eDreams ODIGEO achieves all-time record in bookings and revenues, greater profitability and strong subscriber growth

Outstanding performance reconfirms business on track to meet or exceed 2025 targets

BARCELONA, Spain, May 25, 2023 /PRNewswire/ -- eDreams ODIGEO (hereinafter 'eDO' or 'the Company'), one of the world's largest online travel companies and one of the largest European e-commerce businesses, today released its results for the 12 months ended 31st March 2023.

The Company achieved a number of records in the period, including the highest-ever levels of bookings, mobile bookings, revenues and subscribers. The continued and rapid sales growth, coupled with sharply improved margins, resulted in accelerating profitability. The business achieved 16.2 million record bookings, a +29% increase over the previous 2022 high and 42% above pre-COVID levels, and continued to outperform the broader travel market. Although the European and global travel markets are still below pre-pandemic levels, eDreams ODIGEO has achieved above 2019 levels for 7 consecutive quarters, the only major travel company to achieve this, demonstrating the Company's market-leading position and the strength of its customer proposition.

The key driver of the Company's outperformance is 'Prime', the world's first and largest travel subscription programme, which performed outstandingly with the addition of 1.7 million new subscribers, exceeding 4.3 million at the end of the fourth quarter, which represents 64% more than just one year ago. 

eDreams ODIGEO's continued progress and success enable it to reconfirm its guidance for the fiscal year 2025: greater than 7.25 million Prime members, around €80 ARPU (Average Revenue Per User) and Cash EBITDA in excess of €180 million.

RESULTS HIGHLIGHTS

• Record-breaking trading with strong improvement in profitability
  
  - eDreams ODIGEO made further significant progress in the fiscal year 2023 with continued rapid revenue margin growth and sharply improved margins, resulting in rising profitability.
  
    -- Cash Revenue Margin surpassed the €600-million mark for the first time in the Company's history, reaching €621 million and growing 47% in just one year. Revenue Margin increased 49% to €569.6 million.
  
    -- The business delivered strong growth in profitability as margins were sharply improved; + 8ppt since the start of the year. As guided, the maturity of Prime members is the most important driver for profitability. As more subscribers renew their memberships, profitability increases.
      --- Marginal Profit and Cash Marginal Profit stood at €113.2 million and €164.7 million, an increase of 71% and 53% the amount in fiscal year 2022, respectively.
      --- Cash Marginal Profit Margin increased 9ppt to 30% in the fourth quarter, from 21% in the first quarter. Cash EBITDA Margin in the fourth quarter also achieved very substantial improvements and stood at 16.7% vs. 8.8% in the first quarter of the fiscal year 2023.
  
  - Cash EBITDA stood at €84.4 million in fiscal year 2023, up 91% year-on-year, with strong Cash EBITDA in the fourth quarter totalling 26.9 million and representing a 17% increase versus the third quarter and 93% increase compared to the first quarter.
  
  - Bookings hit an all-time high of 16.2 million, representing 29% above the previous record achieved in fiscal year 2022 and 42% above pre-COVID-19, despite the macro and geopolitical context.
  
  - As guided, the Company continues to progress with the strategic expansion of its global workforce, which will grow by 50% by 2025 to further fuel its long-term growth as a subscription business. The higher personnel costs associated with this recruitment drive, coupled with higher variable costs associated with larger trading volumes and higher acquisition costs due to the investment to acquire new Prime members, drove the bottom-line result.
  
  
• Excellent performance of the subscription model
  
  - eDreams ODIGEO is the leader and inventor of the subscription model in travel. Prime continues to improve the quality of the business and grows strongly.
  
  - Membership grew by 64% year-on-year (1.7 million new subscribers) to 4.3 million members.
  
  - Throughout fiscal year 2023, the programme achieved average quarterly net adds of 421,000 new members.
  
  - Rapid growth in subscribers has continued: 4.6m subscribers as of today^[1], a further 300,000 since the year-end.
  
  
• Self-imposed targets will be met or even exceeded
  
  - The Company is well on track to reach or even exceed its 2025 targets:
  
    -- Greater than 7.25 million Prime members.
    -- Prime ARPU (Average Revenue Per User) of €80, approximately
    -- Cash EBITDA in excess of €180 million.

Dana Dunne, CEO of eDreams ODIGEO commented: "We are delighted to report outstanding results, with yet another year of successful strategic delivery. Even with the challenges posed by the market conditions, we continued to outperform the travel industry and significantly improved the profitability of our business, which was mostly driven by our unique subscription platform.

This year, we are proud to have achieved several historic milestones, including records in bookings, revenues, and mobile sales ever achieved in our 24-year history, all while successfully expanding our subscriber base at a robust pace. These remarkable accomplishments underscore the uniqueness of our offering and the strength of our winning proposition.

Our continued rapid growth is not only a testament to our successful strategy but also a source of long-term value for our shareholders, customers, partners, and team members. As we continue to lead in travel innovation with a forward-thinking, sustainable, and tech-driven business, we aim to push the boundaries of what is possible with technology and revolutionise the broader e-commerce industry, an ever-expanding multi-trillion euro segment with tremendous growth prospects.

Our excellent performance over the past twelve months would have not been possible without our outstanding people, our 'eDOers'. Their impressive work and dedication have a material impact on the experiences of millions of travellers worldwide and we take pride in seeing how their contributions are shaping the future of travel. We will keep on cultivating the best talent as we continue growing as a subscription-led business.

We remain committed to driving innovation and delivering exceptional value to all our stakeholders. As we look ahead to our 2025 horizon, we do so with ever-increased confidence that we will deliver on our word and meet, or even exceed, our self-set targets and unlock a much greater potential that extends well beyond 2025. These are truly exciting times for eDreams ODIGEO."

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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 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 4.6 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] As of 15th May 2023

SOURCE eDreams ODIGEO

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