EDreams ODIGEO reports 17% growth in profits

EDreams ODIGEO reports 17% growth in profits

European OTA eDreams ODIGEO saw profits rise by 17% to €88.7 million in the first nine months of the 2017-18 financial year.

Revenue grew by 5% to €368.3 million despite what is described as a “strategic shift” in the firm’s business model.

Bookings growth was limited to 1% to nine million, adjusted for the sale of the group’s business travel and packaged tours business.

The company reported strong growth in mobile bookings to represent 36% of total flight bookings, up from 30%.

EDreams said it was “well on track” to achieve more than 11.7 million annual bookings, revenue in excess of €487 million and , adjusted earnings [EBITDA] of €118 million representing 10% growth year-on-year.

“The results for the first nine months demonstrate that the shift in our business model is delivering the desired results,” the company said.

“Our revenue diversification strategy continues to have a positive impact on our business, increasing revenues outside of flight tickets, which are higher margin and generate more profit for the business.”

Dana Dunne, chief executive of the company which runs eDreams, GO Voyages, Opodo, Travellink and metasearch engine Liligo, said: “EDreams ODIGEO has delivered a solid performance in the first nine months of the year as we continue to benefit from the strategic shift in our business model.

“We are making good progress against our KPIs with our focus on revenue and product diversification translating into greater profitability for the group, and our investment in technology delivering market-leading capabilities and mobile bookings that exceed the industry average.

“Overall I am pleased with the performance of the business and we remain on track to meet our raised full year guidance.

“EDreams ODIGEO has delivered a better performance than we had planned.

“We are very pleased with the profitability achieved, which means we can continue to invest in a sustainable and attractive business, and provide unique value to consumers.”

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