eDreams ODIGEO reports strong trading with bookings 22% above 2019, outstanding expansion in Prime with a further half million new subscribers and return to profitable growth

BARCELONA, Spain, Nov. 17, 2021 /PRNewswire/ -- eDreams ODIGEO (www.edreamsodigeo.com), Europe's largest online travel company; number two in flights globally; the inventor of Prime, the travel industry's first subscription product and one of the largest e-commerce businesses in Europe, today reports its results for the second quarter of fiscal year 2022, ended 30 september 2021.

RESULTS HIGHLIGHTS

The continued outperformance of our trading over the last quarters is the result of the hard work enhancing our unrivalled platform and building on our strengths as the first subscription business in our industry. In the past 6 months we have been continually above Pre-COVID-19 booking levels with the more recent months at plus 30 to 50%. We are, with our subscription product Prime, reinventing travel and are at the forefront of the innovation that is revolutionising the way travel is consumed, improving the customer journey and making the proposition even more compelling.

Our strong current trading demonstrates our rapid recovery from COVID-19 with best-in-class performance, even in a not fully recovered market. Our outperformance was driven by our unique customer proposition, consumers' desire to travel, our Prime programme and our strong business model.

Strong Bookings growth, ahead of pre-COVID levels

• In the second quarter of the fiscal year 2022, Bookings were 22% above pre-COVID-19 levels (in the first half of the fiscal year, Bookings only 1% below pre-COVID 19)
• Trading continues to improve and year-on-year growth rates for Bookings vs pre-COVID-19 levels are accelerating (September +33%; October +42% and November +53%, vs fiscal year 2019)
• Prime continues to grow exponentially with a further 513,000 new members during the last quarter. In the last 6 months alone, the business has added 1 million new Prime customers, which shows the success of the business in changing the relationship it has with its customers from transactional to repeat customer.

 Return to profitable growth

• Revenue Margin in the second quarter of fiscal year 2022 increased 190% year-on-year. COVID-19 induced restrictions still resulted in Cash Revenue Margin (*) being 18% below pre-COVID-19 levels (including Prime contribution) due to disproportionate demand in shorter distance flights
• Cash Marginal Profit (*), stood at €30.7 million positive for the second quarter of fiscal year (€49.2 million in the first half of fiscal year 2022)
• Cash EBITDA (*) €16.2 million positive in the second quarter of fiscal year 2022; 5.3x the amount in the first quarter (€3.1 million in the first quarter of fiscal year 2022, totalling €19.4 million in the first half of fiscal year 2022)
• Product Diversification Ratio and Revenue Diversification Ratio continue to grow and have increased to 89% and 67% in the second quarter, up from 87% and 56% in the second quarter of fiscal year 2021.
• Strong liquidity position maintained: €144 million at the end of September 2021. The liquidity of eDO was never at risk

Prime reinventing travel, a key driver of our future growth

• Prime is a huge growth opportunity; members have almost doubled within the last 6 months. In November 2021 we almost reached 2 million subscribers from 8 markets. In the 12 months to September 2021, our subscriber base grew by 159%.
• Prime builds a long-term relationship with the customer rather than being transactional and lowers cost of customer acquisition
• A growing number, 39% of our flight bookings are now from Prime members.
• Prime's success is driven by eDreams ODIGEO's unrivalled scale in flights (No2 globally) which continues to grow and its proprietary and flexible platform giving customers an excellent experience

Outlook

• Our targets for fiscal year 2025: Prime members (3.7x from current to at least 7.25 million); Cash Revenue Margin (at least €825 million – 18% CAGR 2Q FY22 annualized-FY25); Cash EBITDA (at least €180 million – CAGR 34%); Capex from €24 million (2Q FY22 annualised) to around €50 million; and Leverage Ratio (Net Debt/Cash EBITDA): 1.0 to 2.0x by FY25

Dana Dunne, CEO of eDreams ODIGEO commented: "We are delighted with the way our business has traded, outperforming significantly as markets reopen endorsing the work done during the pandemic. We are now trading substantially above pre-COVID levels and are growing profitably too. 

Through Prime, our unrivalled scale advantage and bespoke proprietary platform eDreams ODIGEO is reinventing travel, the way people look, book and discover their world. We are determined to maximise the competitive advantage and the huge potential we have in our subscription model, Prime and the way it can disrupt the travel marketplace." 

Financial Information and Income Statement Summary

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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 over 660 airlines. The business conceptualised Prime, the first subscription product in the travel sector which to date has almost 2 million members since launching in 2017. The brand offers the best quality products in regular flights, low-cost airlines, hotels, dynamic packages, cruises, car rental and travel insurance to make travel easier, more accessible, and better value for consumers across the globe.

(*) GLOSSARY

Cash EBITDA means "Adjusted EBITDA", plus the variation of the Prime deferred revenue corresponding to the Prime fees that have been collected and that are pending to be accrued. The Prime fees pending to be accrued are non-refundable and will be booked as revenue based on usage, which refers to each instance the customer uses Prime to make a Booking with a discount, or when the Prime contracted period expires. Cash EBITDA provides to the reader a view of the sum of the ongoing EBITDA and the full Prime fees generated in the period.

Cash Marginal Profit means "Marginal Profit" plus the variation of the Prime deferred revenue corresponding to the Prime fees that have been collected and that are pending to be accrued. The Prime fees pending to be accrued are non-refundable and will be booked as revenue based on usage, which refers to each instance the customer uses Prime to make a Booking with a discount, or when the Prime contracted period expires. Cash Marginal Profit provides a measure of the sum of the Marginal Profit and the full Prime fees generated in the period.

Cash Revenue Margin means "Revenue Margin" plus the variation of the Prime deferred revenue corresponding to the Prime fees that have been collected and that are pending to be accrued. The Prime fees pending to be accrued are non-refundable and will be booked as revenue based on usage, which refers to each instance the customer uses Prime to make a Booking with a discount, or when the Prime contracted period expires. Cash Revenue Margin provides a measure of the sum of the Revenue Margin and the full Prime fees generated in the period.

SOURCE eDreams ODIGEO