eDreams ODIGEO Boosts Profitability by +23% as Subscriber Base Soars to 6.2 Million Members
September 03 2024 - 3:05AM
Business Wire
Prime membership grows strongly by +32% -
FY25 targets well within reach
eDreams ODIGEO, the world’s leading travel subscription company
and one of Europe’s largest e-commerce firms, today released its
results for Q1 FY25 ended 30 June 2024.
The Company delivered another quarter of strong growth, driven
by the continued success of its subscription platform. Prime
further cemented its position as the world’s largest travel
subscription service, with membership surging again by +32%
surpassing 6.2 million members. As a subscription-driven business,
profitability is increasingly powered by the maturing Prime
membership base: profitability1 grew by 23% year-on-year to €36
million. As members consistently turn to Prime for all their travel
needs, the requirement for extensive customer acquisition efforts
decreases. With a growing number of members now in their second
year or beyond, the increasing maturity of the membership base
further boosts profitability. Prime benefits from capturing repeat
bookings from members, who book significantly more frequently than
transactional customers.
eDO’s ongoing strategic execution places its self-imposed
targets for 2025 well within reach: greater than 7.25 million Prime
subscribers and Cash EBITDA of or above €180 million.
- Prime membership grew by a remarkable 32% year-on-year,
reaching 6.2 million members.
- Net adds in the quarter stood at 409,000. While volatility is
expected in quarterly net adds due to seasonality patterns, the
business will deliver at least a further million members by the end
of the current fiscal year, thereby once again meeting its
self-imposed guidance.
- As guided, the maturity of Prime members is the main driver for
profits and margins, both of which continued to rise.
Profitability1 was up 23% to €36.0 million, compared to €29.4
million reported in the same period last year. It is anticipated
that profitability will grow by at least +48% year-on-year by the
end of FY25, reaching €180.0 million. As the Prime member base
continues to grow and mature, year-on-year comparatives will be
stronger in the second half of the current fiscal year.
- Revenues2 grew by 4% to €173.5 million, with those stemming
from Prime members alone growing by a significant 22% and now
representing 67% of the total. Marginal profits3 rose by 16% to
€60.0 million.
- Free Cash Flow4 stood at €20.4 million from €15.2 million in
the first quarter last year, a €5.2 million improvement
year-on-year, up 35%. By the end of FY25, it is expected to surpass
€90 million, more than doubling from last year.
- Adjusted net income reached €2.6 million, up +145%
year-on-year. Adjusted net income more accurately reflects the
business' operational performance as it excludes certain
non-recurring items that impacted this quarter due to timing, such
as expenses related to the long-term incentive plan and higher IT
costs, which are strategic investments for future growth.
Dana Dunne, CEO of eDreams ODIGEO commented: “We have
kicked off our fiscal year with a standout first quarter, marked by
soaring profitability, significant expansion of our subscriber
base, and sharply improved margins—just as we said we would. This
performance underscores our position as a stronger, more
profitable, and increasingly predictable subscription business.
Prime now reaches millions of households, but what excites us even
more is the vast potential that lies ahead, given the huge
addressable market we have yet to tap into.
As we progress into the final fiscal year of our 3.5-year
strategic roadmap, I’m proud to say our self-imposed long-term
targets are now well within reach. Back in 2021, when we first
defined our vision, our goal wasn’t just business growth—we aimed
to lead by innovation as the world’s first and largest travel
subscription platform. It was a bold and novel strategy, and it has
proven to be very successful. As we near the culmination of this
roadmap, the foundations we’ve built over the past years have set
us up for continued success, and the potential for further growth
beyond 2025 is immense. Our competitive advantage, unique customer
proposition and leading technology mean we are fully prepared to
capitalise on the vast opportunities that lie ahead.”
1 Cash EBITDA 2 Cash Revenue Margin 3 Cash Marginal Profit 4
Excluding Non-Prime Working Capital
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