A growing number of subscribers helped European OTA group eDreams Odigeo achieve record revenues in the nine months to December, 2023.
The subscription membership base grew 38% to 5.4 million in the period, as the group voiced confidence in reaching a target of 7.25 million by 2025.
The company said it can “confidently anticipate” reaching between 5.75 million and 5.9 million Prime members and earnings at an ebitda level of up to €122 million in the current fiscal year ending on March 31.
The performance further reflects that eDreams Odiego “is no longer a traditional travel company but a subscription business,” the company said.
Revenues surpassed the €500 million mark for the first time in the period to reach €507.3 million, up 10% from €459.7 million in the same period a year earlier.
Adjusted net profit improved by €25.6 million over the equivalent nine months in 2022 but still left a loss of €200,000
Profits at an ebitda rose by 54% year-on-year to €88.6 million, from €57.4, fuelled by the continued growth of the Prime subscription platform.
The group, which runs the OTAs eDreams, GO Voyages, Opodo, Travellink and metasearch engine Liligo, is listed on the Spanish stock exchange.
Chief executive Dana Dunne said: “We are excited to have achieved record revenues and a remarkable 54% growth in profitability.
“We continue to pioneer the travel industry with our subscription model, which has topped 5.4 million members and is the largest contributor to our revenues and profits.
“In light of our ongoing growth and reconfirmation of our self-imposed full year 2025 guidance, we are pleased to announce a share repurchase plan of 5.5 million shares, of up to €50 million.”
He added: “With every passing quarter, the success of our business model pivot becomes increasingly evident.
“As we commemorate 25 years of our flagship brand eDreams this year, we celebrate our strategic transition, from a leading online travel agency to a fast-growing global subscription business with vast opportunities ahead.
“With the majority of profits and revenues now coming from subscribers, it is clear that we have evolved beyond the confines of a traditional travel company.
“As a subscription company, our operational and strategic success are best measured by our ability to expand our subscriber base and boost profitability – these were the focal metrics highlighted in the 3.5-year guidance shared in 2021.
“With 64% of our journey now completed, we’re delighted to announce that we’re firmly on course in meeting our self-set targets, testament to the continued success of our subscription model and strategic approach.”