eDreams ODIGEO S.A.

Good morning everyone and thank you all for joining us today for our fiscal year 2025 resource presentation for the 12 months ending 31st of March 2025. I'm David de la Roth, the Director of Investor Relations at the Dream Studio. As always, you can find the resource materials including the presentation and our integrated annual report on the Investor Relations section of our website. I will now pass you over to Dana Dunn, our CEO, who will take you through the first part of the presentation.

Thank you, Debbie. Good morning, everyone. And thank you for joining us. Fiscal year 2025 has been a truly remarkable year for EDU. This past financial year marked the culmination of our ambitious 3.5 year strategic roadmap that we launched in November of 2021. I'm incredibly proud to report today that we have successfully achieved our long-term targets. If you recall, we set our targets to achieve 7.25 million prime members and 180 million euros of cash EBITDA when we had only 1.9 million members and only 2.9 million cash EBITDA. Despite a number of significant global headwinds, including Omicron variant, invasion of Ukraine, conflict in the Middle East, broader geopolitical instability, double-digit inflation, high consumer interest rates, and significant increases energy prices during this period, nevertheless, we still achieved those targets. Importantly, this was our first strategic roadmap guided entirely by our subscription-first vision. Therefore, successfully meeting these long-term targets represents more than just continued execution. It serves as another powerful, undeniable validation of our unique prime model. We now have over eight years of experience with Prime subscription. And what we have clearly demonstrated is that this model is a proven enabler for sustainable long-term value creation and sets us apart from other travel players. It's clear that the model is a proven success and has a long-term growth potential. Today, we'll take you through the key points of our strong performance. This will include, firstly, EDU results highlights, second, EDU results and key achievements, third, review of our strong FY25 results in which the prime model continues to drive very strong growth, fourth, EDU's strong foundation for future success, and fifth, concluding today's presentation with EDU's investment highlights. With that, please turn to slide four, which is a summary of our performance for the first nine months of the fiscal year 2025. In FY25, our three key metrics have grown significantly. Our prime members grew by 25%, Kashibate grew by 49%, and free cash flow grew by 122%. In fact, we've beaten our 3.5 years ago self-imposed targets. And we have beaten our FY25 free cash flow target even more, exceeding it by 11% due to the strength of our prime model and the increasing maturity of prime members. Some of the key highlights for today's presentation are, firstly, let's look at the key achievements in FY25. Well, EdoMeets, it's 180 million cash cheap at the target. In fact, we delivered 180.4 million. Meets its prime numbers target was 7.25 million. We achieved 7.26 million numbers. and exceeded our FY25 free cash flow target of over $90 million. We exceeded it by 11%. As guided in the first quarter FY25, we saw better year-on-year comparatives in the second half of the fiscal year as we continued to increase our member base and the maturity of our prime members further increased. As a result of the strong free cash flow, the company generated, Edo already repurchased in FY25 80 million euros of its treasury shares. This is due to our belief that our shares are undervalued, and given we are cash generative, we expect to continue to buy more shares, taking advantage of how undervalued we think our shares are. In addition, EDU plans to reduce the capital stock by redeeming 3.5 million shares acquired not needed to fulfill the company's obligations under the existing incentive plan, of course, subject to the approval of the general shareholders meeting. The second highlight. In FY25, the strength of the prime model, growth, significant growth, and has guided additional improvements in profitability. Prime members grew 25% year-on-year, reaching 7.3 million members, with net ads at 1.4 million, which more than met our three-and-a-half-year-old self-imposed FY25 target of 7.25 million members. Also, cash margin profit for FY25 was 282 million euros. That's a 30% increase year on year. And the margin had a seven percentage point improvement reaching 39%. And in the fourth quarter of FY25, it reached 44%. And that's ahead of the guidance of 42 to 43% for the second half of fiscal year 2025. Cash EBITDA for FY25 was 180.4 million euros. That's a 49% increase year-on-year, exceeding our target with year-on-year, and cash EBITDA margins improving seven percentage points versus FY24. Most importantly, free cash flow excluding non-prime working capital more than doubled to 100 million in FY25, versus 45 million in FY24. That's a 55 million Euro improvement year on year, a remarkable increase of 123%, and that's 11% ahead of our guidance. Third highlight, the prime model continues to deliver strong growth. The growth in prime more than offset the anticipated decline in the non-prime side of the business and resulted in significant improvements in overall EDU profitability. Prime cash revenue margin for FY25 grew by 24%, following the strong growth in members and as guided, partially offset by a lower ARPU. Prime Cash Marginal Profit for FY25 grew 49%, with the margin improving by 8 percentage points year-in-year. And Prime Cash EBITDA, with strong top-line growth, grew 62%, reflecting a margin improvement of 8 percentage points. The fourth highlight is our outlook. Looking into the future, For FY26, we announced that our capital markets state three new targets. The first one, prime members, which is over 1 million new members. Second, cash even in the range of 215 to 220 million euros. And three, generation of free cash flow, excluding non-prime working capital, to over 120 million euros. Similar to the guidance given for the first quarter of FY25, we expect a softer first quarter of FY26. Prime member net ads are expected to be in the range of 190 to 210,000 and cash EBITDA in the range of about 38 to 40 million euros. And growing year-on-year comparatives in the second half of the fiscal year as the member base increases and the maturity of our prime members increases. Longer term, we have said, that Prime members will grow in excess of 10% in FY27 and FY28, which shows once again EDU has strong fundamental growth potential beyond FY25, being significantly under-penetrated in our main markets. Furthermore, the Board of Directors has approved a new share repurchase program of €20 million, This is due to the success of our prior share repurchase, which has resulted in daily trading activity and liquidity for the company shares increasing by 302% from 0.7 million euros on the 12th of November 2024 to 2.6 million euros per day on the 25th of April in 2025. That reaches an average of 2.4 million euros in 2025 on the European Composite Index. This action is supported by strong financial performance and robust free cash flow generation. The Board believes this proactive measure underscores its commitment to supporting shareholder value and reflects confidence in the company's growth prospects as the world's first and largest travel subscription company. In sum, Prime's proven model continues to drive very strong revenue and profit growth and has delivered a significant uplift in profit margins. We believe we have the right model, the right people, the right structure to seize and deliver on the exciting shareholder value-creating opportunities ahead of us. Please turn now to slide six. Let me briefly go through some of the key achievements we've had in F525. As I said, despite unforeseen macro events, Edo achieved its ambitious objectives. Three years ago, Edo established internal ambitious targets. The 7.25 million prime members, the 180 million euros of cash EBITDA. During this period, Prime membership has achieved impressive and rapid growth, quadrupling from 2 million members to 7.26 million members with ongoing momentum. Moreover, IDO delivered sustained quarter and quarter growth in cash from 2.9 million in the second quarter of FY22, that's on the last 12 months basis, to 180.4 million euros in FY25. We're also so proud to have achieved our overall goals, demonstrating the effectiveness of our model, the attractiveness of our customer proposition, and our ability to execute effectively our strategy and plans. you could all turn to slide seven of the presentation since the capital markets day back in november of 2021 when either set its targets a number of unexpected events impacted the industry in setting our targets the industry has faced unexpected macroeconomic headwinds while 2021 saw some easing of COVID restrictions and the beginning of economic recovery, the emergence of Omicron significantly hampered this progress. During 2022 and 2023, geopolitical instability, double-digit inflation, high consumer interest rates, and significant increases in energy prices, among other factors, further jeopardized economic and market recovery. Please turn to slide eight. In fact, EDU has outperformed the sector over the past three years. Since 2021, EDU's cash EBITDA tagger of 47% has significantly outpaced the industry. This exceptional growth positions EDU as a top performer relative to its competitors. Please turn to slide nine. and EDREAM maintained targets while other travel companies lowered their guidance several times and issued profit warnings. In stark contrast, EDREAM Studio has steadfastly maintained and met its ambitious targets throughout the entire period. Now, let me pass it over to Davide Lethaga, who will take you through some of our KPIs of the PRIME model and the strong growth and significant profit improvements in FY25 results. and Edo's strong foundation for future success.

Thank you, Dana. If you could all please turn to slide 10 of the presentation, I will take you through the prime model. Edo profitability rose significantly due to strong growth in numbers of prime members in the year two of subsequent years and growth in the prime cash margin or profit margin. Cash EBITDA also increased significantly. In fiscal 25, our prime cash margin or profit margin increased to 48% from 40% in fiscal 24. That's an 8 percentage points improvement. Group cash EBITDA also improved substantially. In fiscal 25, cash EBITDA margin reached 25% versus 18% in the third quarter of fiscal 24. That's an improvement of 7 percentage points. If you please turn to slide 12, let me remind you that when looking at prime versus not 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 the non-prime part is quite influenced by seasonality patterns. Our KPIs reported today show strong growth and significant marginal profit uplift. Gas marginal profit was up 30% over the last 12 months, and that reflects more year 2 plus numbers of prime. Also, Prime's strong growth more than offset the anticipated and planned decline in the non-Prime business as we focus on Prime. We continue to be careful and selective on marketing spend, focusing more on Prime products versus developing products and services for the non-Prime side of the business. On this basis, in the fourth quarter, we have been selective on marketing investments and concentrated our efforts on the higher margin prime side of the business, which represents today around 90% of our profits, leading to a planned greater reduction compared to previous quarters on the non-prime side of the business. The fourth quarter of fiscal 25 is down in that respect 32% compared to the same quarter of the previous year, and it's a 22% reduction over the full fiscal year, 12 months. This evolution in the non-prime side of the business contributed to a consolidated 6% increase in revenue margin and cash revenue margin in fiscal 25. As a result, Edo is fundamentally a subscription business focused on travel. Over the last 12 months, Prime delivered 71% share of group cash revenue margin, while it was 61% just a year ago. Over the last 12 months, Prime delivered 87% share of group cash marginal profit versus 76% a year ago. There is no doubt now that we are a subscription-based business in which almost 90% of our group cash marginal profit is subscription-based. And subscription is the driver of our results and our future. As a result, we should achieve evaluation of such since we have inherent characteristics of subscription, a much more stable and predictable revenue stream. Also, we now have a much larger proportion of our prime members who have renewed their subscription for a second year and third, fourth, et cetera. So the level of profitability for prime improves. If you could all please turn to slide 13 of the presentation, I'm gonna take you through the financial results in more detail. In fiscal 25, we delivered strong growth in cash EBITDA and substantial improvement in margin as the maturity of the prime numbers increases. Fiscal 25 revenue margin was 6% higher than fiscal 24 and up 8% in the quarter. Cash marginal profit and cash EBITDA improved by 30% and 49% respectively. And if we look at the evolution quarter on quarter, cash marginal profit improved by 37% and cash EBITDA by 73%. Over the past year, our subscribers have grown by 25% to 7.26 million, and our ARPU was reduced by 2.2 euros. It's now standing at just under 76, at 75.9. As guided in the first quarter of past fiscal year, we have given more discounts to our Prime members as our algorithms indicate that that is better for lifetime value. As a result of the above, we do expect in fiscal 26 that the ARPU will be in a range between 70 and 75. Cash margin or profit margin increased to 39% for fiscal 25 versus 32% in fiscal 24. That's a seven percentage points improvement. And that is an overachievement of the guidance of 42 or 43% that we gave for the second half of fiscal 25. Cash EBITDA margin in fiscal 25 also achieved very substantial improvement, and it stood at 25% versus 18% in the previous fiscal year. Cash EBITDA, 180.4 million. That's up almost 50%, 49% year-on-year. Please turn to slide 14 of the presentation. Revenue margin, excluding adjusted revenue items, improved 4% compared to the previous year and 8% in the quarter. The strong growth of primary margin, which for fiscal 25 grew by 23%, was partially offset as guided by lower output. And this strong growth in the primary margin was partly offset by that non-prime revenue margin, which has been decreased by 22% versus fiscal 24. following the switching of customers that used to be non-prime to become non-prime, and more generally due to the focus that we have on the prime side of the business. Now, if we go down the income statement and the variable cost line, those decreased by 5% in fiscal 25, despite the higher revenues, driven as the maturity of the prime members. The fixed cost increased by 500 euros, driven by higher personal costs, and to a lesser extent, higher IT costs. And as a result, adjusted dividend for fiscal 25 was 133.7. That is an increase from 87.8 million in fiscal 24. And adjusted net income stood at 51.2 million in fiscal 25. Turning now to slide 10, I'm going to take you through the cash flow statement. We closed fiscal 25 with a positive net cash from operating activities of 146.4 million. Net cash for operating activities increased by 7.5 million, mainly reflecting a working capital inflow of 15.4 million compared to an inflow of 49 million euros in the previous year, mainly driven by a decrease in the average basket value of the bookings, as well as a change in the IATA payment scheme in two of the countries in which we operate, and the aforementioned decrease in the non-prime side of the business. We have continued to invest in our business with 55.6 million euros of capex in fiscal 25, an increase of 6.8 million euros as we capitalize our software. Cash used in financing amounted to 105.6 million compared to 31 million euros from financing activities in fiscal 24. The variation is mainly related to the acquisition of treasury shares for 79.9 million euros during the fiscal 25. 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, 2025, the liquidity position was strong at 222 million euros. If you could please turn to slide 17, let me briefly go through some of the key highlights from our capital markets day of four months ago and the strong foundations that we have for success at EDU. The first one is that we have successfully achieved the transformation of our business model. Today, eDreams is a subscription led company. Since fiscal 22, we have witnessed a significant expansion of our prime member base. And consequently, due to the program's strong profitability upon the renewals of those subscriptions, the cash management profit has substantially increased. These figures underscore the company's transition to a subscription-driven business model, a trend that will further enhance revenue and profitability. Please turn now to slide 17, sorry, 18. In that one, you can see that since fiscal 22, when we announced the shift to a subscription-based model, we have increased penetration while at the same time maintaining a stable LTV2CAC. This is a very important thing. We grow the base, but we keep the discipline on the returns that we require from our growth. In the next page, you have the third element to flag, which is that we have a growing cash EBITDA, but we have an even higher growth of free cash flow. As EBITDA continues to grow, we are expected to have the free cash flow growing more and outperforming cash EBITDA in 2026 and onwards. Please turn now to slide 20. Then you have the fourth element to flag. Our plans is to keep the current NPV2 cap ratio within the same range. So again, keeping the discipline on how we invest in marketing. And as a result, we will continue to expand the base according to this discipline. We are targeting 1 million new prime members in fiscal 26. After that, the company expects to sustain stronger near growth of over 10% in prime partnership. Today's ongoing expansion will be driven by a number of factors, including to expanding the current markets to further broaden the product range and launching a fully functional prime program in more markets than the 10 in which it is today operational. If you turn to the following page, we will continue to invest to further grow beyond fiscal 25. To maximize the opportunities we have to expand our business, we will invest in increasing our software development capabilities. The company is a strong employer brand, positions us well to attract top talent. We expect to add with this additional talent, the extra million members and reach 215, 220 million of cash in fiscal 26. And with this new additional software development capacity, we will also fuel the increase in the prime member base by over 10% for years fiscal 27 and fiscal 28. If you please turn to slide 22, that will show that we are a cash-generated business and we have begun to use the available resources to remunerate shareholders. If you turn to slide 23, You can see how the strong cash flow generation, as well as the increase in the EBITDA, the profitability, is enabling us to do a very significant deleveraging and opens the opportunity for bond refinancing. The optimal window for that refinancing would be normally between two years to maturity and one year to maturity. That's between virtually now and next summer. And please turn to slide 24, in which I'm going to do some closing remarks on my side. As guided, we are expecting free cash flow for fiscal 26 in excess of 120 million euros, a CAGR of 63% between fiscal 24 and fiscal 26. Whilst generating a strong free cash flow, the free cash flow yield is significantly higher than our peers. We achieve free cash flow yields of between 11% and 13%, compared to a range of 4% to 8% for different sets of comparable companies in sectors like hotels, airlines, global OTAs, or other B2C subscriptions. We believe this undervaluation presents a compelling investment opportunity when combined together with our strong fundamentals and our growth prospects. And with that, I'm going to turn now the presentation back to Dana to do some closing remarks. Thank you, David.

I'd like to leave you with six thoughts to further support why we believe that the company's strong fundamentals and growth prospects warrant a significantly higher valuation. If you could please turn to slide 26 of the presentation. First, prime is higher as high customer advocacy. EDU through Prime has bested industry customer satisfaction, which has continued to improve over the years and reached the highest rate in the industry. Please turn to slide 27. Second, because we continue to deliver excellent financial results, as shown in FY25, please turn to slide 28. Third, We operate in a vast and growing market where Prime is uniquely positioned. Valued at 1.5 trillion euros, this presents a significant opportunity with notable growth in both the leisure and online sectors. As one of the world's leading e-commerce segments, travel provides an extensive and expanding addressable market. In addition, subscription is dramatically growing in terms of its usage throughout all industries across customers segments edu is strategically placed to capitalize on these trends targeting the dynamic online and leisure segments and subscription within this market edu offers a unique proposition And Prime has only just begun its journey. Today, the company has an average penetration of 3.7% of households in the seven European markets in which it has launched Prime. If EDU reaches 10% of household penetration in the markets in which it is present and extends to the 10 new markets it is currently testing, EDU could reach 41 million Prime members. If you could please turn to slide 29. Fourth, we have a team that delivers. The company has successfully transitioned to a subscription-based business model and importantly achieved the financial objectives it originally set, primarily due to the high quality talent and the culture we have built in the business. Please turn to slide 30. Fifth, we have a great value appreciation opportunity. And if you could please turn to slide 31. Six, our strong cashflow generation can fund future growth and returns to shareholders. Edo has huge potential and is delivering superior returns for shareholders and customers while transforming and revolutionizing the industry. Furthermore, we are confident in the growth and profitability outlined in our FY26 and longer term guidance. We also believe the company's worth continues to be unrecognized and undervalued. As a result of this, and due to our strong liquidity and balance sheet, we will continue to look at buying back our stock as we continue to generate free cash flow. I'd like to take a moment just to add one last thing before I conclude my remarks. I want to congratulate all eDoers on the absolutely outstanding work they have done, not only over the past year, but over the past 3.5 years in creating a really unique and dynamic business that has a very bright future. With that, let me pass it over to you, David.

Thank you, Dana. We're going to now start to read questions and provide answers. We're going to answer the questions sent to us in writing in the webcast. I'm going to take questions from the first come first serve basis, but I'll also try to group questions of similar nature. Should we not have time to respond to questions from everyone, then the investor relations team will make sure that those are answered afterwards. So let me go with the questions that I'm getting. The first one comes from Gabriel from . And it says, within the guidance for the first quarter of fiscal 26, I understand includes the softening in the fourth quarter of 25 due to higher fixed costs and the non-prime side of the business. And this is offset by prime marginal profit continuing to grow. Could you elaborate on the main drivers behind the fiscal quarter fiscal 26 guidance? Thank you, Ariel. Let me take this one. The most important thing to understand about the first quarter is that it has a peculiar seasonality every year. First of all, it is a seasonal low. The Q1, when you compare it to the rest and the average of the year, the same way that the fourth quarter, the fall period from January to March, is a seasonal high. last year we also had a seasonal low in the in the q1 and this year is happening again what is additional versus last year and unique is that easter has fallen in a different time period than previously easter is a is a holiday period of two weeks that depending on the year sometimes falls in march sometimes falls in april in fiscal 26 is born in april in our previous year it fell in march And when people is on vacation, they're not booking additional holidays. They're just on vacation. So because we provide the services to our customers at the time of booking and not at the time of the holiday, it is a seasonal low for us. And those two weeks fell in April this year. Those two are the most important reasons for the Q1 to be relatively soft when you look at it in the context of what we expect for the aggregate of the year, even more so than it happened in the previous year that it also happened. The next set of questions come from Nisla Neisser from Deutsche Bank. The first one says, in the current environment, are you seeing a change in travel trends when you observe the behavior of your prime members? For example, more short-haul travel, more inquiries to find deals and offers, more demand for hotel deals. You may want to take this, Dana.

Sure. Yeah, I think you're right. So I think on the whole, you see a constant demand for travel. It does vary by region, absolutely. And I think what you do see, the second point would be around a lower basket value, so preference towards more short haul, less people traveling, let's say in a trip or in a booking, less days in destination on average for that. And I think what you have is an environment where people are looking increasingly for deals over it.

Okay. There's a follow-up question. It says, on the back of this, are you seeing a change in churn in the current environment? Do you want me to take that? I can do it. I can do it because it's very easy. We do not see a change in churn in the current environment. And the third one says, will there be a focus on driving prime in some markets over others in fiscal 36?

I'll do it. As we've said, we have tests going on. It's too early to say, because remember, we're not a transaction-based business. We are a subscription-based business. And so, therefore, it's very important to see about renewal rates and a number of other much more fundamental long-term trends in the market. Plus, it also takes time to actually gather significant amounts of customer feedback information, etc., So, the choice and selection of which markets we would actually end up focusing on, it's too early to tell. But we also do have our 10 existing markets that we do focus on as well for FY26.

Okay, the next set of questions we have from Carlos Reina from Paranco Santander. The first one says, could you give us some details on the recent business performance in April and May? Well, I would say that the main difference between April and May is that April had Easter and May didn't. So when I look at the numbers, the numbers in May look meaningfully better than the numbers in April, but it is a very unfair comparison because they're not really comparable one to another. but we're of course taking into account the performance that we're seeing into April and May, plus our expectations of the business for the remaining month, and that is all built on our guidance for the first quarter. The second question from Carlos is fixed costs were 23.5 million in the fourth quarter, which were below previous quarters. 28 in the third quarter, 26 in the second quarter. Could you explain the reasons behind that reduction? Yes. There's an element of the fixed costs which gets, let's say, reviewed and balanced at the end of the year that has to do with how much of our R&D expenditure it becomes capitalized, which goes in the auditing process. They review every piece of software that we have developed, check the amount of hours booked against that, and you refine what was until that moment a provision for capitalization becomes the real amount of accrued for capitalization. That's the main reason for the difference. we continue to have the same people actually we have a growing amount of people which is the main driver so the variation really comes from how much of that is booked as capex versus how much of that is booked as opex the third question from carlos devino says after an improvement in the third quarter with the non-prime booking dropping by five and a half percent we have seen a new significant deterioration in the fourth quarter And could you give us the drivers behind this acceleration in the drop? Well, I think it needs to be put into the context of the direction of the business general, right? And the direction of the business is one in which prime is bigger and bigger. And there is a planned, you know, if you take it in the long term, there's a planned decrease of the non-prime side of the business, which will never be zero. but it is declining on an ongoing basis. Now, if you take individual quarters and individual quarters, you're going to find volatility in the non-prime because for us is a very opportunistic side of our business. And normally, like it has happened this time, if you see that the bookings are softer, it's usually accompanied by a higher profitability for booking because we are, let's say, choosy about where we invest our marketing money. The next set of questions come from Andrew Ross from Barclays Bank. The first one says, can you please describe the year-on-year change in booking value in the fourth quarter, and can you help us with what happened with the number of bookings year-on-year in the fourth quarter at group level for prime members? Did it accelerate as you lapped through the Ryanair headwind? i think a portion of this has been has been answered which is about the last question that uh asked everything that relates to the non-prime side of the business be it the bookings or the profitability of those bookings as for the prime members you you do have a good positive number on the on the number of bookings it is not a number that you know we disclose because it is not a driver of the profitability the number of bookings so as you know we don't disclose that number anymore but i can confirm to you that it is a growing number the second question i'm not going to repeat because it is about q1 guidance and i've talked about that already the third one is prime bookings prime subscription uh prime bookings per prime sub is that number starting to grow It's not a number that we disclose. We are satisfied with the number of bookings that we get from our Prime members. We're very satisfied with the level of Net Promoter Score that we get from those same customers. We're very satisfied with the increase in the number of those bookings that come from hotels as opposed to flights, which is also something that we gave a specific disclosure at the Investor Day. So all of those measures point in the right direction. The next and last question from Andrew Ross is, any change to acquisition costs since Google started making changes to AI generated queries in search results? No, there isn't any change in that. It is something that will evolve in the future, certainly, but it is also, you can consider it if you will, kind of like either a new channel or a variation of existing channel, but it's also a channel through which we get leads because the AI results also point to our platform. And we have a platform that, as you know, very much driven by ai and therefore they will it's a platform that is able to interface not only with live customers but it is also able to interface with ai agents the next set of questions come from uh guillermo sampaio from kasha bank The first one says, could you give more details regarding the implications of the change in IATA payment scheme for non-prime working capital evolution? Look, the non-prime working capital evolution, which this year has been negative as opposed to the previous two years in which it was positive, is that It has had a number of factors. As I said in my prepared remarks, the change in the IATA schedule was one of them, but there were two other ones. One is the overall decline in the non-prime side of the business, and the other one is the decline in the basket value. All three contribute. This time, we had also a change in the IATA schedules. For those of you who are less aware of what this refers to, when we sell to our customers and collect from them the cash for airline tickets of an airline that belongs to Ayata. This would be the, you know, the normal regular airlines that used to be flag airlines before. So call it the British Airways, Liberia, Lufthansa and the sort. um we make payments to the airlines on calendars that are specified by iata on a country-by-country basis for all travel agents in in that country there's been a change that has affected spain and germany two of those um not any of the other ones but it is of course sorry it's not for spain and germany is France and Germany, which are two material countries for us. But it's one of several factors that has affected that decline in the non-prime working capital. The second question is asking about the quarter-on-quarter last 12 months ARPU improvement, and how should we think about fiscal 26 facing? Look, the reality is that we don't have a target for ARPU. ARPU is something that we find out at the end of any because what the platform is programmed to optimize is lifetime value of the customers and not the level of ARPU that we get from those customers. So the thing that would affect the most the ARPU in that respect on a day-to-day trading is the exact level of discounts that we give to customers. And the discounts are driven by the increased probability of that customer renewing, which is what has the most weight in the lifetime value calculation. So we have provided a range of 70 to 75. And the machine is going to optimize to get to the better LTV. And depending if that includes more discounts or less discounts, you would be more close to 70 or more close to 75. But we're not really able to anticipate what is going to be there. The third one is about the impact from the Easter timing, but I have already covered this with detail for previous questions today. The next set of questions come from Barath Nagaraj from Cantor Fitzgerald. The first one says, transactional revenue for Prime decreased slightly year on year. Is there anything worth talking about here? Look, this is mostly related with ARPU investment. So I took the level of discounts that we give on a booking by booking basis. So that's what's the driver. It is, let's say, part of the structural decrease that you see over 2.2 euros when you take it in the aggregate of the year. The second question says, in terms of traction in selling hotel offers to your Prime customers, how is it going and could you quantify?

Yeah, absolutely. So it's going very well. I think the first point is about it clearly shows that Prime is a really good vehicle as a travel subscription. not an individual product subscription, i.e. it's not just a flight or it's not just a hotel, but it's a travel offering in that. The second is that we've had material, since we've started to really invest much more in hotel proposition, our conversion has gone up very materially, and also just the number of of customers using the product has gone up significantly. We have a very good and very high level of NPS by our customers in it. And overall, it is a good way of improving the retention of customers as well.

Okay. The next... question from uh barath is what is unique about france that you see a much higher penetration rate in the country i mean apart from the fact that you have been in the market for longer than most other markets absolutely so so it started back in october 20

when we launched first in France. And France is not only a large market within Europe in population size, right? But because of its tenure with us being the first market that we launched, it is clearly our largest market in terms of just overall actual absolute number of members.

And the next set of questions come from Patrick Rastogi of Faro Wealth. The first one says, what can Prime subscribers look forward to with AXA partnership?

Yes, so we recently announced a partnership with AXA, and it's really about insurance, so it's strengthening our insurance offerings and some of the flexibility that we also provide to consumers. And this is really just part of our overall strategy to continue to improve our value proposition with our customers, and it's a very welcome addition.

The second question says, in your opinion, how has the PayPal partnership progressed? Is there any difference in behavior of a prime subscriber coming through PayPal versus organically?

Yeah, so this was, you know, we look at new channels and new ways and new partnerships to see if and how we can create additional avenues of getting to customers, communicating with customers, and whether or not, you know, just trying to understand those economics of any one channel versus another channel. This is our first partnership along this type of channel from it. And we're in the process of evaluating the results of that. But we're very much welcome to being a partner with a company like PayPal. And I think it shows also the attractiveness of Prime for partners as well.

the third question from the same investor is during the capital markets day you mentioned that edu was trialing prime in a number of countries how have those trials gone and are there any countries of focus for fiscal 26 beyond the top six

Yeah, I think I, I think I addressed this somewhat with Nicela's questions as well. So I'm probably just repeating myself, but saying that trials take a long period of time, because we're a subscription, not a transaction based business or offering to them. And so it still is really at the early stages for us to be able to evaluate this.

The next question comes from Isabel Palomero of BNP. Could you please elaborate on the renewal rate of the prime subscription members and the average subscription period? What I can say about this, staying within the official disclosure of the company is that our prime member renewal rate is strong. It's actually improving. And we have specifically provided data at the Capital Markets Day that the journey is reducing for both members in their first year and members in the second and subsequent years. And the more that customers stay with us, the more noticeable is the decline in the journey. of course as the program continues to have more years inside the average lifespan of a prime member is expanding because the percentage of your members who are first-year members it reduces logically no and we do not disclose more information than that that is very sensitive and competitive but that's indications that i can point you towards The next set of questions come from Chad Garcia from Alvaria Mutual Funds. The first one says, revenue was weaker in Northern Europe as opposed to France and Southern Europe. Is there something structurally different between those regions that make it harder to grow revenue in the North as opposed to the South? Look, the slight decrease that we've had in revenue in Northern Europe has been driven by non-prime. There's a particularity of that grouping of countries that includes the Nordics in that, and we don't offer the prime subscription program in the Nordics. Other than that, there's really no major structural differences between the offerings in the different markets. but some of them weigh more, have a higher weight of year two members that also transact more, so that can swing the revenue in one direction or another. But there's nothing really structural about it other than in the grouping of Northern Europe, you don't have Prime everywhere, and it is a non-Prime that is decreasing. The second question says, can you comment a bit on Prime Plus? What are some of the differences between Prime and Prime Plus? Are you seeing initial differences between the two programs regarding behaviors of the methods? Absolutely.

So let me take that, David. So let me first just mention just what are some of the differences and then what are we seeing in terms of the behaviors between the two groups of customers. In terms of the different product differences, there's a number of ones. Let me just highlight the two biggest ones, which would be the first one is around friends and families. What that means is that we actually allow an individual subscriber to actually share those Prime discounts with up to four friends and family members, meaning that the subscriber would not necessarily need to travel with those four nominated friends and family members. And so this really expands the value proposition to families in particular, but also to friends. The second one is around offering something that is really unique and very much valued by, again, our target segment customers. Leisure customers is around cancel for any reason. And we allow a customer to actually cancel two flight bookings that they've made in the app after the free trial period. Now, most of us on the call think about it in terms of business. Well, yes, you know, we can cancel our tickets, but in terms of a leisure customer, And particularly in Europe, that is more costly and sometimes not even possible, depending upon how they've actually booked. And so this really is a very valued and unique feature on this. Let me move to the main differences that we see between a customer that would take, let's say, called Prime versus Prime Plus. We see a higher level of NPS, the net promoter score for the Prime Plus. We see a higher level of engagement on that for it, a higher level of usage in it for that, and a higher level of LTV for us as well.

Well, with that, I'm going to thank everyone for joining us in the webcast, and we will be hosting our conference call for the first quarter of fiscal 26. We're still firming up the date, but it will be either in the last week of August or the first week of September, and we will choose to try to get the the most attendance on the call. And sometimes the last week of August is not necessarily the optimal for everyone, given the usual holiday periods in Europe. In the meantime, we will be happy to receive the questions that you can have after that via our investor relations team or at the investor email address, which is investors at edreamsodigio.com. Thank you very much. Have a nice rest of Thursday and rest of the week. Thank you.