eDreams ODIGEO S.A. (EDR.MC) fair value

ACCE thesis

eDreams ODIGEO runs the online travel agency brands eDreams, Opodo and GO Voyages, along with the Mytrip and Liligo metasearch sites, and its most distinctive product is Prime, a subscription that waives booking fees and aggregates flight disruption and change services for frequent travellers. An 84.5% gross margin reflects that model: the business earns commissions and fees on bookings it never fulfils, so the cost of sales is small. The trade-off is a 6.9% operating margin, which leaves little room if acquisition spend or marketing costs rise again. Revenue fell 4.1% in the period, so the thesis rests on whether subscription growth and cost discipline can pull operating profit higher while the top line stabilises. At 14.2 times trailing earnings and 17.3 times forward, with a 15.5% return on equity and a market capitalisation near 483M EUR, the stock is small and cheap enough to merit a look at the Prime subscriber numbers and cost base before anything else.