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Focus on higher revenue and fewer bookings delivers for eDreams ODIGEO

Half-year profits at eDreams ODIGEO fell by 10% as the leading European OTA saw bookings decline by 2% to 5.8 million.

Adjusted earnings [ebitda] for the six months to September 30 declined to €52.6 million, described by the company as being in line with guidance.

The bookings performance reflected a focus on high quality sustainable business, with higher revenue on fewer bookings, the company said.

Mobile bookings grew to 42% from 37% in the second quarter of the financial year.

The company re-financed its debt in September in a transaction giving “significant flexibility” against its previous arrangement.

A revolving credit facility was also re-financed, increasing the size to €175 million from €157 million, extending its maturity at the same time.

CEO Dana Dunne said: “In the first six months of the year, we have continued to deliver against our strategy of investing in our revenue diversification model and improving price transparency for our customers.

“Our results are in line with expectations for full year guidance, as financial performance has slowed in response to changes to our revenue model.

“Better attachment of our flight ancillaries and growth in our dynamic packages has continued to drive positive revenue margin growth and we are confident of further growth opportunities as we continue to add new products and services to our offering.

“Following a successful re-financing earlier in the year we are in a sound financial position and looking ahead we remain committed to delivering the best service to our customers so that we can meet all of their travel needs.”

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