The shares of eDreams recorded strong declines of over 7% on Tuesday in the first minutes of trading, after the company reported, before the market opened, that its net profit for the first fiscal quarter has been cut to 200,000 euros, well below the 13.6 million euros obtained in the same period of the previous fiscal year.
In detail, the shares of the online travel agency fell 7.7% at 9:21 AM, reaching 5.13 euros per share, after starting the day with a decline close to 5%.
The decline in eDreams' profit comes during a phase of strong investment, in which the firm is significantly raising user acquisition costs and allocating more resources to international expansion and the development of new product lines, with the goal of boosting the growth of its Prime subscription service.
In this context, Prime continued to be the main vector of eDreams' expansion in its first fiscal quarter, reaching 8.1 million subscribers, 8% more than a year earlier, after adding 173,000 net new subscriptions in the period.
Revenue associated with Prime increased by 1%, reaching 128.4 million euros, while total billing stood at 165.5 million, representing a decline of 4% compared to the same quarter of the previous fiscal year.
The adjusted gross operating profit (adjusted Ebitda) was 28.9 million euros and the Cash Ebitda was 23 million, both with declines of 41%. However, the company emphasizes that these results exceed market expectations and align with the planned investment phase.
The adjusted net profit of eDreams in the first fiscal quarter was 4.7 million euros, 80% less than the 23.6 million euros recorded in the same period of the previous year.
For the entire fiscal year 2027, eDreams reaffirms its goal of reaching 8.5 million Prime members and adding 600,000 net new subscribers.
The company projects an adjusted Ebitda of 167 million euros before investments and a Cash Ebitda of 115 million after them, with the expectation that it will grow again in year-on-year terms starting from the fourth quarter.
In the longer term, eDreams maintains its strategic plan to reach 13 million Prime subscribers by March 2030 and exceed 270 million euros in Cash Ebitda.
At the end of 2025, the 'online' travel agency announced a new strategic roadmap to grow 15%-20% annually of Prime members between the fiscal years 2028 and 2030, with the aim of exceeding 13 million in 2030, in addition to a 'Cash' Ebitda of more than 270 million euros.