eDreams Demonstrates Growth Resilience Despite Market Challenges and Disruptions
eDreams Odigeo’s Financial Performance and Strategic Outlook
By Mireia Merino and Gemma Guasch
May 28 (Reuters) - Spanish online travel booking firm eDreams Odigeo met its core profit target in the year through March, it said on Thursday, showing resilience amid concerns over slowing growth and Middle East disruptions.
The company's shares jumped around 9% in the first three hours of trading.
Financial Results and Market Response
eDreams booked cash earnings before interest, taxes, depreciation and amortization (EBITDA) of €157 million ($182 million) for the year, slightly above the forecast it had lowered in November due to slowing subscriber growth.
Impact of Middle East Disruptions
Since then, the war in the Middle East has disrupted flight routes and raised costs, testing whether eDreams' subscription model—which depends on sustained booking activity—can maintain growth momentum.
"This is a resilient set of results and outlook from eDreams, especially against the backdrop of the conflict in Iran and the potential knock-on impact on travel and consumer sentiment," analyst Bharath Nagaraj from Cantor Europe said.
Asked about the Middle East disruptions, eDreams' outgoing finance chief David Elizaga said they had not affected customer activity. "People don't stop travelling; they just travel elsewhere."
Subscription Model and Growth Strategy
Subscriber growth has decelerated in recent quarters, which has raised concerns about the long-term scalability of the subscription-led model.
Prime Membership Expansion Plans
While those concerns have weighed on the stock, eDreams stood by its plans to expand the Prime membership base, a key revenue engine, to more than 13 million users by 2030.
"Continuing to deliver is a good way to start dispelling any of the bearish narratives," Nagaraj said.
Recent Subscriber Growth Trends
The number of Prime subscription members grew 9% year-on-year to 7.9 million users in the final quarter of the fiscal year, slowing from the 13% increase booked in the previous three months.
Geographic and Segment Expansion Initiatives
The Barcelona-based company aims to increase the subscriber base by expanding the Prime model to five new countries, as it did in South Africa in April, and through its recently launched segment focused on rail travel, Elizaga said.
Future Growth Forecasts
eDreams reiterated its forecast for faster average yearly growth of 15% to 20% in Prime memberships between 2028 and 2030. It also maintained its cash EBITDA target of €115 million for the new fiscal year.
($1 = €0.8610)
(Reporting by Mireia Merino and Gemma Guasch in Gdansk; Editing by Matt Scuffham and Milla Nissi-Prussak)
