eDreams Odigeo is confident it can thrive after the coronavirus pandemic, expecting customers to continue to move online and increasingly to seek out trusted brands.
Releasing fourth-quarter and full-year 2020 results, the group reported Q4 EBITDA of almost €30 million while net income came in at a loss of almost €70 million.
For the full year, eDreams Odigeo, with brands including GoVoyages, Lilligo and Opodo, reported adjusted EBITDA of just over €115 million compared to €119.6 million for 2019.
The company’s revenue margin decreased 1% to €528.7 million and net income came in at €34.7 million.
At the end of the 2020 financial year, eDreams Odigeo bookings were down 4% on 2019 despite bookings having decreased 53% for the last five weeks of the year.
Speaking to PhocusWire about the results, CEO Dana Dunne says: “We are financially strong with sufficient liquidity to emerge from the crisis in good shape. Importantly, we have looked after our people and are best prepared to lead the new world with our motivated, experienced teams.”
The company announced cost-saving measures in April, saying its liquidity position was about €140 million.
In its results statement, the online travel agency group says it has weathered the crisis so far through cost management, government support and using some of the funds from its credit facility.
eDreams Odigeo says it has not had to make any layoffs and does not anticipate any at this stage.
The company is continuing to drive its revenue diversification strategy, which represented 53% of total revenue, compared to 2019’s figure of 44%.
Revenue for dynamic packaging and ancillaries, both falling within diversification revenue, increased 20% year-on-year.
David Elizaga, the group’s chief financial officer, describes it as a “good manifestation” that the strategy to decrease reliance on flights is working.
Dunne adds that for every 100 flight tickets sold, 85 additional products and services are sold, demonstrating a “very robust, very diversified business.”
Given the impact of the pandemic on the travel industry, eDreams is not providing guidance.
Dunne says that markets it operates in are opening up again and demand is coming back, albeit from a low base.
He says: “We’re a leisure company. That’s what we see as the difference, you can do a conference call but for a leisure company to do what they want to do, you can’t replace through Zoom.”
He adds that it was too difficult to predict what would happen in three to six months and instead the company was focusing on what it could control.