EDreams ODIGEO profits drop during first-quarter

EDreams ODIGEO profits drop during first-quarter

European online travel giant eDreams ODIGEO suffered a drop in profits during the three months to June 30.

Adjusted net income fell by 6% year-on-year to €5.7 million.

However, the company said the result for the first-quarter of its financial year was in line with previous guidance.

“Bookings were up 1%, revenue margin rose by 7% and adjusted EBITDA was down 3%, as guided to the market and reflecting the investments we are making in the shift in the revenue model,” the company said.

The performance driven by “solid bookings and revenue margin growth” in addition to a strong performance in flight ancillaries and dynamic packaging revenues.

Mobile flight bookings rose to 37% of the total from 32% in the same period last year.

Looking forward, the firm said: “In fiscal year 2019, we will continue to invest and accelerate the strategic shift in our revenue model, including increased price transparency display in some countries.

“We expect this strategy to adversely affect our performance in the short term, but to improve our strategic position and long-term value, both for customers and shareholders.”

Company chief executive Dana Dunne said: “We are pleased to have delivered a first-quarter performance in line with our expectations whilst continuing to invest in our new revenue model and improve price transparency for our customers.

“We achieved solid growth in revenue margin on the back of steady bookings growth, thanks to an increase in flight ancillaries and dynamic packages, which is a clear sign our revenue diversification strategy is working.

“As previously guided, we expect these changes to our revenue model to slow down our financial performance in fiscal year 2019, but greatly improve the service provided to our customers, leading to sustainable profit growth.”

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