EDreams ODIGEO has recorded revenue of more than €500 million for the first nine months of its 2024 fiscal year.
The Spanish business said revenue increased 10% year-on-year for the period to 31 December 2023, up from €459.7m in 2022 to €507.3m.
Cash EBITDA [earnings before interest, taxes, depreciation, and amortisation] was up 54% to €88.6m compared to €57.4m the previous year. Net loss reduced to €4m during the period, compared to a €34.1m loss in the same period for 2022.
The company said the increase was fuelled by the continued success of eDreams ODIGEO’s subscription platform, eDreams Prime, which launched in 2017 as the world’s first travel subscription service, giving travellers access to travel discounts and special promotions. It now has 5.4m members.
In its financial statement the company added the subscription model has ‘become the primary driver of marginal profit (78%) and revenues (62%) for the Group, further reflecting that eDreams ODIGEO is no longer a traditional travel company but a subscription business’.
CEO Dana Dunne said: “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.”
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The Spanish business said revenue increased 10% year-on-year for the period to 31 December 2023, up from €459.7m in 2022 to €507.3m.
Cash EBITDA [earnings before interest, taxes, depreciation, and amortisation] was up 54% to €88.6m compared to €57.4m the previous year. Net loss reduced to €4m during the period, compared to a €34.1m loss in the same period for 2022.
The company said the increase was fuelled by the continued success of eDreams ODIGEO’s subscription platform, eDreams Prime, which launched in 2017 as the world’s first travel subscription service, giving travellers access to travel discounts and special promotions. It now has 5.4m members.
In its financial statement the company added the subscription model has ‘become the primary driver of marginal profit (78%) and revenues (62%) for the Group, further reflecting that eDreams ODIGEO is no longer a traditional travel company but a subscription business’.
CEO Dana Dunne said: “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.”
The post Subscription model pays off as eDreams ODIGEO reports record revenue appeared first on Travel Gossip.
Continue reading...
