eDreams ODIGEO [BME:EDR], the Barcelona-based online travel company, posted strong first-quarter results as its subscription model continued to deliver rapid expansion and robust profitability.
The group, which bills itself as the world’s largest travel subscription platform, said members of its Prime programme grew 20 per cent year-on-year to 7.5m, underpinning an 8 per cent rise in quarterly profits to €39m.
Net new subscribers rose by 1.2m over the past year, with 205,000 added in the quarter to June, at the upper end of guidance. Management reaffirmed its target of adding more than 1m new members this fiscal year, alongside cash earnings of €215m–€220m by March 2026.
Subscription-led model is growth engine
The subscription-led model, launched in 2017, has emerged as the key growth engine for the company, providing predictable recurring revenue and improving margins as the customer base matures. Renewal rates among existing members have reduced acquisition costs, while expanded benefits have bolstered retention. Revenues from Prime members now account for 72 per cent of the group total, up five percentage points in a year.
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Overall revenue rose 8 per cent to €172.6m, while adjusted net income surged ninefold to €23.6m, compared with €2.6m in the same period last year. Operational margins expanded by three percentage points to 24 per cent, and the margin on core customer offerings climbed five points to 40 per cent.
The company has begun piloting a monthly payment option for a subset of customers. While this shift has had a short-term impact on cash-based revenue recognition, with subscription income not collected upfront, management said it expected the model to increase accessibility and broaden the addressable market.
Share buyback programme
Shareholder remuneration remained a central theme. A €20m buyback programme launched in May is now 80 per cent complete, having boosted liquidity in the stock. Average daily trading volumes in the European Composite Index have risen more than threefold since November last year.
On the back of this momentum, the board has authorised an additional €20m repurchase programme to follow the current scheme. In parallel, shareholders have approved a multi-stage capital reduction plan, including the immediate redemption of nearly 3m shares, designed to enhance earnings per share.
Cash flow in the quarter fell to €11.4m from €20.4m a year earlier, reflecting one-off items and higher tax payments. For the full year, the company now forecasts free cash flow of €103m–€108m.
Management emphasised that customer satisfaction remains central to sustaining growth, pointing to industry-leading Net Promoter Scores and Trustpilot ratings. Expanded subscription benefits, including greater flexibility on flight cancellations, have helped reinforce the model’s appeal across multiple markets.
eDreams ODIGEO looks insulated from travel market volatility
The latest results reinforce eDreams ODIGEO’s strategy of pivoting decisively towards subscriptions. While the wider travel sector continues to adapt to fluctuating demand patterns, the company’s focus on predictable recurring revenue has insulated it from volatility in transaction-led models. Analysts say the durability of Prime will be crucial in demonstrating the long-term sustainability of the subscription model in a sector where competition remains fierce.
With a growing subscriber base, expanding margins and enhanced shareholder returns, the company has begun its fiscal year with renewed confidence. The key challenge will be sustaining momentum while balancing growth investments with the need to generate consistent cash returns.
