Edreams Odigeo · BME:EDR
Edreams Odigeo — Q3 2024 Earnings Presentation
29 slides from Edreams Odigeo's earnings presentation, Feb 28, 2024
Slide 1: Results Presentation 3Q FY24
Results Presentation 3Q FY24 28th February 2024
Slide 2: Disclaimer
Disclaimer This presentation is to be read as an introduction to the unaudited condensed consolidated interim 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 presentation is extra
Slide 3: Results Highlights
1. Results Highlights 2. Strong growth and significant profit improvements in 9M FY2024 3. Closing Remarks 4. Appendix a) eDO investment highlights b) Breakdown by segment and disaggregated Revenue Margin 3
Slide 4: Strong growth and significant profit improvements in 9M FY24 due to Prime
Strong growth and significant profit improvements in 9M FY24 due to Prime 1. Strength of the prime model continues to drive strong growth and profit improvements • Cash EBITDA (*) up 54% to €88.6 million compared to €57.4 million reported in 9M FY23. Cash EBITDA Margin(*) increased 5pp in just one y
Slide 5: Strong growth and significant profit improvements in 9M FY2024
Strong growth and significant profit 2. improvements in 9M FY2024 3. Closing remarks 4. Appendix a) eDO investment highlights b) Breakdown by segment and disaggregated Revenue Margin 5
Slide 6: Net adds impacted as the lowest seasonal quarter
As expected, net adds (*) in the quarter were impacted as the lowest 2. seasonal quarter given less people are looking for a trip Quarterly net adds (*) in the quarter affected by seasonality but run rate needed for next 5 quarters in line with the one achieved in the past 4 quarters. Quarterly run
Slide 7: Profit margins up significantly due to Prime
2. Profit margins up significantly due to Prime Prime delivers significant uplifts in profit margins as the Prime member (*) base matures CASH MARGINAL PROFIT MARGIN (*) CONTINUES TO IMPROVE CASH EBITDA MARGIN (*) IMPROVED ALSO AS A AS MATURITY OF PRIME MEMBERS (*) INCREASES RESULT OF THIS MATURITY
Slide 8: Prime represents more of the overall business
2. Prime represents more of the overall business: almost 60% of the Cash Revenue Margin (*) and more than 2/3 of the Cash Marginal Profit (*) Cash Revenue Margin (*) (LTM) Cash Marginal Profit (*) (LTM) (€M) (€M) +14% +46% 208 669 147 586 389 258 58% 143 71% 44% 79 56% 329 280 63 61 3Q FY23 3Q FY24
Slide 9: Strong growth in Cash EBITDA and substantial improvement in margins
Strong growth in Cash EBITDA (*) and substantial improvement in margins as 2. the maturity of Prime members (*) increases P&L with increase in Prime Deferred Revenue Highlights 9M FY24 1. Cash Revenue Margin (*) is 10% above 9M FY23. Cash Marginal Profit (*) VAR. VAR. 3Q FY24 3Q 9M FY24 9M and Cash
Slide 10: Income Statement
2. Income Statement Highlights 9M FY24 VAR. VAR. 1. Revenue Margin (*) excluding adjusted revenue items (**) increased by 13% to 3Q FY24 3Q 9M FY24 9M €474.2 million, mostly driven by an increase in Prime Revenue Margin (up (IN EURO MILLION) FY24 VS FY23 FY23 FY24 VS FY23 FY23 67%), following the su
Slide 11: Cash Flow Statement
2. Cash Flow Statement Highlights 9M FY24 3Q 3Q 9M 9M 1. Net cash from operating activities increased by €30.6 million, mainly (IN EURO MILLION) FY24 FY23 FY24 FY23 reflecting: • Working capital inflow of €5.6 million compared to an inflow of €11.6 million ADJUSTED EBITDA (*) 19.4 10.3 55.5 17.2 in
Slide 12: Closing Remarks
3. Closing Remarks 4. Appendix a) eDO investment highlights b) Breakdown by segment and disaggregated Revenue Margin 12
Slide 13: Significant progress achieved since our Capital Markets Day
Significant progress achieved since our Capital Markets Day (64% of the time D. 3. since announcement), we are well on plan or slightly ahead to meet our targets 64% of time 1 month 27 months 42 months Time CMD Dec. 23 Mar. 25 42 months 67% of target Prime Members (*) 1.7M 5.4M 7.25M (in million) +5
Slide 14: Appendix
4. Appendix 1. Results highlights 2. Strong growth and significant profit improvements in 9M FY2024 3. Closing Remarks 4. Appendix a) eDO investment highlights b) Breakdown by segment and disaggregated Revenue Margin 14
Slide 15: Appendix: eDO investment highlights
a. Appendix: eDO investment highlights 4. Appendix a) eDO investment highlights b) Breakdown by segment and disaggregated Revenue Margin 15
Slide 16: eDO is the subscription company in travel through technology and AI
a. eDO is the subscription company in travel through technology and AI GAGR FY18-FY23: eDO has one of the fastest paid members growth among subscription companies across all industries CAGR FY18-FY23: 7.25M 220% 4.3M 2.7M 0.6M 0.9M 0.2M Members (Millions) FY19 FY20 FY21 FY22 FY23 FY25E Source: Compa
Slide 17: eDO captures new customers through the Prime programme
eDO captures new customers through the Prime programme a. Ukraine War + Delta Omicron High Inflation 5.1 5.4 Share of new Prime 4.7 customers (**) within Members(*) 4.3 Prime Members (*) in million 3.9 3.6 72% 3.2 2.7 2.2 1.7 1.2 0.9 0.7 0.8 0.5 0.6 0.6 0.4 0.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
Slide 18: Within travel, eDO is the Global Flight Leader, Ex China
a. Within travel, eDO is the Global Flight Leader, Ex China #2 PLAYER IN FLIGHTS GLOBALLY GLOBAL FLIGHT REVENUE CY 2022 (€M) 1,139 #1 482 #2 345 #3 Source: Company data, Cash Revenue Margin (*) for eDO. Financial Releases published by Trip.com and Expedia. (*) Definitions of Non-GAAP measures on pag
Slide 19: In pole position in an attractive market
a. In pole position in an attractive market SIZEABLE MARKET AND ONE OF THE ATTRACTIVE GROWTH PROSPECTS EDO IS POSITIONED IN THE RIGHT LARGEST E-COMMERCE VERTICALS AFTER THE PANDEMIC SEGMENTS (ONLINE AND LEISURE) European Travel Market Size European Leisure Travel Market Online (€Bn) penetration (% o
Slide 20: eDO is unique in terms of profitability and growth
a. eDO is unique in terms of profitability and growth Revenues CAGR 2022-25E EBITDA (*) CAGR 2022-25E eDO 28% 58% Global OTAs (1) 27% 46% Global B2C Subscription (2) 11% 31% (*) Definitions of Non-GAAP measures on page 27-29. (1) Companies included: Booking Holding, Trip.com, Despegar, Expedia, last
Slide 21: eDreams ODIGEO, a recognised leader in AI in Europe
a. eDreams ODIGEO, a recognised leader in AI in Europe: Always being a step ahead We have a proven track record of being a leader in AI in travel since 2014… 2014 2015 2016 2017 2019 2020-22 2023 Establishing one of Adopting an AI first Adopting AI driven At-scale deployment Early adopter of a Deplo
Slide 22: Well positioned, well financed, on track to meet self-set FY25 targets
a. Well positioned, well financed, on track to meet self-set FY25 targets Prime Members (*) >7.25M eDO “ eDO has a large potential: superior returns for shareholders and customers FY25 while transforming and revolutionising TARGETS ” the industry. Cash EBITDA (*) >€180M (*) See definition and reconc
Slide 23: eDO has from FY25 onwards strong fundamental growth potential
a. eDO has from FY25 onwards strong fundamental growth potential Increase household penetration on Increase household penetration on those countries in which we are present those countries in which we are present Three dimensions Three dimensions where we can where we can capitalise on: capitalise o
Slide 24: Appendix: Breakdown by segment and disaggregated Revenue Margin
Appendix: Breakdown by segment and b. disaggregated Revenue Margin 4. Appendix a) eDO investment highlights b) Breakdown by segment and disaggregated Revenue Margin 24
Slide 25: Prime Revenue Margin increases in absolute numbers and share of total
b. Prime Revenue Margin increases both in absolute numbers and as a share of the total Revenue Margin PRIME (€M) Revenue Margin (*) (excl. Adjusted Revenue Items) (**) 67% (In Euro million) 9M FY24 Var. FY24 vs FY23 9M FY23 279.6 Prime 279.6 67% 167.4 167.4 Non-Prime 194.6 (23)% 252.1 Total 474.2 13
Slide 26: Gradual revenue increases from the subscription programme
b. Gradual revenue increases as a result of the success of the subscription programme Gradual (€M) Revenue Margin (*) (excl. Adjusted Revenue Items) (**) 52% (In Euro million) 9M FY24 Var. FY24 vs FY23 9M FY23 247.0 Gradual 247.0 52% 162.1 Transaction date 162.1 208.0 (13)% 239.3 Other 19.2 6% 18.1
Slide 27: Glossary of Definitions
Glossary of Definitions Non-reconcilable to GAAP measures 1. Gross Bookings refers to the total amount paid by customers for travel products and services booked through or with the Group (including the part that is passed on to, or transacted by, the travel supplier), including taxes, service fees a
Slide 28: Glossary of Definitions
Glossary of Definitions 12. Cash Revenue Margin means "Revenue Margin" plus the variation of the Prime deferred revenue corresponding to the Prime fees that have been collected and that are pending to be accrued. The Prime fees pending to be accrued are non-refundable and will be booked as revenue b
Slide 29: Glossary of Definitions
Glossary of Definitions 24. Prime ARPU means the Cash Revenue Margin generated from Prime users on a last twelve months basis. It is calculated considering all the Cash Revenue Margin elements linked to the bookings done by Prime members (such as, but not limited to, the Prime fees collected, GDS in