Edreams Odigeo · BME:EDR
Edreams Odigeo — Q1 2025 Earnings Presentation
27 slides from Edreams Odigeo's earnings presentation, Sep 3, 2024
Slide 1: Results Presentation 1Q FY25
RESULTS PRESENTATION 1Q FY25 3rd September 2024 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
2. Prime model continues to drive very strong growth 1. 3. Appendix a) eDO investment highlights Results b) Breakdown by segment and disaggregated Highlights Revenue Margin 3
Slide 4: Prime Cash Marginal Profit Margin continues to grow - up 9pp
1. Prime Cash Marginal Profit Margin(*) continues to grow - up 9pp in just 1 year to 45%. In 1Q FY25 the strength of the Prime model drove significant growth and, as guided, improvements in profitability • Prime members(*) grew 32% year-on-year reaching 6.2 million, with net adds(**) at 409k. We are
Slide 5: Prime model continues to drive very strong growth
2. 3. Appendix Prime model continues a) eDO investment highlights to drive very strong b) Breakdown by segment and disaggregated Revenue Margin growth 5
Slide 6: eDO profitability up significantly due to Prime
2. eDO profitability up significantly due to Prime. Prime (LTM) Cash Marginal Profit Margin(*) reached 42%, up 8pp in just one year PRIME DELIVERS SIGNIFICANT UPLIFTS IN PROFIT MARGINS AS THE PRIME MEMBER(*) BASE MATURES PRIME CASH MARGINAL PROFIT MARGIN(*) CONTINUES TO CASH EBITDA MARGIN(*) IMPROVE
Slide 7: eDO is a subscription business focused on travel
2. eDO is a subscription business focused on travel. Prime strong growth more than offsets the anticipated declines in the Non-Prime side of the business > Cash Revenue Margin(*) (LTM) > Cash Marginal Profit(*) (LTM) (€M) (€M) +9% +23% 683 629 225 432 313 182 183 108 50% 63% 59% 81% 315 251 75 43 1Q
Slide 8: Strong growth in Cash EBITDA and substantial improvement in margins
2. Strong growth in Cash EBITDA(*) and substantial improvement in margins as the maturity of Prime members(*) increases > P&L with increase in Prime Deferred Revenue Highlights 1Q FY25 Var. 1Q FY25 1Q (In euro million) FY25 vs. FY24 FY24 1. Cash Revenue Margin(*) is 4% above 1Q FY24. Cash Marginal P
Slide 9: Income Statement
2. Income Statement Highlights 1Q FY25 Var. 1Q FY25 1Q (In euro million) FY25 vs. FY24 FY24 1. Revenue Margin(*) excluding adjusted revenue items(**) increased by 2% to Revenue Margin(*) (excl. Adj. Revenue Items)(**) 160.0 2% 157.5 €160.0 million. This increase was driven by the strong growth of Pr
Slide 10: Cash Flow Statement
2. Cash Flow Statement 1Q 1Q Highlights 1Q FY25 (In euro million) FY25 FY24 Adjusted EBITDA(*) 22.6 20.0 1. Net cash from operating activities increased by €10.7 million, mainly reflecting: Adjusted items(*) (3.8) 5.0 • Working capital inflow of €6.8 million compared to an outflow of €9.3 million No
Slide 11: On track to meet FY25 targets
2. On track to meet FY25 targets We expect to see better year-on-year comparatives in the second half of the fiscal year as we increase our member base and the maturity of our Prime members increases Prime Members(*) >7.25M eDO FY25 TARGETS Cash EBITDA(*) >€180M (*) See definition and reconciliation
Slide 12: Strategic Appendix Update (TBC)
3. 3. Closing Remarks 1. Results highlights 4. Appendix Strategic 2. Prime model continues to drive very strong growth Appendix a) eDO investment highlights 3. Appendix Update (TBC) b) Breakdown by segment and disaggregated Revenue Margin 12
Slide 13: Strategic Appendix: eDO investment highlights
3. a. 3. Closing Remarks 3. Appendix 4. Appendix Strategic Appendix: eDO a) eDO investment highlights a) eDO investment highlights b) Breakdown by segment and disaggregated Update (TBC) investment highlights b) Breakdown by segment and disaggregated Revenue Margin Revenue Margin 13
Slide 14: eDO has one of the fastest paid-members growth among subscription companies
a. eDO has one of the fastest paid-members growth among subscription companies across all industries CAGR (1-7 Years) 7.25M FY18-FY25: 5.8M 147% 4.3M 2.7M 0.6M 0.9M 0.2M Prime Members(*) (Millions) FY19 FY20 FY21 FY22 FY23 FY24 FY25E > CAGR of paid members in the the first 6 years of operation 10% C
Slide 15: eDO has demonstrated its ability to capture new customers
a. eDO has demonstrated its ability to capture new customers More than 3 million new members over the last 2 years. > Growth in Prime members(*) Share of new Customers(**) within Prime Delta Omicron Ukraine & Middle East war 6.2 +high inflation members(*) 5.8 71% 5.4 5.1 4.7 4.3 3.9 Prime 3.6 member
Slide 16: 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 CY2023 (€M) 2,403 #1 555 #2 379 #3 Source: Company data, Cash Revenue Margin for eDO. Financial Releases published by Trip.com and Expedia. 16
Slide 17: In pole position in the fast-growing leisure market
a. In pole position in the fast-growing leisure market > Sizeable market and one of the largest ATTRACTIVE GROWTH PROSPECTS AFTER EDO IS POSITIONED IN THE RIGHT SEGMENTS e-commerce verticals THE PANDEMIC (ONLINE AND LEISURE) > European Leisure Travel Market Size (€Bn) > European Leisure Travel Marke
Slide 18: eDO is unique in terms of profitability and growth
a. eDO is unique in terms of profitability and growth > Rule of 40 – Ranking leading subscription and OTA companies Satisfy rule of 40 eDo 46% ✓ Bookings Holdings 45% ✓ ✓ Revenue CAGR FY22-25E Netflix 42% Amazon 34% X Tripadvisor 33% X Expedia 31% X Spotify 24% X Hello Fresh 11% X Avg. OTAs (1) 38%
Slide 19: A recognised leader in AI in Europe
a. eDreams ODIGEO, a recognised leader in AI in Europe: Always being a step ahead Adopting an AI first strategy, At-scale deployment of a Deployed Natural Language Developing in-house AI Agents and We have a proven setting up our own in-house research and development proprietary reinforcement learni
Slide 20: On track to meet FY25 targets
a. On track to meet FY25 targets eDO has a large potential: superior returns for shareholders and customers while transforming and revolutionising the industry. Prime Members(*) >7.25M eDO FY25 TARGETS Cash EBITDA(*) >€180M (*) See definition and reconciliation of Non GAAP measures on page 25-27. 20
Slide 21: eDO has strong fundamental growth potential from FY25 onwards
a. eDO has from FY25 onwards strong fundamental growth potential Increase household penetration on those countries in which we are present Our growth focus areas Add new countries Customer segments STRONG FUTURE GROWTH 21
Slide 22: Appendix: Breakdown by segment and disaggregated Revenue Margin
b. Appendix: Breakdown 3. Closing Remarks by segment and 3. Appendix 4. Appendix Strategic disaggregated a) eDO investment highlights a) eDO investment highlights b) Breakdown by segment and disaggregated Update Revenue(TBC) Margin b) Breakdown by segment and disaggregated Revenue Margin Revenue Mar
Slide 23: Prime strong growth more than offsets Non-Prime declines
b. Prime strong growth more than offsets the anticipated declines in the Non-Prime side of the business > Prime > Revenue Margin(*) (excl. Adjusted Revenue Items)(**) (In € million) 20% 103.1 (In Euro million) 1Q FY25 Var. FY25 vs FY24 1Q FY24 85.9 Prime 103.1 20% 85.9 Non-Prime 56.9 (20)% 71.6 Tota
Slide 24: Gradual Revenue, driven by Prime, main driver for growth
b. Gradual Revenue, driven by Prime, main driver for growth > Gradual > Revenue Margin(*) (excl. Adjusted Revenue Items)(**) (In € million) 35% 98.4 (In Euro million) 1Q FY25 Var. FY25 vs FY24 1Q FY24 72.8 Gradual 98.4 35% 72.8 Transaction date 54.5 (30)% 78.3 Other 7.1 10% 6.4 Total 160.0 2% 157.5
Slide 25: Glossary of definitions
Glossary of definitions Non-reconcilable to GAAP measures 5. Adjusted Net Income means the IFRS net income less certain share-based compensation, restructuring 1. Gross Bookings refers to the total amount paid by customers for travel products and services booked expenses and other income and expense
Slide 26: Glossary of definitions
Glossary of definitions 11. Cash Revenue Margin means "Revenue Margin" plus the variation of the Prime deferred revenue 18. Gross Leverage Ratio means the total amount of outstanding Gross Financial Debt on a consolidated corresponding to the Prime fees that have been collected and that are pending
Slide 27: Glossary of definitions
Glossary of definitions 24. Prime ARPU means the Cash Revenue Margin generated from Prime users on a last twelve months Other definitions basis. It is calculated considering all the Cash Revenue Margin elements linked to the bookings done 28. Bookings refers to the number of transactions under the a