eDreams Odigeo has reported a financial turnaround thanks to a significant rise in subscriptions.
- The company saw a notable increase in subscriptions by 28% in the first half of the year.
- Net profits for eDreams Odigeo reached €1.3 million, reversing a previous loss.
- Revenue from Prime subscriptions accounted for a significant portion of total revenue growth.
- The company credits its success to a stable, AI-driven subscription model.
In a notable shift towards profitability, eDreams Odigeo, a prominent European online travel agency, reported a remarkable 28% increase in subscriptions during the first half of the financial year, ending in September. Such growth propelled the company into the black, achieving a net profit of €1.3 million, a substantial improvement compared to a loss of €1.6 million during the same period the previous year.
The Prime subscription service, which has garnered more than 6.5 million subscribers, played a pivotal role in this financial uplift. Subscribers to the Prime service grew significantly, contributing to increased cash earnings (EBITDA) of €81.1 million, marking a 28% year-on-year growth. The increase in subscription numbers highlights the company’s successful shift towards a subscription-led business model.
Overall revenue for eDreams Odigeo reached €361.2 million, reflecting a 2% increase, with an impressive 69% of this revenue attributable to the Prime subscription model. This reinforces the company’s strategic focus on building a sustainable business model centred around recurring revenue streams.
Dana Dunne, the CEO, emphasized the impact of the growing base of long-term Prime members. The CEO remarked that these members, particularly those in their second year and beyond, offer higher value as they increasingly rely on Prime for all their travel needs. This shift from transactional revenues to a more predictable, subscription-based model has provided the company with a solid financial foundation.
In her statements, Dana Dunne asserted that the results and performance underscore the company’s successful strategy in driving growth, profitability, and customer satisfaction. She highlighted the company’s robust execution capabilities, powered by an AI-driven subscription platform that facilitates long-term customer relationships and predictable recurring revenues, setting eDreams Odigeo apart from its competitors.
eDreams Odigeo’s strategic focus on subscription services has proven to be a successful approach, driving financial growth and stability.
