˜Prime’, the world’s first journey subscription platform, provides 1.45 million new members in simply 12 months
On monitor to satisfy self-imposed FY25 targets: 7.25 million subscribers and profitability over €180 million
BARCELONA, Spain–(BUSINESS WIRE)–eDreams ODIGEO (hereinafter ˜eDO’, ˜the Firm’ or ˜the Group’), the world’s main journey subscription firm and considered one of Europe’s largest e-commerce corporations, at this time launched its outcomes for the primary half of its fiscal 12 months 2025, ended 30 September 2024.
The Firm continued to ship vital development because the world’s first and largest journey subscription firm. The Firm’s key metrics as a subscription platform, particularly variety of subscribers and profitability, all achieved stable development within the first half, with Prime members and Money EBITDA each rising by a big 28%, to six.5 million subscribers and €81.1 million, respectively. As a subscription-led enterprise, profitability is notably pushed by the rising base of long-term Prime members. Members of their second 12 months and past contribute greater worth, as they more and more flip to Prime as their go-to resolution for all journey wants.
eDO is nicely on monitor to satisfy its self-imposed 3.5-year targets by March 2025. By the top of the present fiscal 12 months, the Firm expects to attain 7.25 million Prime subscribers and Money EBITDA of or above €180 million.
H1 RESULTS HIGHLIGHTS
- Prime mannequin continued to ship positive factors in profitability and margin development
- Prime membership continued to develop strongly, 28% year-on-year, reaching 6.5 million. Web adds1 within the second quarter have been in keeping with expectations at 303,000.
- The Firm’s key indicator of profitability, Money EBITDA, grew 28% year-on-year to €81.1 million. As meant, profitability development was particularly robust on the Prime facet of the enterprise, reaching development of 53%, pushed by a secure mounted price base alongside strong top-line enlargement.
- Profitability development derived largely from substantial margin enhancements. Marginal profit2 reached €130.8 million, up 20% total and 45% greater for Prime solely, reflecting the power of the subscription mannequin. Prime now accounts for 87% of marginal revenue.
- As guided, the maturity of Prime members is the important thing driver for profitability. The ever rising variety of Prime members renewing their memberships has resulted in a considerable enchancment in profitability.
- Revenues3 for Prime grew 18% on account of robust membership development, greater than offsetting the anticipated and meant declines within the non-Prime facet of the enterprise. This shift aligns with the strategic deal with the subscription mannequin.
- Total, Revenues3 topped €361.2 million within the first half, up 2%, of which 69% now stem from the Prime enterprise, additional confirming eDO’s efficient transition right into a subscription enterprise.
- Enhanced monetary flexibility as Money flow4 continued to point out vital positive factors, reaching €41.7 million up 61%, a €15.8 million enchancment year-on-year.
- Profitable completion5 of share buy-back, making certain sufficient treasury shares to fund the long-term incentive plan deliveries till fiscal 12 months 2027. The Board permitted a brand new day by day repurchase programme of €50 million, with 3.4 million shares to fund LTIP deliveries in fiscal 12 months 2028 and the remaining to be amortised.
- Heading in the right direction to attain long-term steering by March 2025, with robust potential for sustained development past
- Money EBITDA in extra of €180 million.
- Greater than 7.25 million members.
- Technology of Money Flow3 to over 90 million euros, greater than doubling final 12 months’s.
- As guided, higher year-on-year comparatives are anticipated within the second half of the fiscal 12 months.
Dana Dunne, CEO of eDreams ODIGEO commented: Our outcomes and efficiency depart little doubt”our technique is delivering development and creating lasting worth for our prospects, shareholders, and the corporate as a complete. We’re fulfilling our guarantees, persistently driving development in profitability and margins, Prime membership, buyer satisfaction, and monetary power, making our enterprise stronger with every passing day. Our execution really units us aside, powered by a scalable, AI-driven subscription platform that thrives on predictable, recurring revenues and long-term buyer relationships”distinctly positioning us as a standout in an in any other case transactional trade. With our constant achievements, we’re proud to see our bold 2025 long-term targets nicely inside attain. We’re thrilled by the substantial development alternatives past 2025 and excited for eDO’s vivid future because the world’s premier journey subscription platform.
SUMMARY INCOME STATEMENT
|
(in € million) |
H1 FY25 |
Var FY25-FY24 |
H1 FY24 |
2Q FY25 |
Var. FY25-FY24 |
2Q FY24 |
|
Money Income Margin |
361.2 |
2% |
354.4 |
187.7 |
0% |
187.5 |
|
Money Marginal Revenue |
130.8 |
20% |
108.9 |
70.8 |
24% |
56.9 |
|
Money EBITDA |
81.1 |
28% |
63.5 |
45.1 |
32% |
34.1 |
|
Adjusted EBITDA |
47.8 |
32% |
36.1 |
25.2 |
56% |
16.1 |
|
Web Revenue |
1.3 |
N/A |
(1.6) |
2.5 |
N/A |
(5.7) |
|
Adjusted Web Revenue |
8.1 |
N/A |
(2.0) |
5.5 |
N/A |
(3.1) |
|
(in hundreds) |
||||||
|
Prime Members |
6,538 |
28% |
5,092 |
6,538 |
28% |
5,092 |
RESULTS OVERVIEW
Within the first half of the fiscal 12 months, the power of eDO’s Prime mannequin drove appreciable development, underscoring the Firm’s efficient transition right into a subscription-based enterprise. Prime memberships grew by 28% year-on-year, reaching 6.5 million on the finish of September, with new additions in keeping with expectations at 303,000 within the second quarter. This development in membership additionally supported a big improve in profitability6, because the Firm’s key profitability indicator, Money EBITDA, rose by 28% year-on-year to €81.1 million. Notably, the Prime phase achieved 53% profitability development, propelled by a secure mounted price base and strong income enlargement, leading to substantial enhancements in total margins. Marginal profit7 grew 20% to €130.8 million, with Prime-only revenue rising considerably, by 45%, reflecting the mannequin’s value-generating capabilities. Prime now accounts for 87% of the Firm’s marginal revenue.
The maturity of Prime memberships stays an important consider driving profitability and with increasingly more members renewing past their first 12 months, earnings improve. As subscribers more and more flip to Prime for all their journey wants”from flights and accommodations to packages and automotive leases”their loyalty to a personalised, AI-powered one-stop journey resolution not solely drives regular income development but additionally reduces the necessity for extra advertising and marketing investments. This boosts the mannequin’s total effectivity whereas reinforcing its aggressive benefit, setting it other than conventional, legacy transactional fashions within the journey trade.
Revenues8 from the Prime phase rose by 18%, pushed by robust membership development, greater than compensating for the anticipated and deliberate declines within the non-Prime, transactional enterprise. This shift aligns seamlessly with eDO’s strategic deal with its subscription-led mannequin. Total, revenues9 reached €361.2 million within the first half of the 12 months, up 2% from €353.4 million final 12 months, with the Prime phase now comprising 69% of complete revenues, underscoring the success of eDO’s transition to a subscription-based mannequin.
Additional enhancing the Firm’s monetary power, Money flow10 confirmed substantial positive factors, reaching €41.7million”a rise of 61%, representing a €15.8 million enchancment year-on-year.
The robust monetary efficiency flowed by means of to the bottom-line consequence, with internet revenue totalling €8.1 million on an adjusted foundation within the first half.
Moreover, the Firm efficiently accomplished a share buy-back programme, securing a enough variety of treasury shares to fund the long-term incentive plan by means of fiscal 12 months 2027. Moreover, the Board permitted a brand new day by day repurchase programme of €50 million, with 3.4 million shares to fund deliveries of LTIP in fiscal 12 months 2028 and the remaining to be amortised.
STRATEGY UPDATE AND OUTLOOK
eDreams ODIGEO is delivering on a 3.5-year strategic roadmap, unveiled in 2021 and set to culminate by the top of the present fiscal 12 months, in March 2025. The Firm’s constant strategic progress brings its long-term targets nicely inside attain, as soon as once more fulfilling its commitments to the market and delivering on what it mentioned it could do. This achievement stands out notably in gentle of the quite a few unexpected exterior headwinds unfolding for the reason that technique’s inception, together with the pandemic, regional geopolitical conflicts, and macroeconomic pressures akin to excessive inflation. Such resilience highlights the power and adaptableness of the Prime enterprise mannequin in a posh international panorama.
Having realised vital development and with the 2025 targets now shut at hand, eDreams ODIGEO will proceed its development trajectory and maximise the substantial underlying potential that it sees past 2025. The scalable Prime mannequin is well-positioned to broaden into extra households in present markets, the place it’s nonetheless underpenetrated, enter new areas, and proceed to diversify its choices to incorporate a broader vary of services, attracting an ever-growing subscriber base.
– ENDS –
About eDreams ODIGEO
eDreams ODIGEO is the world’s main journey subscription platform and one of many largest e-commerce companies in Europe. Beneath its 4 famend on-line journey company manufacturers “ eDreams, GO Voyages, Opodo, Travellink, and the metasearch engine Liligo “ it serves greater than 21 million prospects per 12 months throughout 44 markets. Listed on the Spanish Inventory Market, eDreams ODIGEO works with practically 700 airways. The enterprise launched Prime, the primary subscription product within the journey sector which has topped over 6.5 million members since launching in 2017. The model affords the highest quality merchandise in common flights, low-cost airways, accommodations, dynamic packages, automotive rental and journey insurance coverage to make journey simpler, extra accessible, and higher worth for shoppers throughout the globe.
1 Web provides: Gross provides – Churn.
2 Money Marginal Revenue.
3 Money Income Margin.
4 (Free) Money Circulation ex Non-Prime Working Capital.
5 As of September thirteenth 2024.
6 Money EBITDA
7 Money Marginal Revenue
8 Money Income Margin
9 Money Income Margin
10 (Free) Money Circulation ex Non-Prime Working Capital
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E: edreamspressoffice@instinctif.com
T: +(44)07879086840
Supply: eDreams ODIGEO
