MADRID, 15 Nov. (EUROPA PRESS) -
The online travel agency eDreams Odigeo recorded net losses of 1.6 million euros during its first fiscal semester, which ended on September 30, compared to the "red numbers" of 24 million euros in the same period of 2022. .
In adjusted terms, the company lost two million euros between April and September, in contrast to the losses of 19 million euros in the same period of the previous year, as reported this Wednesday by the company to the National Securities Market Commission (CNMV). ).
eDreams revenue grew by 13% in the first six months of the fiscal year, to €327 million, while cash revenue grew by 12%, to €354.4 million.
While the net result showed a notable improvement of 22.4 million euros compared to the previous year, "the large growth in revenues, a substantial figure of 38 million euros, requires a longer period to be fully translated into net profit ", the company explained in a statement.
"Specifically, the decision to invest in expanding the Prime member base means that profitability for Prime members in their first year is postponed to the second year onwards, since first-year subscribers do not generate as many immediate profits as already consolidated members," he added.
For its part, eDreams' 'Cash' gross operating result (Ebitda) reached 63.5 million euros in the half-year, 84% more than the 34.5 million euros recorded in the same period of 2022, in so much so that the adjusted Ebitda multiplied by five, reaching a total of 36.1 million euros.
The travel agency's Prime subscription service increased 41% year-on-year, surpassing five million subscribers at the end of its fiscal first half and reaching 5.2 million in October. In the last 24 months alone, the program added 3.4 million new subscribers.
"The maturity of Prime members is the main driver of profitability. The reason for the improvement in margins is due to the fact that we have more and more Prime members who renew their subscription," the company has stressed.
In addition, mobile bookings also improved and represented 59% of total flight bookings, compared to 54% in the second quarter of fiscal 2023, which represents an increase of five percentage points in one year.
The group's CEO, Dana Dunne, highlighted that they are "very pleased" with their "excellent results": "Our strategic shift towards a subscription-based business continues to bear fruit, especially increasing profitability and improving predictability."
"Today marks two years since we unveiled our three-and-a-half-year strategic roadmap, a transformative journey to consolidate the company as a leading global subscription business," Dunne recalled.
On the other hand, cash flow from operations increased by 40.5 million euros, to 73.7 million, mainly due to the successful expansion of the Prime member base, which translated into higher Ebitda. The inflow of working capital in that period was 31.7 million euros, driven mainly by business growth.
Additionally, eDreams has used cash for investments worth €23 million in its fiscal first half, an increase of €6.8 million, mainly due to higher capitalized software.
The online travel agency has highlighted that, after its half-year results, it is "well positioned and on track to meet its objectives for 2025": 7.25 million Prime subscribers and an Ebitda 'Cash' of more than 180 millions of euros.