Edreams Odigeo · BME:EDR
Edreams Odigeo — 9M FY2019 Earnings Presentation
26 slides from Edreams Odigeo's earnings presentation, Feb 28, 2019
Slide 1: 9M Results presentation
9M Results presentation Fiscal Year 2019 9M Results, ending December 31st 2018 February 28th 2019
Slide 2: Disclaimer
Disclaimer ▶ This presentation is to be read as an introduction to the unaudited consolidated financial statements of the Group and contains key information presented in a concise manner on the Group and its financial condition. The information contained in this presentations is extracted from the u
Slide 3: 9M Results Highlights
9M Results Highlights • 9M Results Highlights • KPIs • Financial Analysis • Outlook • Appendix
Slide 4: Results Highlights
Results Highlights 9M Performance in line with guidance ▪ Bookings were €8.2 million (-3% year-on-year), in line with strategic revenue model shift ▪ Revenue Margin was €381,6 million (+4% year-on-year) ▪ Adjusted EBITDA was €79.1 million (-11% year-on-year) 9M performance reflects strategic progres
Slide 5: Results on track to meet FY 2019 guidance
Results on track to meet FY 2019 guidance Full Year EBITDA guidance increased to €118 million - €120 million Bookings Revenue Margin Adjusted EBITDA (*) In thousands (€ million) (€ million) 88.7 8,393 8,174 381.6 79.1 368.3 -3% +4% -11% 9M FY18 9M FY19 9M FY18 9M FY19 9M FY18 9M FY19 Source: Consoli
Slide 6: KPIs
KPIs • 9M Results Highlights • KPIs • Financial Analysis • Outlook • Appendix
Slide 7: Revenue diversification on track and the largest contributor to Revenues
Revenue diversification on track and the largest contributor to Revenues Revenue diversification ratio (**) Revenue evolution (**) 43% 35% 33% 3Q FY18 3Q FY19 27% 30% 5% 5% 15% 33% 13% 4Q '16 4Q '17 4Q '18 3Q '18 3Q '19 43% Product diversification ratio (**) 38% 68% 47% 56% 53% 45% 39% Diversificati
Slide 8: Continued strategic progress as evidenced by our KPIs
Continued strategic progress as evidenced by our KPIs Customer repeat booking rate (Annualised)** Acquisition cost per booking index 56% 59% 50% 100 -23 percentage points 38% 39% 79 77 4Q '16 4Q '17 4Q '18 3Q '18 3Q '19 Mobile bookings as share of flight bookings 36% 39% 30% 34% 25% 4Q '16 4Q '17 4Q
Slide 9: Financial Analysis
Financial Analysis • 9M Results Highlights • KPIs • Financial Analysis • Outlook • Appendix
Slide 10: Income Statement
Income Statement Highlights 9M FY19 ▪ Revenue margin increased by 4% 3Q FY19 3Q FY18 Var. 9M FY19 9M FY18 Var. (In € million) ▪ Variable Costs grew 12%, as a result of higher acquisition costs, driven partly by offline TV campaign broadcasted from April to Revenue margin 114.0 113.9 0% 381.6 368.3 4
Slide 11: Cash Flow Statement
Highlights 9M FY19 Cash Flow Statement ▪ Cash flow from operations decreased by €59.2 million, due to: 3Q FY19 3Q FY18 9M FY19 9M FY18 • Higher outflow in working capital with an outflow of (In € million) €137.8 million in 9M FY19 compared to an outflow of €99.4 million in 9M FY18. In 3Q FY19 we hav
Slide 12: Efficient Debt Management
Efficient Debt Management Gross Leverage Ratio (*) (Total Gross Financial Debt / LTM Adjusted EBITDA ) ▪ Successful refinancing in September led to a reduction of our debt 7 coupon by 300 basis points. 6 ▪ x LTM Adj. EBITDA Company secured a €12.7 million saving in annual interest, and a 1.6x 5 sign
Slide 13: Outlook
Outlook • 9M Results Highlights • KPIs • Financial Analysis • Outlook • Appendix
Slide 14: Outlook FY 2019 - Full Year Guidance
Outlook FY 2019 - UPDATED Full Year Guidance Bookings Outlook Statement FROM TO In FY19, we will continue to invest and accelerate the strategic shift in our Flat to -4% vs FY18 -3% to -5% vs FY18 revenue model, including increased price transparency, for the long-term success of our business. As ou
Slide 15: What will drive Q4 growth rates?
What will drive Q4 growth rates? Volume affected by transition to new price display in majority of our business Bookings (% Year on Year growth) DRIVERS +6% -4 to o Since FY18 the proportion of our +1% +1% -6% +1% -5% -5% -11% business migrated to the new price 1Q '18 2Q '18 3Q '18 4Q '18 1Q '19 2Q
Slide 16: Why eDreams Odigeo?
Why 2 eDreams Odigeo? 2 1 1 2 1 1 1 Established market position 30% European OTA 30% Significant revenue diversification flight market share Market leading capabilities SOURCE: Internal analysis; Amadeus bookings data; Phocuswright European Travel Overview 13th Edition 15
Slide 17: Appendix
Appendix • 9M Results Highlights • KPIs • Financial Analysis • Outlook • Appendix
Slide 18: Flight and Non-Flight Bookings
Flight and Non-Flight Bookings Revenue diversification drives growth in Non-Flight Business Flight - Bookings Non Flight - Bookings In ‘000 -3% In ‘000 -0% 7,746 7,528 648 646 -5% -7% 2,314 2,207 206 191 3Q FY18 3Q FY19 9M FY18 9M FY19 3Q FY18 3Q FY19 9M FY18 9M FY19 Flight Non-Flight First nine mon
Slide 19: Flight and Non-Flight Revenue Margin
Flight and Non-Flight Revenue Margin Revenue diversification drives growth in Flight & Non-Flight Businesses Flight – Revenue Margin Non Flight – Revenue Margin In € million In € million +2% +9% 301.3 80.3 294.6 73.7 -1% +4% 90.9 90.1 22.9 23.9 3Q FY18 3Q FY19 9M FY18 9M FY19 3Q FY18 3Q FY19 9M FY18
Slide 20: Core and Expansion Bookings
Core and Expansion Bookings Revenue diversification drives growth in the Expansion Markets Core- Bookings Expansion - Bookings In ‘000 -12% In ‘000 +6% 4,146 4,516 4,247 3,658 -11% +1% 1,181 1,052 1,339 1,347 3Q FY18 3Q FY19 9M FY18 9M FY19 3Q FY18 3Q FY19 9M FY18 9M FY19 Core Expansion In 9M FY 201
Slide 21: Core and Expansion Revenue Margin
Core and Expansion Revenue Margin Revenue diversification drives growth in the Expansion Markets Core – Revenue Margin Expansion – Revenue Margin In € million In € million -6% +14% 200.5 192.4 181.1 175.9 -8% +8% 55.7 51.3 58.2 62.7 3Q FY18 3Q FY19 9M FY18 9M FY19 3Q FY18 3Q FY19 9M FY18 9M FY19 Cor
Slide 22: Diversification vs Classic Customer Revenues
Diversification vs Classic Customer Revenues Diversification Revenues lead growth and is the largest revenue contributor, while we consciously reduce our Classic Customer Revenue Diversification – Revenue Margin Classic Customer – Revenue Margin In € million In € million +38% 169.2 171.9 -15% 145.5
Slide 23: eDreams ODIGEO
eDreams ODIGEO
Slide 24: Glossary of Definitions
Glossary of Definitions Non-reconcilable to GAAP measures ▶ Acquisition Cost per Booking Index refers to the most relevant marketing expenses incurred to acquire new customers (encompassing Paid search, Metasearch and Affiliates), divided by the total number of Bookings. For any given period, the ra
Slide 25: Glossary of Definitions
Glossary of Definitions Other Defined Terms ▶ Advertising and Metasearch Revenue represents revenue from other ancillary sources, such as advertising on our websites and revenue from our metasearch activities. Our management believes that the presentation of the Advertising and Metasearch Revenue me
Slide 26: Glossary of Definitions
Glossary of Definitions Other defined terms ▶ Product Diversification Ratio (%) is a ratio expressed on a percentage basis and calculated by dividing the number of flight ancillary products and non-flight products linked to a Booking (such as insurance, additional check-in luggage, reserved seats, c