Market Overview

eDreams ODIGEO First Nine Months Financial Results: Adjusted EBITDA Up 10% to €86.8 Million, All Key Metrics in Line or Above Guidance

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BARCELONA, Spain, Feb. 27, 2020 /PRNewswire/ -- eDreams ODIGEO (www.edreamsodigeo.com), Europe's largest online travel company with over 18 million customers and one of the largest European e-commerce businesses, today reported its results for the nine months of the fiscal year 2020.

9M RESULTS HIGHLIGHTS

  • 9M performance in line with guidance
    - Bookings, following the completion of our strategic revenue model shift, started to show faster growth. During 3Q fiscal year 2020, Bookings grew by 5% year-on-year, and reached 8.3 million in 9M fiscal year 2020, up 2% versus 9M fiscal year 2019
    - Revenue Margin was up 8% year-on-year to €412.9 million, due to an increase in Revenue Margin per booking of 6%
    - Adjusted EBITDA rose 10% to €86.8 million (9M fiscal year 2019: €79.1 million)
    - Adjusted Net Income increased 46% to €31.4 million
    - Cash position improved by 47% to €71.7 million (net of overdrafts) (9M fiscal year 2019: €48.9 million)
    - Net leverage ratio reduced to 2.9x from 3.9x in December 2018.
  • Strategic initiatives delivering strong results. 
    - Diversification Revenue up 29% year-on-year, 86% larger than our Classic Customer Revenues 
    - Revenue Diversification Ratio up to 51% (from 43%) 
    - Product Diversification Ratio up to 82% (from 68%) 
  • Acquisition Cost per Booking Index reduced by 31 pp since fiscal year 2015, and Repeat Booking Rate rose to 41%
  • Mobile bookings up to 44% of total flight bookings versus 39% in 9M fiscal year 2019
  • Industry-leading subscription programme (Prime) showing strong results. Prime subscribers grew by 110,000 to 499,000 (+28% vs 2Q FY20) and reached 555,497 on the 23rd of February 2020
  • Acquired Waylo, the US hotel booking technology business

CURRENT TRADING & FY20 UPDATE

  • Bookings, following the completion of our strategic revenue model shift, have shown improving performance in the first three quarters of our fiscal year. This is as anticipated and guided to the market.
  • This growth in Bookings has accelerated during the third fiscal quarter, with December growing at 11% year-on-year
  • After the Coronavirus outbreak, the biggest drop is in Asia. Also we have seen a drop in all our destinations, and more recently in Italy in particular.
  • What we have seen since the expansion of the disease to Italy is a drop in Bookings for the entire group of 12%
  • If we assume this pattern to continue for the remaining 5 weeks of FY20, we estimate the following results for the aggregate of the fiscal year:
    - Bookings: UP 1% vs FY19, reaching 11.3 million 
    - Revenue Margin: UP 4% vs FY19, reaching €552 million 
    - Adjusted EBITDA: UP 9% vs FY19, reaching €130 million

Dana Dunne, CEO of eDreams ODIGEO said:

''I am pleased to report another quarter of solid results across the Group in line with our guidance. Our strategy shift to enhance revenue diversification again has delivered positive results, the 20th consecutive quarter of achieving or exceeding guidance. With leading positions in many European markets, a proprietary, market leading technology platform and the industry leading subscription model, the foundation is set for continued progress. While the impact of the coronavirus has brought a slowdown to the industry, the underlying fundamentals of online travel are strong, and once the virus is contained, a return to normal trading patterns will resume. I find comfort in the resilience of our business model and our strong financial position."

(*) More information on: 
https://www.edreamsodigeo.com/press-releases/2020/02/9m-adjusted-ebitda-up-10-to-e86-8-million-all-key-metrics-in-line-or-above-guidance/

 

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SOURCE eDreams ODIGEO

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