Prime membership grows strongly by +32% – FY25 targets well within reach
BARCELONA, Spain–(BUSINESS WIRE)–eDreams ODIGEO, the world’s leading travel subscription company and one of Europe’s largest e-commerce firms, today released its results for Q1 FY25 ended 30 June 2024.
The Company delivered another quarter of strong growth, driven by the continued success of its subscription platform. Prime further cemented its position as the world’s largest travel subscription service, with membership surging again by +32% surpassing 6.2 million members. As a subscription-driven business, profitability is increasingly powered by the maturing Prime membership base: profitability1 grew by 23% year-on-year to €36 million. As members consistently turn to Prime for all their travel needs, the requirement for extensive customer acquisition efforts decreases. With a growing number of members now in their second year or beyond, the increasing maturity of the membership base further boosts profitability. Prime benefits from capturing repeat bookings from members, who book significantly more frequently than transactional customers.
eDO’s ongoing strategic execution places its self-imposed targets for 2025 well within reach: greater than 7.25 million Prime subscribers and Cash EBITDA of or above €180 million.
- Prime membership grew by a remarkable 32% year-on-year, reaching 6.2 million members.
- Net adds in the quarter stood at 409,000. While volatility is expected in quarterly net adds due to seasonality patterns, the business will deliver at least a further million members by the end of the current fiscal year, thereby once again meeting its self-imposed guidance.
- As guided, the maturity of Prime members is the main driver for profits and margins, both of which continued to rise. Profitability1 was up 23% to €36.0 million, compared to €29.4 million reported in the same period last year. It is anticipated that profitability will grow by at least +48% year-on-year by the end of FY25, reaching €180.0 million. As the Prime member base continues to grow and mature, year-on-year comparatives will be stronger in the second half of the current fiscal year.
- Revenues2 grew by 4% to €173.5 million, with those stemming from Prime members alone growing by a significant 22% and now representing 67% of the total. Marginal profits3 rose by 16% to €60.0 million.
- Free Cash Flow4 stood at €20.4 million from €15.2 million in the first quarter last year, a €5.2 million improvement year-on-year, up 35%. By the end of FY25, it is expected to surpass €90 million, more than doubling from last year.
- Adjusted net income reached €2.6 million, up +145% year-on-year. Adjusted net income more accurately reflects the business’ operational performance as it excludes certain non-recurring items that impacted this quarter due to timing, such as expenses related to the long-term incentive plan and higher IT costs, which are strategic investments for future growth.
Dana Dunne, CEO of eDreams ODIGEO commented: We have kicked off our fiscal year with a standout first quarter, marked by soaring profitability, significant expansion of our subscriber base, and sharply improved margins”just as we said we would. This performance underscores our position as a stronger, more profitable, and increasingly predictable subscription business. Prime now reaches millions of households, but what excites us even more is the vast potential that lies ahead, given the huge addressable market we have yet to tap into.
As we progress into the final fiscal year of our 3.5-year strategic roadmap, I’m proud to say our self-imposed long-term targets are now well within reach. Back in 2021, when we first defined our vision, our goal wasn’t just business growth”we aimed to lead by innovation as the world’s first and largest travel subscription platform. It was a bold and novel strategy, and it has proven to be very successful. As we near the culmination of this roadmap, the foundations we’ve built over the past years have set us up for continued success, and the potential for further growth beyond 2025 is immense. Our competitive advantage, unique customer proposition and leading technology mean we are fully prepared to capitalise on the vast opportunities that lie ahead.
1 Cash EBITDA
2 Cash Revenue Margin
3 Cash Marginal Profit
4 Excluding Non-Prime Working Capital
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Source: eDreams ODIGEO
