Solid first quarter results ahead of guidance for Europe’s leading online travel agency as revenue diversification strategy drives growth across the business

Barcelona, 25 August 2017 – eDreams ODIGEO (, Europe’s largest online travel company and one of the largest European e-commerce businesses, today reported its results for the first quarter of the fiscal year 2018.



  • Solid performance ahead of guidance. Year-on-Year comparison reflect very strong Q1 FY2017.
  • Q1 FY2018 performance was driven by:
    • Solid bookings (+1%) and revenue margin (+1%)
    • Accelerated investment in mobile and evolution in change of our revenue model
    • Adjusting for one-off factors, bookings grew 6%
      • Easter seasonality
      • Sale of corporate travel and packaged tours business
    • Adjusted EBITDA (-7%), well ahead of our Q1 guidance of (-10% to -14%)
    • Revenue diversification driving growth in flight business: Bookings (+2%), revenue margin (+3%)
    • Revenue diversification initiatives on track and delivering results visible in KPIs:
      • Revenue Diversification Ratio increasing from 27% to 31%;
      • Product Diversification Ratio increasing from 42% to 46%;
      • Acquisition cost per booking index reduced from 87 to 78;
      • Repeat booking rate increasing from 47% to 48%;
    • Accelerated performance in Mobile: Bookings up 25% in Q1 FY2018, now representing 32% of total flight bookings;
    • Cash flows in line with our guidance, cash position stood at €96.7 million;
    • On track to meet FY2018 guidance.


Dana Dunne, CEO of eDreams ODIGEO said:

“We have delivered a solid set of results in the first quarter, despite tough comparatives with FY2017, and have performed ahead of guidance. We continue to deliver against our KPIs, growing new revenue streams as a result of our diversification strategy, increasing our share of flight mobile bookings, well ahead of the industry average, whilst lowering our cost of acquisition per booking. These initiatives are helping us to become the best value and most convenient one-stop-shop for travel.”

“As expected and previously guided, we experienced some softness in revenues and profit due to the accelerated investment in our transition to mobile and evolution in change of our revenue model, as well the sale of some non-core businesses and an Easter seasonality effect. We expect softness in H1 as we make investments to build scale, improve our business model and create a world-class customer experience and growth around 7% in Adjusted EBITDA for full fiscal year.”


Business Overview

eDreams ODIGEO delivered a solid financial performance in the first quarter of fiscal year 2018, with growth in bookings and revenue margin, both up 1%, despite strong comparatives in Q1 FY2017. As previously guided, Q1 performance was tempered by accelerated investment in the transition to mobile and change of our revenue model as well as by the sale of our corporate travel and packaged tours business as the change in Easter seasonality.

We estimate the impact of the sale of the corporate travel and packaged tours business and Easter effect to be in the region of 142,000 bookings. Excluding these two effects, bookings would have grown by 6%. Adjusted EBITDA growth rates were down by 7%, but well ahead of the range guidance (-10% to -14%) given to the market. The above impact is already reflected in our full-year guidance.

The financial performance for the first quarter demonstrates that the shift in our business model is delivering the desired results. Our revenue diversification strategy continues to have a positive impact on our business, increasing revenues outside of flight tickets, which are higher margin and generate more profit for the business.

We are also seeing measurable improvements in our new KPIs. We’ve increased our Product Diversification Ratio and Revenue Diversification Ratio from 42% and 27% in Q1 FY2017 to 46% and 31% in FY18, respectively. Continued investment in mobile resulted in mobile bookings up 25% in Q1 FY2018, now representing 32% of total flight bookings.

We continue to invest to build a long-term highly attractive business by offering an exciting range of innovative products and services, investing in mobile, evolving our pricing and communication of that pricing, and becoming a one-stop shop for travel. Overall, we consider this a solid set of results and above our guidance, and set us on the path to meet our full FY2018 Outlook.

Stable leverage despite IATA change. Gross Leverage ratio was flat at 4.2x in June 2017 vs June 2016, which give us ample headroom against our covenant ratio. Despite cash outflow from working capital, net leverage ratio slightly increases from 3.1x in June 2016 to 3.3x in June 2017 (previously guided in the FY2017 results presentation). Due to our good business performance we were able to increase our Super Senior Revolver Credit Facility from €147 to €157 million.

The Group reported a cash position of €96.7 million, despite an outflow in working capital of €62.7 million as a result of the impact of Easter holidays, which fell this year in April, and the change in payment terms in France, moving from monthly payments to fortnightly payments, starting from April 2017.


Summary Income Statement


Business review by geography

Our Core markets (Spain, Italy and France) were slightly down in Q1 FY2018 (-1% bookings, -2% revenue margin) due to tough comparatives (+12% booking, +10% revenue margin in Q1 FY2017), the strategic initiatives mentioned above, as well as the sale of non-core businesses and seasonality impact. Without these effects, bookings would have grown by 2%. In FY2018, revenue margin stood at €69.0 million; performance was driven by bookings, already explained, and reductions in revenue margin per booking as a result of accelerated investment in the transition to mobile and evolution in change of our revenue model.

In the Expansion markets*, bookings were up 2%, as a result of investments made in the business and revenue diversification, and despite the adverse impacts mentioned. Excluding the effect of the sale of the Corporate Travel business and Easter seasonality effect, bookings would have grown by 10% in Q1 FY2018.

Expansion markets revenue margin was up 4% year-on-year for Q1 FY2018 to €56.2 million. The performance was driven by bookings growth, negative foreign exchange impact, in particular the depreciation of the pound vs the euro, and improvements in revenue margin per booking.



We expect continued growth in our markets, and our guidance for fiscal year 2018 is as follows:

  • Bookings: In excess of 11.7 million
  • Revenue margin: In excess of €487 million
  • Adjusted EBITDA: €115 million (7% growth year-on-year), +/- €2 million

We will continue to invest to build a long-term highly attractive business:

  • Evolving our pricing and communication of that pricing;
  • Offering an exciting range of innovative products and services as a one-stop shop;
  • Improving our Product Diversification Ratio and therefore our Revenue Diversification Ratio;
  • Pushing the transition to mobile, which affects performance in the short term but improves our strategic position and long-term attractiveness;
  • We will control the transformation pace to continue to grow absolute Adjusted EBITDA.

Reflecting this investment, we expect markedly soft revenues and profit in the first half of the fiscal year with second quarter showing improvements in performance vs Q1, but still showing either flat or a minor positive or negative growth rate in adjusted EBITDA, for several reasons:

  • Accelerated investment in the transition to mobile and evolution in change of our revenue model
  • Still comparing against a very strong performance in Q2 of FY2017, where many of our improvements already kicked-in and we had not started to change our revenue model

All of the above is fully reflected in our guidance for full-year Adjusted EBITDA of around €115 million, up about 7%.


  • Expansion markets: All except the Core markets


About eDreams ODIGEO

eDreams ODIGEO is one of the world’s largest online travel companies and one of the largest European e-commerce businesses. Under its four leading online travel agency brands – eDreams, GO Voyages, Opodo, Travellink, and the metasearch engine Liligo – it offers the best deals in regular flights, low-cost airlines, hotels, cruises, car rental, dynamic packages, holiday packages and travel insurance to make travel easier, more accessible, and better value for the more than 18 million customers it serves worldwide. With a presence in 44 markets, eDreams ODIGEO is listed in the Spanish Stock Market.