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Endeavor Q1 2025 Earnings Report
eDreams ODIGEO reported significant growth in its Prime model, leading to improved profitability and strong financial performance in 1Q FY2025.
Key Takeaways
eDreams ODIGEO demonstrated robust financial performance in 1Q FY2025, primarily driven by the strength and maturity of its Prime subscription model. The company saw a substantial increase in Prime members and significant improvements in key profitability metrics such as Cash Marginal Profit and Cash EBITDA. Despite anticipated declines in the Non-Prime business, the overall growth of the Prime model more than offset these, leading to a positive financial outcome.
Prime members grew by 32% year-on-year, reaching 6.2 million, with net adds of 409k.
Cash Marginal Profit increased by 16% year-on-year to 60.0 million euros, with a 3pp improvement in Cash Marginal Profit Margin.
Cash EBITDA rose by 23% year-on-year to 36.0 million euros, with a 3pp improvement in Cash EBITDA Margin.
Mobile bookings accounted for 60% of total flight bookings, up from 58% in the prior year.
Endeavor
Endeavor
Endeavor Revenue by Segment
Endeavor Revenue by Geographic Location
Revenue by Segment
Prime Revenue
CapyFin.comNon-Prime Revenue
CapyFin.comRevenue by Geographic Location
Top 6 Markets Revenue
CapyFin.comRest of the World Revenue
CapyFin.com Forward Guidance
eDreams ODIGEO is on track to meet its FY25 targets, with strong growth potential beyond FY25 driven by continued Prime expansion and market under-penetration.
Positive Outlook
- On track to meet €180 million Cash EBITDA target for FY25.
- Prime Members expected to exceed 7.25 million for FY25.
- Generation of Free Cash Flow ex Non-Prime Working Capital to over 90 million euros, more than doubling vs. FY24.
- Strong fundamental growth potential beyond FY25 due to under-penetration in main markets.
- Expected better year-on-year comparatives in the second half of the fiscal year as Prime member base matures.
Challenges Ahead
- Volatility on quarterly net adds for Prime members is expected.
- Anticipated declines in the Non-Prime side of the business, though offset by Prime growth.
- Profitability for year one Prime members is delayed, improving from year 2 onwards.
- The company expects to see better year-on-year comparatives in the second half of the fiscal year, implying a tougher first half.
- The company's average penetration of European markets where Prime was launched was 3.2% in FY24, indicating significant room for growth but also current low penetration.
Revenue & Expenses
Visualization of income flow from segment revenue to net income