Press release

eDreams ODIGEO Boosts Profitability by 84% Fueled by Accelerated Success of Its Subscription Model

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eDreams ODIGEO, the world’s leading travel subscription company and one of Europe’s largest e-commerce firms, today released its results for the first half of its fiscal year 2024, ended 30 September 2023.

The company delivered yet another excellent performance, marked by a substantial increase in profitability. Cash EBITDA saw a remarkable growth of 84% compared to the same period last year, primarily driven by the exceptional performance of the Company’s subscription platform, ‘Prime.’ This model has become the primary driver of profits and revenues for the Group, consistently delivering strong results with significantly enhanced margins and overall profitability. The continuous expansion of the membership base, which experienced 41% growth in the past 12 months alone, along with the increasing maturity and renewals from existing members, delivers a positive impact on margins.

With the business advancing into year two of its 3.5-year strategic guidance outlined in Capital Markets Day 2021, the ongoing exceptional execution and strategic delivery allows the business to confidently reconfirm its self-imposed targets for 2025: greater than 7.25 million Prime members, around €80 ARPU (Average Revenue Per User) and Cash EBITDA in excess of €180 million. The Company’s robust growth fundamentals lay the ground for further expansion beyond 2025.

H1 RESULTS HIGHLIGHTS

  • Significant profit improvements driven by the strength of the subscription business

    • Cash EBITDA grew by 84% to €63.5 million compared to €34.5 million reported in 1H FY23. Cash EBITDA Margin improved by 9 percentage points margin since 1Q FY23.

    • Cash Revenue Margin topped €354.4 million, up 12%. Revenue Margin grew 13%, reaching €327.0 million in the first half. Cash Marginal Profit was up 46% to €108.9 million in 1H FY24 and the margin had a 9 percentage points improvement since 1Q FY23.

    • As guided, the maturity of Prime members is the most important driver for profitability. The increasing number of Prime members renewing their memberships has resulted in a substantial improvement in profitability.

  • Prime model is a proven success

    • Prime surpassed 5 million members in 2Q FY24, reaching 5.1 million subscribers. Over the last 24 months alone, the programme added 3.4 million new subscribers. In October2, membership topped 5.2 million.

    • The successful transition to a subscription-focused business model is also evident in the rise of Prime’s contribution to the overall Revenue Margin, which increased from 38% to 55% in H1 FY24.

  • Self-imposed FY25 targets will be met or exceeded with further growth potential beyond 2025

Dana Dunne, CEO of eDreams ODIGEO commented: “We are delighted with our outperformance. Our strategic shift to a subscription-led business continues to yield results, notably increasing profitability and enhancing predictability. With a rapidly growing membership base, committed and highly satisfied members who book significantly more often than non-subscribers, and a steady flow of recurring revenues, our business has never been more solid and promising.

“Today marks the two-year anniversary since we unveiled our 3.5-year strategic roadmap, a transformational journey to consolidate eDO as a leading global subscription business. Throughout this period, we have consistently fulfilled our commitments, even in the face of unforeseen macroeconomic challenges, including the Omicron variant, the conflict in Ukraine, and double-digit inflation rates, among other factors.

Our unique model has proven its resilience, clearly setting us apart from other travel brands and positioning us in the pole position for further growth. Not only do we have confidence in our ability to meet or even surpass our self-imposed targets for 2025, but we’re also excited about the strong foundational growth potential that we foresee extending well beyond 2025.”

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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 20 million customers per year across 44 markets. Listed on the Spanish Stock Market, eDreams ODIGEO works with nearly 700 airlines. The business conceptualised Prime, the first subscription product in the travel sector which has topped 5 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.

1 Asof 31st October 2023

2 As of 31st October 2023