BARCELONA, Spain , Aug. 31, 2022 /PRNewswire/ — eDreams ODIGEO (www.edreamsodigeo.com), 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 quarter ended 30 June 2022.
With 247 websites and apps in 44 countries, 21 languages and 37 different currencies on one central platform, eDreams ODIGEO (eDO) now covers 80% of the global travel market.
Throughout the year, the travel market has continued to improve and recover significantly. The market still has more recovery and growth prospects to get back to pre-Covid levels while eDO is already above pre-Covid levels in Bookings and Revenues and hitting all-time records in these. eDO’s continued outperformance of the market is largely driven by its world leading subscription model – Prime – which has added 560,000 members in the first quarter alone, reaching 3.2 million members and setting its highest ever quarterly growth rate.
RESULTS HIGHLIGHTS
● eDO achieves record number of Bookings
- In the first quarter of the fiscal year 2023, eDO achieved a Bookings record, reaching 4.4 million bookings, the highest ever recorded in a single quarter. This represents +50% more bookings than pre-pandemic.
- In July and August 2022, eDO Bookings were 38% and 55% above pre pandemic levels.
● eDO and Prime continue to outperform
- eDO Bookings performance is materially better than the market, with a business that has increased its quality with the pivot to subscription. While the market is still below pre-COVID levels, for 4 quarters eDO is above pre-COVID levels in Bookings, and continues to capture market share thanks to its revolutionary offering in travel – Prime.
- eDreams Prime, the world’s first travel subscription programme, reached 3.2 million members in the first quarter and 3.5 million as of August 28th. In the last 12 months to June 2022, the programme had net adds of 2 million members, and in the first quarter of fiscal year 2023 alone, the programme added 560,000 members, which is the record of new members added in a single quarter in the company’s history. The unique value proposition of Prime has consistently proven highly successful and appealing to consumers even in a context of adverse conditions in the travel market, notably due to the pandemic, the Ukraine war, the rising cost of living and the ongoing travel disruptions.
● Strong financial performance with revenues above pre-COVID levels
- Revenue Margin and Cash Revenue Margin surpassed pre-COVID-19 levels by 3% and 11%, respectively.
- Cash Revenue Margin was up 117% year-on-year, despite travel options still constrained by COVID-19 travel restrictions uncertainty.
- Cash Marginal Profit stood at €33.5 million in the first quarter; 2x the amount of last year (€18.5 million in the first quarter of fiscal year 2022).
- Strong Cash EBITDA growth in the quarter, up 349% vs the same period last year. Strong growth in Prime members in their first year delays growth in profitability as profitability of Prime members jumps in second year. Over the next few quarters, the business expects improvements in profitability as the proportion of Prime members beyond their second year increases.
● Solid Cash Flows, well financed and on track to meeting self-imposed FY25 targets
- Free Cash Flow amounted to €29.4 million in the first quarter. Cash and cash equivalents at end of period (net of bank facilities and overdrafts) was €30.8 million, which include the €30 million reimbursement of the Super Senior Revolving Credit Facility.
- Liquidity has remained stable throughout the pandemic. In the first quarter, the liquidity position was strong at €199 million.
- eDO has a strong balance sheet, with no short term needs to refinance any of its debt, which is due in September 2027.
- The business is on track to meet its three-year guidance:
– Greater than 7.25 million Prime members
– ARPU[1] of €80, approximately
– Cash EBITDA in excess of €180 million
Dana Dunne, CEO of eDreams ODIGEO commented: “Our performance in the first quarter is yet more evidence of how our business continues to accelerate and thrive as we move towards the post-COVID world, even with the Ukraine war and the global increase in inflation. We are thrilled to have closed this first quarter, from April to June, with two new all-time records; we have achieved our largest quarterly trading ever, with 4.4 million bookings, as well as the highest number of new Prime members in a single quarter, with 560,000 new subscribers.
With the current macroeconomic context, consumers will now seek even more value, choice and flexibility for their travels, which is precisely the key proposition of our overall business model and, in particular, of our subscription programme, Prime. We are on track to meet our 2025 targets and are confident that we will continue to grow and outperform the market as we have consistently done throughout the pandemic.”
Income Statement Summary
|
(in € million) |
1Q FY23 |
Var FY22- FY23 |
1Q FY22 |
|
Revenue Margin |
145.7 |
113 % |
68.4 |
|
Increases Prime Deferred Revenue |
13.4 |
166 % |
5.1 |
|
Cash Revenue Margin |
159.1 |
117 % |
73.5 |
|
Cash EBITDA |
14.0 |
349 % |
3.1 |
|
Adjusted EBITDA |
0.6 |
N.A |
(1.9) |
|
Net Income |
(13.9) |
N.A |
(23.9) |
|
Adjusted Net Income |
(11.5) |
N.A |
(15.5) |
|
|
|||
|
Bookings |
4,402 |
98 % |
2,227 |
Source condensed consolidated interim financial statements unaudited.
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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. 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 3.5 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] Average Revenue Per User
SOURCE eDreams ODIGEO
