eDreams ODIGEO S.A.

Good afternoon, everyone, and thank you for joining us today. Sorry for the minor delay. We have a technical issue to review our financial and operational results for the first quarter of fiscal year 2027, covering the three-month period ending June 30th, 2026. I'm David de la Roz, Director of Investor Relations. Before we begin, I would like to remind you that all supporting materials, including today's presentation and our results report, are fully available on the Investor Relations section of our website. And now I pass you to our CEO, Dana Dunne, who will take you through the first part of today's presentation.

Thank you, David. Good afternoon, everyone, and thank you for joining us today. We have a compelling agenda today, and it's structured around the following key areas. First, I'm going to provide a high-level overview of our first quarter of FY27 performance. where we continue to deliver to plan and ahead of market expectations. Second, our CFO, Christoph Dieterle, will take you through a detailed view of our financial results for the quarter. Third, I will return to walk you through the mechanics of our long-term strategic roadmap, what we're building, why the returns are highly predictable, and how this quarter fits precisely into a trajectory we set out for you last November. I'll then close on our capital returns and on the structurally stronger business this plan is delivering before we open the floor to your questions. With that, please turn to slide four. I'm now going to take you through the core pillars of today's announcement. This quarter confirms our strategic roadmap is on track. We are delivering on plan with continued prime momentum and profitability ahead of sell-side consensus. That's the key takeaway. But let me now be precise about why it matters. Q1, much like Q4, is one of our most important quarters seasonally because it's when customers search for and book their Easter and summer holidays. It is therefore a highly efficient window in which to acquire members who will generate future profits. We invest into this window by design. Delivering to plan during one of the largest investment quarters of a guided investment year is the clearest signal we can give you. The plan is working and it is working on schedule. Looking at our core metric as a subscription business, i.e. prime numbers, we are exactly where we expected to be at this point in the year. Our subscriber base reached 8.1 million. That's an 8% increase year on year. That means 173 million net ads in the quarter and 611,000 over the last 12 months. This is the base on which everything else in our model rests, and it is worth pausing on how dominant it has become. Our subscriber base now generates 77% of our last 12 months cash revenue margin. That's up from 75% at our full year-end results and 90% of our total cash marginal profit. Plainly speaking, 9 out of every 10 euros of marginal profit EDU generates Now comes from members who have chosen to subscribe to us. Our results confirm once again what we are, a subscription business. That means recurring revenue, it means predictability, and it means a direct relationship with the travel. That is one of our real competitive advantages and is why we can invest through a quarter like this one with complete confidence in what these members will deliver across their lifetime. Our profitability, we delivered cash EBITDA of 23 million euros and adjusted EBITDA of 28.9 million euros. This performance aligns fully with our strategic plan. Q1 represents one of the largest investment windows for the year, where we deliberately deploy capital to capture high-margin member cohorts that compound over time. This target investment in new products and new geographies keeps us firmly on track for our full-year commitments. Christoph will walk you through the details of this. We have continued to deliver a strong cash flow Reflecting the strength of our subscription model. We closed the quarter with cash and cash equivalents of 73 million euros. That's net of bank overdrafts. That's against 51.3 million euros in the first quarter of the previous financial year, FY26. And this is due to having substantially reduced our year-on-year cash outflows. Thank you very much. is unlocking higher customer lifetime value and funding accelerated growth in new geographies and products. We're simultaneously strengthening the business model by broadening our geographic footprint and scaling into high-growth verticals such as rail. We're executing this roadmap with precisely the same discipline that delivered the objectives of our two previous long-term plans. Our track record shows we are a team that delivers, and our results today confirm that we are delivering on our plan once again. And we're doing this while we're returning capital to shareholders, and the philosophy of that is worth noting. Under our current 100 million euro share buyback program, we've executed 38 million to date. That means another 62 million still committed by September 2027. Against our market capitalization of 543 million euros as of June 30th, that pending amount alone targets a further 11% of the company. Between July 2025 and July 2026 alone, we've permanently canceled close to 15 million shares. That's 12.6% of our share capital. And our recent AGM authorized the board to cancel up to 9 million more shares in the next 12 months. Both work in the same direction. We're guiding to an excess of $270 million in cash EBITDA by 2030 across a share base that gets smaller every year we execute. That is compounding on both sides of the per share equation. We're funding the accelerated growth and buying back our own equity at scale at the same time and out of our own cash generation. We are not choosing between the two. Looking at our outlook for FY27, we are on track to reach 8.5 million prime members with 600,000 net ads. And we expect to deliver 167 million euros in adjusted EBITDA, pre-investments, and 115 million euros in cash EBITDA post-investments. Javier Pérez-Tenessa De Block, Christoph Dieterle, Our FY25 base. The year our previous roadmap concluded with 13 million members and generating in excess of 270 million in cash EBITDA. Now that's a 33% compound annual growth rate from FY2017. I'll now hand it over to Christoph to take you through the detailed review of our first quarter FY27 financial results. For those of you who are joining us today for the first time, Christoph has been part of our EDU leadership for over eight years. And he brings a proven executive track record as CFO and CEO across the travel and accommodation industries. Christoph, over to you.

Thank you, Dana, and good afternoon, everyone. These are a really good set of results to start with. We are looking at a quarter that delivers exactly what we said it would. But before I go into the numbers, I want to frame the quarter for a moment because seasonality really matters here. As Dana just said, Q1 and Q4 are our two big seasonal quarters, and with that many travelers planning, it is also a very efficient window to reach new members with our expanded prime proposition. And so we invest accordingly. So with that in mind, please turn with me to slide six to dive right into the numbers. And here, let me first walk you through the cash EBITDA bridge on this page. We moved from 39 million euros in the first quarter of FY26 to 23 million euros, a variation of 16 million euros, and more than 80% of that is investment we choose to make. The largest piece, 13.3 million euros, is acquisition spent behind our new geographies and our new products concentrated into the peak booking window together with a stronger tech workforce funded through efficiency gains across our cost base, including also from AI. And I want to highlight that we invest against the 24-month LTV to CAC of two to three times. In general, we have run at scale for years and tested market by market. So basically, the spend lands now in this quarter. The revenue margin follows over the next 12 to 24 months. The second piece is cash revenue margin, down 2.7 million euros. And inside that, our prime revenues are actually up. In particular, our recurring subscription revenue, offset by our non-prime revenue coming down as we deliberately deprioritize it, and air content access was intermittent year on year. I will take you through the full composition on the next slide. And within this line, you also have a smaller prime deferred revenue unwind of 5.8 million euros against 10.2 million euros last year. So the timing was 4.4 million euros positive year on year. So basically in one sentence, more than 80% of the movement is investment with a measured return, timing work in our favor, and Recurring Prime Revenue Group. And this is in line with the plan we set out in November, and we expect the inflection to positive cash EBITDA growth from the fourth quarter, the January to March quarter onwards. If you could please turn to slide seven, where we set out the P&L with a variation of prime deferred revenue. Prime members reached 8.1 million at the end of first quarter FY27, and that is an 8% increase versus Q1 FY26 with 173,000 net ads in the quarter. And let me remind you again that this is the quarter ending on the 30th of June, Thank you very much. On net additions, our full year guidance of 600,000 is unchanged, but the phasing is worth setting out because it is not even across the year. Our comparison base is at its highest in the first half. So in H1 fiscal year 26, we added 457,000 members, and that was before the limitations on our access to Ryanair content took effect. Our first half of this year, and Q2 in particular, is measured against an unusually high base. From the second half, that comparison normalizes because in the second half of last year, already reflects the intermittent excess that continues today. So from there onwards, we will be comparing like for like. Combine that with accelerating traction from monthly installments, rail, and our new geographies, and that is what underpins a stronger second half, keeping us firmly on track for the full year. Our decision to expand into high-growth verticals like rail and new geographies was a deliberate strategic choice to capture more touchpoints in our prime members' travel lives. So prime revenue margin grew 1% in the quarter and the composition is what really matters here. So let me double click on it. That 1% growth was delivered on the back of a 5% growth in gradual prime revenue margin. And that's basically mainly our recurring subscription revenue recognized evenly across the 12 months of each membership. Recurring subscription revenue compounding at 5% while funding these new expansion initiatives is a clear proof that our diversification strategy is working precisely as planned, driving higher engagement and expanding our addressable market. So overall cash revenue margin was 2% lower year-on-year, and what sits behind that number is a value proposition that continues to hold. Member retention and acquisition offset the intermittent access to Ryanair, with the remainder coming from the non-member business we are deliberately running down. I took you through the timing effect on the bridge earlier, so let me remind you here why we are making that shift at all. We are intentionally moving from a single upfront payment to monthly installments. Lowering that barrier to joining Prime Unlocks higher customer lifetime value, it drives higher customer satisfaction, and it enables higher growth in the new geographies and product verticals that we are opening. But one thing I really want to stress, the subscription itself has not changed. It is still a 12-month contractual commitment. We simply capture that revenue across the full membership cycle rather than up front on day one. The economics are identical, only the timing of when we recognize the revenue moves. Now on the cost lines, I have already covered both on the bridge, so very briefly. Variable costs increased 13% year-on-year to €110.4 million from €97.3 million and that is fully planned and driven by the launch of our new products and geographies. Fixed costs remain tightly controlled up just €0.2 million to €26.3 million as we keep strengthening our tech workforce, hardly offset by operational savings. And that brings us to the cash EBITDA of 23 million euros in line with our plan and ahead of consensus. The bridge behind it is the one I walked you through on the previous slide. So now let's turn to slide eight from the consolidated income statement. Total revenue margin was €165.5 million, down from €172.6 million, and that's a 4% lower year on year. And that is our deliberate shift in mix. To be precise, non-prime revenue reduced 19%, partly offset by the 1% growth in prime I walked you through earlier. and we have been consistent for several years that we are deprioritizing transactional non-member volumes in favor of higher lifetime value subscribers. This is what that strategy looks like in the accounts and it is working exactly as intended. Adjusted EBITDA was 28.9 million euros and the adjusted items we exclude from that metric reduced by 0.7 million euros year on year, reflecting lower long-term incentive expenses and lower adjusted operating expenses. Reported EBITDA was 24.4 million euros against 44.1 million euros last year. And again, due to the same guided investment reason I just described. Now, below the operating line, our financing position improved materially. The financial result improved by 7.3 million euro to a net expense of 5.8 million euro. And there are a few things that drove that. Last year, we had early redemption costs on the 2027 notes, and this year, we don't. We also get better terms on our 2030 notes, and that was partly offset by lower foreign exchange gains this year. And also, those improved terms on the 2030 notes, they don't just help this quarter, they lower our cost of debt on an ongoing basis. Income tax was 4.5 million euros, down by 1 million euro year on year. And so on the bottom line, adjusted net income for the quarter was 4.7 million euro. And we believe it is the measure that better reflects the real ongoing operational performance of the business. Net income was 0.2 million euros against 13.6 million euros in the first quarter of FY26. And again, that's reflecting the same deliberate evolution of revenue and cost choices I just explained earlier. So now let's move to slide 9 to review our cash flow performance. Here, actually, it's another reason a subscription model is a structurally stronger business and it shows up right here. Our members commit for 12 months and they come back to us directly and that gives us a recurring, highly predictable cash phase that a transactional business simply does not have. Net cash from operating activities increased by 1.1 million euros to 25 million euros. And we had a working capital inflow of 2.5 million euros against an outflow of 15.3 million euros in the same period last year. And that's a swing of nearly 18 million euros. And that's mostly driven by our increased hotel bookings and the year-on-year movement in prime deferred revenue. The hotel contribution is worth pausing on. It shows our expansion beyond flight is already converting into meaningful cash today and not just in future projections. Income tax paid fell 7.2 million euros from 11.6 million euros to 4.3 million euros. and we invested 18 million euros in CAPEX, mostly software capitalization, to support our platform's growth and scaling and we are funding this growth entirely from our own cash generation. Net financial debt is down 14.6 million euros and we closed the quarter with a higher cash balance than a year ago. Cash used in financing was 16.1 million euros, a substantial improvement on the 33 million euros used in the first quarter of FY26. And that variation of roughly 17 million euros comes mostly from the absence of the heavy refinancing costs we absorbed last year, plus ongoing lower interest payments as a result of the refinancing. And now within that figure, we deployed 5.3 million euros into the acquisition of treasury shares. And so we closed the quarter with a strong cash and cash equivalence balance of 73 million euros, net of bank overdrafts up from 51.3 million euros a year ago. And that's backed by a solid total liquidity position of 237.1 million euros. To sum up, in a single quarter, we funded our expansion, we invested in the platform behind it, we reduced our net financial debt, we returned capital to shareholders, and we still closed with more cash than we held a year ago. And that is what a subscription balance sheet allows you to do. I will now hand it back to Dana to conclude.