eDreams reduces its losses by 34% in its fiscal year 2023 and achieves record reserves

The company even expects to exceed its 2025 targets with an Ebitda of more than 180 million euros

The online travel agency eDreams Odigeo registered net losses of 43.3 million euros during its last fiscal year, ended on March 31, which is 34.2% less than the negative result of 65.9 million euros for the same period of the previous year.

In adjusted terms, the company lost 33.6% less in its fiscal year, up to 34.7 million euros, in contrast to the losses of 52.3 million the previous year, as reported by the company on Thursday to the National Stock Market Commission (CNMV).

The strategic expansion of the global workforce by 50% until 2025, the increase in variable costs associated with the increase in sales and the investment to acquire new Prime members were the drivers of the net profit result, which "continues to improve", according to explained the tour group.

eDreams revenue grew 49% in this fiscal year, to 569.6 million euros, due to the record 29% increase in bookings, to 16.2 million, 42% higher than pre-pandemic levels .

At the same time, 'cash' income grew by 47%, in this fiscal year, to 621 million euros, surpassing the barrier of 600 million euros for the first time in the company's history.

Revenue in FY2023 primarily reflects strong growth in Prime members, better volumes in March 2023 compared to the same month in 2022, as well as an increase in average booking amount primarily due to rate increases airlines in the year 2023 compared to 2022.

For its part, the gross operating result 'Cash' of eDreams reached 84.4 million euros, 91% more than in the same period of the previous year.

In addition, in 2023, despite the difficulties and normalization of the market, the group closed the fourth quarter with a positive operating cash flow of 102.5 million euros, mainly due to an inflow of working capital of 69.4 million euros.

On the other hand, the fourth quarter of fiscal 2023 has continued to show the improving trends seen in the previous two quarters, as well as significant improvements in profitability as more Prime members renewed their subscriptions.

RECORD RESERVES: 16.1 MILLION

In fiscal year 2023, the company has achieved record reserves, reaching 16.2 million, which is 29% above fiscal year 2022 and 42% above pre-pandemic levels, "despite the fact that the industry is shifting towards more normalized seasonal patterns, from the conflict in Ukraine, rising global inflation and industry disruptions."

According to eDreams, the company's booking volume has demonstrated its post-Covid-19 recovery, outperforming the market (and its competitors) by a significant margin, driven by increased business quality with the change towards the subscription model and the desire of consumers to travel.

In addition, mobile bookings also improved and accounted for 57% of total flight bookings, a record in the company's history.

64% GROWTH IN THE PRIME SERVICE

The Prime subscription service launched by the travel agency reached 4.3 million members, which represents a year-on-year growth of 64%, adding 1.7 million new subscribers in the last year, according to the company.

Likewise, he added that the seniority of Prime members is the most important profitability driver. "As more Prime members renew their subscription, profitability increases," she explained.

The CEO of the group, Dana Dunne, has described the results as "excellent" and has expressed "the pride" of reaching "the highest levels of reservations, revenues and mobile reservations ever achieved in our 24-year history."

"As we continue to lead travel innovation underpinned by a forward-thinking, sustainable and technology-driven business, we aspire to push the boundaries of what is possible with such technology and to revolutionize the e-commerce industry in overall," he added.

He also had words of thanks to the eDreams team: "Our excellent results in the last twelve months would not have been possible without our extraordinary team, our 'eDOers'". His impressive work and dedication has a direct impact on the experiences of millions of travelers around the world, he has highlighted.

The 'online' travel agency has highlighted that the "excellent performance" reconfirms that "it will reach or even exceed" its objectives for 2025: 7.25 million Prime subscribers, and an Ebitda 'Cash' of more than 180 million of euros.

The future growth of the company will be driven by the development and growth of its Prime member base, the improvement of the breadth and depth of the offer to customers, further international expansion, the continuous improvement of the e-commerce platform, the increased margins and the ability to offer differential value.