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Mobile spurs EDreams ODIGEO bookings growth

Posted by Phil Davies on
Mobile spurs EDreams ODIGEO bookings growth

Europe’s largest OTA eDreams ODIGEO today reported a 3% rise in annual bookings to 12 million.

Mobile now represents 35% of all flight bookings, up from 30% a year earlier and above the industry average of 24%.

The business plans to accelerate the transliation to mobile, which affects performance in the short-term “but improves our strategic position and long-term attractiveness”.

The Barcelona-based company saw adjusted earnings (Ebitida] rise by 10% to €118.3 million with “solid” revenue margin growth of 5% to €508.6 million.

The performance for the year to March 31 came despite a strategic shift with the sale of its business travel and package tours business.

The company is diversifying by increasing revenues outside of flight tickets to target higher margin, more profitable sales, with ancillaries’ revenue margin up 49% year-on-year and dynamic packages up 24%.

Mobile growth is expected to contribute to 87% of total industry growth from 2017-20 “and we are already ahead of the curve, with mobile set to deliver our largest source of traffic in fiscal year 2019,” according to the company.

The company is projecting adjusted earnings of €130 million to €145 million in 2020 with ebitda flat at €118 million in the current financial year with a 4% reduction in bookings as it plans for future growth by becoming more attractive to the end consumer.

Chief executive Dana Dunne, a former easyJet chief commercial officer, said he was managing the business, which operates in 43 countries, for the long-term.

He said: “We have delivered a third consecutive year of strong financial performance and made progress against all of our KPIs.

“It’s clear that our strategy, to invest in the firm and put in place the building blocks for growth, is working and we have solidified our position as leader in the European online leisure travel market.

“As a front-runner in mobile and technology we continue to focus on responding to evolving customer needs, while delivering long-term benefits for the business.”

He added: “Looking ahead, our unique scale and diversification strategy will allow us to take full advantage of an attractive macro environment, where more customers are heading online to find the best and most convenient travel options.

“With the leading app in the industry, we are best placed to serve the growing mobile travel sector; and with one billion online searches every month, we continue to be the one-stop shop for travel.”

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