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eDreams ODIGEO Achieves Record Revenues and Grows Profits by 54% as Subscriber Base Tops 5.4 Million Members

Business Wire
·2-min read

  • Record-breaking revenues surpassed the €500 million mark for the first time in the 9 months, reaching €507.3 million, growing 10% from €459.7 million last year.

  • Profitability1 grows significantly by 54% to €88.6 million.

  • Marginal profit2 hit an all-time 9-month peak of €158.9 million, up 38% from last year.

  • Top-line and margin improvements driven by continued success of the subscription business model. Subscriber base grows strongly by 38% to 5.4 million, sustained even through the lowest seasonal quarter.

  • Subscription business now drives 78% of the Company’s marginal profit, reflecting successful shift from transactional to predictable subscription model.

  • Share repurchase plan of 5.5 million shares of up to €50 million.

  • The business anticipates further growth in Prime membership to between 5.75 and 5.9 million by the end of the current fiscal year (March 31st 2024), and a range of Cash EBITDA between €120-122 million.

  • On track to meet self-imposed targets of 7.25 million Prime members, €180 million Cash EBITDA and an ARPU of €80 by March 2025.

BARCELONA, Spain, February 28, 2024--(BUSINESS WIRE)--Dana Dunne, CEO of eDreams ODIGEO commented: "We are excited to have achieved record revenues and a remarkable 54% growth in profitability. We continue to pioneer the travel industry with our subscription model, which has topped 5.4 million members and is the largest contributor to our revenues and profits. In light of our ongoing growth and reconfirmation of our self-imposed FY25 guidance, we are pleased to announce a share repurchase plan of 5.5 million shares, of up to €50 million.

"With every passing quarter, the success of our business model pivot becomes increasingly evident. As we commemorate 25 years of our flagship brand eDreams this year, we celebrate our strategic transition, from a leading online travel agency to a fast-growing global subscription business with vast opportunities ahead. With the majority of profits and revenues now coming from subscribers, it is clear that we have evolved beyond the confines of a traditional travel company.

"As a subscription company, our operational and strategic success are best measured by our ability to expand our subscriber base and boost profitability – these were the focal metrics highlighted in the 3.5-year guidance shared in 2021. With 64% of our journey now completed, we're delighted to announce that we're firmly on course in meeting our self-set targets, testament to the continued success of our subscription model and strategic approach".

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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 nine months of its fiscal year 2024, ended 31 December 2023.

For the first time in the Company’s history, revenues surpassed the €500 million mark within 9 months, reaching €507.3 million, reflecting a 10% growth from €459.7 million last year. This notable top-line achievement coincided with substantial profitability gains, continuing the trend observed in previous quarters. Cash EBITDA surged by 54% to €88.6 million, compared to €57.4 million the previous year, notably fueled by the continued success of the eDO subscription platform.

This model has become the primary driver of marginal profit3 (78%) and revenues (62%) for the Group, further reflecting that eDreams ODIGEO is no longer a traditional travel company but a subscription business.

The sustained expansion of the membership base, which experienced 38% growth to 5.4 million in the period, persisted even during the lowest seasonal quarter. Member quarterly net adds align with the implied run rate to reach the 7.25 million self-imposed target by FY25.

Furthermore, the increasing maturity and renewals from existing members continued to deliver a positive impact on margins, which reached an all-time high in the period with Cash Marginal Profit topping €158.9 million in the nine months.

The Company can confidently anticipate reaching between 5.75 and 5.9 million Prime members and a range of Cash EBITDA between €120-122 million by the end of the current fiscal year, ending March 31st 2024.

For more information, click here.

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1Cash EBITDA: Sum of the ongoing adjusted EBITDA and the full Prime fees generated in the period.
2 Cash Marginal Profit: Sum of the Marginal Profit and the full Prime fees generated in the period.
3Cash Marginal Profit: Sum of the Marginal Profit and the full Prime fees generated in the period.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240227168640/en/

Contacts

PRESS OFFICE:
edreamspressoffice@instinctif.com
+447879086840