European OTA eDreams ODIGEO has reported 1% growth in the first quarter of the 2017/18 financial year.
Chief executive Dana Dunne described the three-month results, which showed a €125.3 million revenue margin, as “solid” while the company invested in mobile – now the source of 32% of bookings and up 25% in Q1.
Its core markets of Spain, Italy and France were down by 1% in bookings and 2% in terms of revenue margin but the OTA says that without the effects of “strategic initiatives” and the sale of non-core businesses, bookings would have grown by 2%.
Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 51% to €13.3 million and the group recorded a net loss of €6.9 million, compared to a profit of €7.7 million a year ago.
The company said it is aiming for an adjusted EBITDA of about €115 million for the rest of the fiscal year. This is down 7%, which the firm said is “well ahead” of its projections of -10 to 14%.
Its cash flows stand at €96.7 million.
Chief executive Dana Dunne, said: “We have delivered a solid set of results in the first quarter, despite tough comparatives with FY2017, and have performed ahead of guidance.
“We continue to deliver against our key performance indicators (KPIs), growing new revenue streams as a result of our diversification strategy, increasing our share of flight mobile bookings, well ahead of the industry average, whilst lowering our cost of acquisition per booking. These initiatives are helping us to become the best value and most convenient one-stop-shop for travel.”
“As expected and previously guided, we experienced some softness in revenues and profit due to the accelerated investment in our transition to mobile and evolution in change of our revenue model, as well the sale of some non-core businesses and an Easter seasonality effect.
“We expect softness in H1 as we make investments to build scale, improve our business model and create a world-class customer experience and growth around 7% in Adjusted EBITDA for full fiscal year.”