way of economic development. Nevertheless, the trend is still characterised by considerable insecurity,” the group stated.

For the year as a whole the management board expects the Amadeus FiRe Group to generate revenue of €470 to €500 million, which corresponds to growth of 6 to 13%. Operating EBITA is expected to increase by 5% to 14% to between €74 and €80 million.

Amadeus FiRe shares last traded at €117.80, up 0.86% on the day and 16.17% above the 52-week low of €101.40 set on 25 September 2023. The company has a market cap of €634.48 million.