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Prime membership grows strongly by +32% - FY25 targets well within reach

BARCELONA, Spain, September 03, 2024--(BUSINESS WIRE)--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.