Edreams Odigeo · BME:EDR
Edreams Odigeo — 1H FY2019 Earnings Presentation
30 slides from Edreams Odigeo's earnings presentation, Nov 28, 2018
Slide 1: 1H Results presentation
1H Results presentation Fiscal Year 2019 1H Results, ending September 30th 2018 November 28th 2018
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: 1H Results Highlights
1H Results Highlights • 1H Results Highlights • KPIs • Financial Analysis • Strategy Update • Outlook • Appendix
Slide 4: 1H Results Highlights
1H Results Highlights Performance in line with guidance ▪ Bookings were 5.8 million (-2% year-on-year), Revenue Margin was €267,6 million (+5% year-on-year) and Adjusted EBITDA was €52.6 million (-10% year-on-year) 1H performance reflects strategic progress visible in KPIs ▪ Bookings performance ref
Slide 5: Results on track to meet FY 2019 guidance
Results on track to meet FY 2019 guidance Bookings Revenue Margin Adjusted EBITDA (*) In thousands (€ million) (€ million) 267,6 58,7 5.873 5.775 254,5 52,6 -2% +5% -10% 1H FY18 1H FY19 1H FY18 1H FY19 1H FY18 1H FY19 Source: Consolidated financial statements, unaudited (*) Definitions of Non-GAAP m
Slide 6: KPIs
KPIs • 1H Results Highlights • KPIs • Financial Analysis • Strategy Update • Outlook • Appendix
Slide 7: Revenue diversification on track
Revenue diversification on track Revenue diversification ratio (**) Revenue evolution (**) 41% 2Q FY19 35% 32% 2Q FY18 27% 30% 6% 5% 14% 32% 14% 41% 4Q '16 4Q '17 4Q '18 2Q '18 2Q '19 Product diversification ratio (**) 64% 40% 56% 48% 45% 50% 39% Diversification Classic Supplier Classic Customer Adv
Slide 8: Continued strategic progress as evidenced in our KPIs
Continued strategic progress as evidenced in our KPIs Customer repeat booking rate (Annualised)** Acquisition cost per booking index 56% 59% 50% 100 -19 percentage points 45% 44% 80 81 4Q '16 4Q '17 4Q '18 2Q '18 2Q '19 Mobile bookings as share of flight bookings 42% 34% 37% 30% 25% 4Q '16 4Q '17 4Q
Slide 9: Financial Analysis
Financial Analysis • 1H Results Highlights • KPIs • Financial Analysis • Strategy Update • Outlook • Appendix
Slide 10: Income Statement
Income Statement Highlights 1H FY19 ▪ Revenue margin increased by 5% 2Q FY19 2Q FY18 Var. 1H FY19 1H FY18 Var. (In € million) ▪ Variable Costs grew 15%, as a result of higher acquisition costs, driven partly by offline TV campaign broadcasted from April to Revenue margin 132,9 129,2 3% 267,6 254,5 5
Slide 11: Cash Flow Statement
Highlights 1H FY19 Cash Flow Statement ▪ Cash flow from operations decreased by €47.4 million, due to: – Decrease in Adj. EBITDA by €6.1m 2Q FY19 2Q FY18 1H FY19 1H FY18 (In € million) – Higher outflow in working capital with an outflow of Adjusted EBITDA (*) €94.1 million in 1H FY19 compared to an
Slide 12: Debt
Debt Gross Leverage Ratio (*) (Total Gross Financial Debt / LTM Adjusted EBITDA ) ▪ Successful refinancing in September led to a reduction of our debt coupon by 300 basis points, a €12.7 million saving in annual 7 interest, and a significant improvement in future Free Cash Flow 6 x LTM Adj. EBITDA g
Slide 13: Strategy Update
Strategy Update • 1H Results Highlights • KPIs • Financial Analysis • Strategy Update • Outlook • Appendix
Slide 14: Successful transformation journey
Successful transformation journey Our performance over the past 3 years has been driven by a successful transformation journey focused on the customer Nov ‘16 Nov ‘17 June ‘18 Nov ‘18 1st Case Study (Market A): Initial 2nd Case Announced acceleration of the Announced shift in revenue model results f
Slide 15: Second Case Study - Market B
Second Case Study- Market B Change in revenue model continue to prove to be successful, through initial results from price transparency initiatives introduced in one of our major markets Price transparency initiative has increased increased conversion, created a more diversified revenue model, reduc
Slide 16: Revenue diversification in flight ancillaries market
Revenue diversification for expansion in a fast growing flight ancillaries market MARKET ACHIEVED WHAT’S NEXT Flight ancillaries market in Europe ▪ Flight ancillaries attachment rate to flight ▪ Continue to increase focus on bookings growing 27% YoY post-booking, driving more 80b€ ▪ Over €100 millio
Slide 17: Revenue diversification in Dynamic Packages market
Revenue diversification for expansion in a fast growing Dynamic Packages market MARKET ACHIEVED WHAT’S NEXT Dynamic packages market in Europe ▪ DP attachment rate to flight bookings ▪ Increase number of touch growing 28% YoY points 110b€ ▪ 4 times more bookings with our own inventory ▪ Grew mobile c
Slide 18: Outlook
Outlook • 1H Results Highlights • KPIs • Financial Analysis • Outlook • Appendix
Slide 19: Reiterate full year Outlook
Reiterate full year Outlook Outlook FY 2019 Outlook Statement Bookings -4% to flat vs FY 2018 In FY19, we will continue to invest and accelerate the strategic shift in our revenue model, including increased price transparency display in some countries. We expect this strategy to adversely affect our
Slide 20: Why eDreams Odigeo?
Why 2 eDreams Odigeo? 2 1 1 2 1 1 1 Winner in Europe 30% European OTA 30% Significant revenue diversification flight market share World leading capabilities SOURCE: Internal analysis; Amadeus bookings data; Phocuswright European Travel Overview 13th Edition 20
Slide 21: Appendix
Appendix • 1H Results Highlights • KPIs • Financial Analysis • Outlook • Appendix
Slide 22: 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 -2% In ‘000 +3% 5.431 5.321 455 -5% +0% 442 2.706 2.573 233 233 2Q FY18 2Q FY19 1H FY18 1H FY19 2Q FY18 2Q FY19 1H FY18 1H FY19 Flight Non-Flight First half res
Slide 23: 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 +4% In € million +11% 56,4 +2% 203,7 211,2 +5% 50,7 27,5 29,0 101,7 104,0 2Q FY18 2Q FY19 1H FY18 1H FY19 2Q FY18 2Q FY19 1H F
Slide 24: 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 +9% 2.965 3.169 2.908 -15% 2.606 +6% 1.460 1.479 1.568 1.237 2Q FY18 2Q FY19 1H FY18 1H FY19 2Q FY18 2Q FY19 1H FY18 1H FY19 Core Expansion In H1 FY 201
Slide 25: 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 -5% In € million +17% 136,7 137,8 129,8 -9% +16% 117,7 67,7 71,1 61,9 61,5 2Q FY18 2Q FY19 1H FY18 1H FY19 2Q FY18 2Q FY19 1H FY18 1H FY19 Co
Slide 26: Diversification vs Classic Customer Revenues
Diversification vs Classic Customer Revenues Diversification Revenues lead growth and become the largest revenue contributor, while we consciously reduce our Classic Customer Revenue Diversification – Revenue Margin Classic Customer – Revenue Margin In € million In € million +41% 118,0 121,3 -16% 10
Slide 27: eDreams ODIGEO
eDreams ODIGEO
Slide 28: 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 29: 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 30: 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