eDreams ODIGEO (EDR) Q1 2025 earnings summary

Executive summary

• Prime membership grew 32% year-over-year to 6.2 million, with 409,000 net adds in Q1 FY25, driving strong top-line and margin expansion.

• Prime model continues to drive profitability, with Prime cash EBITDA up 71% year-over-year and margin expanding by 9 percentage points.

• Cash EBITDA increased 23% year-over-year to €36 million, with margin up 3 percentage points to 21%.

• Prime segment growth more than offset anticipated declines in Non-Prime, resulting in overall profitability improvements.

• Adjusted Net Income was €2.6 million, while reported Net Income was a loss of €1.2 million.

Financial highlights

• Revenue Margin (excluding adjusted items) increased 2% year-over-year to €160 million, driven by 20% growth in Prime Revenue Margin and higher Prime ARPU at €76.6.

• Cash Marginal Profit rose 16% to €60 million, with margin improving to 35% from 31% year-over-year.

• Free Cash Flow (excluding non-Prime working capital) grew 35% year-over-year to €20.4 million.

• Adjusted EBITDA was €22.6 million, and adjusted net income stood at €2.6 million.

• Liquidity position at end of June 2024 was €228 million.

Outlook and guidance

• On track to meet or exceed FY25 targets: over 7.25 million Prime members, cash EBITDA above €180 million, and free cash flow (excl. non-Prime working capital) over €90 million.

• Cash marginal profit margin expected at 36-37% in H1 and 42-43% in H2, averaging around 40% for FY25.

• Prime member growth expected at 28% in H1 and 24% in H2 year-over-year.

• Stronger year-over-year comparatives anticipated in 2H FY25 as Prime base matures.

• Long-term growth potential remains significant due to low household penetration and planned expansion.