Edreams Odigeo · BME:EDR
Edreams Odigeo — Q1 FY2024 Earnings Presentation
63 slides from Edreams Odigeo's earnings presentation, Aug 31, 2023
Slide 1: Results Report 1Q FY 2024
Results Report 1Q FY 2024 Free translation from the original document in Spanish. In the event of discrepancy, the Spanish-language version prevails
Slide 2: Contents
1. A brief look at eDreams ODIGEO and KPIs 2. Financial Performance 3. Other Information 4. Condensed Consolidated Interim Financial Statements and Notes 5. Alternative Performance Measures
Slide 3: A brief look at eDreams ODIGEO and KPIs
A brief look at eDreams ODIGEO and KPIs 1.1. A brief look at 1Q FY2024 eDreams ODIGEO KPIs 1.2. Results highlights 1.3. Prime model a proven success - Further improvements on disclosure to better understand the subscription model 1.4. Why invest in eDreams ODIGEO
Slide 4: A brief look at 1Q FY2024 eDreams ODIGEO KPIs
eDreams ODIGEO A brief look at eDreams ODIGEO and KPIs 1.1. A brief look at 1Q FY2024 eDreams ODIGEO KPIs Global Leader Largest 58% 4,712K €75.5 20M 44 Travel Subscription Player Worldwide Mobile Prime Members(1) Prime ARPU (1) Customers(4) Markets in Flight Revenues, ex China Bookings(1)(2) +47% Yo
Slide 5: Results highlights
eDreams ODIGEO A brief look at eDreams ODIGEO and KPIs 1.2. Results highlights In 1Q FY24 the strength of the Prime model continues to drive significant Longer term – eDO has beyond FY25 strong fundamental growth potential. improvements in profitability (*) See definition and reconciliation of Non G
Slide 6: Prime model a proven success
eDreams ODIGEO A brief look at eDreams ODIGEO and KPIs 1.3. Prime model a proven success - Further improvements on disclosure to better understand the subscription model Subscription models have proven to be hugely successful in different industries over We are no longer a transaction company like t
Slide 7: Prime members on track to reach 7.25 million by FY25
eDreams ODIGEO A brief look at eDreams ODIGEO and KPIs Prime members (*): on track with our guidance to reach 7.25 million by FY25. Despite industry moving to more normalised seasonality patterns eDO ahead of implied run rate needed to achieve target. Prime net adds(**) are influenced by seasonality
Slide 8: Increasing maturity of Prime members results in margin uplifts
eDreams ODIGEO A brief look at eDreams ODIGEO and KPIs Increasing maturity of Prime members (*) results in margin uplifts, which puts as well Cash EBITDA Margin (*) more than doubled in just one year on track to reach our target of over €180 million Cash EBITDA (*) in FY25 Cash EBITDA Margin (*) in
Slide 9: New reporting segments: Prime and Non Prime
eDreams ODIGEO A brief look at eDreams ODIGEO and KPIs eDO continues to grow and further improve its disclosure New segments Due to the shift in the Group's results, majority of it being subscription, the Group has decided to change the reporting • Due to the shift in the Group's focus towards a sub
Slide 10: Previous segments and revenue disaggregation
eDreams ODIGEO A brief look at eDreams ODIGEO and KPIs Previous segments Revenue Margin as a % of Total • The Group identified as segments the different markets in which it operated, since it was the basis on which the information was reported to Management on a monthly basis and strategic decisions
Slide 11: Change in estimate for recognition of subscription fees
eDreams ODIGEO A brief look at eDreams ODIGEO and KPIs Change in estimate regarding the recognition of subscription fees aligns with Cash Revenue Margin (*) growth driven by the successful expansion of the Prime evolution of the Prime product and the relevance of service for subscribers Member (*) B
Slide 12: Cash Marginal Profit continues rapid growth
eDreams ODIGEO A brief look at eDreams ODIGEO and KPIs Cash Marginal Profit continues to show rapid growth with significant improvements in profitability Cash Marginal Profit (*) Cash Marginal Profit Margin (*) (in € million) (*) See definition and reconciliation of Non GAAP measures in section 5. A
Slide 13: Why invest in eDreams ODIGEO
eDreams ODIGEO A brief look at eDreams ODIGEO and KPIs 1.4. Why invest in eDreams ODIGEO eDO is the subscription company in travel through technology and AI Building a better and increasingly profitable business for today and tomorrow. 1. eDO has the fastest paid members growth among subscription co
Slide 14: Global flight leader in an attractive market
eDreams ODIGEO A brief look at eDreams ODIGEO and KPIs 3. Within travel, eDO is the Global Flight Leader, Ex China 4. eDO is in pole position in an attractive market eDO addressable market is enormous, growing and attractive, and eDO is positioned in the right segments: online and leisure. Source: P
Slide 15: Unique in profitability and growth; AI leader
eDreams ODIGEO A brief look at eDreams ODIGEO and KPIs 5. eDO is unique in terms of profitability and growth 6. eDO, a recognised leader in AI in Europe: Always being a step ahead eDO is the fastest growing in top line and EBITDA in the industry. Based on our FY25 self-imposed targets of Cash We hav
Slide 16: Well positioned, financed, on track for FY25 targets
eDreams ODIGEO A brief look at eDreams ODIGEO and KPIs 7. Well positioned, well financed, on track to meet self-set FY25 targets 8. eDO has strong fundamental growth potential well beyond FY25 eDO has a large potential: superior returns for shareholders and customers while transforming and revolutio
Slide 17: Financial Performance
Financial Performance 2.1. Business review 2.2. Prime 2.3. Revenue by segment 2.4. Revenue by timing of recognition 2.5. KPIs 2.6. Income statement 2.7. Balance sheet 2.8. Cash flow 2.9. Strong liquidity
Slide 18: Business review
eDreams ODIGEO Financial performance 2.1. Business review REVENUE BY TIMING OF RECOGNITION Financial Information Summary €75.5 €72.8M €78.3M €6.4M 58% Var. FY24 1Q FY24 vs FY23 1Q FY23 Prime Prime Members ('000) (*) 4,712 47% 3,213 ARPU (*) (**) Revenue Margin (excl. Adjusted Revenue items) (in € Mi
Slide 19: Business review
eDreams ODIGEO Financial performance 2.1. Business review eDreams ODIGEO made further significant progress in 1Q FY24: continued In addition, if we look at Revenue Margin(1) by timing of recognition, the eDO continues to significantly outperform the market in 1Q FY24. Prime share rapid Revenue Margi
Slide 20: Prime
eDreams ODIGEO Financial performance 2.2. Prime Prime continues to improve the quality of the P&L with increase in Prime Deferred Revenue Evolution of Prime Members(*) business and grows strongly, Cash EBITDA(*) up 4.3M 4.7M (in € million) 1Q FY24 Var. % 1Q FY23 110% year-on year, in a market still
Slide 21: Revenue by segment
eDreams ODIGEO Financial performance 2.3. Revenue by segment Prime continues to be our key driver for growth, through a more loyal and repeat customer base . (*) (**) Revenue Margin (excl. Adjusted Revenue items) 1Q FY23 1Q FY24 Var. FY24 (In € million) 1Q FY24 vs FY23 1Q FY23 Prime 85.9 65% 52.1 36
Slide 22: Revenue by timing of recognition
eDreams ODIGEO Financial performance 2.4. Revenue by timing of recognition Gradual Revenue, driven by Prime, main driver for growth Revenue Margin (excl. Adjusted Revenue items) (*) (**) 1Q FY23 1Q FY24 4% 4% 1Q FY24 1Q FY23 (In € million) Prime Non Prime Total Prime Non Prime Total Gradual 61.5 11.
Slide 23: KPIs
eDreams ODIGEO Financial performance 2.5. KPIs Continued strategic progress as evidenced by our KPIs, further improvements in disclosure QUARTERLY EVOLUTION LAST TWELVE MONTHS EVOLUTION Evolution of Cash Marginal Profit (*) Evolution of Cash Revenue Margin (*) Evolution of Cash Revenue Margin (*) Ev
Slide 24: Income statement
eDreams ODIGEO Financial performance 2.6. Income statement • EBITDA(*) increased by €26.9 million from a loss of €1.8 million in 1Q FY23 to a gain of €25.0 million in 1Q FY24. Var. FY24 (in € million) 1Q FY24 vs FY23 1Q FY23 • Financial loss increased by €1.0 million, mainly due to the negative impa
Slide 25: Balance sheet
eDreams ODIGEO Financial performance 2.7. Balance sheet 30th June 2023 30th June 2022 (in € million) Highlights 1Q FY24 Total fixed assets 956.3 947.0 Compared to prior year, the main changes relate to: Total working capital (335.5) (302.9) • Total fixed assets increased mainly as a result of the ac
Slide 26: Cash flow
eDreams ODIGEO Financial performance 2.8. Cash flow (in € million) 1Q FY24 1Q FY23 Highlights 1Q FY23 Adjusted EBITDA (*) 20.0 0.6 • Net cash from operating activities decreased by €17.9 million, mainly reflecting: Adjusted items (*) 5.0 (2.4) – Working capital outflow of €9.3 million compared to an
Slide 27: Strong liquidity
eDreams ODIGEO Financial performance 2.9. Strong liquidity Solid liquidity & optimisation of capital structure Solid liquidity - liquidity position(*) in 1Q FY24 stood at €198 million S&P upgraded eDO to 'B-' on performance recovery and good Cash Flow We have managed our liquidity position well, a c
Slide 28: Other Information
Other Information 3.1. Shareholder information 3.2. Subsequent events
Slide 29: Shareholder Information and Subsequent events
eDreams ODIGEO Other Information 3.1. Shareholder Information The subscribed share capital of eDreams ODIGEO as of 30th June 2023 is €12,761 thousand divided into 127,605,059 shares with a par value of ten euro cents (€0.10) each, all of which are fully paid. As of 30th June 2023 the Group had 4,877
Slide 30: Condensed Consolidated Interim Financial Statements & Notes
Condensed Consolidated Interim Financial Statements & Notes For the three-month period ended 30th June 2023
Slide 31: Interim Income Statement and Other Comprehensive Income
eDreams ODIGEO Condensed Consolidated Interim Financial Statements 4.1. Condensed Consolidated Interim Income 4.2. Condensed Consolidated Interim Statement Statement of Other Comprehensive Income Unaudited Unaudited Unaudited Unaudited 3 months ended 3 months ended 3 months ended 3 months ended (Tho
Slide 32: Statement of Financial Position
eDreams ODIGEO Condensed Consolidated Interim Financial Statements 4.3. Condensed Consolidated Interim Statement of Financial Position ASSETS Unaudited Audited EQUITY AND LIABILITIES Unaudited Audited (Thousands of euros) Notes 30th June 2023 31st March 2023 (Thousands of euros) Notes 30th June 2023
Slide 33: Statement of Changes in Equity
eDreams ODIGEO Condensed Consolidated Interim Financial Statements 4.4. Condensed Consolidated Interim Statement of Changes in Equity Foreign Foreign Profit / currency Profit / currency Share Share Other Treasury (loss) for translation Total Share Share Other Treasury (loss) for translation Total (T
Slide 34: Cash Flows Statements
eDreams ODIGEO Condensed Consolidated Interim Financial Statements 4.5. Condensed Consolidated Interim Cash Flows Statements Unaudited Unaudited Unaudited Unaudited 3 months ended 3 months ended 3 months ended 3 months ended (Thousands of euros) Notes 30th June 2023 30th June 2022 (Thousands of euro
Slide 35: Notes to the Condensed Consolidated Interim Financial Statements
eDreams ODIGEO Notes to the Condensed Consolidated Interim Financial Statements 4.6. Notes to the Condensed Consolidated Interim Financial Statements 1. General information 2.2. New and revised International Financial Reporting Standards eDreams ODIGEO, S.A. (the "Company"), formerly LuxGEO Parent S
Slide 36: Seasonality of business; Earnings per share
eDreams ODIGEO Notes to the Condensed Consolidated Interim Financial Statements Change in accounting estimate 2.5. Comparative information th During the three months ended 30 June 2023 the Group has changed the estimation regarding the recognition of the The Directors present, for comparative purpos
Slide 37: Segment information
eDreams ODIGEO Notes to the Condensed Consolidated Interim Financial Statements In the earning per share calculation for the three months ended 30th June 2023 and 30th June 2022, dilutive instruments are considered for the Incentive Shares granted (see note 15), only when their conversion to ordinar
Slide 38: Profit & loss by segment
eDreams ODIGEO Notes to the Condensed Consolidated Interim Financial Statements The following is an analysis of the Group’s Profit & loss and other Non-GAAP measures by segment: Unaudited 3 months ended 30th June 2022 (**) Unaudited 3 months ended 30th June 2023 Prime Members (*) 3,212,640 Prime Mem
Slide 39: Revenue margin; Personnel expenses
eDreams ODIGEO Notes to the Condensed Consolidated Interim Financial Statements The cost of sales of the Group solely related to when the Group acted as principal in regards to Hotel accommodation. Revenue Margin is split into the following categories: Given that since September 2022 the Group only
Slide 40: Depreciation and amortisation; Other operating expenses
eDreams ODIGEO Notes to the Condensed Consolidated Interim Financial Statements 7.2. Number of employees 9. Other operating expenses The average number of employees by category of the Group is as follows: Unaudited Unaudited 3 months ended 3 months ended Unaudited Unaudited 30th June 2023 30th June
Slide 41: Financial income and expense
eDreams ODIGEO Notes to the Condensed Consolidated Interim Financial Statements 10. Financial income and expense The Group has converted €72.0 million from the SSRCF into ancillaries to SSRCF with certain Banks (€72.0 million as at 30th June 2022). Interests on the use of ancillaries to SSRCF is €0.
Slide 42: Goodwill
eDreams ODIGEO Notes to the Condensed Consolidated Interim Financial Statements The detail of the goodwill movement by CGUs for the three months ended 30th June 2022 is set out below: 11. Goodwill The detail of the goodwill movement by CGUs for the three months ended 30th June 2023 is set out below:
Slide 43: Other intangible assets; Trade receivables
eDreams ODIGEO Notes to the Condensed Consolidated Interim Financial Statements 12. Other intangible assets 13. Trade and other receivables The detail of the other intangible assets movement for the three months ended 30th June 2023 is set out below: 13.1. Trade receivables Balance at 31st March 202
Slide 44: Equity
eDreams ODIGEO Notes to the Condensed Consolidated Interim Financial Statements 13.2. Other receivables 14.1. Share capital Unaudited Audited The Company’s share capital amounts to €12,760,505.90 and is represented by 127,605,059 shares at a nominal value th 30 June 2023 st 31 March 2023 of €0.10 pe
Slide 45: Share-based compensation
eDreams ODIGEO Notes to the Condensed Consolidated Interim Financial Statements 14.4. Treasury shares The 2016 LTIP is split equally between performance stock rights ("PSRs") and restricted stock units ("RSUs") subject to continued service. Based on operational performance, the scheme is linked to s
Slide 46: 2019 Long-term incentive plan
eDreams ODIGEO Notes to the Condensed Consolidated Interim Financial Statements Starting from September 2021, the Group delivers to the beneficiaries the Incentive Shares net of withholding tax. The movement of the Potential Rights during the three months ended 30th June 2022 is as follows: For the
Slide 47: 2019 Long-term incentive plan movements
eDreams ODIGEO Notes to the Condensed Consolidated Interim Financial Statements The value of the plan depends on internal conditions (not market) and is valued according to the market value of the The movement of the Potential Rights during the three months ended 30th June 2023 is as follows: share
Slide 48: Financial liabilities
eDreams ODIGEO Notes to the Condensed Consolidated Interim Financial Statements 16. Financial liabilities Senior Notes – 2027 Notes The Group debt and other financial liabilities at 30th June 2023 and 31st March 2023 are as follows: On 2nd February 2022, eDreams ODIGEO, S.A. issued €375.0 million 5.
Slide 49: Provisions
eDreams ODIGEO Notes to the Condensed Consolidated Interim Financial Statements In addition to the increased commitment and extended maturity until 15th January 2027, the amended SSRCF also provides improved conditions regarding the Financial Covenant. 17. Provisions The amended SSRCF contains finan
Slide 50: Trade payables, deferred revenue, contingencies
eDreams ODIGEO Notes to the Condensed Consolidated Interim Financial Statements 18. Trade and other payables 20. Contingencies and provisions Unaudited Audited 30th June 2023 31st March 2023 20.1. License fees Trade payables 263,034 277,417 The Group considers that there is a possible risk of reasse
Slide 51: Pending tax disputes with tax authorities
eDreams ODIGEO Notes to the Condensed Consolidated Interim Financial Statements 20.4. Pending tax disputes with tax authorities Italy The Group has the following pending disputes with tax authorities, some of which are still in the phase of an The Italian company has been assessed by the Italian tax
Slide 52: Subsequent events
eDreams ODIGEO Notes to the Condensed Consolidated Interim Financial Statements Other matters 21. Subsequent events Due to different interpretations of tax legislation, adverse positions may be taken by tax authorities in connection with a future tax audit. However, the Group considers that any such
Slide 53: Consolidation scope
eDreams ODIGEO Notes to the Condensed Consolidated Interim Financial Statements 22. Consolidation scope As at 30th June 2023 the companies included in the consolidation are as follows: % % % % Name Location / Registered Office Line of business interest control Name Location / Registered Office Line
Slide 54: Alternative Performance Measures
Alternative Performance Measures
Slide 55: Alternative Performance Measures
eDreams ODIGEO Alternative Performance Measures 5. Alternative Performance Measures In addition to the financial information prepared under IFRS, the Group also uses and presents a series of alternative Adjusted EBITDA Margin means Adjusted EBITDA divided by Revenue Margin. See section "Reconciliati
Slide 56: Alternative Performance Measures definitions
eDreams ODIGEO Alternative Performance Measures Cash EBITDA means "Adjusted EBITDA", plus the variation of the Prime deferred revenue corresponding to the Prime Fixed Costs includes IT expenses net of capitalisation write-off, personnel expenses which are not Variable Costs, fees that have been coll
Slide 57: Other definitions
eDreams ODIGEO Alternative Performance Measures Net Leverage Ratio means the total amount of outstanding Net Financial Debt on a consolidated basis divided by Variable Costs includes all expenses which depend on the number of transactions processed. These include “Cash EBITDA”. This measure offers t
Slide 58: Changes in APMs
eDreams ODIGEO Alternative Performance Measures Changes in APMs As a result of the changes made to the reportable segments and revenue disaggregation (see notes 5 and 6), some alternative performance measures have been removed or amended. As the Group's focus is shifting towards a subscription-orien
Slide 59: Reconciliations of APMs
eDreams ODIGEO Alternative Performance Measures Reconciliations of APMs 1.2. Revenue Margin by timing of revenue recognition Unaudited Unaudited 1. Measures of Profit and Loss Last Twelve Months Last Twelve Months ended ended 30th June 2023 30th June 2022 (*) 1.1. Revenue Margin By timing of revenue
Slide 60: EBIT, EBITDA, Adjusted EBITDA reconciliation
eDreams ODIGEO Alternative Performance Measures Unaudited 1.5. EBIT, EBITDA, Adjusted items, Adjusted EBITDA and Adjusted EBITDA Margin 3 months ended 30th June 2022 Unaudited Unaudited 3 months ended 3 months ended Variable Adjusted 30th June 2023 30th June 2022 costs Fixed costs items Total Operat
Slide 61: Measures of Profit and Loss related to Prime
eDreams ODIGEO Alternative Performance Measures 2. Measures of Profit and Loss related to Prime Unaudited 3 months ended 30th June 2022 2.1. Variation of Prime deferred revenue Prime Non Prime Total Unaudited Unaudited Revenue Margin 52,055 93,619 145,674 Unaudited Unaudited Last Twelve Months Last
Slide 62: Cash EBITDA and Cash EBITDA Margin
eDreams ODIGEO Alternative Performance Measures Unaudited 2.6. Cash EBITDA Margin 3 months ended 30th June 2022 Unaudited 3 months ended Prime Non Prime Total 30th June 2023 Cash Marginal Profit 17,551 15,965 33,516 Prime Non Prime Total Cash Revenue Margin 65,491 93,619 159,110 Cash EBITDA 21,387 8
Slide 63: Measures of Financial Position and Cash Flow
eDreams ODIGEO Alternative Performance Measures 2.8. Prime ARPU 3.3. Net Leverage Ratio Unaudited Unaudited Unaudited Audited Last Twelve Months Last Twelve Months 30th June 2023 31st March 2023 ended ended 30th June 2023 30th June 2022 Net Financial Debt 351,015 352,330 Cash Revenue Margin from Pri