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eDreams ODIGEO builds for the future Rapid rebound in trading over the summer

Barcelona – WEBWIRE

eDreams ODIGEO (, Europe’s largest online travel company and one of the largest European e-commerce businesses, reported its results for the three months ended 30 September 2020.


Strong and rapid turnaround experienced during the summer period and any further lifting of restrictions or the introduction of a vaccine are likely to result in a sharp rebound again.

  • Balance sheet and liquidity remains strong
  • Continue to develop the business and will emerge even stronger when restrictions are lifted
  • Second wave has caused demand to soften in October / November at around -67% to -73%, but has stabilised  
  • Focus on our customers with 92% of cancelled flights having been resolved or processed
  • Our overall trading suggests outperformance against airline industry, gaining market share vs supplier direct due to better quality, more comprehensive content and flexibility. 
  • Prime is proving to be a successful proposition to customers even in current market. On track to reach 2 million subscribers by 2023.
  •  Pfizer and Moderna announcements bring forward scenarios of travel returning sooner in 2021. Introduction of a vaccine likely to result in a sharp rebound again, as suggested in latest surveys and analysis from IATA Economics on the 29th of September: 
  1. Over 80% passengers will return to air travel between now and 6 months 
  2. Russia recovered pre-crisis levels due to news about the vaccine
  3. China is only 20% below pre-COVID-19 due to strong domestic demand 


  • Liquidity position of €115-117 million at the end of September and October, respectively, higher than March and June excluding acceleration of reimbursements.
  • Main reasons: High variability and good fixed cost management, offset by acceleration of reimbursement to our customers and a decrease in Bookings due to higher travel restrictions creates Working Capital outflow. 
  • Reduction of average monthly cash burn (excl. WC and tax) from €13 million to €6 million. 
  • Strong liquidity reserve: No Action Stress Test suggests we can run business at minus 70% through the end of calendar year 2021.
  • €34.4 million of Revenue Margin (decrease of 75% vs. second quarter of fiscal year 2020), but 2.1x the amount of the first quarter of fiscal year 2021. 
  • Marginal Profit (Revenue Margin minus Variable Cost) stood at €11.5 million positive, 10x the amount of the first quarter, increasing the variability and flexibility of our cost structure.
  • Diversification Revenue of 56%, up +8pp year on year showing the strength of our business strategy 
  • Product Diversification Ratio up to 87%, up +7pp year on year
  • Mobile bookings up to 57% of total flight bookings, from 45% in the same period last year
  • Prime subscriber number grew to 664k up 71% from the second quarter of fiscal year 2020 
  • Adjusted EBITDA amounted to (€2.1) million, 86% up from first quarter of fiscal year 2021 
  • Adjusted Net Income stood at (€19.3) million (second quarter fiscal year 2020 €11.1 million).
  • Due to the uncertainty caused by COVID-19, guidance for the current year is not provided.

Dana Dunne, Chief Executive Officer, commented: “During this period we have continued to successfully develop and strengthen the business to ensure that we emerge as winners from the COVID-19 crisis. We saw a rapid increase in trade when restrictions were lifted in the summer, we continue to grow our unique subscription product, Prime and have managed our finances tightly ensuring that we retain substantial liquidity levels. We are excited about the news regarding the vaccine which will enable markets to reopen and bring a return to more normalised conditions in the not too distant future.”

Business Overview

During the second quarter we have seen continued progress, with July and August both showing improvements vs the first quarter, and September showing a softening of the demand vs July and August. As a result of the pandemic and airline cancellations, Revenue Margin in the second quarter of the fiscal year 2021 was down 75% year-on-year, due to Bookings being down 62% and a reduction in Revenue Margin/Booking driven by lower average basket value of Bookings due to COVID-19. This resulted in a lower classic revenue from customers and lower revenue from providers. Our focus has been on what we can control, which is to build and continually enhance a high quality and adaptable business model. This is demonstrated by the reduction in Variable costs in line or above the decrease of Bookings and Revenue Margin. Our Marginal Profit in the second quarter of fiscal year 2021 (Revenue Margin minus Variable Cost), stood at €11.5 million positive, 10x the amount of the first quarter, increasing the variability and flexibility of our cost structure adapting to the new mix of Bookings made by customers during COVID-19, resulting in Marginal Profit per Booking increasing 2.5 times from Q1 to Q2 FY21.

Adjusted EBITDA amounted to a loss of €2.1 million in the second quarter of fiscal year 2021, 86% better than the first quarter of fiscal year 2021. Adjusted Net Income was a loss of €19.3 million in the second quarter of fiscal year 2021, we believe that Adjusted Net Income better reflects the real ongoing operational performance of the business. Also our revenue diversification initiatives continue to develop. Diversification revenue is more resilient than Classic Customer Revenue, down 70% year-on-year in the second quarter of fiscal year 2021. As a consequence of our revenue model shift, Product Diversification Ratio and Revenue Diversification Ratio have increased to 87% and 56% in the second quarter, up from 80% and 48% in the second quarter last year, rising 7 and 8 percentage points in just one year.

Prime is performing strongly in a weak market. Prime subscription rate and share of total Bookings continue to grow. The number of subscribers has increased to 664,000 members, 275,000 more than in the second quarter of fiscal year 2020, and Prime share of Bookings reached 26%. We now operate Prime in flights and hotels in four of our largest markets Spain, Italy, Germany and France, and we recently launched flights in the UK. Additionally, mobile bookings continue to grow and account for 57% of our total flight bookings in the second quarter of fiscal year 2021, rising 12 percentage points from the second quarter last year.

In the second quarter of fiscal year 2021, despite increasing travel restrictions and acceleration of reimbursements to customers by €40 million vs inflows received from airlines, partially mitigated by higher volumes in September vs June, resulted in a working capital outflow of €1.8 million. The Group continues to have a strong balance sheet, with liquidity position of €115 million at the end of September, including the €40 million acceleration of reimbursements to customers vs inflows received from airlines, €106 million undrawn from our Super Senior Revolving Credit Facility (“SSRCF”) and €15 million new Government sponsored loan to finance the decrease of negative working capital, placing us in a position of strength as soon as normal activity resumes. As a result, due to COVID-19 impact, leverage ratios have been impacted with the Net leverage ratio increased from 2.7x in September 2019 to 12.1x in 2020 and Gross Leverage ratio increasing from 3.6x to 13.7x.

On the 21st of April we announced that successful discussions with our lenders resulted in the single covenant of our SSRCF Gross Leverage Ratio being waived for fiscal year 2021, achieving further financial flexibility for the group.

Furthermore, in July we have reduced the use of our SSRCF by €54.5 million, proving once again the strength of our financial position, and highlighting eDreams ODIGEO’s robust deleveraging profile while at the same time creating an option for sustainable long-term growth through investments such as the shift in our revenue model since November 2016.

usiness review by geography

We operate five leading brands eDreams, GO Voyages, Opodo, Travellink, and the metasearch engine Liligo. We have a strong presence in 45 markets, covering 80% of the total travel market through 251 websites and apps in 20 languages and 36 different currencies on one central platform.

The top 6 markets (France, Spain, Italy, Germany, United Kingdom and the Nordics) recorded €27.8 million in revenue margin in second quarter 2021. 

Revenue diversification by geography remains stable.

In summary

Our business is strong and well positioned to emerge as a winner from this crisis. We have ample liquidity. Our liquidity position of €117 million at the end of October, including the acceleration in reimbursements to customers, which could be used if needed in periods of slowing demand. Gross Leverage Ratio being waived for Fiscal Year 2021, gives us further financial flexibility. We have no short-term financial debt payments and our Senior Notes, new Government Sponsored loan and bank facilities are due in 2023.

Our Prime subscription programme is growing as well. Even in poor market conditions we have added 100k new subscribers just in the quarter and 26% of our Bookings are now done through Prime.

Our business remains financially strong. We maintain marginal profit positive and we have kept our teams intact and motivated so we can build for the future and address current needs.

eDreams ODIGEO is agile and nimble, which allows it to adapt quickly as necessary. We continue to lead through product development and innovation, such as Prime, to lead the transformation of the travel industry.

About eDreams ODIGEO 

eDreams ODIGEO is one of the world’s largest online travel companies and one of the largest e-commerce businesses in Europe. Under its four leading online travel agency brands – eDreams, GO Voyages, Opodo, Travellink, and the metasearch engine Liligo – it serves more than 17 million customers per year across 45 markets. Listed on the Spanish Stock Market, eDreams ODIGEO works with 667 airlines and has partnerships with 130. The brand offers the best deals in regular flights, low-cost airlines, hotels, cruises, car rental, dynamic packages, holiday packages and travel insurance to make travel easier, more accessible, and better value for consumers across the globe.

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