eDreams ODIGEO (eDO), the world’s leading travel subscription company and one of Europe’s largest e-commerce firms, has announced impressive results for the first quarter of fiscal year 2025, ending 30 June 2024. The company has demonstrated robust growth and profitability, underpinned by the continued success of its innovative subscription platform.
Exceptional Growth in Prime Membership
eDreams ODIGEO’s Prime subscription service has once again proven its market dominance, with membership rising by a remarkable 32% year-on-year, reaching over 6.2 million members. This substantial increase highlights the growing appeal and effectiveness of the Prime model, which has become a key driver of the company’s profitability. The maturing Prime membership base is increasingly contributing to higher margins, as members frequently utilise the service for their travel needs, reducing the necessity for extensive customer acquisition efforts.
Financial Performance Highlights
For the first quarter of FY25, eDreams ODIGEO reported a significant 23% increase in profitability, amounting to €36 million, compared to €29.4 million in the same period last year. This notable growth is attributed to the expanding and maturing Prime membership base, which has a substantial impact on profitability and operational efficiency. The company anticipates that profitability will continue to rise, with a projected increase of at least 48% year-on-year by the end of the fiscal year, aiming to reach €180 million.
Revenue for the quarter grew by 4% to €173.5 million. Revenue generated from Prime members increased by 22%, now accounting for 67% of the company’s total revenue. This highlights the significant role of Prime members in driving revenue growth. Marginal profits also experienced a robust increase of 16%, reaching €60 million. Free Cash Flow improved notably, standing at €20.4 million, up from €15.2 million in the previous year, marking a 35% increase. The company expects Free Cash Flow to exceed €90 million by the end of the fiscal year, more than doubling from the previous year.
Strategic Investments and Financial Stability
eDreams ODIGEO’s solid financial position, with liquidity standing at €228 million, has enabled the company to undertake strategic investments. The company has launched a voluntary and partial tender offer to fund its long-term incentive plan for employees, allocating up to €50 million for this purpose. This offer, approved by the Spanish Stock Exchange regulator (CNMV) on 24th July 2024, involves purchasing up to 4,550,864 shares at a fixed price of €6.90 per share.
Progress Towards Strategic Targets
The company remains on track to meet its ambitious targets for fiscal year 2025. eDreams ODIGEO is set to surpass 7.25 million Prime subscribers and achieve Cash EBITDA in excess of €180 million by the end of the fiscal year. These targets reflect the company’s successful implementation of its subscription-based business model and its strong market position.
CEO’s Commentary
“Dana Dunne, CEO of eDreams ODIGEO, stated: ‘We have started the fiscal year with a remarkable first quarter, characterised by substantial profitability, notable subscriber growth, and improved margins.’ This performance reinforces our position as a robust, profitable, and increasingly predictable subscription business. Prime now reaches millions of households globally, and we are excited about the enormous potential that lies ahead in an expansive and largely untapped market.”
Dunne added, “As we approach the final stages of our 3.5-year strategic roadmap, we are confident that our long-term targets are well within reach. Our bold and innovative strategy has yielded remarkable results, and the strong foundation we have built positions us for continued success and growth beyond 2025. Our competitive advantage, combined with our cutting-edge technology and unique customer proposition, ensures we are well-prepared to seize future opportunities.”
