OTA eDreams reports profits surge

European OTA eDreams Odigeo saw net profits surge tenfold in the nine months to December 31.

 

The company reported net income for the period of €40.3 million against €4.1 million in the same period the previous year.

 

Adjusted earnings [ebitda] grew by 74% to €138.4 million, with improved profit margins.

 

The OTA’s Prime subscription scheme membership grew 13% year on year to reach 7.8 million at the end of January.

 

This was described by eDreams as a “clear testament of the appeal and strength” of its AI-powered platform.

 

The company said it remained on track to exceed full year guidance in the current financial year, “supported by ongoing investments in new product segments, expansion into new markets and roll out of flexible payment options for its annual subscription fee”.

 

The OTA is targeting 13 million Prime members and more than €270 million in ebitda by the end of the decade.

 

Rail has been added as a new segment as the firm shifts from a legacy flight-focused business to a “fully diversified” all-travel platform.

 

Chief executive Dana Dunne said: “Our results confirm that the robust, AI-powered foundation we have built has successfully transformed eDO from a legacy transactional business into the world’s leading travel subscription.

 

“We are now capitalising on this momentum to secure and sustain our long-term global leadership position by evolving into a truly comprehensive all-travel platform.

 

“By expanding our verticals and geographic footprint, we are evolving to own the entire traveller journey, and the relationship that comes with it.”

He added: “Our planned and high-conviction investment phase is a deliberate choice to leverage our unique model and capture an even larger share of the global market.

 

“With our strategy’s inherent scalability and our proven track record of meeting ambitious long-term targets, we are firmly set to achieve 13 million members by 2030 and deliver a much better business: faster growing, more profitable, and more diversified.”