this travel agency online Dreams Odyssey Its revenues doubled to 146 million Euros. First quarter of the fiscal year ending in June after setting a new quarterly booking record. It registered 4.4 million bookings in the first quarter of fiscal 2023, the highest number in a single quarter and represents 50% more bookings than before the pandemic. The company managed to add 560,000 new main members in three months. In July and August 2022, the company’s bookings exceeded pre-pandemic levels by 38% and 55%, respectively, and in August, the number of subscribers exceeded 3.5 million. The adjusted net result represented a loss of €11.5 million in the quarter ended June (compared to the red figures of €15.5 million in fiscal year 2022).
The company acknowledges that net profit still depends on the type of travel customers book, lower value than pre-covid, number of passengers and duration. In this area, the increase in variable costs due to the increase in reserves and the increase in fixed costs due to the 50% increase in personnel are also noteworthy.
In the opinion of Edreams CEO, Dana DunneThe firm is well positioned to meet its targets for fiscal year 2025 to reach more than 7.25 million ‘first’ customers, an average revenue per user of 80 Euros and a cash balance of over 180 million Euros.
Net losses in the quarter were down by €10m, but the firm acknowledges the result is “still lower than before covid with the type of travel customers booked, a lower value, number of passengers and duration”. Edreams’ strategic plan is ongoing, including the goal of hiring more than 500 new technical profiles to continue supporting the business’ transition to a subscription model.
Edreams currently covers 80% of the world travel market, with 247 websites and apps centralized on a single platform, operated in 44 countries, 21 languages and 37 different currencies. Despite the conflicts in Ukraine, the global rise in inflation and the recent operational problems of airlines and airports, the company is accelerating its activities and deepening its business model. Reservations made from mobile devices accounted for 53% of total flight bookings in the first quarter.
Having successfully optimized its capital structure by increasing the primary capital of 75 million Euros at the request of investors in January 2022, the company reduced the size of the existing 425 million Euro preferred bonds to 375 million Euros and successfully refinanced all of them. It is a debt that extends its maturity by 5.5 years until 2027, improves contract terms and reduces annual interest expenses by 2.5 million Euros per year. This gave the company financial stability to execute its business plan and meet its fiscal 2025 targets.
The platform acknowledges that it is “ready for further expansion with selective investments (which will slow short-term ebitda growth).” Edreams is the world’s largest air ticket sales tool excluding China and one of the largest e-commerce companies in Europe. It serves more than 17 million customers in 44 countries each year through its four brands – eDreams, GO Voyages, Opodo and Travellink – and the Liligo metasearch engine. It works with more than 690 airlines and more than 2.1 million hotels. In 2017, the company launched its Prime service, the world’s first travel subscription product that has attracted 3.5 million members since its launch.