eDreams ODIGEO shows strong cash performance, ready to maximise opportunity on pent-up demand when restrictions lifted

BARCELONA, Spain, Feb. 25, 2021 /PRNewswire/ -- eDreams ODIGEO (www.edreamsodigeo.com), Europe's largest online travel company and one of the largest European e-commerce businesses, today reported its results for the nine months ended 31 December 2020.

CURRENT TRADING

Short term trading impacted by travel restrictions but eDreams ODIGEO continues to outperform the wider market. After the strong and rapid turnaround experienced during the summer period, the rapid rollout of vaccines leading to lifting of restrictions is likely to result in a sharp rebound again to satisfy pent-up demand.

*IATA Europe passenger data in August and September positively impacted by Russia (a market in which we are not present). Russia grew in annual terms.
**Average bookings growth until the 21^st February.

Q3 RESULTS HIGHLIGHTS

• Revenue Margin (decrease of 77% vs. 3Q FY20) in line 2Q and driven by COVID-19 impact
• Adjusted EBITDA amounted to (€10.4) million (€29.6m in 3Q FY20).
• Adjusted Net Income stood at (€23.1) million (€11.3 million in 3Q FY20).
• Marginal Profit (Revenue Margin minus Variable Cost) was €6 million positive for the third quarter of fiscal year 2021 despite us investing in higher short term call centre costs to help our customers. In 3Q FY21 was €1.3 million in excess of 2Q FY21.

●  Maintained strong liquidity position despite short-term trading impact:

• Strong Cash performance, net increase in cash of €11.5 million in 3Q FY21
• Solid Liquidity position of €125 million in December and €122 million at the end of January, has remained stable since September 2020 despite short-term softening of trading.
• Main reasons: High variability and good cost management, working capital inflows due to higher volumes and gross sales, better collection from suppliers, refunds collected and Prime deferred revenue increase and lower income tax paid.
• Reduction of average monthly cash burn (excl. WC and tax but adding the increase in Prime Deferred Revenue) from €13 million to €7 million.
• Net cash from operating activities improved by €31.4 million and we ended the quarter in Cash Flow before Financing positive of €13 million for the first time since the fourth quarter in fiscal year 2019.

●  Improved strategic position and KPIs evolution:

• Prime membership grew by 55% year on year to 758k subscribers and is on track to exceed 2 million subscribers by 2023.
• Prime Deferred Revenue reached €20 million, an increase of 126% vs 3Q FY20 (Prime subscription fees not yet recognized into Revenue till Booking or the renewal date takes place).
• Bookings at -65% in December compared to -79% for the wider travel industry.
• Diversification Revenue of 55%, up +4pp year on year showing the strength of our business strategy.
• Product Diversification Ratio up to 89%, up +7pp year on year.
• Mobile bookings up to 58% of total flight bookings, from 44% in the same period last year.

Dana Dunne, Chief Executive Officer, commented:
'I am proud to say that the work we have done has meant that the business is financially secure, strong and ready to satisfy the pent-up demand that awaits when restrictions are lifted.
We believe we have positioned ourselves for real success in the Post COVID-19 world. eDreams ODIGEO is agile and nimble, which has allowed us to adapt as quickly as necessary. Our business continues to lead through product development and innovation, such as Prime, our pioneering travel subscription program. The strength of our finances, the adaptability of our business model and the mitigating actions taken during the pandemic have put us ahead of the market and will enable us to emerge strongly and well positioned from the crisis.
Consumers are ready and waiting to travel again.  Leisure travel is the exclusive focus of our business, and we are especially well poised to seize the rebound and better serve our customers.'

More information on www.edreamsodigeo.com

About eDreams ODIGEO 
eDreams ODIGEO is one of the world's largest online travel companies and one of the largest e-commerce businesses in Europe. Under its four leading online travel agency brands – eDreams, GO Voyages, Opodo, Travellink, and the metasearch engine Liligo – it serves more than 17 million customers per year across 45 markets. Listed on the Spanish Stock Market, eDreams ODIGEO works with 667 airlines and has partnerships with 130. The brand offers the best deals in regular flights, low-cost airlines, hotels, cruises, car rental, dynamic packages, holiday packages and travel insurance to make travel easier, more accessible, and better value for consumers across the globe.

SOURCE eDreams ODIGEO