Travel

Earnings roundup: EDreams, Flight Centre and Sonder

Earnings roundup: EDreams, Flight Centre and Sonder


As publicly traded companies report their latest earnings, we bring you a roundup of some of the results.

eDreams Odigeo

EDreams has said its shift to a subscription-led model is boosting the business as the online travel agency reported its earnings for the six months ended September 30, 2023.

EBITDA increased 84% to €63.5 million compared with €34.5 million year over year while revenue margin came in at just over €354 million, up 12%. Marginal profit was up 46% to €109 million.

Dana Dunne, CEO of eDreams Odigeo, said, “We are delighted with our outperformance. Our strategic shift to a subscription-led business continues to yield results, notably increasing profitability and enhancing predictability. With a rapidly growing membership base, committed and highly satisfied members who book significantly more often than non-subscribers, and a steady flow of recurring revenues, our business has never been more solid and promising.

“Today marks the two-year anniversary since we unveiled our 3.5-year strategic roadmap, a transformational journey to consolidate eDO as a leading global subscription business. Throughout this period, we have consistently fulfilled our commitments, even in the face of unforeseen macroeconomic challenges, including the Omicron variant, the conflict in Ukraine, and double-digit inflation rates, among other factors.”

The company’s Prime subscription program now surpasses 5 million members, representing a 41% increase year over year, it said.

Flight Centre Travel Group

Australia-based Flight Centre Travel Group said organic growth across the company is continuing and has helped it to reach about $3.9 billion in total transaction value (TTV) in the first quarter of its fiscal year 2024, just below its record TTV of $4 billion in 2019, prior to the pandemic. (Financial figures reported in Australian dollars have been converted to U.S. dollars.)

That TTV figure in the first quarter of the fiscal year is up about 20% – or more than $582 million – compared with the same period last year. Flight Centre Travel Group’s flagship businesses include FCM and Corporate Traveller.

“FCM has been able to secure some strong wins in both North America, United Kingdom and Asia – one of the many reasons we saw a particularly strong end to the month of October. We see the corporate travel market has recovered to circa 70 percent as an average across all markets,” said Chris Galanty, global corporate CEO for Flight Centre Travel Group.

“Despite the challenging macro environment globally, FCM and Corporate Traveller continue to win new customers and grow market share – while keeping their resilient customer bases. The small-to-medium sized enterprise market in the United States and Canada in particular is strong.”

In the company’s earnings filing, Galanty also noted growth of the company’s digital platforms, Melon in the U.S. and U.K., and FCM Platform.

“All new FCM customers are now successfully implemented on the new platform and all our existing customers will also be transferred by the end of the financial year. Corporate Traveller’s Melon is also going from strength to strength, with more than 90% of new customers in the U.S. integrated,” he said.

“There’s no question our new digital platforms have, and will continue to be, key differentiators when it comes to winning new customers. With our strong people-first approach, combined with successful technological investments to date, this really sets us apart.”

The company said revenue in the quarter grew 38% year over year, with gains coming across both leisure and corporate travel. Underlying profit-before-tax increased to $35 million and underlying EBITDA more than tripled to $66 million.

Sonder

Sonder has increased revenue to $161 million in the third quarter of 2023, representing a 29% improvement year over year.

The hospitality company attributed the revenue growth to an increase in bookable nights of 33% based on a 31% increase in live units. It also said it improved total overhead costs by 14%.

Francis Davidson, CEO of Sonder, said, “These accomplishments resulted in a 60% improvement in our free cash flow compared to last year from negative $39 million to negative $16 million and a 21% improvement in free cash flow margin from negative 31% to negative 10%. I’m incredibly proud of the progress we’re making toward our goal of sustainable positive free cash flow. We’re pulling every lever at our disposal to rapidly deliver on this objective.”



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