Profitability up 44% to €121.4 million, 1.5 million new members added

Outstanding financial delivery with a strong balance sheet
- Profitability¹ soared to €121.4 million, up 44% from €84.4 million last year.
- Sustained revenue² growth, up 9% to €676.1 million and sharply improved marginal profit³, up 32% to €217.3 million.
- Adjusted net income reached €22.9 million.
Subscription model drives sustained growth and long-term value
- Membership surged by 34%, with a remarkable 1.5 million new Prime members added in the last 12 months alone, now topping 5.8 million.
- Membership growth continues to be sustained over time: 3 million subscribers joined Prime in the last 24 months alone.
- eDO is now fully a subscription business as 76% of its profits⁴ come from Prime.
Business model delivers increased financial flexibility to enable further growth
- Predictable and stable subscription model enhances financial flexibility and enables investments for future scalable growth.
- Cash flow⁵ more than doubled, reaching €44.9 million (+123%) and will be up another +101% in fiscal year 2025 to hit €90 million.
Share buyback
- Given the current market price of its shares, the Company believes that it is in the best interest of shareholders to accelerate its existing shares repurchase programme. eDO will launch a tender offer at a price of €6.9 per share for the remaining 4.5 million shares to complete the 5.5 million shares necessary to fund the LTI plan for employees until FY27.
Guidance reaffirmed
- The business reaffirms its FY25 targets: achieving €180 million in Cash EBITDA and 7.25 million Prime members by the end of the current fiscal.
- Significant growth potential beyond FY25

Dana Dunne, CEO of eDreams ODIGEO commented: “These outstanding results prove that eDreams ODIGEO and its unique business model have come of age. We are a world-leading, scalable subscription platform that delights customers and achieves superior financial performance. It is clear that our strategy and delivery have resulted in remarkable value creation, with a substantial opportunity for even greater value generation as our stock is yet to reflect our impressive performance and the considerable growth we have both achieved and expect.

As we progress into the final year of our ambitious 3.5-year strategic plan, it's evident that we have come a very long way. In 2021, when no one else was giving guidance, we boldly promised our shareholders that we would become the largest travel subscription company in the world – and we have successfully done that. Prime is now one of the fastest-growing subscription platforms in the world, growing over 10-fold since just before the pandemic. And we accomplished this despite the pandemic, travel restrictions, high inflation, macroeconomic uncertainty, and two wars. That is remarkable by any standards.

Our results demonstrate that Prime is not just an innovative idea or a nascent business; it is a proven success model. Our subscribers have higher satisfaction rates, book significantly more often, and value an AI-tailored, personalised experience. This strengthens our business, making it more predictable and stable while also benefiting consumers and industry partners too.

As we continue to develop, our focus is on leveraging this solid foundation to continue to achieve further sustained and scalable long-term growth. With our current penetration rate in the low single digits, we see a vast addressable market ahead. Our potential beyond fiscal year 2025 is enormous. We are confident that we can make significant further progress in the years to come”.

The full press release can be viewed here: https://www.edreamsodigeo.com/press-releases/2024/05/edreams-odigeos-subscription-model-delivers-all-around-growth-surge-in-profitability-revenues-and-subscribers/

About eDreams ODIGEO

eDreams ODIGEO is the world’s leading travel subscription platform and one of the largest e-commerce businesses in Europe. Under its four renowned online travel agency brands – eDreams, GO Voyages, Opodo, Travellink, and the metasearch engine Liligo – it serves more than 21 million customers per year across 44 markets. Listed on the Spanish Stock Market, eDreams ODIGEO works with nearly 700 airlines. The business launched Prime, the first subscription product in the travel sector which has topped 5.8 million members since launching in 2017. The brand offers the best quality products in regular flights, low-cost airlines, hotels, dynamic packages, car rental and travel insurance to make travel easier, more accessible, and better value for consumers across the globe.

(*) GLOSSARY OF TERMS

Reconcilable to GAAP measures

Adjusted EBITDA means operating profit / loss before depreciation and amortisation, impairment and profit / loss on disposals of non-current assets, as well as adjusted items corresponding to certain share-based compensation, restructuring expenses and other income and expense items which are considered by Management to not be reflective of the Group's ongoing operations. Adjusted EBITDA provides to the reader a better view about the ongoing EBITDA generated by the Group.

Adjusted Net Income means the IFRS net income less certain share-based compensation, restructuring expenses and other income and expense items which are considered by Management to not be reflective of the Group's ongoing operations. Adjusted Net Income provides to the reader a better view about the ongoing results generated by the Group.

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 a gradual method. Cash EBITDA provides to the reader a view of the sum of the ongoing EBITDA and the full Prime fees generated in the period. The Group's main sources of financing (the 2027 Notes and the SSRCF) consider Cash EBITDA as the main measure of results and the source to meet the Group's financial obligations. Additionally, under the SSRCF, the Group is subject to the Adjusted Gross Leverage Financial Covenant (see note 24), that is a Financial Covenant based on Gross Financial Debt divided by Cash EBITDA, further adjusted by certain corrections. See section "Reconciliation of APMs", subsection "2.5. Cash EBITDA". Cash EBITDA for Prime refers to the Cash EBITDA of the Prime segment.

Cash EBITDA Margin means Cash EBITDA divided by Cash Revenue Margin.

Cash Flow means (Free) Cash Flow ex Non-Prime Working Capital means Cash EBITDA and adjusted for cash flows from investing activities, tax payments and interest payments (normalised interest payments, excluding one-offs linked to refinancing). The Group believes this measure is useful as it provides a simplified overview of the cash generated by the Group from activities needed to conduct business and mainly before equity / debt issuance and repayments. This measure does not include changes in working capital other than the variation of the Prime deferred liability as management believes it may reflect cash that is temporary and not necessarily associated with core operations.

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 Marginal Profit Margin means Cash Marginal Profit divided by Cash Revenue Margin.

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 gradual method. Cash Revenue Margin provides a measure of the sum of the Revenue Margin and the full Prime fees generated in the period.

Prime ARPU means the Cash Revenue Margin generated from Prime users on a last twelve months basis. It is calculated considering all the Cash Revenue Margin elements linked to the bookings done by Prime members (such as but not limited to, the Prime fees collected, GDS incentives, commissions, ancillary services, etc.) divided by the average number of Prime members during the same period. Management considers this is a relevant measure to follow the Prime performance. As Prime is a yearly programme, this measure is calculated on a last twelve months basis.

Revenue Margin means the IFRS revenue less the cost of supplies. The Group's Management uses Revenue Margin to provide a measure of its revenue after reflecting the deduction of amounts payable to suppliers in connection with the revenue recognition criteria used for products sold under the principal model (gross value basis). Accordingly, Revenue Margin provides a comparable revenue measure for products, whether sold under the agency or principal model. The Group acted under the principal model in regards to the supply of hotel accommodation until September 2022. As of that date, the Group only offers hotel intermediation services, therefore no cost of supply is registered and Revenue and Revenue Margin are of equal amounts. Prime Revenue Margin refers to the Revenue Margin of the Prime segment. Revenue disaggregation has been updated by the Group to better align with the new two levels of reportable segments and how the Leadership Team evaluates the operating performance

Variable Costs includes all expenses which depend on the number of transactions processed. These include acquisition costs, merchant costs and other costs of a variable nature, as well as personnel costs related to call centers as well as corporate sales personnel. The Group's Management believes the presentation of Variable Costs may be useful to readers to help understand its cost structure and the magnitude of certain costs. The Group has the ability to reduce certain costs in response to changes affecting the number of transactions processed.

Other Defined Terms

Bookings refers to the number of transactions under the agency model and the principal model as well as transactions made under white label arrangements. One Booking can encompass one or more products and one or more passengers. The Group acted under the principal model in regards to the supply of hotel accommodation until September 2022. As of that date, the Group only offers hotel intermediation services, so no cost of sales is recorded and Revenue and Revenue Margin are the same.

Prime members means the total number of customers that have a Prime subscription in a given period.

Prime / Non Prime. The Group presents certain profit and loss measures split by Prime and Non Prime. In this context, Prime means the profit and loss measure generated from Prime users. Non-Prime means the profit and loss measure generated from non-Prime users. For instance, in the case of Prime Cash Revenue Margin, it includes elements such as, but not limited to, the Prime fees collected, GDS incentives, commissions, ancillary services, etc. consumed by Prime clients. As Prime is a yearly program, Prime / Non Prime profit and loss measures are presented on a last twelve months basis.

¹Cash EBITDA: “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.

²Cash Revenue Margin: "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.

³Cash Marginal Profit: "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.

⁴Cash Marginal Profit: "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.

⁵Cash Flow: (Free) Cash Flow ex Non-Prime Working Capital means Cash EBITDA and adjusted for cash flows from investing activities, tax payments and interest payments (normalised interest payments, excluding one-offs linked to refinancing).

View source version on businesswire.com: https://www.businesswire.com/news/home/20240530520525/en/

Email: eDreams@instinctif.com
Phone: +44 20 2866 7885

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