Edreams Odigeo · BME:EDR
Edreams Odigeo — Q3 2023 Earnings Presentation
29 slides from Edreams Odigeo's earnings presentation, Feb 23, 2023
Slide 1: Results Presentation 3Q FY 2023
RESULTS PRESENTATION 3Q FY 2023 23rd February 2023 1
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, Closing Remarks, Appendix
1. Results Highlights 1.1 Overview 1.2 Prime model a proven success 1.3 Strong 9M FY23 Results 2. Closing Remarks 3. Appendix 3
Slide 4: 1.1 Overview
1. Results Highlights 1.1. Overview 1.2 Prime model a proven success 1.3 Strong 9M FY23 Results 4
Slide 5: Prime delivering significant uplifts in profit margins
PRIME DELIVERING SIGNIFICANT UPLIFTS IN PROFIT MARGINS 1.1 IN 3Q FY23 SIGNIFICANT IMPROVEMENTS IN PROFITABILITY - CASH MARGINAL PROFIT MARGIN IMPROVEMENTS VS 1Q FY23, 29% VS 21% ▪ As guided, the maturity of Prime members is the most important driver for profitability, and this has resulted in substa
Slide 6: 1.2 Prime model a proven success
1. Results Highlights 1.1 Overview 1.2 Prime model a proven success 1.3 Strong 9M FY23 Results 6
Slide 7: Cash marginal profit margin continued to improve as Prime maturity increases
IN 3Q FY23 CASH MARGINAL PROFIT MARGIN CONTINUED TO IMPROVE 1.2 AS MATURITY OF PRIME MEMBERS INCREASES As guided, the maturity of Prime members is the most important driver for profitability. This has resulted in strong improvements in profitability as we have more and more Prime members renewing th
Slide 8: Cash EBITDA margin improvements as maturity of Prime members increases
CASH EBITDA ALSO ACHIEVED SUBSTANTIAL MARGIN IMPROVEMENTS AS 1.2 MATURITY OF PRIME MEMBERS INCREASES As guided in 1Q, strong growth in year one Prime members delays profitability as profitability increases from year 2 onwards. As maturity of Prime members increases it is proven the margins improve.
Slide 9: eDO bookings performance materially better than industry peers
DUE TO PRIME, eDO BOOKINGS PERFORMANCE CONTINUES TO BE MATERIALLY BETTER 1.2 THAN INDUSTRY PEERS. GAP EXPECTED TO CLOSE AS CORPORATE TRAVEL RETURNS TRADING EVOLUTION VS PRE COVID-19, % Moving to normal seasonality: • Industry moving to more normalised seasonality patterns in terms of 50% Omicron tra
Slide 10: Stable Prime member growth rates despite Covid waves and macro context
STABLE PRIME MEMBER GROWTH RATES, DESPITE COVID WAVES, GEOPOLITICAL AND MACRO 1.2 CONTEXT, AND THE NORMALISATION OF THE SEASONALITY PATTERNS IN Prime is the #1 travel subscription programme in the world FEBRUARY (*) Delta Omicron Ukraine War + High Inflation 3.9 4.2M 3.6 3.2 2.7 Prime 2.2 members 1.
Slide 11: Prime net adds influenced by seasonality, increase in 4Q
AS NET ADDS OF PRIME MEMBERS ARE INFLUENCED BY SEASONALITY, THEY WILL 1.2 INCREASE IN HIGHER VOLUME SEASONALITY PERIODS SUCH AS 4Q Quarterly Net Adds(*) 3Q FY23 vs. 4Q FY23 (**) and Run Rate for 3Q & 4Q FY23 (in thousand) 410 364 367 323 3Q FY23 FY25 Target 4Q FY23 Avg. Implied Quarterly Run Rate (*
Slide 12: 1.3 Strong 9M FY23 Results
1. Results Highlights 1.1. Overview 1.2 Prime model proven a success 1.3 Strong 9M FY23 Results 12
Slide 13: Strong growth in Prime cash revenue margin and marginal uplift
STRONG GROWTH IN PRIME CASH REVENUE MARGIN AND SIGNIFICANT MARGINAL UPLIFT 1.3 AS MATURITY OF PRIME MEMBERS INCREASES Prime ARPU LTM (€) (*) Cash Revenue Margin LTM (€M) (*) Cash Marginal Profit LTM (€M) (*) 143 586 79 44% +61% 88.5 +78% 258 56% 76.8 89 47 329 133 329 53% 63 40% 196 42 3Q LTM FY22 3
Slide 14: Strong growth in cash EBITDA and margin improvement
STRONG GROWTH IN CASH EBITDA AND SUBSTANTIAL IMPROVEMENT IN MARGIN AS THE 1.3 MATURITY OF PRIME MEMBERS INCREASES P&L with increase in Prime Deferred Revenue Highlights 9M FY23 1. Success of Prime clear on our total Bookings and market share gains. Cash VAR. VAR. Revenue Margin (*) is already above
Slide 15: Income Statement
INCOME STATEMENT 1.3 Highlights 9M FY23 VAR. VAR. 1. Revenue Margin increased by 59%, to €419.5 million, due to the 35% 3Q 3Q 9M 9M (IN EUROS MILLION) FY23 FY23 increase in Bookings and 18% increase in Revenue Margin per Booking. FY23 FY22 FY23 FY22 VS FY22 VS FY22 2. Variable costs increased by 59%
Slide 16: Cash Flow Statement
CASH FLOW STATEMENT 1.3 Highlights 9M FY23 3Q 3Q 9M 9M 1. Net cash from operating activities decreased by €9.7 million, mainly (IN EUROS MILLION) reflecting: FY23 FY22 FY23 FY22 ADJUSTED EBITDA (*) 10.3 (0.7) 17.2 0.0 • Working capital inflow of €11.6 million compared to €38.9 million in 9M FY22. Th
Slide 17: Closing Remarks
eDreams ODIGEO Closing Remarks
Slide 18: eDO is one of its kind in profitability and growth
eDO IS ONE OF ITS KIND IN TERMS OF PROFITABILITY AND GROWTH 2 30% Majority of companies have a Rule of 40 satisfied mature subscription model that is 25% operating for more than 10 years 20% EBITDA Margin 15% 10% 5% 0% 0% 5% 10% 15% 20% 25% 30% Revenue Growth Source: Bloomberg as of 15th February 20
Slide 19: In pole position in an attractive market
IN POLE POSITION IN AN ATTRACTIVE MARKET 2 Sizeable market and largest Attractive growth prospects eDO is positioned in the right e-commerce vertical after the pandemic segments (online and leisure) European Travel European Leisure Travel Market Market Size Online penetration €1.3Tn €Bn % over total
Slide 20: Within travel, eDO is the global flight leader, ex China
WITHIN TRAVEL, EDO IS THE GLOBAL FLIGHT LEADER, EX CHINA 2 #2 PLAYER IN FLIGHTS GLOBALLY #1 PLAYER IN FLIGHTS EUROPE GLOBAL FLIGHT REVENUE EUROPEAN FLIGHT REVENUE Estimated, CY 2021 (€M) Estimated, CY 2021 (€M) 223 917 #1 3.2x 276 #2 70 51 39 215 #3 eDreams etraveli Expedia lastminute.com Source: Co
Slide 21: eDO has captured new customers through the Prime program
EDO HAS DEMONSTRATED THE ABILITY TO CAPTURE NEW CUSTOMERS THROUGH THE PRIME 2 PROGRAM, DESPITE COVID WAVES AND RECENT GEOPOLITICAL AND MACRO CONTEXT AND EVEN MORE SO AS MARKET REALLY GROWS… Prime is the #1 travel subscription programme in the world Delta Omicron Ukraine War + High Inflation 3.9 3.6
Slide 22: Business model and track record position us to perform better than the industry
REGARDLESS OF ECONOMIC ENVIRONMENT OUR BUSINESS MODEL AND TRACK RECORD 2 POSITIONS US TO PERFORM BETTER THAN THE INDUSTRY These are the reasons why we think we will outperform the market: THROUGH PRIME WE CUSTOMERS WILL WE MEET CUSTOMER OFFER BEST PRICES FOCUS ON PRICE EVEN NEEDS/PREFERENCES AND CUS
Slide 23: Well positioned, well financed, on track to meet FY25 targets
WELL POSITIONED, WELL FINANCED, ON TRACK TO MEET SELF-IMPOSED FY25 TARGETS 2 PRIME MEMBERS >7.25M PRIME ARPU(*) eDO FY25 TARGETS ~€80 CASH EBITDA(*) >€180M eDO large potential: superior returns for shareholders and customers while transforming and revolutionising the industry. (*) Definitions of Non
Slide 24: Appendix
3. Appendix 24
Slide 25: Diversification revenue continues to grow
DIVERSIFICATION REVENUE CONTINUES TO GROW, ALREADY ABOVE PRE-COVID-19, AND 3 THE LARGEST CONTRIBUTOR TO REVENUES Revenue margin Diversification (IN EUROS MILLION) 9M FY23 Var. FY23 vs FY22 9M FY22 DIVERSIFICATION 49% 284.8 49% 190.8 CLASSIC CUSTOMER 72.2 156% 28.1 284.8 CLASSIC SUPPLIER 53.9 38% 39.
Slide 26: Rest of the world grows more than our top 6
REST OF THE WORLD GROWS MORE THAN OUR TOP 6 3 Revenue margin TOP 6 (IN EUROS MILLION) 9M FY23 Var. FY23 vs FY22 9M FY22 53% 303.7 TOP 6 303.7 53% 198.1 REST OF THE WORLD 198.1 115.8 76% 65.6 TOTAL 419.5 59% 263.7 9M FY22 9M FY23 12% Rest of the World 25% 28% 9M 9M 9M 76% FY15 FY22 FY23 115.8 75% 72%
Slide 27: Glossary of Definitions
Glossary of Definitions Non-reconcilable to GAAP measures 1. Gross Bookings refers to the total amount paid by our customers for travel products and services booked through or with us (including the part that is passed on to, or transacted by, the travel supplier), including taxes, service fees and
Slide 28: Glossary of Definitions
Glossary of Definitions 14. Cash Revenue Margin means the IFRS revenue less cost of supplies, 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
Slide 29: Glossary of Definitions
Glossary of Definitions 25. Revenue Margin means the IFRS revenue less cost of supplies. The Group's management uses Revenue Margin to provide a measure of its revenue after reflecting the deduction of amounts payable to suppliers in connection with the revenue recognition criteria used for products