eDreams ODIGEO updates financial/liquidity position

European online travel company eDreams ODIGEO has announced an update on its strong financial and liquidity position and its actions taken in response to COVID-19 virus, the company said.

The spread of COVID-19 is having a significant impact across the global travel industry. Management actions since the beginning of the crisis have secured the Group´s position to ensure a rapid return to full operational effectiveness once normal activity resumes.

Since the 20 January, the public announcement of the COVID-19 outbreak in China, significant steps have been taken:

-To conserve cash and emerge from the crisis in a very strong position the cost base has been reduced and operations reorganised whilst the COVID-19 situation continues to enable the Company to protect all employee´s jobs.
-The company has executed savings of 23% vs the Fixed Cost executed in 3Q FY20 mainly due to reductions in personnel costs, gross IT, external fees and travel expenses. This percentage increases to 25%.
-The company has taken advantage of Government support (ERTE), with staff payroll costs temporarily reduced by 20% for most non-customer facing staff.
-All capex, opex and external costs have been reviewed and negotiations have successfully been held with suppliers.
-There are no debt repayments due until 2023.
-Despite the reduction in Bookings of around 70% in March 2020, the group continues to have a strong balance sheet, with current liquidity position of c.€140m at the end of March, placing us in a position of strength as soon as normal activity resumes.

Discussions with lenders have resulted in a Super Senior Revolving Credit Facility (SSRCF) only covenant of Gross Leverage Ratio being waived for Fiscal Year 2021, achieving further financial flexibility for the Group. Interest on the SSRCF and the 2023 Senior Notes will continue to be paid as usual.

Management remains focused on continuing to take the right actions to maintain its cash and liquidity position, retaining its team members throughout and ensuring the business is primed to welcome customers back once it is safe for restrictions to be lifted. The Group has extremely strong products, services and customer relationships that will allow it to grow significantly when the activity returns.

eDreams ODIGEO is a large e-commerce businesses in Europe. Under its four-leading online travel agency brands — eDreams, GO Voyages, Opodo, Travellink, and the metasearch engine Liligo — it serves more than 18 million customers per year across 46 markets.