eDreams ODIGEO Delivers Solid Results Despite COVID -19 Impact in Q4. Well Positioned to Thrive in the Post COVID Era
LONDON, July 9, 2020 /PRNewswire/ -- eDreams ODIGEO (www.edreamsodigeo.com), Europe's largest online travel company and one of the largest European e-commerce businesses, today reported its results for the twelve months ended 31 March 2020.
COVID-19 has had a tremendous impact on the travel sector, with an effective shutdown of the industry since March. While many travel companies have needed to raise more money or mothball their operations, eDreams ODIGEO is financially strong. We entered the crisis with a strong balance sheet and EUR144m of liquidity at the end of March, which has enabled the business to endure the market closure to date and a further prolonged period of closure should that be the case.
As a result of our prudent management of the crisis, and due to our superior business model, we have maintained a similar liquidity position throughout the last quarter, with EUR142 million of Pro-Forma Liquidity. We have acted decisively to secure the appropriate liquidity for the business by drawing down partially the cash available through the Super Senior Revolving Credit Facility ("SSRCF"), together with the Company's prudent approach to cash management, which included swift actions to minimise costs; together with support from Governments where we operate and key business partners, we have sufficient liquidity to see this through. This places eDreams ODIGEO in a very strong position.
The qualities and capabilities of our people have come to the fore with collaboration and focus during the crisis. Together with our customers, they have been our primary concern and the actions we have taken will stand the Company in good stead in the future.
FISCAL YEAR RESULTS HIGHLIGHTS
-- Revenue Margin EUR528.7 million - down just 1% despite fourth quarter
impact of COVID-19
-- Adjusted EBITDA EUR115.1 million (2019: EUR119.6 million)
-- Adjusted Net Income EUR34.7million (2019: EUR40.2 million)
-- Mobile now represents 44% of total flight bookings
-- Revenue Diversification represents 53% of total revenues up from 44% in
2019
-- Product Diversification reached 85% (2019:72%)
-- Prime, our subscription offer, launched just two years ago, grew more
than 200% to 556,000 members (2019: 165,000)
-- Due to the uncertainty caused by COVID-19, guidance for the current year
is not provided
Dana Dunne, CEO of eDreams ODIGEO said:
"In these circumstances these are good results demonstrating the relative strength of our business. We have moved from a purely transactional model over the past five years to a leading, innovative e-commerce business of scale which is customer focused and mobile-led delivering a complete end to end experience.
We are financially strong with sufficient liquidity to emerge from the crisis in good shape. Importantly, we have looked after our people and are best prepared to lead the new world with our motivated, experienced teams.
Our customers have been and continue to be our utmost priority. Given the exceptional level of cancellations caused by COVID-19, we invested in additional frontline people to handle the unprecedented volume of customer queries. We believe best in class omni channel customer service will be even more critical in a post COVID-19 world which is why we are fully committed to developing the industry leading OTA omni channel customer service experience. This is in development and will be progressively rolled out in fiscal year 2021. We are committed more than ever to continue to invest in building the best customer experience solutions and offer our customers best-in-class service.
We anticipate substantial change to the way we travel. We are well positioned to thrive in the post COVID-19 era and seize the opportunity as customers migrate to our trusted brands in an accelerating digitalising world. As restrictions lift, I am confident that, in time, we can return to and supersede the strong trading performances of 2019 and the first two months of 2020."
Summary Income Statement
(in EUR
million) 4Q FY20 Var FY20 vs FY19 4Q FY19 12M FY20 Var FY20 vs FY19 12m FY19
---
Revenue
margin 115.7 (24%) 151.4 528.7 (1%) 533.0
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Adjusted
EBITDA 28.3 (30%) 40.5 115.1 (4%) 119.6
---
EBITDA 27.9 (31%) 40.4 100.7 (14%) 116.4
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EBIT (59.8)
N.A 31.8 (9.2)
N.A 90.4
---
Net income (69.9)
N.A 18.9 (40.5)
N.A 9.5
---
Adjusted Net
Income 3.3 (83%) 18.7 34.7 (14%) 40.2
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For further information:
About eDreams ODIGEO
eDreams ODIGEO is one of the world's largest online travel companies and one of the largest e-commerce businesses in Europe. Under its four leading online travel agency brands - eDreams, GO Voyages, Opodo, Travellink, and the metasearch engine Liligo - it serves more than 17 million customers per year across 45 markets. Listed on the Spanish Stock Market, eDreams ODIGEO works with 664 airlines and has partnerships with 130. The brand offers the best deals in regular flights, low-cost airlines, hotels, cruises, car rental, dynamic packages, holiday packages and travel insurance to make travel easier, more accessible, and better value for consumers across the globe.
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SOURCE eDreams ODIGEO
