eDreams ODIGEO S.A.

Good morning, everyone, and thank you all for joining us today for our full year, fiscal year 2024 results presentation for the 12 months ending 31st of March, 2024. I am David Larrot, the Director of Investor Relations at the Dream Sodillo. As always, you can find the results materials, including the presentation and our results report on the new investor relations section of our website, which includes a number of new functionalities like video recaps of results, presentations, and a new evaluation tool, among other things. I will now pass you over to Dean Adam, our CEO, who will take you through the first part of the presentation.

Thank you. Thank you, David. Good morning, everyone, and thank you for joining us. Today, we believe that, again, we've delivered outstanding results. Outstanding because we continue, each time we report, to deliver or beat our own and market targets. Over the past seven years, We've transformed our company into the leading subscription business operated in the travel segment. And EDU has become, without a doubt, a major player in the global 1.8 trillion euro travel market and the wider e-commerce ecosystem, working with nearly 700 airlines and 1.2 million hotels. We have a truly unique and highly successful subscription offering. However, it's not just the membership growth that we're proud of. We've been innovating rapidly and growing profitably too. More than doubled profitability in two years, which is truly extraordinary, reaffirming the strength of our business model and strategy. the prime model remains a consistent source of long-term value. Rising profitability is driving the free cash flow, excluding non-prime working capital. We take great pride that the ambitious FY25 goals of 7.25 million prime members and a cash EBIT of 180 million euros set back in 2021 are well within reach and that next year will mark a decade of consistently meeting expectations and guidance, something that not many can say. We are confident the growth and profitability manifest in our guidance, and also our belief in our stock is clearly undervalued. As a result, we are announcing today an acceleration of the share repurchase program for the remainder of the original 5.5 million shares targeted. We will consider subsequent share buybacks as we continue to generate free cash flow on an ongoing basis. Today, we'll take you through the key points of our strong set of results. This includes, first, a recap of the EDO results. Second, our financial results and the outstanding growth and delivery we achieved in FY24. That will be done by Depede and Itaga. I'll then take you through our strategic update and conclude today's presentation with some closing remarks about our long-term fundamental growth potential well beyond FY25. So, now please turn to slide four, which is a summary of our performance on fiscal year 2024. In FY24, the strength of the prime model drove strong growth and significant profit improvements again. Hashy, but they grew 44%. And we added 1.5 million new prime members now. Some of the key highlights for today's presentation are, first, We'll cover the highlights just mentioned about our standing growth and delivery in FY24. And this is the prime business continues to grow rapidly and is now at an inflection point financially. Cash EBITDA was up 44% to 121.4 million euros and is expected to grow another 48% in FY25 to 180 million euros. We continue to achieve significant improvement in profitability with cash EBITDA margin up eight percentage points in just two years. That is from FY22. And this equates to a rise to 18% in FY24. The prime members reached 5.8 million in FY24, and that is up 34% year on year. Prime, in fact, is the fastest growing subscription program across all industries, reaching 5.8 million FY24, a compounded growth rate of 177% over the past six years. And cash marginal profit is up 32% to 217.3 million euros in FY24. And the margin has improved six percentage points over the last year as well. Our free cash flow excluding non-prime working capital more than doubled from 20 million euros in FY23 to 45 million euros in FY24. And it's expected to double yet again in the next year. Second highlight. Edo's subscription model has proven to be effective. Edo has the highest Trustpilot scores among its peers at 4.4. This is 2.2 times greater than the average OTAs and 2.9 times greater than the average airlines. This metric has had a 26% improvement since our capital markets day back in November, 2021. Also, our NPS continues to improve, 52% improvement for prime members since our capital markets day, with 87% of our prime customers day scoring us a seven or above. Prime members book more, 3.8 times more than a non-prime customer, and that is a 41% improvement since our capital markets day. Churn rates continue to improve. Prime churn reduced 12% for prime members that are year two plus and 1% for year one prime members. And that's all since our capital markets day back in November of 2021. Today, EDU is a much more stable and predictable subscription-based business. Now 76% of our cash marginal profit is from Prime, and that's a 26% improvement in just two years, i.e. since FY22. The percent of Year 2 Plus members continues to grow, which is a key driver for improvement and profitability. 66% of total cash revenue margin comes from Year 2 Plus members. That's a 44% increase sorry, 44 percentage point improvement since FY22. And it continues to improve year on year. The third highlight is about our FY25 guidance. For FY25, we remain on track to meet our 180 million euro cash EBITDA target. So our prime members, obviously in excess of 7.25 million prime members and a free cash flow generation, excluding non-prime working capital to over 90 million euros, more than doubling versus FY24. The fourth highlight, we are announcing today an acceleration of the share repurchase program for the remainder of the original 5.5 million shares targeted. We will request authorization from the Spanish Stock Exchange Regulator to launch a tender offer for 4.5 million shares at a price of 6.9 euros. We believe our stock is undervalued, we generate cash, and we want to buy it back quicker than under the original share or purchase program. The fifth highlight, longer term and beyond 2025, Edo has strong fundamental growth potential. The attractiveness of our segment of travel is leisure, and we will continue to benefit from the strong consumer demand for leisure travel in which there's a clear structural shift from offline to online. We'll also benefit from EDO's ability to further increase household membership penetration from low levels in the markets in which we currently offer products. We'll expand Prime into new markets, moving well beyond the 10 markets in which we currently operate. And we'll enter new customer segments and further launch additional products and services under Prime. With that summary, let me highlight, sorry, let me pass this over to David, who will take you through some of the KPIs of our Prime model and the strong growth and significant profit improvements in FY24 results.

Thank you, Dana. If you could all please turn to slide six of the presentation, I will take you through some of the KPIs of the prime model and financial results in more detail. Please turn to slide six. Profit margins were up significantly. This was due to the growing maturity of the prime members, resulting in strong improvements in profits during the last fiscal year. In fiscal 24, cash margin or profit margin in our prime segment improved by eight percentage points to 40% on a 12-month basis from 32% in fiscal 23. Cash EBITDA also improved substantially by four percentage points, increasing to 18% on the margin on a 12-month basis from 14% in fiscal 23. If you please turn to slide seven, you see that we are a subscription business focus on travel and not a transaction-based business. Let me remind you that when looking at prime versus non-prime, we still think it makes more sense to look at our business on a last 12-month basis as prime is an annual subscription business and seasonality impacts the pattern of net ads in a particular quarter. The non-prime part is also influenced by seasonality patterns. We have reached in the last 12 months a 61% share of cash revenue margin and 76% share of cash marginal profit being delivered from prime members versus 46% and 56% a year ago. We are definitely a subscription-led business. Please turn to slide eight of the presentation. In fiscal 24, we deliver a strong growth in cash EBITDA and substantial improvements in margin as prime membership maturity increases. In fiscal 24, we delivered solid growth in cash revenue margin, increasing it by 9% versus the same period last year. This was achieved following the continued successful expansion of the prime member base. Cash revenue margin for prime rose by 63%, resulting from the 34% growth of prime members and because prime output increased to 78.1 euros. Cash margin of profit and cash EBITDA improved 32% and 44% respectively between fiscal 23 and fiscal 24. As guided, the maturity of prime members is the key driver for profitability and significant and constant membership growth has resulted in sharp profitability improvements as increasing numbers renew membership. Cash margin or profit margin increased six percentage points to 32% from fiscal 24 from 27% in fiscal 23. Cash EBITDA margin in fiscal 24 also achieved very substantial improvements and stood at 18% versus 14% in fiscal 23. That's a four percentage points advance. Our business is making a faster transition towards subscription and with higher margins than we anticipated back in our investor day of November 21. Back then, we expected to have cash marginal profit margins of 34% in fiscal 25, that is in a year from now. We now believe that these margins should reach 38% instead of 34%, and that's an increase of six percentage points from the results we are publishing today for fiscal 24. And this would be as a result of more of our business being prime and also generating better margins within prime. Cash EBITDA was up 44% year on year to 121.4 million, which compares to 84.4 million euros in fiscal 23. And it's expected to grow another 48% in fiscal 25 to 180 million euros. Please turn to slide 11 of the presentation. Revenue margin excluding adjusted revenue items increased by 13% to 642.6 million euros, mostly driven by an increase in prime revenue margin of 63% following the successful expansion of the prime member base. Prime revenue margin growth was somewhat offset by the non-prime revenue margin, which decreased 21% versus fiscal 23, due to the focus on the prime side of the business. Variable costs were probably in line with fiscal 23, despite higher revenue margin, as maturity of prime members increases and reduces member acquisition costs. Overall, fiscal 24 has made an outstanding growth and delivery, with a continued rapid revenue margin growth and significant improvements in profitability as more prime members renew. Fixed costs increased by 15.7 million euros, mainly driven by higher personnel costs as we scale the business. This is as guided and in line with our plan. As a result, adjusted EBITDA at 87.8 million euros almost tripled versus the same period of last year at 33 million euros. Adjusted net income was a profit of 22.9 million in fiscal 24, significant improvement from the 34.7 million euro loss in fiscal 23. This improvement was mostly driven by the 54.8 million increase in adjusted EBITDA and the recognition of a deferred tax asset for prior year Spanish tax source carry-forwards. Turning now to slide 10, I will take you through the cash flow statements. In fiscal 24, we ended the fourth quarter with a positive cash flow from operations of 138.9 million euros, following the successful expansion of the prime member base, which resulted in higher EBITDA. In fiscal 24, we had a working capital inflow of 49.1 million, again driven by the growth of our business. The lower working capital inflow in fiscal 24 versus the same period of last year is a result of higher increase in volumes between March 22 and March 23, associated with a catch-up effect for Omicron bookings. The volumes between March 23 and March 24 have been more stable. We have ample liquidity and headroom to deliver our plans, a consequence of our strong business model, cash generation, and active management. At the end of March 24, the liquidity position was strong at 251 million euros. We have invested 48.8 million euros in fiscal 24, an increase of 10.7 million as we capitalize our software. Cash used in financing amounted to 31 million euros compared to 67.7 in fiscal 23. The difference of 36.7 million relates to the outflows in fiscal 23 of the reimbursement of the revolver by 30 million euros and the government-sponsored loan by 3.8 million. If we look at fiscal 24, our free cash flow excluding non-prime working capital more than doubled from 20 million euros in fiscal 23 to 45 million euros in fiscal 24, and will double in the next year to hit 90 million. included in our estimates are 54 million euros of capex for fiscal 25 which includes our normal ongoing capex previously anticipated of 50 million and 4 million extra in a new back office system we will invest in total 6 million in this system between fiscal 25 and fiscal 26 and it will generate savings of 2 million euros annually in opex from fiscal 26 onwards as a result of this investment. On the 28th of February, 2024, we announced a share repurchase plan of 5.5 million shares in order to fund the LTIP plans for employees until fiscal 27. And that was for a maximum of 50 million euros. As of 29th of May, the company acquired 986,235 shares. for a total amount of 6.4 million euros. We are confident in the growth and profitability manifested in our guidance and also believe our stock is clearly undervalued. As a result, we are announcing today an acceleration of the share repurchase program for the remainder of the original 5.5 million shares targeted. we will request authorization from the Spanish Stock Exchange Regulator to launch a tender offer for 4.5 million shares at a price of 6.9 euros. We will consider subsequent share buybacks as we continue to generate free cash flow on an ongoing basis. I will now turn the presentation back to Dana to go through our strategic update.

Thank you, David. I would now like to take you through our strategic update, and this will focus on three topics. The first is our leadership and travel subscription. Second, our worldwide leading capabilities in tech and AI. And third, how effective at satisfying customers is our subscription model. Please turn to slide 13. A feature of subscription companies is that they show high growth and penetration over many years. Companies like Costco have delivered over 30 years of growth, Netflix over 20 years, Spotify over 14. What truly sets Edo apart from all other travel companies is its unique and highly successful subscription offering. Prime members reach 5.8 million members in FY24. This represents a CAGR of 177% over the past six years. Remarkable by any standards. In just the last two years, we've added 3 million net new members on average. And that includes the pandemic years and travel restrictions. Irregardless of COVID, this makes us one of the fastest growing subscription companies across all industries. And we have significantly more growth ahead of us with just 3.2% average household penetration in the seven European markets in which we've launched Prime. Please turn to slide 13. In just the last two years, we've added 3 million net new members on average. Prime is the number one travel subscription program in the world with over 71% of prime customers being entirely new customers who have not used an eDreams or digital product since 2021. And this demonstrates Edo's ability to capture new customers. Please turn to slide 16. Before getting into some examples of super exciting AI initiatives happening across Edo, let me first recap quickly why AI is really important for us at edu. AI is a central part of our competitive advantage, and we've got proven track record in leveraging it to improve our customer proposition and increase shareholder value for many years. We've been an extremely early adopter in AI, significantly before its current ubiquity. We started in 2013, and by 2017 or 2018, we were already incorporating a similar level of AI that was being used in autonomous self-driving cars. AI helps us drive innovation. It supports our customer-centric strategy around Prime, such as through personalization, And it helps us win against our competitors. I know that nowadays many companies say they use AI, but it is also true that only very few are really able to do this at scale. Of course, Amazon, Google, Netflix may be known for leveraging AI extensively. But most companies, large and small, struggle really to make AI work beyond a few lighthouse projects. And I know this through frequent conversations with AI leaders and other companies. We at EDU, on the other hand, have managed to drive real groundbreaking innovation by applying AI at scale. and building upon our over-decade year of experience. I would even say today that we're really at the forefront when it comes to creating value through AI, which is a real competitive advantage for us. And we have a tremendous accolade as Google has repeatedly acknowledged that E2 is one of the most advanced companies in AI in Europe. And you see some other quotes by them here on this slide as well. Success in AI is a real significant investment in terms of time and resources across three dimensions. First dimension is data. Second one is AI algorithms. And the third one is the deployment of the infrastructure with a requirement for excellence across all three of these areas to create a strong competitive advantage. I'll touch on each one of these very briefly. The first round of data. We have a substantial data pool because our scale and our result on our customer-centric business model around Prime allows us to collect more data per customer. This data is democratized for all teams to use in our best-in-class data mesh. The second one around AI algorithms We use some of the most advanced AI algorithms, such as deep learning, which powers personal assistants, enables computer vision, speech recognition, or improves your latest recognition engines that you find in places like YouTube, Amazon, et cetera. We also use reinforcement learning, which we've been using for quite a while, and which is one of the ones that's used in self-driving cars. Also, obviously, generative AI and large language models, which are now the most sophisticated and promising AI nowadays, such as you find empowered in chat GPT, Gemini, Sora, Mid Journey, et cetera, et cetera. We use those extensively. Also, the deployment of infrastructure. In addition, we have an infrastructure that allows us to leverage AI across our platform. Well, we started with AI in a few functions almost a decade ago. Today, it's become an integral part of each and every function and powers more than 1.5 billion AI decisions every day. If you can please turn now to slide 17. Leveraging the PIME database through personalization is key as it drives engagement and greater customer experience, which results in higher renewal rates. Data is one of the critical ingredients for the success of both traditional and generative AI. High quality data delivers a high quality result. And the more data one has, the greater the competitive advantage. As the largest flights retail in the world, excluding China and number one in Europe, we have an extremely large set of data. We can be much more precise in the answers or service we give to a customer and drive learnings more quickly than competitors who have smaller data sets, take longer and have less scope and less visibility. The more prime users we have, the more data we create, the more accurate our predictions become. Overall, this has resulted in higher engagement and the highest Trustpilot scores among all of our peers, as customers advocate Prime due to the high levels of the customer experience. When we combine this with our subscription program, it gives us a real competitive advantage, particularly since we were the first travel company in the world to offer a subscription for travel. We now have almost 6 million members or subscribers, which gives us a significant advantage. We have deeper data, Prime customers repeat and interact more, and they are logged in most of the time, providing us with a data advantage to understanding their needs better and being able to surface exactly what they want and tailoring the experience to that individual of one. Let me give you just some examples of the wins using AI and personalization. Flight deals you may have seen. We saw 41% increase in user engagement between our new personalized destination recommendation offers versus our legacy offers based on general popularity in the market. Another example would be AI-powered personalization through AI-driven personalization. And we've been able to increase our user engagement, driving an improvement in both conversion and customer repeat rates. The challenge is not just to find the right content, but the challenge is to equally is to surface it at and when to the right customer. In fact, we have hundreds and thousands of results for a given search, but only one top spot on the search results page. So what flight option we show in that position and the subsequent position is the main challenge we face, or put another way, is really the main opportunity we have. And that's where AI comes in. Furthermore, we have reduced the number of decisions and click customer needs to take half the interactions of a US competitor. Today, through AI-powered personalization, we are delivering monthly 2.5 billion individual flight searches and experiences. And that's an improvement over the already sophisticated former AI ranking model enabled by the superior data from our prime customers. Another example on the hotel results page. Personalizing our sorting in hotels has equally benefited our customers. As a result, we've been able to improve the conversion rate of hotels ranked in the top five positions of our certain results by 29% versus an already AI-powered sorting algorithm. Please turn to slide 18. Beyond these customer-facing uses, AI is also being used in many, many other areas across edu, improving our products to increasing productivity and or to simply enabling things that would not be possible without it. Every area, every team is expected to use AI within edu. If you could please turn to slide 20, the EDU subscription model is proven to be highly effective at satisfying the customers. And I'll take you through a little bit more details on that. Engagement and satisfaction continues to grow from our already industry leading levels. A Trustpilot. EDU has the highest Trustpilot scores among its peers. It has improved 26% since our capital markets day in November 2021, with 87% of our prime customers scoring a seven or above. That is 2.2 times and 2.9 times greater than the average OTAs and airlines respectively. NPS scores, they continue to improve. 69% improvement in the case of non-prime and 52% in the case of prime from an already high NPS versus industry standards. Prime members book more and continue to improve. It's now 3.8 times more than non-prime customer. And that's a 41% increase since the capital markets day. Please turn to slide 21, churn rates. EDU subscription model is highly effective at satisfying customers, and it can be seen also because of our churn rates continue to improve as well. Year one prime members have improved by 1%, while year two and longer by 12%. which clearly shows how effective and satisfying for those using it and renewing it. Please turn to slide 22. This shows how the EDU subscription model is proven to be effective and translated into outstanding growth and delivery in our results in FY24. As you can see, EDU is a much more stable and predictable business. In FY24, 76% of our cash marginal profit was driven by the subscription business, a 26 percentage point improvement in just two years. The percent of year two plus members continue to expand, which is a key driver for improvement and profitability. In FY24, 66% of our cash revenue margin was in year two plus numbers. And that's a 44% improvement since FY22. The prime business is growing rapidly and financials are at an inflection point. Cash EBITDA up 44% in FY24 and is expected to grow another 48% in FY25 to 180 million, something not many can say. This results in a significant improvement in profitability. Cash EBITDA margin is up eight percentage points in just two years, meaning from FY22. Cash EBITDA margin increased four percentage points in just one year, from 14% to 18% in FY24. And the free cash flow, it's more than doubled in FY24, reaching 45 million euros. That's 123% increase. And as we've said, will more than double in the next year to hit more than 90 million, which again will be over 100% increase in the free cash flow. If you could please turn to slide 24. Let me leave you with some final closing remarks before we move to the Q&A. EDU's got significant growth opportunities. EDU Prime today is represented in only 10 countries in which we operate, and we continue to open new markets to drive future growth. Furthermore, we're just starting. Today, we only have a 3.2% household population in the seven European markets in which we have launched Prime. There are huge growth opportunities ahead of us. European markets showing similar or better performance in France that was launched about 6.5 years ago. Please turn to slide 25 of the presentation. Since very early days, EDU has been recognized as a leader in AI in Europe, always being a step ahead. If you go back to my first strategic presentation to you as investors, that's back in 2015, I said that we would distinguish ourselves through leading in technology that would enable great product and customer experiences. While others may be turning their attention now to AI, given that AI has had so much external press, we, however, have been doing this for almost a decade. For us, this is part of our DNA, and we have been repeatedly recognized for this. Google repeatedly acknowledged in public that edu is one of the most advanced companies in AI in Europe. Please turn to slide 26 of the presentation. For FY25, we remain on track to meet our 180 million euro cash EBITDA target and the prime members in excess of 7.25 million members. In all, EDO has huge potential, superior returns for shareholders and customers while transforming and revolutionizing the industry. Furthermore, we're confident in the growth and profitability manifest in our guidance and also believe our stock is clearly undervalued. As a result, we're announcing today an acceleration of the share of purchase program for the remainder of the original 5.5 million shares targeted. We'll request the authorization from the Spanish Stock Exchange Regulator to launch a tender offer for 4.5 million shares at a price of 6.9 euros. We will consider subsequent share buybacks as we continue to generate free cash flow on an ongoing basis. If you could please turn to slide 27. I'd like to conclude by highlighting the strong fundamental growth potential we have beyond FY25. As I said, Prime is only available currently in 10 countries. Yet as a transaction model, we're in 44 countries. Thus, as you can see over time, we'll continue to expand Prime to many more countries. Also within each country where Prime is already offered, we are nowhere near the normalized household penetration. This provides very good growth opportunity for us. Third, many successful subscription programs evolve into more segmented offers by customer product segments. These two provide significant growth opportunities for us. Overall, EDU is now a much higher quality business. with the pivot to our subscription model. It delivers loyal and repeating customers, resulting in more and more profitable and predictable business. We are delivering high underlying profitability and have huge growth potential. Prime is a success and has become firmly established. It has delivered significant uplifts in profit margins, That will continue because we have the right model, right people, right structure to seize and deliver on the exciting value creating opportunities ahead of us. All of this will drive superior returns for shareholders, excellent service for our customers, while at the same time transforming and revolutionizing the industry. Thank you, Dana.

And with that, we would now like to take your questions. We are going to answer the questions sent to us in writing in the webcast. We will take questions on a first come first serve basis, but we will also try to group questions of similar nature. Should we not have time to respond to questions from the webcast, the investor relations team will make sure those are answered afterwards. Now I am going to start reading the questions. So the first set of questions that we have come from Francisco Ruiz of BNP Paribas. Let me just read them one by one. The first one says, this year we have the data on non-prime bookings. Can we have the whole figure of bookings? Well, we're definitely a subscription company. And the number of transactions we've been saying now for some time do not determine the profitability of the subscription model. We decided a while ago to discontinue providing the Prime bookings as it is a KPI which anchors investors on the transactional business mentality. That's not what really matters. What really matters is the number of Prime members, the ARCO, and the profitability per month. In fact, by now, 88% of our cash EBITDA is from prime members. And we really are a subscription, not a transactional booking business. And well, yeah, that is it. Let me answer the next one. How do we expect fixed costs to grow beyond next year? we expect to be around 108 million euros of fixed costs versus 95 million of last year. And this is mainly driven by the annualization of the recruited people in fiscal 24. Let me repeat the obvious, but the 108 million euros of fixed costs are considered within the 180 million of cash EBITDA. The next question says, what is the room for improvement in marginal profit margin from the 29% target in 2025? Now, I have to understand that the question is about the marginal profit margin. However, we have always said that it is much more practical to monitor the cash marginal profit margin, which is a better proxy. for how our business is really doing. I actually made explicit comments on that, on my prepared remark. We are currently on 32% as a margin for this metric for fiscal 24. And I've said that we expect this margin to improve by six percentage points over the next 12 months. So by the end of fiscal 25, we should be having a 38% cash marginal profit margin. That's going to be driven by two things, like I also said. One, you're going to have an increase of prime versus non-prime. And second, you're going to have an increase of the cash marginal profit margin on the prime side of the business due to the increasing proportion of year two and subsequent members in the program. who, like we've said many times, they're more profitable as they have much lower acquisition costs. The next question says, with the current leverage, will it be a good moment to start thinking about dividend payments? So we have shown, I think, very good metrics for cash generation, and we have also committed to increase very substantially, actually almost doubling, the cash generation for fiscal 25. Once the current process of repurchase is completed, and as you know, we have announced that we will present a tender offer in the next few days, and that is good for 4.5 million shares at 690. So that rounds up to about 31 million euros. Once we're done with that, we will consider what other options to take for the additional cash that we're going to generate. And the last question from this analyst says, why doing a tender instead of buying at the market as you are not offering any premium? Isn't it cheaper taking into account that the shares are for LTI in 2027? Well, that's if you believe that the share price from here to 2027 is not going to move, but obviously we don't think that is the case. So it is a better deal for the company and all of its shareholders that we repurchase at the current prices, and that's what we've done with the tender offer. The next set of questions comes from Carlos Treviño of Banco Santander. The first one says, about seasonality, historically the fourth quarter was your strongest quarter in revenues in the year, but this year was behind the second quarter and only marginally above the first quarter. Which are the reasons behind this change in the seasonal patterns? That's a very good question. Our revenue margin for the fourth quarter, which was 168 million euros, is pretty much on par with the 169 that we had in the second quarter. The decrease is due to the Easter effect, which this year fell on the last two weeks of March. And during the vacation periods, what happens is that the customers are not booking additional vacation. So whenever there is a clear vacation period, it is also a low seasonality period for us. The prime segment is showing an improvement, but one other thing that you need to bear in mind when you think about the seasonality now is that as our business is more and more prime, what happens is that the part of the subscription fees is happening with a one month delay from the moment that the customers are signing up for crime. Because remember that the majority of customers, what they do is they get into a free trial. So a customer that signs up in December, the subscription fees of that customer are actually being cashed in by us during the month of January. So the Q4, from a subscription-free perspective, is December, January, and February, not January, February, and March. And December is the lowest decision-making period of the year. The next question is about ARPU. Why is prime ARPU dropping from last quarter's reported figure? ARPU is moving from 79.5 to 78.1, which is a relatively slight decrease. And I think it's probably helpful for everyone that I remind how our platform, how the algorithms of the platform actually work. when they price a transaction, be it for first prime booking, be it for a repeat prime booking, they determine the pricing, basically what discounts we give to the customers, depending on what they see generate a higher lifetime value for the customer. So you can have occasions in which there is better value for us long-term in offering more discounts today more discounts today implies uh lower and and that's what the platform is doing is making choices to ensure that the lifetime value of the customer is optimized the next question says um non-prime working capital could you elaborate on the dynamics behind non-prime working capital will it be dropping uh year and year If yes, is it driven by volumes or by any other dynamics? Okay, we understand that by non-prime working capital, you're talking about the working capital excluding the deferred revenue related to prime. And that's great. We do not plan normally expecting that this amount is going to come in. And we have very consciously from about a year ago used a metric of cash flow to communicate with investors, which is free cash flow excluding this non-prime working capital. Because it's something that we don't control. It's something that is determined by mostly the average basket value, i.e. the type of flights that the customers choose to select. And that number is... on a trend of coming down and stabilizing and not going up yet. We're not seeing any improvements of going up versus the levels that they reached pre-COVID. So we don't count on that part. If it comes, fantastic. And this year it was positive, but we don't plan on it. Taxes. What is the reason behind the 27 million euros positive tax income in your P&L in the fourth quarter? Okay, this has to do much more with a mix of the past and the future and not so much about the present. And that is, it is a little bit confusing, but it is how the rules of IFRS indicate that we need to operate. What happens is in the years of COVID, let's say, 2021 to 2023, we had tax losses in the Spanish companies. Those tax losses were not activated. They were not recognized as tax credits in the financial statements up until March 2023. because there was insufficient forecasted taxable profits for the compensation period of the 10 years and also because we were still in a period in which we were having negative net income. However, The forecast of the results of the Spanish companies has improved this year. The 10 years that we're looking at right now include more positive years, and we are having our first year generally as a positive net income. These resulted in the recognition of previously unrecognized tax-loss carry-forwards. So there is a note in the financial statements that you can look at, which it shows the tax-loss carry-forwards recognized and not recognized in the financial statements. If you compare that note between what we publish in fiscal 23 and what we have published in fiscal 24, you will see a movement of the same nature. Basket value. This is the last question from this analyst. How has your average basket value evolved recently and how is compared to pre-pandemic levels? What we have observed is that the average basket size has not increased and in some cases it has even decreased. Currently, it stands now at levels of around €370, €380 per booking, depending on which month or week we're looking at. Whereas the pre-pandemic levels were more about €450 and a little bit higher. But that's depending on the month. This decrease is primarily due to a shift in the booking patterns. Our customers are making more frequent bookings, but for cheaper overall alternatives. The next set of question comes from Femi Ben-Namane from Olo BHF. The first question is why spinning up your share buyback program? Is it linked to the low liquidity of the share? What I'd say is that the reason is in line with what we said in the prepared remarks. We have the cash available and we think the price in the market is an attractive one because, in our opinion, the shares are undervalued. And therefore, the best decision that we can take on behalf of all our shareholders is to try to accelerate the program and repurchase as fast as possible with the current share price. The next question is, you're anticipating a strong free cash regeneration in 2025 of 90 million euros. Will this be used to deleverage or maybe to finance a new CapEx program? Well, let's take steps one by one. Once the current process is completed and we will then generate new cash, And that cash, it will be the decision of the board what to apply to. We have several options. There isn't currently a CapEx program that would need to be dedicated to. The only, let's say, extra CapEx that we have in mind versus what we have said in the past is what I said today about the $6 million for the feedback office broken down by $4 million in fiscal 25 and $2 million in fiscal 26. That is a negligible amount compared to the 90 million euros that we're going to generate. And it is also one that is paying itself because we expect to generate 2 million of cost reductions with the new bit back office versus the current one that we have right now. So, yes, a meaningful part of it could go to additional buybacks. The next question is, could you provide us an update on your package offering? And I think this one would be better answered by Dana.

Absolutely. Thanks. So let me first start with Prime. Prime has obviously flights, hotels, cars, and then packages within it. And the customer can choose on an individual product basis or on a package basis. Now, this is really driven by, let's say, individual country or market dynamics. There are some countries where packages are quite popular, but in many, many countries, packages just simply are not popular. And so when you add up within all of our prime markets, it's not a big percentage, right, of that type of market demand within there. and you say it's more of let's say a certain you know segment of customers on it um we do continue to invest in it um our package product continues to improve and a lot of the fundamental underlying improvements are through the standalone products right so when we improve obviously the flights when we improve the hotels that a lot of those improvements go right into in a sense a package for it And then from experience, from an end-to-end experience, all the things that we do for customers flow very much into whether it be a package or an individual product. At the end of the day, we're trying to manage that unique customer and their entire experience for it. And so it has obviously improved if it's from a package basis as well. Back to you, David.

Okay, the next questions come from Beatriz Rodriguez, who is the analyst at Best in Better. The first one says, could you elaborate on why the ARPU was weaker in the fourth quarter of fiscal 24 and any view on what we should expect in fiscal 25? The first part of this question has already been answered, so I'm not going to repeat myself. The second part, we continue to believe that it will be around 80 euros. But as I explained to the previous related questions, the algorithm is the one who decides in the end. And it may vary a bit during the year. That's why we have always chosen to say that it will be around 80 euros because you could have some small variations around that. But those are variations that intend to generate the best lifetime value of each customer. And in any case, we stand by our commitment of 180 million euros of cash every day. The second question from this analyst says, could you give us any color about the evolution of your gross bookings in fiscal 24? Gross bookings in a year have decreased, but that is entirely driven by non-prime. And actually, if we focus on the prime side of the business, the prime gross bookings have seen a year-on-year increase of 32%. The next set of questions come from Andrew Ross, who is the analyst that covers us from Barclays. The first one says, cash revenue per prime member was negative 4% in the fourth quarter after plus 14% in the Q2 and plus 6% in the Q3. ARPU, which is a live last month basis, went from 79.5 in Q3 to 78.1 in Q4. When I put this together, it looks like the monetization of Prime customers are a bit soft in Q4. Can you talk to the drivers of this? Okay, let me repeat a little bit what I've said in one of the previous questions because it affects this. First, when you look at cash revenue for prime member, that type of thing, you really need to look at it on a 12-month basis, which is what we do, given that it is a yearly program and you can have seasonal variations. In the Q4, actually, there are seasonal variations generated by, first, the timeline that I explained today of the free trial, and also by the Easter period, which I also mentioned earlier today. As to the ARPU, I also said why it is slightly decreasing is decisions taken by the algorithm to give some more discounts to customers, which is trying to get to a higher lifetime value for the individual customer. The next question says, Gross bookings were weak in Q4. Can you break it down between volume and value so we can understand the volume dynamics? No, I cannot break it down between volume and value because breaking it by volume would be going down to bookings. And we've said repeatedly that that's really not a driver of our business. However, what I can... refer you to is what I've already said to the previous analysts that asked questions, that actually when you look at the gross bookings, they're declining entirely because of the non-prime side of the business. And on the prime side of the business, gross bookings are actually increasing 32% year-on-year. The next question says, thanks for giving some KPIs on churn in Prime. Can you talk about the CAC versus LTV and how that has evolved to understanding current value for Prime? We don't communicate the exact LTV to CAC, but we are in a position to reaffirm, like we've said in the past, that we move in a range between two to three times LTV to CAC. The next question says, why is the tender not being done at more of a premium to a share price? What will you do if shareholders don't tender? Well, we have the cash at hand. We've decided to accelerate. We've done it at a price which is similar to the last causing price. with a small premium. It is a practice that has happened a number of times by other issuers when we've done operations similar to this one. We think it's an attractive price. For the shareholders of EDU that we do this, we think the company is undervalued. And I think as to what would we do if there was under-subscription on the tender, I think it's something to decide at the end of the tender, not really now. The next question, the next and last question from this analyst says, can you give some perspectives on the commentary from the Rhino team and the recent results? Remind us on why you see it as being sustainable to scrape Rhino content. Do you agree with their assessments? I think, okay, so on the first question, I really cannot comment on other companies' resource presentations. We don't usually do it, and I don't think we should break that norm now. What I can definitely talk about is around results and what we're focused on, which is delivering all-around growth, and we have published great increases in profitability, revenue, and in prime subscribers. In regards to screen scraping, which is like the second half of your question, this matter has already received final judgments from high courts in Europe in more than one country. So it cannot be relitigated. According to these rulings, our travel brands are fully within their rights to include all flights and all related public data as part of our offering. I have next set of questions. from Pratyush Rastogi of Faro Wealth. This one comes with a name attached to it. Dana, what do you think are the key drivers in increased NPS score for non-prime? So I guess you answer. Absolutely.

Thank you, David. So let me make a couple of points. The first one is about the non-prime is actually that our NPS for non-prime is lower than our NPS for prime, obviously, right? So if you do it purely on a percentage point, yes, you get a higher percentage point improvement for the non-prime than the prime. But if you do it on a, sorry, on percent, right? you get a higher improvement for the non-prime than prime. But if you do it on a percentage point improvement, the prime actually has improved more than the non-prime during the same period of time. The second is this thing coming back to the question about why is it improved? And let me make several comments on that. First, there's no golden bullet. There's no silver bullet. So I can't just say one, two, or even three things. It's really about doing many, many things well. Now, obviously, we continue to improve the way in which we service our customers, the end-to-end experience, the level of personalization, the AI that we use that helps us provide a really unique and individualized experience to them. That plays very nicely to our competitive advantage on Prime, but obviously we employ a lot of these technological developments to non-Prime customers as well. And so that's what you see also in terms of the non-Prime satisfaction levels going up also.

um this will be the last question of today's call we've run out of time in fact we have gone over um any pending questions will be addressed directly one-on-one after this call before we conclude um thank you everyone for joining us uh in webcast i'd like to inform you that on wednesday the 3rd of september we will be hosting our webcast resource presentation for the first quarter of fiscal year 2025. And in the meantime, we will be happy to receive your questions via our investor relations team or in the investor email address, which is investors at eDreamsOnIGO.com. Have an excellent rest of the day. Thank you. Take care. Bye.