eDreams ODIGEO continues to outperform the market and delivers strong growth in subscribers, bookings, revenues and profits

BARCELONA, Spain, Nov. 15, 2022 /PRNewswire/ -- eDreams ODIGEO (hereinafter 'eDO' or 'the Company'), Europe's largest online travel company, the largest globally in terms of flights outside of China and one of the largest European e-commerce businesses, today reports its results for the first half of its fiscal year 2023 ended 30 September 2022.

With 247 websites and apps in 44 countries, 21 languages and 37 different currencies on one central platform, eDreams ODIGEO now covers 80% of the global travel market.

eDO continues to outperform the industry and its peers, as it has consistently done for the last two years. Since launching its subscription programme, Prime, eDO has become a higher quality business with a loyal customer base and a recurring revenue stream that delivers predictable and sustainable customer relationships, together with the associated ensuring financial benefits.  Despite the macroeconomic context, the travel market, particularly leisure travel, will still grow. The Company continues to outperform the market, with its booking levels standing at plus 48% vs 2019 pre-COVID, and almost 1 million new subscribers added in the last 6 months alone. The continued strong performance of the business allows it to reconfirm its March 2025 guidance of over 7.25 million subscribers, ARPU of €80 and cash EBITDA of €180 million.

RESULTS HIGHLIGHTS

•   eDreams ODIGEO continues to deliver strong Bookings growth

-  In the first half of the fiscal year 2023, eDO achieved strong Bookings, reaching 8.6 million, which represents 50% above the same period last year and +48% above pre-COVID-19^[1].

-  In October and November^[2], despite macro-economic headwinds, Bookings were up 45% above pre-COVID-19¹

^-  eDO Bookings performance is materially better than the market, with a business that has increased its quality with the pivot to subscription.

•   The world's first travel subscription programme, eDreams Prime, continues to outperform

-  The Company reached 3.6 million subscribers, which is the result of a 479,000 run rate per quarter during the first half of the fiscal year 2023. This represents growth of +8% and +47% vs fiscal years 2022 and 2021 quarterly run rates, respectively.

-  Despite Omicron, Ukraine War, high inflation and a market still below Pre-COVID levels, Prime's Net Adds run rate is ahead of expectations, and churn rates have slightly improved.

•   Solid financial performance with strong growth in Cash Revenue Margin and meaningful Cash EBITDA Margin improvement

- In the first half of the fiscal year, Revenue Margin and Cash Revenue Margin continued above pre-COVID levels, by 3% and 12% respectively.

-  The Company delivered strong growth in Cash Revenue Margin, up 69% year-on-year to €316.5 million, despite travel options constrained by COVID-19 travel restriction uncertainty. Revenue Margin increased by 72%, to €289.0 million, due to the 50% increase in Bookings and 15%  increase in Revenue Margin per Booking.

-  Cash Marginal Profit increased to €74.4 million in the period; up +51% from the first half of the fiscal year 2022.

-  As expected, the business delivered strong Cash EBITDA in the second quarter, which resulted in €34.5 million in the first half of the year (€20.5 million in the second quarter of the fiscal year 2023 standalone), up 78% vs the same period last year. As guided in the first quarter of the fiscal year, strong growth in the first year of Prime members delays profitability as it jumps in their second year.

-  The Company is progressing at a brisk pace with the strategic expansion of its global workforce, which will grow by 50% to further fuel its long-term growth as a subscription business. The higher investments in personnel and the effects of foreign currency exchange resulted in higher fixed costs. This, coupled with higher variable costs associated with the notable increase in trading, drove the bottom-line result.

•   Looking ahead

-  These results demonstrate the Company is well on track to meet its self-imposed targets by the fiscal year 2025:

■  Cash EBITDA in excess of €180 million

■  Greater than 7.25 million Prime members

■  Average Revenue per User (ARPU) of €80, approximately.

Dana Dunne, CEO of eDreams ODIGEO commented: "We are delighted to deliver another solid set of results, which continue to demonstrate that our subscription model is breaking the mold and revolutionising the way people book travel. Our successful transition from a transaction-led business to one primarily based on subscriptions is once again reflected in the continued and strong growth of our subscriber base, which has now^[3] topped 3.8 million members.

Exactly one year ago, we set ambitious goals for ourselves: exceeding 7.25 million Prime members and €180 million in Cash EBITDA by 2025. Throughout the last 12 months, we have made excellent progress towards these and our performance in the first half of the fiscal year shows that we are well on track to deliver on our 3-year guidance, as we have consistently done. Everyone at eDO is looking forward to delivering further growth and superior returns for our shareholders and great service and an unrivalled proposition for our customers.

Looking at the wider industry, travel has shown strong growth for decades, except during the global shutdown of COVID. Through economic downturns, conflict or even natural disasters, the leisure traveller has demonstrated their desire to keep travelling. Now is no different and we expect the resurgence to continue. eDreams ODIGEO is trading 48% above pre-COVID levels and is therefore undeniably better positioned than anybody else to take advantage of this next phase with its focus on leisure travel and a proposition which delivers unbeatable choice and value to its customers." 

SUMMARY INCOME STATEMENT

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. The business is the largest player worldwide in flight revenues, excluding China, and the largest 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 44 markets. Listed on the Spanish Stock Market, eDreams ODIGEO works with over 690 airlines and +2.1 million hotels. The business conceptualised Prime, the first subscription product in the travel sector which has attracted 3.8 million members since launching in 2017. The brand offers the best quality products and the widest choice of regular flights, low-cost airlines, hotels, dynamic packages, cruises, car rental services and travel insurance products to make travel easier, more accessible, and better value for consumers across the globe.

^[1] First half of the fiscal year 2020
^[2] Bookings growth until 8th November 2022
^[3] As of 8th of November 2022

SOURCE eDreams ODIGEO