eDreams ODIGEO Increases Profits by 28% as Top Subscribers Base 6.5 Million Members Via Investing.com

˜Prime’, the world’s first travel subscription platform, adds 1.45 million new members in just 12 months

It is on track to meet its FY25 targets: 7.25 million subscribers and over €180 million in revenue

BARCELONA, Spain–(BUSINESS WIRE)–eDreams ODIGEO (hereafter ˜eDO’, ˜the Company’ or ˜the Group’), the world’s leading travel booking company and one of Europe’s largest e-commerce companies, today released its results. for the first half of fiscal year 2025, ended 30 September 2024.

The company has continued to deliver significant growth as the world’s first and largest travel booking company. The Company’s key metrics as a subscription platform, namely the number of subscribers and revenue, all achieved strong growth in the first quarter, with core members and Cash EBITDA both growing by a significant 28%, to 6.5 million subscribers and 81.1 million Euros, respectively. As a subscription-led business, profitability is significantly driven by a growing base of long-term Prime members. Members in their second year and beyond offer a higher value, as they increasingly turn to Prime as the solution to all their travel needs.

eDO is on track to achieve its 3.5-year goals by March 2025. By the end of the current fiscal year, the Company expects to achieve 7.25 million Prime subscribers and Cash EBITDA of €180 million or more.

H1 KEY RESULTS

• The core model continued to deliver gains in profitability and margin growth
  • Core membership continued to grow strongly, up 28% year-on-year, to 6.5 million. Net adds1 in the second quarter were in line with expectations at 303,000.
  • The Company’s key indicator, Cash EBITDA, grew by 28% year-on-year to €81.1 million. As expected, profit growth was particularly strong in the Core side of the business, reaching 53% growth, driven by a stable cost base coupled with strong top-line growth.
  • The profit growth was mainly derived from a significant improvement in margins. Small2 revenue reached €130.8 million, up 20% overall and 45% more in Prime alone, demonstrating the strength of the subscription model. Prime now accounts for 87% of marginal revenue.
  • As directed, the maturity of Prime members is the key to making a profit. An ever-increasing number of Prime members renewing their membership has resulted in a significant increase in profits.
  • Prime3 revenue grew 18% due to strong membership growth, more than offsetting expected and targeted declines in the non-Prime side of the business. This change is consistent with the strategy’s focus on the subscription model.
  • Overall, Revenues3 exceeded €361.2 million in the first quarter, up 2%, of which 69% came from the Core business, further confirming eDO’s effective transformation into a subscription business.
  • Improved financial flexibility as Cash flow4 continues to show significant gains, reaching €41.7 million up 61%, an improvement of €15.8 million year-on-year.
  • Successful completion5 of the share repurchase, ensuring sufficient treasury shares to fund the delivery of the long-term dividend plan until the 2027 financial year. The board approved a new daily repurchase program of €50 million, with 3.4 million shares to fund the delivery of the LTIP in the financial year. 2028 and the rest will be reduced.

• It is on track to achieve long-term guidance through March 2025, with strong potential for continued growth
  • EBITDA of more than 180 million euros.
  • More than 7.25 million members.
  • Cash Flow Generation3 to over 90 million euros, more than double the previous year.
  • As a guide, better year-on-year comparisons are expected in the second half of the financial year.

Dana Dunne, CEO of eDreams ODIGEO commented: Our results and performance leave no doubt” our strategy is to deliver growth and create lasting value for our customers, shareholders, and the company as a whole. We deliver on our promises, driving growth in profits and margins, core membership, customer satisfaction, and financial strength, making our business stronger with each passing day. Our practice truly sets us apart, powered by a fast, AI-driven subscription platform that thrives on predictable, recurring revenue and long-term customer relationships” that clearly position us as leaders in the commerce industry. With our consistent achievements, we are proud to see our long-term goals for 2025 within easy reach. We are excited about the huge growth opportunities after 2025 and we are excited about the bright future of eDO as the world’s leading travel subscription platform.

FINANCIAL PROOF STATEMENT

OVERVIEW OF RESULTS

In the first half of the fiscal year, the strength of eDO’s Prime model drove significant growth, underscoring the Company’s effective transition to a subscription-based business. Core membership grew 28% year over year, reaching 6.5 million at the end of September, with new additions expected to reach 303,000 in the second quarter. This membership growth also supported a significant increase in profits6, as the Company’s main profit indicator, Cash EBITDA, increased by 28% year-on-year to €81.1 million. Notably, the Capital segment achieved 53% profit growth, driven by a stable fixed cost base and strong revenue growth, which resulted in significant improvements in overall margins. Subsidiary profit7 grew by 20% to €130.8 million, while Prime-only profit grew significantly, by 45%, demonstrating the strength of the value generation model. Prime now accounts for 87% of the Company’s net profit.

Prime membership maturity remains a key factor in driving profitability and as new members renew beyond their first year, profitability increases. As subscribers increasingly turn to Prime for all their travel needs”from flights and hotels to packages and car rentals”their loyalty to a personalized, AI-powered travel solution not only drives revenue growth but also reduces the need for additional marketing. funds. This improves the efficiency of the entire model while strengthening its competitive advantage, setting it apart from traditional, legacy business models in the tourism industry.

Revenue8 from the Prime segment increased by 18%, driven by strong membership growth, more than offset by expected and planned declines in non-Premier business. This change aligns well with eDO’s strategic focus on its subscription-led model. Overall, 9 revenue reached €361.2 million in the first half of the year, up 2% from €353.4 million last year, and the Large segment now accounts for 69% of total revenue, underlining the success of the eDO transition in a subscription-based model.

Continuing to improve the Company’s financial strength, 10 Cash Flows showed significant gains, reaching €41.7million”an increase of 61%, showing an improvement of €15.8 million year-on-year.

Strong financial performance led to a significant result, with total revenue reaching €8.1 million on an adjusted basis in the first quarter.

Additionally, the Company successfully completed a share repurchase program, acquiring a sufficient amount of treasury shares to fund the long-term incentive plan through fiscal year 2027. In addition, the Board approved a new daily repurchase program of €50 million, with 3.4 million shares to finance the delivery of the LTIP in the financial year 2028 and the rest to be paid.

STRATEGIC REVIEW and appearance

eDreams ODIGEO presents a 3.5-year strategic roadmap, which is unveiled in 2021 and will culminate at the end of the current financial year, in March 2025. its commitment to the market and delivering on what it said it would do. This success stands out because of the many unexpected external storms that have occurred since the strategy was launched, including pandemics, regional conflicts, and macroeconomic pressures such as inflation. Such resilience highlights the strength and flexibility of the Core business model in a complex global environment.

After seeing significant growth and the 2025 goals that are now imminent, eDreams ODIGEO will continue its growth path and increase the great potential it sees beyond 2025. The Scalable Prime model is well positioned to expand into additional homes in existing markets, where it is still under-penetrated, enter new regions, and continue to diversify its offering to include a wider range of products and services, attracting ever-growing subscribers.

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About eDreams ODIGEO

eDreams ODIGEO is the world’s leading travel booking platform and one of the largest e-commerce businesses in Europe. Under its four popular online travel agency brands “eDreams, GO Voyages, Opodo, Travellink, and metasearch engine Liligo “ it serves more than 21 million customers a year in markets 44. Listed on the Spanish Stock Market, eDreams ODIGEO works with almost 700 airlines. The company launched Prime, the first subscription product in the travel industry that has grown to more than 6.5 million members since its launch in 2017. This brand offers the best quality products on regular flights, cheap flights, hotels, flexible packages, car rental and travel. insurance to make travel easier, more affordable, and better value for consumers around the world.

1 Net adds: Gross adds – Churn.
2 Minimum Income.
3 Limited Income.
4 (Free) Cash Flows that were not Working Capital.
5 From 13 September 2024.
6 Income EBITDA
7 Minimum Income
8 Income Tax
9 Limited Income
10 (Free) Past Cash Flows That Are Not Working Capital

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Source: eDreams ODIGEO