European online travel agency eDreams Odigeo has reported “soaring” profitability and “surging” membership of its subscription service, Prime.
The company posted earnings before interest and taxes (Ebitda) of €36 million in the first quarter, up 23% year-on-year, for the three months to the end of June.
Net income reached €2.6 million, up +145% year-on-year.
More: European OTA eDreams Odigeo proposes board appointment
‘Exponential’ subscription model shift drives eDreams Odigeo growth
A statement from the OTA said: “Prime further cemented its position as the world’s largest travel subscription service, with membership surging again by 32%, surpassing 6.2 million members.
“As a subscription-driven business, profitability is increasingly powered by the maturing Prime membership base.”
The OTA said it is on track to meet the pre-set targets of 7.25 million Prime subscribers and generate cash Ebitda of or above €180 million by the end of the current fiscal year.
Dana Dunne, chief executive, said: “We have kicked off our fiscal year with a standout first quarter, marked by soaring profitability, significant expansion of our subscriber base, and sharply improved margins – just as we said we would.
“This performance underscores our position as a stronger, more profitable, and increasingly predictable subscription business.
“Prime now reaches millions of households, but what excites us even more is the vast potential that lies ahead, given the huge addressable market we have yet to tap into.”