Edreams Odigeo Sl Stock

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 3 months period ending June 30, 2026; I'm David de la Roz, Director of Investor Relations.

Before we begin, I would like to remind you that all supporting materials in today's presentation and our results report are fully available on the Investor Relations section of our website.

I now 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 is structured around the following key areas. First, I'm going to provide a high-level review of our first quarter FY '27 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 road map, what we're building, why the returns are highly predictable and how this quarter fits precisely into the 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 4. Now I'm going to take you through the core pillars of today's announcement. This quarter confirms our strategic road map is on track. We are delivering on plan with continued prime momentum and profitability ahead of 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 quarter 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 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 members, we are exactly where we expected to be at this point in the year. Our subscriber base reached 8.1 million, and that's an 8% increase year-on-year. That means 173 million net adds in the quarter and EUR 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. Mainly speaking, 9 out of every EUR 10 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 credibility, and it means a direct relationship with the trade. 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 EUR 23 million and adjusted EBITDA of EUR 28.9 million. 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 EUR 73 million. That's net of bank overdrafts, net against EUR 51.3 million in the first quarter of the previous financial year, FY '26. And this is due to having substantially reduced our year-on-year cash outflows. This is mostly driven by the absence of the refinancing costs we absorbed in the same period last financial year. Our long-term strategic road map, long-term position of absolute strength is progressing exactly as planned.

The pivot to annual subscriptions with monthly installments 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 a high-growth verticals such as rail. We're executing this road map with precisely the same discipline that delivered the objectives of our 2 previous long-term plans. Our track record shows we are a team that delivers and our results stay firm 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 EUR 100 million share buyback program. We've executed EUR 38 million to date. That means another EUR 62 million still committed by September 2027 against our market capitalization of EUR 543 million as of June 30.

The 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 EUR 270 million in cash EBITDA by FY '30 across a share base that gets smaller every year we execute. That is compounding on both sides of the per share equation. With 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 2.

Looking at our outlook for FY '27. We are on track to reach 8.5 million Prime members with 600,000 net adds, and we expect to deliver EUR 167 million in adjusted EBITDA, reinvestments and EUR 115 million in cash EBITDA post investments. We anticipate the inflection point back to positive year-on-year cash EBITDA growth from as soon as the fourth quarter of this financial year, and I will explain later in the presentation exactly why that inflection lands

where it does.

Looking further out, this positions us to deliver our FY '30 vision, almost double our FY '25 base. The year, our previous road map concluded the 13 million members and generating in excess of EUR 270 million in cash EBITDA, now that's a 33% compound annual growth rate from FY '27.

I'll now hand it over to Christoph to take you through the detailed review of our first quarter FY '27 financial results. For those of you who are joining us today for the first time, Christoph has been part of our ED leadership for over 8 years. And he brings a proven executive track record, the CFO and CEO across the travel and accommodation industries. Christoph, over to you.

Thank you, Dana, and good afternoon, everyone. Well, these are 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 2 big seasonal quarters and we had many travelers planning, it is also a very efficient we look 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 6 to dive right into the numbers. And here, let me first walk you through the cash EBITDA bridge on this page. We moved from EUR 39 million in the first quarter of FY '26 to EUR 23 million, a variation of EUR 16 million and more than 80% of that is investment we choose to make. The largest piece, EUR 13.3 million is acquisition spend 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 months LTV to CAC of 2 to 3x.

In general, we have run at scale for years and tested market by market. So basically, the spend lends now in this quarter, the revenue margin follows over the next 12 to 24 months. The second piece is cash revenue margin, down EUR 2.7 million. 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 EUR 5.8 million against EUR 10.2 million last year. So the timing was EUR 4.4 million positive year-on-year. So basically in one center, more than 80% of the movement is investment with a measured return, timing work in our favor and recurring prime revenue grew. And this is the line -- 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.

So if you could please turn to Slide 7, where we set out the P&L, the variation of prime deferred revenue. Prime members reached EUR 8.1 million at the end of first quarter FY '27, and that is an 8% increase versus Q1 FY '26 with 173,000 net in the quarter. And let me remind you again that this is the quarter ending on the 30th of June in 2026. That means right now derates 77% of our cash revenue margin and 90% of our cash margin profit on a last 12 months basis. So Prime isn't just powering our growth, Ryan is the business. On net additions, our full year guidance of 600,000 is unchanged, but the phasing is worth setting up 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 hook effect. So 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 access that continues today. So from there onwards, we will be comparing like-for-like. And I 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 touch points in our Prime members travel life.

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 acquisitions offset the intermittent access to Ryanair, with the remainder coming from the nonmember business, we are deliberately running down. I took you through the tiny 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 join Prime unlocks higher customer lifetime value, drives higher customer satisfaction, and it enables higher growth in the new geographies and back 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 upfront on day 1. 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 EUR 110.4 million from EUR 97.3 million, and that is fully planned and driven by the launch of our new products and geographies. Fixed costs remained tightly controlled, up plus EUR 0.2 million to EUR 26.3 million as we keep strengthening our tech work force, partly offset by operational savings. And that brings us to the cash EBITDA of EUR 23 million, in line with our plan and ahead of consensus. The bridge behind it is the one I walked you on the previous slide.

So now let's turn to Slide 8 for the consolidated income statement. Total revenue margin was EUR 165.5 million, down from EUR 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 deep prioritizing transactional nonmember 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 EUR 28.9 million, and the adjusted items we exclude from that metric reduced by EUR 0.7 million year-on-year, reflecting lower long-term incentive expenses and lower adjusted operating expenses.

Reported EBITDA was EUR 24.4 million against EUR 44.1 million 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 EUR 7.3 million to a net expense of EUR 5.8 million. 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 EUR 4.5 million, down by EUR 1 million year-on-year.

And so on the bottom line, adjusted net income for the quarter was EUR 4.7 million, and we believe it is a measure that better reflects the real ongoing operational performance of the business. Net income was EUR 0.2 million against EUR 13.6 million in the first quarter of FY '26. 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 base that a transactional business simply does not have. Net cash from operating activities increased by EUR 1.1 million to EUR 25 million, and we had a working capital inflow of EUR 2.5 million against an outflow of EUR 15.3 million in the same period last year, and that's a swing of nearly EUR 18 million, 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 EUR 7.2 million from EUR 11.6 million to EUR 4.3 million. And we invested EUR 18 million 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 EUR 14.6 million, and we closed the quarter with a higher cash balance than a year ago. Cash used in financing was EUR 16.1 million, a substantial improvement on the EUR 33 million used in the first quarter of FY '26. And net variation of roughly EUR 17 million comes mostly from the absence, the heavy refinancing costs we absorbed last year, last ongoing lower interest payments as a result of the refinancing.

And now within that figure, we deployed EUR 5.3 million into the acquisition of treasury shares. And so we closed the quarter with a strong cash and cash equivalents spends of EUR 73 million net of bank overdrafts, up from EUR 51.3 million a year ago, and that's backed by a solid total liquidity position of EUR 237.1 million. Put 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 still close 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.

Thanks, Chris. Before we turn to our closing section, let me do what I promised at the start and explain the mechanics of this year, so you can see clearly why we are confident in our guidance. We're one quarter into a deliberate structured investment cycle in FY '27 is its peak phase. Our margins are tracking precisely where we said they would be before expanding as the cohorts we have been acquiring now mature. Our long-term shareholders have seen this exact pattern before.

In the early years, of FY '22 to FY '25 plan, our margins are in the teens, and that's because a large portion of our base were year 1 members. As those members became year 2 and beyond, margins expanded year after year, and we met the guidance we had set out for the plan. This mechanism is simple. It's arithmetic, not judgmental. But first, you remember, cost money to acquire, a renewing member doesn't. When you grow the base with a significant share of first year members, the reported margin obviously cresses. When that base matures, margins obviously expand. Every member we acquired in this quarter is a margin tailwind in the quarters that follow.

That is also why the inflection back to positive year-on-year cash EBIT growth lands in Q4 rather than earlier. Acquisition spend goes in when we capture the demand. The revenue from those members arrives across their 12-month contracts. These 2 curves start to cross from the fourth quarter. And from that point, the compounding runs in our favor. So let me be clear on one point. The near-term shape of our margin is front-loaded investment in expansion and our unit economics, our retention, our venue proposition are all intact underneath it. And just to be clear, this is not an untested experiment. We have presented and executed 2 consecutive multiyear road map before from 2017 to 2019 and from 2021 to 2025, and we met our guidance 4x.

Now there is a second question behind this quarter's numbers, which is not whether margins recover, but whether the money we are spending works. So let me tell you why we have such conviction. What makes this expansion secure is that the capability behind it is already built and already proven at scale. We are taking the same proprietary technology in leading AI, the same membership dynamics, the same data-driven insights that all made us highly successful in our core markets and we're deploying them systematically into further territories and adjacent verticals. We know how these economics behave because we already run the next scale, across 8.1 million members, which is why we can tell you what they will deliver over time.

That is why our targets are built on conservative high certainty foundations. And there is a future -- sorry, there's a further reason for our confidence in this guidance which is what our early results are already showing. And key growth factors behind our plan delivered in the quarter. On geography, revenues from market side, our core European base group of 5%, taking their share of the total to 27% from 24% a year ago. On product, rail, the most recent vertical eaters entered is seeing early adoption in line with plan. In Spain, the company's most advanced rollout and one of Europe's most liberalized rail markets, rail already accounts for a double-digit share of new Prime members, again in Spain.

Rollout in other markets who vary with regulation and maturity, and that's already reflected in our long-term guidance. But geography and product are telling us the same thing, and it is the thing that matters the most, strategy right and it's delivering as planned.

With that, please now turn to Slide 11. I want to spend a moment talking about the pace of our capital returns, which is a Upfront, I gave you the headline figures, it was EUR 38 million already repurchased since October 2025 and EUR 62 million still committed by September 2027. At closing of the quarter, i.e., June 30, this targets a further 11% of our market capitalization of EUR 543 million. At the Annual General Shareholder Meeting earlier this summer, Shareholders approved multi-stage capital reductions of up to 12 million shares. That included the immediate amortization of 3 million shares which we executed in July and authorization for the Board to reduce up to EUR 9 million more in future tranches. That's 7.9% of shares outstanding.

Our cash generation is what makes this possible. It gives us the ability to return capital aggressively, while funding our long-term growth factors at the same time, we are not choosing between the 2. I have to say, frankly, there are very few companies in any sector globally delivering this level of direct sustained capital return to their investors today.

And finally, going to Slide 12, which brings the whole plan together. Looking at the KPIs, our business model evolution is generating a powerful financial and commercial delta. First, higher growth. We are targeting 15% to 20% Prime membership CAGR between FY '27 and FY 30. Second, higher customer lifetime value, members on the annual subscription with monthly installments deliver more than 13% higher lifetime value than those of single annual period. Third, stronger loyalty. Those same members give us more than 10% high net floater scores. Fourth, more diversified business. By FY '30, 66% of our volume will be driven by non-flight products and by flights outside our top 5 European markets. That's up from 43% in the first half of FY '26. And fifth, shareholder remuneration with EUR 100 million of committed share buyback through half September 2027.

Taken together with our long-term outlook, that is a structurally transformed business. We are confidently tracking towards record Prime net additions of 1.5 to 2 million members a year for the next fiscal year in FY '30. That takes us to 13 million Prime members which is almost double our FY '25 base. And it takes us to more than EUR 270 million in cash EBITDA, which is a 33% CAGR from FY '27.

Let me finish where Christoph began. This was our peak seasonal quarter in a guided investment year, and we delivered it to plan. and ahead of consensus. Profitability is lower because we chose to put the money into growth, exactly where and when we said we would in new products and in new geographies. Members grew, Prime revenue grew, our International Markets grew. Our net debt came down, and we closed the quarter with more cash than we held a year ago while continuing to buy back our own shares. We have the model. We have the technology and we have the team that delivers. I'll now hand the call back to Christoph to open our live Q&A session.

Thank you, Dana. With that, we would now like to take your questions. We will answer the questions sent to us in writing in the webcast, and we will take questions on a first come, first serve basis, but we will also try to group questions of similar nature. Should we not have time to respond to questions from the webcast, the Investor Relations team will make sure those are answered afterwards. Operator, if you could please open the conference for questions.

Okay. Now we had a set of questions here from Carlos Trevino from Santander. Let me read out the first question. Could you provide any indication on which percentage of your net adds are coming from new Prime markets and which one from your traditional markets? Any comment on ramping up trends by market would be helpful.

Absolutely. So first of all, we don't disclose the exact split of net adds between new prime markets and traditional prime markets. However, let me just add a number of points here. First, on the geographic expansion, it is performing very well. And we've seen the revenue margin of Rest of World, let me just pause here. Rest of World is Mexico, Argentina, UAE, Poland, South Africa, et cetera, right? This is our new geographies and all of that rest of world grew 5% to EUR 43.1 million in the quarter. And actually, we already start to see the shift from our top 6 marks to the rest of the world markets because the growth of those percentage of our revenues grew from 24% to 27% in this quarter.

Second one is about rail and rail is growing very well and doing really well in our markets, our 3 markets that we're in, which is Spain, Italy and France, the one that's the most mature for us is Spain as we've announced. And already, rail for us in Spain is delivering a double-digit share of the prime net adds that we have in Spain. Now we still have more to grow and Spain is still ramping up, absolutely. And then with Italy and France at earlier stages and following the same type of path as Spain rail.

Yes. Okay. So let me read out the second question. How does the intermittent access to Ryanair's inventories continue to impact your business? How do you expect this to evolve moving forward?

Let me take that, Chris. So first, as we've said in the past, our access to Ryanair content remains intermittent. And this has not changed. I think from an investor point of view, what's really critical and important, we have derisked our plan for this. And we have factored into our guidance, not just for this year, but for subsequent years, i.e., the FY '30 targets about derisking the plan. so that the Ryanair doesn't change our plan, and we are committed to absolutely deliver on it. I want to be clear, our results no longer depend upon Ryanair. Our focus is on executing our growth plan, and this is exactly what we're doing, and you've seen already in this quarter results. Chris?

Okay. Let me read out the third question from Carlos. How is business developing in the first 2 months of the current quarter? Have you seen any change from previous business trends?

Yes. I'll take it. So I think the businesses first is developing in line with our strategic road map. I think since we announced it, we have not seen any significant changes in the trading our performance is exactly as expected, be it on Prime in our core markets, be it in prime in our new geographies and be it obviously new products, i.e. rail, which I touched on before. I don't think we don't give a quarterly guidance, but we have given a yearly and we've given multiple years as well, which is very unusual in the market. And we see that we're exactly on track on both of those. And so we feel firmly committed to both our FY '27 guidance and the FY '30 targets obviously.

Okay. We're coming to the last question of Carlos, which is historically prime cash marginal profit margins have improved sequentially in Q2 versus Q1 with lower marketing costs driven by seasonality. Should be -- should this be also the case this year or additional marketing investments in your new markets could derail this historic trend?

I think that one I will answer. So basically, for this special year of investment, I would, in fact, not apply the same historical seasonal pattern, and let me explain that a little bit. The shape of FY '27 will be mainly driven by our investment schedule, not by the normal seasonality in our marketing investment that you've seen in the past. We are really investing into the significant growth in the new geographies, in the products such as rails also Dana just mentioned. And this is exactly in line with what we have planned and what we have communicated in the plan of last November. And so really, it's the consequence of the investment plan. And therefore, our guidance remains, which is our cash EBITDA margins will bottom out in Q3 '27.

And then we will turn into year-on-year growth in cash EBITDA in Q4 FY '27. So I would say you shouldn't model a clean sequential margin recovery through the first half. And also, as a reminder, the recovery drivers in the Q4 and onwards is really driven by basically the cohort maturity, as I also explained before, where we have the year 1 members are absorbing the cap and as we're now starting in the later end of the year, getting year 2 members, those are coming in at a near 0 CAC and above the 50% cash marginal profit, and that really starts to show in Q4. And so all of it is inside our EUR 15 million full year guidance, which we reiterate and what also Dana just said.

Okay. With that, we move on to questions from Bharath Nagaraj from Cantor. Let me read out the first question. Could you please provide some color on how your top 6 markets are performing in terms of cash EBITDA, excluding the investments you're making? Okay. I think one I'm going to take. And basically, in the top 6 markets, we really have to look at the components. So on the one side, you have the prime performance, and that's performing well. We also saw overall our prime gradual revenue growing 5%, also the new product like rail is playing a role in here.

And you're also seeing then that within the top 6 markets, we have another effect, which is the negative unwinding of our non-Prime business, which is obviously a big portion of the top market, the top 6 markets. And we are still comparing versus the prior year in the quarter. full access to Ryanair, which we know in this comparison period where we are now looking at an intermittent access. But if we exclude those impacts, we are actually seeing good levels of subscription revenues and engagement.

Let me read out question 2 from Bharath that is as to your guidance of EUR 167 million of adjusted EBITDA pre-investment, could you confirm the level of investments you're making in FY '27. I remember it to be around EUR 34 million or so. Well, actually, more or less, yes, this is a really front-loaded mid-EUR 30 million investment year and the disclosed path is what I just mentioned, the cash EBITDA bottoming out in Q3 and then inflecting in Q4, where we are returning to growth levels and also the margins are coming back. And this front-loaded capital investment is really to secure the future market share and really take benefits of the growth opportunities we are seeing. And so this is where we are investing into rail, we're investing into the new markets.

Let me read out the third question from Bharath. Has there been any impact from macro headwinds? And would your results have been better, if not for them? If the ROI from new customer acquisition turns out to be not high enough during the rest of the year. Will you outperform on your cash EBITDA guidance for the year? Or will you return more cash to cash back to shareholders?

Absolutely. Chris, let me take that. So let me cover into 2 parts. The first one is that the macro headwinds. And on this one, I just want for all investors to really stress a couple of key points. One is that -- we are a point of origin model, not a point of destination one which some travel companies are. And so implied in this, I'm reading to it is questions about, for example, the Middle East. And the Middle East is a very small, nonmaterial origin target for our market. So what's important is that whether or not consumers want to travel as opposed to where do they want to travel, so to speak.

The second one is that we are a subscription-based model, right? And therefore, we don't earn -- our results are not driven really by, let's say, the amount of expenditure that a customer has on it. because we have a subscription-based model. So what we're really focused on is making sure is that they subscribe with us that they're really delighted and that they continue to travel, to travel, and travel and then at the end of the 12 months that they renew with us. And that's really what drives our economic unlike a transaction-based model business.

Let me cover the second part, which is the ROI. One, that acquisition. And a couple of very important points. One is we hold ourselves the discipline of a 2 to 3x LTV to CAC, and that's on a 24-month basis at a group level. And so that's really the gateway of every euro that we spend has to actually clear that hurdle. In addition, our cost base is roughly about 80% variable. And so again, this is a dial that we absolutely do control. We see that we are doing very well in both our core markets, our new markets and also, I would say, or if I call it our new product, i.e., rail, that's in our core markets as well for that. And we feel very comfortable with the track we're on.

We feel very comfortable with our guidance that's out there for both Prime members and for cash EBITDA for this year and then obviously for the FY '30 as well.

Okay. So that takes us to the last question of Bharath. You've reiterated positive year-on-year cash EBITDA growth from fourth quarter FY '27, what are the key building blocks behind that inflection, low acquisition intensity, cohort maturity, revenue growth or operating leverage and which of those is doing most of the work? I guess I'll take that one. And it's a great question. Actually, there are basically 2 key drivers in here, and you mentioned them as well. Basically, you have the core maturity and operating leverage. In here, as we now build up the cohorts, especially in the monthly models over the future quarters. And as we are anniversary those where we are moving customers into the year 2 cohort, that's where we now are getting our superior margins exceeding the 50% on those cohorts with the year 2 plus membership. So that's the one key driver.

And then on the second driver that does play a role is that towards the end of the year, we are on a more normal like-for-like comparison basis, where if you remember in the first half year of FY '26, we had full Ryanair access, while in the second half the intermittent access already started. So we are anniversarying that in the second half, and that is removing the year-on-year drag and that are the 2 catalysts of the Q4 results where we are turning into positive cash EBITDA growth.

Okay. I will move on and take the next set of questions from Nizla from Deutsche Bank. We have first question, can you please take us through the phasing of net adds for the rest of the year? This one, I think we already hardly answered earlier. So I think that question, I would say we consider answered. Then let me read out the second question. What was the traction between the traction being in the new markets you've launched, such as the newly announced Polish market.

Let me take that Chris. So we see good traction in our new markets and all the key metrics and variables that we track, such as, for example, the percent of customers that actually take prime, the LTV to CAC, obviously, NPS is extremely important to us. And then there's a number of other underlying metrics as well. And all of them continue to track very well on this. For Poland, in particular. I know that you mentioned that one, we see a strong appetite for Prime. Also with the Polish market in particular, there are a number of subscription programs out there outside of travel. It is a -- if I call it a very good subscription-oriented market. And so we find that our results are actually very good in this market for this.

All right. So that takes me to the third question, which is how would the phasing of investments be for the rest of the year? I think that one I will take. So basically, if you look at the rest of the year, we will continue to invest throughout the year. So it's not following a specific phasing between the quarters. We just continue to invest throughout the year. However, as I just also walked you through, in the fourth quarter of the fiscal year '27, we expect that those investments we are now front loading are starting to fully pay off, where we bring in members from the monthly plan as well as members are transitioning into the year 2 membership where we then are getting the benefits of the higher margin. And that's why in the fourth quarter of the fiscal year, we are confident to return to positive cash EBITDA growth, but the investment is happening throughout the year.

Let me move to another set of questions from Guilherme from CaixaBank. First question, could you provide more details regarding fixed cost evolution in Q1 and the phasing expectations for the remainder of the year? Yes, I think that one I will take as well. So basically, I think as we mentioned, we are investing into our talent. And so we have a workforce expansion in the year. However, this was offset in this quarter by operational discipline, we generated some savings. And so you had the total personnel expenses rose by EUR 2 million, and that is mainly driven by the recruitment growth in the space. and that is really to support our FY '30 road map and all the platform investments we are doing for the new geographies and the new products.

But the phasing, I think you can expect that to rise as a hiring is annualizing throughout the year. So the fixed costs we are anticipating to run higher than in the previous year. as per our plan and our guidance. And again, we remain on track with that and manage our fixed costs. And so we stick to our guidance of the EUR 115 million of the cash EBITDA for this year.

And Chris, let me just interject also about our AI capabilities since we've invested and started investing in AI. It's actually been now 12 years. We are also heavily investing and really leading edge in terms of how AI is used internally for both productivity and for, let's say, quality as well. And as a result of that, it is allowing us to do, in a sense, a lot more with the same amount of head count, so to speak. So as we think about growing into new product categories, new geographies, et cetera, we need a lot less number of people to be able to do those new expansions than what we would have needed, let's just say, 3 or even 5 years ago in the past. And you're seeing that already. In our guidance, you've seen that in our numbers as well.

Yes, absolutely. So we have a second question, which was around the Prime member net add seasonality. But again, also here, we've answered that, I think, at the beginning. So we are not answering that or reading it out again. Let me move to another set of questions. Those are from Chadd Garcia from Ave Maria Mutual Funds. The first question from Chadd is your variable cost for Prime is 61% of revenue versus 47% last year. I would assume this is attributed to the investment in new markets and new products. Can you confirm and discuss the types of investment these new markets require and how long the elevated period should last?

I think this one I will also answer. Basically, Chadd, yes, you're right. The Prime variable cost as a percentage of Prime revenue margin rose over 47% to the 61%. And as you point out, that's really driven almost entirely by the acquisition costs and our investments into the new geographies and into the new product. And as we've explained in the past as well, those new markets or in new product verticals, we are lacking an organic base, so to speak, that's referrals, et cetera. And so we are relying much more heavily on paid acquisition than we do in our core markets for the traditional product. And this is, therefore, where most of our investment goes to really drive those new geographies and those new products, especially as we pointed out in a very strong seasonal booking and search by the customers.

But let me also remind you that this investment is totally per plan, and it does fit within our group level guidance of an LTV to cut boundary where we are aiming at the 2 to 3 LTV to CAC. So it's highly profitable and value driving on the long term. And so we expect to continue investing along the period for the new plan. And as I mentioned earlier, as of Q4 '27, however, we will return into positive cash EBITDA growth.

Okay. Let me read out the question 2 from Chadd. I noticed Uber has entered the rail market in certain European markets. Can you compare and contrast the Prime rail offering versus Uber? Dana?

Absolutely. So let me just start with saying we are fundamentally a subscription-led business. So therefore, our proposition to the customer is going to be within that line light, right? It's not just a product offering, but it is very much about the entire amount of the travel offering. And beyond that, because again, it is subscription-led there are different and proprietary features, functionalities that we offer that others don't offer, when, for example, cancel for any reason or price freeze or a number of other things at different at either free as part of the package or at a very low cost that you don't find any pace else?

And then lastly is on the customer satisfaction cuts our customer servicing as well. It is entirely different. And you see that we get repeatedly very high reviews and rating for our customers for the overall level of satisfaction that then gets translated into an NPS score that is extremely hot. So it's a fundamentally different proposition. And what we're doing is and what we've seen is, is that we're being able to compete extremely well in that market offering from a customer point of view and then also if I couple that from our unit economics and i.e., our LTV to CAC is extremely good and attractive, particularly, let's say, in a rail type of market as well that the combination of the 2 is making it to be a very powerful winning model.

And that is why you see already that we're growing very, very well in Spain, extremely well, and we're growing well in Italy and in France as well.

Okay. Perfect, Dana. So we have a third question from Chadd, even though also this one we've already addressed it was around the fixed cost growth and the head count growth. I think we discussed that already. So I'll move on to the next set of questions. Those are coming from Terence Teh from Muzinich & Co Limited. Here, the first question. In the light of the recovery in your share price from the lows, can you comment on the pace of share buybacks going forward and thoughts on potentially redirecting focus towards deleveraging?

I think I will take this one. First, on the pace here, nothing changed. Our capital allocation framework aligns with the buyback and they are directly really related to our operations and our cash inflows, and that's fully compliant with the regulatory limits. And at our just recent AGM on the 22nd of July, our shareholders overwhelmingly approved a capital reduction and that was immediately amortizing 3 million shares and reducing the outstanding shares to EUR 112.6 million. And that corporate action also clears the path to execute our remaining share buyback. And under the current EUR 100 million program that is running through to September 2027. We have executed EUR 38 million to date and still EUR 62 million are committed. And the Board also was authorized at the AGM to amortize up to an additional 9 million shares over the following 12 months.

And how about your question about the redirection focus towards the deleveraging basically from a capital efficiency perspective, our repurchasing the equity is structurally far more accretive than paying down the debt. As you know, our EUR 375 million senior notes are locked in at a highly attractive fixed coupon of 4.875%. And we have no maturities until December 2030. So that is really where we think we are returning the shareholder value, and that's where we are focusing on. We are very comfortable with the leverage and also the increase that is planned, given that it's a purely mathematical outcome of our cash EBITDA transition. As we are investing and as we are returning back into cash EBITDA growth on the Q4 '27, also the leverage will peak and then it will start coming down, and we're very comfortable about that.

Maybe, Chris, if I can just interject to summarize. Look, we see our share prices significantly undervalued. We have the cash and cash generation that we do. We are very conservative in terms of the way in which we manage the company financially and from a capital structure point of view, and it clearly makes sense for as we generate cash to buy back our shares at these share prices.

Perfect. Thank you, Dana, for that. Let me continue with the second question here. Can you comment on your key customer demographics in existing and new markets and how AI use from these customers changes their perspective on what eDreams offers? Are you seeing any dramatic churn towards or away from eDreams offering as the market is through AI?

Let me take that, Chris. So I think I've touched on this several times about our new markets and new products that we're doing very well in them. that I've also touched on the AI in terms of our leadership, and it allows us to do features, functionality and products at either speed or pace or slightly different than what others do in the ingestion of massive amounts of, let's say, data and then turning that into a much more individualized experience for a consumer. So all of this plays towards our advantage. And I think, again, that's one of the many reasons why our Net Promoter Score is so high on this.

And then as -- and in terms of our discoverability out of the market through a genetic search and whatnot, again, this plays towards our advantages being an AI-first and AI-led company and it increasingly allows us to be more discoverable coupled with a very good LTV to CAC.

Okay. Very good. We're moving on to the next set of questions. These ones from Ricardo Chinchilla from Deutsche Bank. Here the question one. Since the end of June, how have prime net additions, booking frequency, average basket value evolved? And are you seeing any change in consumer behavior across the core European markets. I think I will take that one. Let me first start with the consumer behavior in Europe. There basically we're not really seeing any change in the underlying demand picture. Basically, yes, there are some destination shift but the demand doesn't really move. And our model is also structurally much more insulated given that our profitability sits within the Prime model within the recurring fee, so as consumer trading down or destination mix changes, that doesn't move our mechanics.

Now on your other part of the question on the Prime net adds, here, what I can tell you that we are reaffirming our full year guidance today for 600,000 net adds of the year. And we are very comfortable about that net add guidance we are giving for this year. And lastly, your part around the average basket value here. We're not disclosing the exact number. But yes, it's fair to say that it's slightly down more in the low single digits and it's mostly driven by mix as we move it to rail, those tickets are naturally cheaper than long-haul flights, for example.

Then we have another set of questions also here around the prime net additions we've already answered that. We also here have another question that variable costs increased 13% and EUR 13.3 million of the cash EBITDA decline reflected additional acquisition investment, how in CAC payback and 24 months LTV to CAC differ between established markets and new geographies or rail cohorts. Here, I would say I'll take that one as well. Well, basically, the blended cut on the new categories, it's indeed higher, and that is also what I already just mentioned earlier, given that the vast majority of the traffic in those new geographies, in those new product verticals is driven by paid search, given that we have less benefit of an organic base such as referrals or so. And hence, our 24 months LTV to CAC still remains strong and remains within our boundaries that we are setting up. And as you know, the year 1 cohorts are running at a much lower margin and so as they move into year 2 and as they mature, we know that our profitability is following.

The fourth question, how are current trends in European airline capacity fare levels and the increasing preference for shorter haul travel influencing customer booking frequency and basket value? Additionally, what impact are these dynamics having on supplier economics particularly around GDS incentives, NDC adoption and airline over commissions?

Let me take that, Chris. So the question is not exactly the same, but it's very similar to concept to a couple of other questions here. I think it's worth covering some of the fundamentals underlying this. The most important one is that we're a subscription business, not a transaction business. And that means that our engine is really what's driving us is the number of Prime subscribers and then it's their maturity, the lifetime value and not the value of any individual transactions. So i.e., what fare levels are happening, what short haul versus long haul, basket size, et cetera, right?

In addition, it's whether the Prime member flies from Barcelona to London, London to Sydney, it's Sydney to Istanbul, et cetera. That's not a really big driver of our economics whereas if you're a transaction business, it absolutely is a big driver of your economics? And so what really matters to us is our long-term relationship with customer. What matters is the recurring touch points we have with these customers, it really matters the value we provide them and it really matters that ultimately, therefore, the number of subscribers that we have. And right now, it's at EUR 8.1 million. You can see the similar thing in terms of the supplier economics, PDS incentives, et cetera, et cetera.

This is not what our economics rest on. Our unit economics are not highly dependent on this. They're on what we've been talking about it. And so that's really what drives our results. We have a unique space in the travel ecosystem as being a leader in a subscription-based business that has a very healthy model, and we're now getting towards the last part of our invest high investment phase before these recurring revenues start kicking in again. And so Q4 will be the start of this where we'll start to see the year-on-year cash EBITDA start to grow again. And our Prime members are growing and are going to be growing at a much higher rate as well. Let me just end there and pass this back to you, Chris.

Thank you, Dana. And it's actually also the end of our call here, given that we have no more incoming questions. And with this, I want to thank everybody for joining our webcast today. And before we conclude the call, I would also like to inform you that we will be back on Tuesday, 17th of November '26, hosting our webcast for the first half of FY '27 results presentation. And in the meantime, we will be happy to receive your questions. We are our IR team and/or the investor e-mail address, which is investors at edreamsodigeo.com. Thank you, and goodbye.

Good afternoon, everyone, and thank you all for joining us today to review our financial and operational results for fiscal year 2026 covering the 12 months period ending March 31, 2026. I'm David de Roz, Director of Investor Relations.

Before we begin, I would like to remind you that all supporting materials, including today's presentation and our integrated annual report, are fully available on the Investor Relations section of our website.

For those who were unable to attend our dedicated AI session last week, the full presentation and webcast replay have also been posted on our website. Given the integral role technology plays in our business model, we welcome questions on today's Q&A session on both our financial performance and our broader AI strategy.

I will now 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 structured around 4 key areas. The first area, we will provide a high-level overview of our FY '26 performance, where I'm pleased to say we have exceeded our full year guidance and outpaced market expectations. Second area, David will take you through a detailed view of our financial results.

Third area, I will return to share a strategic update on our progress and the momentum we are seeing under our newly launched long-term strategic road map. In the fourth area, we will highlight the core takeaways from our dedicated AI session that we held last week, ensuring those who could not attend get a clear view on how our AI-first capabilities are driving our subscription model forward. And then finally, I will then close with some brief concluding remarks before we open the floor to your questions.

If you could all, please turn to Slide 4 of the presentation. I will take you through the core pillars of today's announcement and provide an executive summary of our performance, the strategic trajectory and long-term outlook of eDreams ODIGEO.

First, our fiscal year 2026 results have comfortably exceeded expectations, making a highly successful launch to our new long-term road map. In terms of subscriber growth, our Prime membership expanded to 7.9 million members. This represents an 8.9% year-on-year increase, driven by 643,000 net additions, outperforming our formal full year guidance of 600,000. In fact, this strong momentum has continued into the current fiscal year with Prime now reaching the 8-million-member milestone.

Financially, our cash EBITDA reached EUR 157 million. This beats our target of EUR 155 million. Moreover, our adjusted EBITDA grew 29% to a record EUR 172.3 million. This particular metric is highly indicative this year as it cleanly isolates our true underlying operational strength from the planned temporary cash timing effects of migrating our Prime payment model from an annual upfront fee to flexible monthly and quarterly installments. Furthermore, over the last 12 months, Prime-driven revenue grew 10%, and now it constitutes 75% of our total cash revenue margin. This cements our complete transformation into a subscription business.

Second, our new long-term strategic road map is a high conviction pivot executed from a position of absolute operational strength and backed by robust data. We are firmly on track to build a superior, highly resilient business designed to unlock substantial unrealized shareholder value.

As previously communicated, our road map through FY '30 is designed to accelerate growth, targeting a 78% increase in Prime membership and a 50% increase in cash EBITDA. Between FY '28 and FY '30 specifically, we expect to achieve record-breaking momentum, which means we'll be adding between 1.5 million and 2 million net new members annually. This guidance is built on a highly derisked model with conservative, high certainty foundations. Most importantly, our management team has a proven track record of execution. We've set ambitious 3-year road maps twice before, and we met our objectives and guidance each time.

Third, we are uniquely positioned to win in an AI-driven travel ecosystem. eDO is not a newcomer to this space. In fact, we've operated as an AI-first company for over a decade. This has allowed us to build a powerful proprietary remote that combines our advanced technological infrastructure with the deep customer relationships inherent in Prime.

AI is unlocking massive new frontiers for us, allowing us to deploy agentic AI as an entirely new customer acquisition channel, enhancing the customer experience and rapidly accelerating our innovation capabilities.

Finally, let me outline our clear outlook. For the current fiscal year FY '27, we project 600,000 net additions, which will bring our base to 8.5 million Prime members. Financially, we are targeting EUR 167 million in adjusted EBITDA pre-investments and a cash EBITDA of EUR 115 million post investments with positive year-on-year cash EBITDA growth expected to kick in by the fourth quarter of this fiscal year.

Looking ahead to FY '30, we plan to nearly double our subscriber base to 13 million members. Following this near-term investment and transition phase, we project profitability to scale rapidly, growing by more than 33% per annum from FY '27 to reach in excess of EUR 270 million in cash EBITDA by FY '30.

With that overview of our strategic direction, I will now hand it over to David to guide you through the detailed review of our FY '26 financial results. So with that, David, over to you.

Thank you, Dana. If you could all please turn to Slide 5 of the presentation, I will take you through our fiscal '26 financial results. The successful execution of our strategic road map and the deliberate evolution of our business model demonstrate that eDO is no longer a traditional transactional agency. We are now a world-leading travel-centric subscription platform.

Over the last 12 months, Prime-driven revenue has continued its strong momentum, growing to constitute a record 75% of our total cash revenue margin. This proves that the predictable recurring high-margin streams of our subscription business are now the dominant force driving our financial engine.

To see how this powerful structural change is translating directly into our financial performance, please turn to Slide 7, where I will take you through the key highlights of our Prime P&L. Throughout fiscal '26, despite a challenging macroeconomic environment, Prime continued to serve as our primary engine of growth and profitability. As you look at the P&L, it is essential to understand the parallel dynamics at play, which reflect our deliberate pivot to flexible installment options moving from a single upfront annual fee to an annual membership with monthly and quarterly payments.

As planned, this transition creates a temporary shift in the timing of our cash inflows. While cash EBITDA consequently adjusted to EUR 157 million, I want to emphasize that this is purely a timing effect. The contractual structure of the Prime subscription remains a 12-month commitment, meaning eDO is positioned to fully capture these revenues over the course of the membership cycle distributed via installments rather than as a single annual upfront payment. For this reason, our true operational performance this year is best captured by our adjusted EBITDA, which isolates these temporary cash timing effects.

On an adjusted basis, EBITDA surged 29% year-on-year to a record EUR 172.3 million. This outstanding result provides definitive proof that our core business is scaling with intense profitability even as we optimize our payment models. This underlying strength is supported by robust operational KPIs across the board.

Prime membership expanded by 8.9% to 7.9 million subscribers. The 643,000 net additions not only beat our guidance, but actively pushed Prime's contribution to our dominant 75% of our total cash revenue margin. Even more impressively, Prime members now generate 90% of our total cash marginal profit, cementing the profitability of our subscriber base.

While the transition to installments drove a technical 9% decrease in reported cash revenue margin, the underlying economic revenue margin for the Prime segment actually expanded by 10%. This confirms that consumer demand and our core value proposition remain exceptionally strong, with member retention and acquisition costs offsetting temporary headwinds in air content and timing of payment of subscription fees.

Finally, our variable costs improved by 11%, dropping to EUR 388.4 million. As our subscriber base matures, our customer acquisition costs decrease and our margins expand. In short, our business is structurally more efficient, deeply embedded with recurring revenue and highly profitable.

If you could please turn now to Slide 8. Let's examine the broader consolidated income statement. Our total revenue margin remained stable at EUR 668.5 million. This steady performance is the direct result of our deliberate strategic focus. Our high-margin Prime revenue margin grew by a strong 10%, which fully offset a planned 23% decline in non-Prime revenue. As we have consistently stated over the last several years, we are purposefully deprioritizing traditional transactional nonmembers to focus our resources entirely on expanding our high lifetime value Prime ecosystem.

Looking at our cost lines, we achieved excellent efficiency gains. Despite our overall revenue margin remaining in line with last year, our variable costs improved by 11%, dropping to EUR 388.4 million. This is a very clear illustration of the economic leverage built into our model. As our Prime member base continues to renew and grows more mature, our reliance on paid acquisition channels decreases, which in turn allows more revenue to flow directly to our bottom line.

Moving to fixed costs. This saw a modest increase of EUR 6.6 million. This was primarily driven by an increase in provisions and higher external fees. The combined effect of these dynamics highlights our immense operational efficiency.

Our adjusted EBITDA increased by 29% to a record EUR 172.3 million, up from EUR 133.7 million in fiscal '25. As a reminder, this metric perfectly isolates our core operational performance from the temporary cash timing adjustments associated with our new installment payment options. Ultimately, this operational strength translated directly into exceptional bottom line profitability for our shareholders.

Reported net income rose 16% to EUR 52.2 million, while our adjusted net income surged by a remarkable 42% to an all-time high of EUR 72.9 million.

Let us move on to Slide 9 to review our cash flow performance. I am very pleased to report that our cash generative capacity remains robust. Even as we successfully transition our Prime members to the annual with monthly installment options, our cash engine continues to perform ahead of expectations. We concluded fiscal '26 with a very strong total liquidity position of EUR 246 million, an 11% increase compared to the same period of last year.

Breaking down the components of our cash performance, operating activities, net cash generated from those delivered a solid performance, increasing by EUR 28.7 million year-on-year. In terms of working capital, we achieved a substantial working capital inflow of EUR 24.2 million, up from EUR 15.4 million in fiscal '25. This strong performance was primarily driven by our proactive optimization of supplier finance agreements and the acceleration of our higher-margin hotel bookings. These positive inflows comfortably absorbed the planned temporary reductions in Prime deferred revenue stemming from our shift to installment collections as well as a lower average basket size.

In the financing activities, the cash flow saw a net use of EUR 107.4 million. Crucially, a significant portion of this outflow reflects our deep commitment to shareholder returns. During the fiscal year, we deployed EUR 64.4 million into the strategic acquisition of treasury shares as part of our ongoing share buyback program.

In summary, our balance sheet is healthy, our liquidity is secure, and our capital allocation strategy continues to drive tangible value for our shareholders.

I will now hand it back to Dana to provide an exciting update on our new long-term strategic growth map. Dana, back over to you.

Thanks, David. Everyone, please turn to Slide 11 of the presentation. I'll now take you through the key drivers of our new long-term strategic growth plan. Here, we wish to outline the structural evolution of our subscription platform.

To put our growth trajectory into perspective, let's look at our journey to continue unlocking massive potential. In FY '25, our core Prime engine operated across 10 key markets and that featured 4 primary product segments and 2 distinct subscription tiers. This delivered over 7 million members. Today, we have successfully scaled -- we have successfully scaled our subscriber base to now 8 million members, 15 markets, 5 product segments and 2 tiers.

Our blueprint for FY '30 is about replicating and compounding the success on a global scale. By FY '30, our vision is to expand our footprint to up to 44 markets while simultaneously diversifying our ecosystem with additional high-margin product segments and tailored subscription tiers. This systematic expansion will allow us to seamlessly capture new demographics and geographies, comfortably driving us towards our target of 13 million Prime members by 2030.

This is not just expansion for the sake of volume. It is a highly calculated broadening of our addressable market that will exponentially increase recurring revenue streams and deepen our competitive moat.

Let's turn to Slide 12, please. Here, I'd like to reiterate that our strategic pivot, which we initiated in November 2025, was executed from a position of undeniable operational strength. This is a high conviction road map delivered from robust, solid data. To understand why we possess such absolute certainty in this trajectory, we look at 3 fundamental pillars.

The first pillar, this strategy significantly accelerates our growth profile. Between FY '28 and FY '30, we expect to achieve record-breaking momentum, delivering between 1.5 million and 2 million net new Prime members per year. This represents an annualized growth rate of 15% to 20%, a speed that is structurally superior to our historic trajectory.

Second, we have systematically derisked our business model. The ambitious financial guidance we have set through FY '30 is built upon highly conservative, high certainty foundations. Specifically, we've intentionally derisked our projections by incorporating a highly prudent baseline for third-party airline content availability while simultaneously capturing consumer demand via our flexible monthly installment payment options.

Third, this is a management team with a proven track record of flawless execution. It is not the first time that we've presented a comprehensive multiyear road map to the market. We've launched and successfully executed 2 consecutive long-term strategic plans previously. The first from 2017 to 2019 and again from 2021 to 2025. In both of these instances, we met our guidance. We know how to scale this business, and we deliver on our long-term plans.

In conclusion, we navigate a temporary timing impact of our cash metrics as we shift to annual subscription with monthly or quarterly installments. This shift is a deliberate trade-off that allows us to capture an exponentially larger market share and cultivate highly diversified recurring revenue streams. Crucially, because the Prime subscription is an upfront 12-month contractual commitment, the shift to installments represents a mere calendar timing variance in cash collection rather than a revenue risk. We're perfectly positioned, highly energized and exceptionally confident in the immense value this road map will unlock.

Please turn to Slide 13. As we look ahead, eDO is uniquely positioned to drive accelerated long-term growth backed by an execution-tested management team that consistently delivers on its long-term plans. We have established highly ambitious yet entirely realistic and grounded targets for FY '30.

Our financial and operational destinations are clear. We are scaling to over 13 million Prime members and delivering in excess of EUR 270 million in cash EBITDA by FY '30. This expansion will be underpinned by a powerful upward shift in our growth trajectory. Specifically, between FY '28 and FY '30, we expect to unlock record-breaking momentum, capturing between 1.5 million and 2 million net new subscribers annually. To achieve this scale, we are managing the business through a deliberate structured investment cycle.

In the short term, our cash EBITDA margin will adjust to approximately 15% in FY '27, marking the peak phase of our growth investment. However, as this massive wave of new members matures and their acquisition costs, therefore, decline, our margins will expand rapidly, returning to an optimized 23% margin by FY '30.

This is similar to what you saw in the early years of FY '22 to FY '25, 3.5-year plan. In this time period in which the margins were in their teens and continue to expand year-after-year as the large portion of year-1 members became year-2 plus members. When this more mature set of customers became disproportionately large versus the new year-1 members, margins grew to the mid-20%.

So I want to be absolutely clear with the market on this point. The temporary near-term moderation in our EBITDA margin is driven solely by strategic front-loaded investments. We are proactively funding our expansion in new product segments and geographies to secure the future compounding power of this business.

This is a playbook that our long-term shareholders know well. It is an exact repetition of the highly successful cycle we executed between FY '22 and FY '25. We pause, we invest, we build the infrastructure and then we unlock the massive exponential value. We are executing that exact same winning formula today, and we have absolute confidence that it will yield historic results as communicated.

With that vision of our long-term trajectory established, please turn to Slide 14. The core message I want to convey to you today is that our long-term targets are built entirely on conservative high certainty foundations. We are not asking the market to underwrite speculative bets. Rather, we are operating a heavily derisked business model designed to scale through 2 primary proven avenues of growth: geographic expansion and product expansion.

What makes this strategy so secure is that we are not inventing new capabilities. We are taking the exact proprietary technology, the exact membership dynamics and the exact data-driven insights that have already made us highly successful in our core markets. And now we are systematically deploying them into new territories and adjacent travel verticals.

You know us, we are a company of test and learn and have never gone to the market without having fully tested something, run something. So we know what the results will be over time. By scaling from this deeply established profitable foundation, we ensure that every step of our expansion is controlled, measurable and highly value accretive to our shareholders.

Please turn to Slide 15. So let's dive into the geographic expansion. As part of our systematic approach to scaling the platform, we have successfully launched Prime into 5 new international markets. Each of these regions was carefully selected for its significant potential and strong alignment with our subscription-based consumer behavior. This geographic push is already acting as a new powerful growth engine for eDO.

These new markets are delivering exceptional initial performance with higher household penetration, higher net promoter scores and higher Prime attachment rates compared to our established top 5 European markets.

This data gives us immense confidence. It reconfirms the global portability of the Prime model and proves that our expansion strategy is heavily derisked, highly repeatable and positioned to drive long-term high-margin subscriber growth.

Please turn to Slide 16. This highlights the second primary growth vector: product expansion. A fundamental driver of our derisked road map is our deliberate expansion beyond flights, transforming eDO into a comprehensive multi-vertical travel ecosystem.

The European rail market represents a massive opportunity, currently valued at over EUR 40 billion. Crucially, this sector is undergoing 2 powerful macro tailwinds. First, sweeping deregulation; and second, a structural shift as consumers increasingly choose high-speed rail over short-haul flights.

Our entry into this highly attractive market is entirely strategic. Rail serves as a powerful engine for both subscriber acquisition and engagement. By integrating full rail capabilities into the Prime ecosystem, we are positioning ourselves to capture a dominant share of the domestic travel market. Furthermore, rail bookings are inherently higher frequency. Introducing this vertical to our Prime members will significantly increase overall customer touch points, deepen the platform engagement and drive higher customer lifetime value.

Let's turn to Slide 17. This highlights the powerful proprietary advantage that the Prime ecosystem brings to our expansion into the rail sector. Entering a new vertical is only valuable if you can monetize it effectively and deliver unmatched value to consumers. Our subscription architecture allows us to do both, creating a clear competitive moat over traditional players.

So let's look at the data that underscores this advantage. First, from a monetization perspective, our model is structurally superior. We generate 4x more revenue margin through Prime on a rail transaction compared to traditional transaction-based OTAs. This massive multiplier proves that our subscription framework unlocks significantly higher LTV per user.

Second, from a consumer value perspective, our pricing capability is unmatched. In over 95% of the cases, we are able to offer our Prime members cheaper prices than the direct rail operators themselves. These unique advantages allow us to aggressively capture market share in Europe's EUR 40 billion rail market, driving both member acquisition and long-term retention.

Please turn to Slide 18, which highlights the third fundamental pillar driving our derisked growth profile. It is expansion into the hotel sector. It's important to emphasize that we are entering the space from a position of established scale. We already possess a highly robust, fully integrated hotel platform that generates substantial volume. Our current strategy is about scaling and optimizing this foundation to capture a much larger share of the customers' total travel wallet.

The global opportunity here is immense. The online hotel market represents a staggering EUR 308 billion total addressable market, characterized by a high 63% OTA penetration rate. We are investing smartly to deliver a structurally superior accommodation experience. We are rapidly expanding our global inventory selection, introducing advanced flexibility features and implementing frictionless payment options tailored specifically to the preferences of our subscribers.

Please turn to Slide 19 to conclude our strategic overview. As we wrap up, just look into our new long-term road map, the key message I want to leave you with today is one of absolute continuity and confidence. What we are executing today is not an untested experiment. It is a proven template of execution that this management team has successfully delivered on twice before. We operate from an immensely powerful self-sustained subscription platform that is uniquely positioned to lead the travel industry into an AI-first era.

We have set clear, highly visible targets through FY '30, built entirely upon a conservative and heavily derisked strategic architecture. This is an achievable plan, backed by high certainty operational foundations and geographic expansion, rail and accommodation verticals. In short, we have the model, we have the tech and most importantly, we have the team that delivers.

Now let's turn to Slide 21. I want to update you on our AI session that we had last week for those of you that were not able to attend it. To truly understand the trajectory and future compounding value of eDO, it is essential to recognize that we are not simply pivoting to AI to catch a market trend. We have been an AI-first company for over a decade. In fact, we were doing AI before most businesses even knew what AI meant.

Our technological advantage has been systematically built across 4 distinct eras of innovation. From 2014 to 2017, while the rest of the travel industry was focused on basic digital distribution, we established our first dedicated in-house AI team. By 2017, we were already deploying proprietary machine learning models, reinforcement learning and genetic algorithms at scale to power our predictive pricing and fraud prevention engines.

From 2017 to -- sorry, from 2019 to 2024, long before its large language models became a mainstream corporate buzzword, we were already early adopters of generative algorithms to curate hyper-personalized travel itineraries. By 2023, we were recognized as a global AI leader deploying AI across our entire company and working closely with Google Cloud and new generative AI developments. From 2025 to 2026, this represents what we call our agentic era, our most significant operation leap forward.

We have successfully rolled out a multi-agent voice-based intelligent customer servicing platform alongside our advanced agentic trip planner. This system leverages retrieval augmented generation, or RAG, and over 100 model context protocols, MCPs, to fundamentally change how consumers interact with travel planning.

Today, we're no longer passively waiting for web traffic. We are actively pioneering agentic distribution by launching direct native integrations into leading AI ecosystems, including ChatGPT, Claud, Gemini enterprise platforms, et cetera.

The core takeaway I want to leave you with is simple. We are architecting our 2026 performance on a deep proprietary technological foundation that we began pouring into in 2014. In the technology space, a competitor can buy off-the-shelf software, but they cannot buy a 10-year head start in data, training and algorithmic maturity.

Let's move to Slide 22 to see how this translates into a distinct competitive advantage today. Let's now look at the underlying reality of our customer base today. The vast majority of our volume is generated by our rapidly growing Prime subscriber base. These are loyal repeat customers who engage with us directly, completely bypassing hypercompetitive and costly third-party performance marketing channels.

The economic takeaway here is simple, yet incredibly powerful. Once we acquire a customer into the Prime ecosystem, we retain them. This highly predictable retention dynamic is completely unique to eDO within the global travel sector.

This brings us to the formidable proprietary advantage we have built around our enterprise. Our competitive advantage is a powerful combination of 2 elements: our advanced proprietary product architecture and a deeply relationship-based consumer value proposition through Prime. This combination makes our relationship with the traveler incredibly difficult to displace.

This structural advantage becomes even more critical as we look at how consumers interface with AI. While prospective travelers are increasingly utilizing LLMs for travel inspiration research, there remains an enormous critical gap in the market. Today, no end-to-end booking or fulfillment functions exist within native AI interfaces.

We believe native AI platforms will choose not to take on complex end-to-end travel fulfillment themselves due to the immense technical, operational and regulatory barriers. Specifically, these platforms face what we call the fulfillment barriers. In other words, they will not own the booking transaction because they're unwilling to assume merchant of record liability.

This means avoiding the direct financial risk for chargebacks, refunds and insolvency to name a few, and operational barriers. They are not designed for post-booking servicing or complex disruption handling. Consequently, they will primarily monetize through advertising and partnership models. If you have any doubts, I refer you to our AI presentation in which there are examples detailing all of this.

In fact, this exact landscape opens-up massive highly lucrative opportunities for eDO. First, it establishes agentic AI as a brand-new customer acquisition channel for us to reach travelers. Second, it enables us to continuously elevate the customer experience and elevate our overall product proposition.

Third, it creates an opportunity for us to provide a seamless agentic fulfillment experience, allowing users to remain within the native AI interface while eDO acts as a merchant of record, managing everything behind the scenes. Finally, by deeply embedding AI across the entire company, our internal innovation velocity is skyrocketing, allowing us to bring new features to market faster, smarter and more cost effectively than ever before.

Moving on to Slide 23. We can see exactly how our innovation capacity is rapidly expanding our engineering teams to become even more productive through AI. Let me take you through the core operational impacts.

Looking at our core productivity, we have achieved an impressive 47% year-on-year increase. And within our most advanced teams, all of our code is now AI generated and then human verified. This shift towards agentic development has allowed us to deliver 5x more business features.

In customer service, our AI-first capabilities are driving major bottom line benefits. In FY '26, we achieved a 13% total cost reduction in customer operations. Today, 30% of our support interactions are resolved entirely by AI. Furthermore, customer satisfaction levels for these automated resolutions remain directly comparable to traditional human handled support channels, of which we have industry-leading customer satisfaction levels.

Our commercial strategies are also benefiting with a 24% increase in advanced AI-driven pricing capabilities year-on-year, allowing us to deliver optimized real-time pricing on our Prime members.

Finally, in marketing, the scale and efficiency that AI provides is extraordinary. We produced 30x more strategic marketing assets and 3x more video creatives. All of this has allowed us to achieve a 75% reduction in external agency and production costs while keeping our internal headcount completely stable.

Please turn to Slide 25 of the presentation, and I will take you through some of our closing remarks. In conclusion, by maintaining our absolute leadership in AI, we are delivering a fundamentally superior, highly predictable and structurally resilient business model. Our internal operational leverage driven entirely by the tech efficiencies we discussed is the structural engine behind this transformation.

When you look at the KPIs we are tracking, it is clear that our business model evolution is generating a powerful financial and commercial delta. First, we are driving higher growth, targeting a robust 15% to 20% Prime membership CAGR between FY '27 and FY '30. Second, we are expanding customer lifetime value by 13% alongside a 10% increase in our net promoter scores. Third, we are aggressively diversifying our risk profile. By FY '30, an exceptional 66% of our total volume will be diversified away from our traditional core European flight market, moving into new geographies and nonflight products.

All-in-all, we are delivering a structurally transformed business, and this is reflected in our long-term outlook, which will drive even faster growth. We are confidently tracking toward record Prime net additions of 1.5 million to 2 million Prime members per annum between FY '28 and FY '30, culminating in over EUR 270 million in cash EBITDA by FY '30. This represents an extraordinary 33% CAGR between FY '27 and FY '30.

Finally, I want to reaffirm our absolute commitment to maximizing shareholder returns. So let's see this now on the next slide, if you can please turn to it. Before ending this presentation, I want to underline our commitment to maximizing shareholder returns through capital allocation. Our robust cash generation gives us the unique ability to aggressively return capital while simultaneously funding our long-term growth vectors. Look at the velocity of our execution.

First, during FY '26, we deployed EUR 64.4 million to repurchase our own shares in the open market. Second, out of our EUR 100 million capital return program, which runs from October 2025 through September 2027, we have already executed EUR 32.7 million in repurchases. Third, we have already canceled and amortized 12 million shares, which represents a substantial 9.4% of our total share capital, automatically increasing value for our remaining shareholders.

Most compelling, as of the 31st of March 2026, an outstanding 19% of eDO's entire market capitalization is scheduled to be repurchased between now and September 2027. This represents an extraordinary market-leading shareholder yield of approximately 29%. And I have to say, frankly there are very few companies in any sector globally delivering this level of direct capital return to their investors today.

I'll now hand back the call to David to open our live Q&A session.

Thank you, Dana. With that, we would now like to take your questions. We will answer the questions sent to us in writing in the webcast. We will take questions on the first come first serve, but we'll also try to group questions of similar nature. Should we not have time to respond to questions on the webcast, the Investor Relations team will make sure those are answered afterwards.

So the first set of questions come from Carlos Javier Trevino of Santander. The first question says, how is your business impacted by the conflict in the Middle East? Have you seen any relevant change in the business trends?

I'm happy to take that one. Specifically on the Middle East, we haven't seen any impact in the overall trends of our bookings or in the Prime members numbers. I think it's important to emphasize here that different from other players in the -- in general in the travel universe that are more driven by destination of customers, we are driven by the point of origin of customers. So we have customers across many markets, the bigger ones in Western Europe. And what matters to us is that they continue to travel, but we are agnostic as to the destination to which they travel.

And like it has happened, unfortunately, several times in the past, whenever there are geopolitical adversities that render a certain destination unsafe or perceived to be unsafe by travelers, they just change destination as opposed to not taking holidays and not traveling whatsoever. And that's what we're seeing this time, very similar to what we've seen in previous occasions.

The second question says, could you give us any reference on quarterly seasonality on your expectations for your 600,000 Prime net adds in fiscal '27? Could you comment on your expectations for the first quarter of '27? And have you now passed the threshold of 8 million Prime members?

Yes, actually, we have recently passed the threshold of the 8 million Prime members, and that was part of our prepared remarks that we said in the call earlier today. And as to the seasonality or the spread of those 600,000 net adds during fiscal '27, I think it's most important to remember that the Ryanair headwind affected our business in the second half of fiscal '26, and it has another 6 months to go in the first half of fiscal '27. Therefore, what you should expect is that Q1 and Q2 individually have net adds lower than the same quarters in fiscal '26 and vice versa, you should expect Q3 and Q4 to have net adds higher than those same levels in fiscal '27.

The third question says, how is your access to Ryanair's inventories evolving? And Dana is going to take that one.

Absolutely. So happy to. Look, our access to Ryanair content continues to be intermittent. But -- and I have to stress this, our results no longer depend on Ryanair. We've made this very clear in November, in our end of February results, and we're remaking it clear today. We have derisked our future guidance in Ryanair.

The next set of questions comes from Chadd Garcia of Ave Maria Funds. The first one says, any learnings about Prime members who use the rail service, given that the rail service is likely more frequently used in flights? Do these members behave differently than other Prime members? Dana?

So absolutely. So first of all, I think the most important message to take away is that we are extremely pleased with our results in rail. So we see higher usage of Prime from our rail members. And by the way, not just in rail, it's really important to note that we see them using other products and services of Prime. And therefore, you can just make the natural leap that their satisfaction levels are actually very good. We measure it by NPS and the NPS is extremely strong of our rail customers.

The second question says, any learnings from the new markets?

Absolutely. So again, our new geographies are going absolutely as we expected. We have been running them for well over 2 years. So this is not like a test. It's not like just seeing some early results. We have sound long-term data on it. We have a very good LTV to CAC. We have a very good NPS. We have a very good overall prime performance on it.

If I look at more in detail about it on these metrics, we have, in fact, I mentioned in my part of the presentation, the year-one engagement of the 5 new markets that we've gone into continue to actually outperform our historical top 5 European markets. And that means that they actually demonstrate higher initial household penetration, higher net promoter scores and Prime attachment rates.

And I just talked about the unit economics. The unit economics are absolutely good. Now just to qualify, we've told you upfront, we've told you for years that in new geographies where we don't have an established brand, the initial CAC is higher simply because we don't have free traffic coming over to us. But the LTV to CAC is still very good for us and will only get better as we mature in those markets and the flywheel happens in which the high customer satisfaction leads to high referrals, which in turn then fore-lowers our customer acquisition cost on average.

Thank you. The third question from the same investor says, given that it has been 6 months since the second quarter results were released, I would assume that senior management is free to buy shares in the open market. Will management buy shares at these depressed prices or take bonus payment in shares instead of cash?

Look, the question is obviously an individual decision for each manager. For me, let me talk about. Last year, I took 100% of my bonus in the form of shares. That was last summer, and that was when our share price was around EUR 7 because last summer at EUR 7, I believed and still believe that we are undervalued at EUR 7. It's also important I just want you all to note that almost all of my wealth is in the shares of eDreams ODIGEO, and I have never sold one share of the company in all of my years with eDreams ODIGEO.

Thank you. The next set of questions comes from Andrew Heap of Goodhart Partners. There are a set of questions. I can see that there are a few that have already been answered. I'm just going to read out the ones that have not been answered.

The first one says headcount growth of 102 people in the last quarter. What areas is that focused on?

Absolutely. So I think as you can guess, right? We're growing our headcount in the new areas that we're scaling. So it's in rail. It's in internationalization, hotel and some AI initiatives that we have. At the same time, we are in a very, very fortunate strong position that a lot of this growth can be funded through AI productivity gains that we're using to accelerate our growth.

Okay. The next question says, can you break down the EUR 52 million difference between the EUR 167 million adjusted EBITDA pre-investment and the EUR 115 million cash EBITDA post investment and what this investment consists of?

So I'll take that one. There are 2 main differences between those 2 metrics. The first one relates to the Prime deferred revenue that plays a part in the cash EBITDA and does not play a part in the adjusted EBITDA, because we're still unwinding a portion of the deferred revenue. So it will be negative again this year. That will be in the mid-teens.

And the second component is the investments that we're doing in the strategic initiatives, and that's in the mid-30s millions of euros. The most important investments are investments in line with what Dana was saying; when we go to those markets, we have to invest more in CAC at the beginning. So there are investments in the form of marketing investments.

And in order of importance, the first one will be rail. The second will be international and other marketing investments. And after that, there are also investments that we're doing in AI that I think we have talked extensively last week and also this week.

The next set of questions come from Bharath Nagaraj from Cantor Fitzgerald. And the first one says, there was EUR 20 million year-on-year decline in fourth quarter adjusted EBITDA. Was that mainly investments and deferred revenue timing? Or is there any softness in underlying demand due to the Middle East war or any Ryanair content drag?

Let me take that one. When looking at the fourth quarter, the first part relates to a factor that we've mentioned a couple of times in other questions today, which is the Ryanair drag. The Ryanair drag is 4 quarters of it. And the fourth quarter is a material one from the point of view of seasonality. It compares with the fourth quarter last year in which we had full access to Ryanair content. So it has a material effect.

On top of that, we have also started investing in our new markets, and that requires investments in marketing, like I said in my previous answer, but also some investments in pricing to have important discounts to customers that will help them understand the value of the Prime proposition. As we have said previously, for the other part of the question, there is no underlying demand changes coming from the geopolitical events in the Middle East. We have not witnessed any of that.

The second question from this analyst says, despite the war and some travel and consumer weakness, you continue to add new members. How are you convincing consumers to sign up in this environment?

Yes. So I think David just talked about we've seen shifts in the destinations chosen by customers, but not in a softening of the demand. Prime members do keep on increasing. You've seen it. You've seen that we've announced actually even between the end of March and now we've gone over to 8 million Prime members. So we absolutely are growing and attracting Prime members. And it's due to really the strength of our proposition. We have an extremely strong proposition that has good level of traction with important segments in the market.

There's a second part of the question that says what have been the most promising countries and products so far?

Yes, absolutely. So to be very blunt with it, they all have been very promising and -- not just promising, but they're performing well. They're performing as we expected because when we announced last November, this was not some hypothetical thing, let's see how it's going to be. We have been running these, for example, with the geographies a couple of years. So to see the results, to see what they would actually be for it, and they're absolutely on plan, both in terms of the new geographies as well as in terms of rail.

And I think I alluded to that before in one of the previous answers to the questions, maybe to Chad's question where you saw -- I talked about the NPS, the LTV to CAC and the overall Prime metrics are absolutely on target.

Okay. The next set of questions comes from Guillaume Galland analyst from Barclays Bank. The first one says, can you provide an update on the gross booking trends? Non-prime number of bookings down 6% in the fourth quarter, gross booking value down 8% in the same period. What are the drivers behind it? Is this lower basket value? Is this shift towards intra-EU travel? Any color would be helpful.

Okay. I'll take that one. Let me talk about the year in the aggregate, which is much more meaningful than just the fourth quarter in isolation. In the year in the aggregate, if you look at the gross bookings in an absolute number because it's a euro millions number, we've been down about 5%. When you double-click into that 5%, you have non-Prime declining by 20% and you have Prime gross bookings growing by 3% on year-over-year value. If you then double-click again on the Prime side on that 3% positive, it is composed of a decrease of close to 10% in the average basket value. So that is consumers deciding to travel to destinations closer to their home and therefore, investing less money or spending less days on destinations. And on the other hand, you have an increase in the number of trips from the Prime members. Now if we were to look at the gross bookings from Prime members at a stable average basket value, it would have grown in fiscal '26 by 14%, which is a very healthy number.

The next questions come from Luis Ricardo Chinchilla Vargas from Deutsche Bank. The first one says, please elaborate on the specific assumptions underpinning the company's 2027 outlook with particular emphasis on those pertaining to the Middle East conflict.

Look, we've said repeatedly, the Middle East conflict plays absolutely no role in our projections, and we have seen now it has been going on since the end of February. So we have full 3 months of data, and it has followed the same pattern that we have seen in previous geopolitical instabilities. As to the assumptions underpinning the company's 2027 outlook, they are exactly the same ones that we did back in November '26. which is scaling our platform beyond European flights by investing decisively in the new rail product and international expansion.

The second question says, industry experts have noted aggressive European marketing investments from Expedia and Booking.com for 2026. How does eDreams plan to defend its high market share in France and Germany if competitors begin aggressively discounting to replicate the Prime value proposition?

Absolutely, David. So let me take it. So look, first of all, Booking and Expedia operate highly successful transactional models. We offer a different model, a different proposition that is highly successful on a subscription basis, Prime. And so if you look at a Costco model, which is a subscription one in the retail space, there we do not price in a standard 20%, 25% margin to our travel products. So this allows us to offer the customers the lowest price, about 80% to 90% of the time, in fact, and making our profit on the subscription renewal rather than the individual transaction. We also provide superior lifetime value and superior products, services, features, functionality to customers that all come into play into giving us a superior LTV to CAC that outstrips many transactional players.

And then if you compare this in terms of the largest of the total travel ecosystem, it's immense, right? It's the largest online segment that there is in the world. And so there's absolutely space and room for multiple propositions in that market, a lot like what you see in the retail space between Costco and Walmart. And so we provide an alternative one that is very successful within our space that has high levels of NPS, high levels of meeting customers' pricing and non-price benefit attributes aspirations at the same time of providing excellent LTV to CAC and shareholder value return for us.

Thank you. The next question says, as you target 1.5 million to 2 million net adds per year between fiscal ' 27 and fiscal '30, what specific trends are you observing in the cohort migration of members who transition to monthly billing regarding their LTV and NPS persistence?

I'll take that one. I think there is a misunderstanding implied in the question. Customers that joined us in previous years on an annual upfront payment format, they are continuing in the same annual upfront payment format. So there is not a transition from an individual customer that existed in the annual format and exist in the annual format going over to the monthly. Monthly is offered to certain segments of new customers, not to old customers.

The next question says, given IATA's recent reduction of BSP remittance periods to 4 cycles, how does management quantify the incremental pressure on net working capital for fiscal '27, particularly as the business scales towards the 13-million-member target?

I'll take that one. IATA doesn't have a single remittance period plan. IATA has a collection of different remittance protocols depending on the country. And the increase in remittance frequency is nothing really new. This has been happening for a number of years already.

In fact, during fiscal '26, what we just published today, we had some examples of that. And despite those happening, we have had a remarkable inflow in working capital in fiscal '26 of EUR 24 million. Now we have diversified also working capital advanced sources. And as hotel plays a bigger role increasingly, it's an additional source of working capital advantage that has 0 relationship to the IATA maintenance periods.

The next question says, management has guided for 66% of volume to be driven by nonflying products and non-European markets by fiscal '30. To what extent does the current investment in fiscal '27 in Ryanair International expansion rely on third-party GDS content versus proprietary NDC integrations?

Absolutely. So for rail, not dependent upon GDS or NDC. We source these products through our proprietary in-house platform. It's our marketplace content platform in which providers connect to us. For flights, we source through many different ways, NDC, GDS, and there's so many other ways in which we get the content from. And that's because we're also one of the largest in the flight arena. So that scale allows us, and we've built it over our long, long history to really have a state-of-the-art content acquisition and management platform.

And the last question from this analyst says, what is the strategic rationale for prioritizing equity repurchases over maintaining a more conservative liquidity buffer during a period of anticipated cash EBITDA contraction, particularly given the concurrent peak investment phase? And under what circumstances would the company consider a deceleration of share repurchases?

I'll take that one. I think that we should start from a very important metric, which is the current net leverage ratio. So we are sitting at less than 2 currently. We're sitting at 1.9x. And even after the repurchases that we have outlined to the market, we would have a net leverage at or below 3x. That's in the lowest point in fiscal '27, which is a very healthy ratio. And important to emphasize that the current ratings that we have from S&P and Fitch already incorporate these financial plans as well.

As to the second part of under what circumstances would the company consider a deceleration of the share repurchase, it would need to be a meaningful deviation from our plans, which we don't contemplate currently. But as long as we're delivering on our plans, generating the number of Prime members that we target, generating the cash EBITDA that we target, the financial status of the company can endure perfectly well the repurchase of shares. And one thing I have not said, the main reason we repurchased the shares is because we believe they're significantly undervalued, and therefore, they are a very good investment for our shareholders.

The next set of questions come from Terence Teh of Muzinich. Why is Prime revenue margin down despite Prime members increasing? Can you help me bridge this?

Well, the Prime members are growing, and they're having very good engagement, and we've talked about NPS scores earlier today. The reason the Prime revenue margin decreases is that we are 10% above in fiscal '26, but 5% below in the quarter due to the Ryanair impact. Remember that the Q4 of last year, we had full access to Ryanair. The other effect that has an impact on the quarter is promotional pricing that I alluded to earlier today as well that we're carrying out according to the plan in the new countries when we're launching a new Prime proposition.

The second question says, how are you able to provide cheaper prices than the rail operators themselves? Are you just giving back part of the Prime subscription fee? Or do you have favorable pricing through contractual arrangements with the rail operators?

So look, it's really not different from flights. And so let me go through kind of 3 or 4 things. The first one is subscription-driven margin shift. So I mentioned the Costco model, it's similar to it. We don't price a standard margin into our travel products. So we drive our profitability from the private subscription renewals. And that, therefore, this enables us to offer cheaper prices than the direct operators in 80%, 90% plus of the cases. And then there's many other ones. There's supplier partnership economics. There's multiproduct purchases that our customers do. Remember Prime is a travel subscription one, whereas most of the other providers like a rail provider will be offering kind of a single product type of experience in there.

And just kind of summing it up, rail providers and platforms don't have any of these types of things, the partnership, the unit economics, the subscription-driven margin shift and the multiproduct purchases, and instead have much more low-margin business and low customer satisfaction levels and can't afford that much higher -- can't afford higher customer acquisition costs and don't have the same LTV to CAC that we have. David?

Yes. The next set of questions come from [ Alish Beck ] from DV. One of them has already been answered. The second one says, what has been the contribution of rail and hotel offerings to revenue and EBITDA since inception?

We don't disclose the breakdown by product, but it is perfectly in line with the expectations that we set and that were underlying our plans.

The next question says, could you comment on the current trading Q1 to-date, given that the summer period is seasonally significant?

In current trading, I'd say we are perfectly in line to the expectations, and that is why we have reaffirmed our guidance for 2027 today.

The next set of questions come from Lily Baik of J.P. Morgan, saying, are you seeing any weakness in customer travel with jet fuel surcharges coming through on flight prices?

And the answer to that is we have not. It's a very simple answer.

The next set of questions come from Emmanuel Jourdan of Swiss Life Asset Management. First question is, can you quantify Ryanair share of bookings and revenue over fiscal '26 by quarter and what is the expected EBITDA impact from the current disruption?

And we have not disclosed the exact number of either bookings or EBITDA from Ryanair in the past. What we have said is, what is the impact that it has on our results in the, let's say, revised plan that we had.

Sorry, I was losing the page here. Okay. The second question says, what was churn in the fourth quarter of '26? And are you seeing changes in cohorts impacted by monthly subscriptions or Ryanair?

We do not disclose churn, have never done it. And I think we've said multiple times now that we do not see impacts on the business from either the monthly model or Ryanair, which are different from what we expected.

And the next 2 questions have already been answered as well. And with that, I think we have no more upcoming questions. So Dana, you may want to close?

Yes. So let me just close. And I really want to say a couple of important things. The first is thank everybody for joining our webcast today.

Second is before we conclude the call, I'd like to say thank you, David. Thank you for your 14 years of outstanding service and dedication to the company. We all wish you the best of success in your new role. The catch is, I know you will continue to be a Board Member, so you're not really leaving us and not going far at all. But I did want to highlight and take this opportunity to say what an excellent person you've been with the company, what an excellent Board member you continue to be and what an excellent and seamless transition it has been in handing it over from you to Christoph.

And Christoph, I just want to say that having -- he's been here for 8 years with a strong and original background actually in finance, where he had been both the CFO and the CEO and accommodation sector OTA as well as at Expedia, and he's uniquely qualified to fill the big shoes of David. So with that, please join me in thanking David and welcoming Christoph.

Let me just conclude saying that we'll be back Tuesday, the 1st of September, hosting our conference call for the first quarter of FY '27 results presentation. In the meantime, we will be happy to receive your questions via our IR team and/or the investor e-mail address, which is [email protected]. Bye.

Good afternoon, everyone. I'm David de Roz, Head of Investor Relations. Over the past few months, we have engaged with many of you across global road shows and conference and one very interesting topic has dominated many of our conversations, the rise of Agentic AI. And so today's session is about our next phase of growth for eDO.

For over a decade, we have been building a specialized AI ecosystem that powers the world's largest travel subscription platform. We have invited you here today because we are at a unique inflection point. The recent developments in generative and Agentic AI don't just complement our business, they act as a force multiplier for our unique competitive advantages.

Today, we will show you how we are harnessing these technologies to accelerate our mission, scale our Prime membership and redefine the new era of travel.

I will now pass you to our CEO, Dana Dunne, who will take you through the agenda and first part of today's presentation.

Thank you, David. At eDO, we've always been pioneers. Leadership in any industry is defined by the ability to anticipate the path. At eDO, we didn't wait for the AI hype cycle to begin. We recognized more than a decade ago that the future of travel wouldn't be found in generic search results, but in intelligent personalized curation. We spent the last 10-plus years feeding our algorithms with the behaviors of billions of travelers to create an AI-driven engine that now operates with unrivaled predictive precision, serving as the intelligent backbone that optimizes every touch point of our global business.

What the world is seeing now a shift towards automated personalized digital assistance is a future we have been architecting for a long time. While many are just beginning to explore the potential of AI, we are already operating at scale. Our position is clear. eDO is the natural beneficiary of the AI revolution. We possess the 3 ingredients that cannot be easily replicated by newcomers or legacy players, a massive proprietary data set, a recurring subscription audience and the proven ability to turn technology into high-margin growth.

As the digital landscape evolves, travel is becoming more specialized, not less. We are seeing a clear bifurcation in the market between discovery and fulfillment. While the new generation of digital assistance is making discovery more intuitive and conversational, discovery is only about 10% of the journey. The other 90% is the execution, the heavy lifting of navigating billions of flight combinations, managing real-time inventory and providing a global safety net for travelers. Yes, the magic of AI-driven travel only works if there's a specialized engine behind it that can handle 3 billion price changes a month, manage intricate multi-carrier and multiproduct itineraries and provide 24/7 global services. That's our territory.

We are the travel fulfillment powerhouse because we are uniquely positioned to be the primary transaction layer for the next generation of AI interfaces. We aren't just part of the ecosystem. We are an essential infrastructure that makes it work. Today, we'll detail how we are turning our AI leadership strategy into tangible shareholder value through the 5 key chapters outlined in this presentation.

The first, eDO, an AI-first company since more than a decade. In other words, our AI native maturity. We will look at why our long-standing AI expertise provides us with a proprietary competitive advantage that is clearly ahead of the industry.

Two, where we are today. Our subscription advantage will explain why Prime, our unique subscription model and our ability to build complex multi-carrier itineraries create a value proposition that is difficult to commoditize and that turn the world of one-off transactions into long-term high-valued relationships.

Three, looking ahead and capitalizing on the new traveler, how we are positioning ourselves to be the destination of choice for the next generation of AI-driven traffic.

Four, embracing new AI opportunities, a focus on the speed revolution, how we are using Agentic AI to supercharge our internal productivity, allowing us to build more and innovate faster than ever before.

And then five, cover the closing remarks. We are positioned for future success. And finally, we will show you why eDO's position as the world's leading travel subscription platform ensures our continued success in an AI-first world.

I'll be covering Chapters 1 and 2, followed by Carsten Bernhard, our Chief Technology Officer, who will talk about our new travel in Chapter 3 and lead the discussion of AI opportunities in Chapter 4. After that, I will return with the closing remarks before we open the floor to your questions.

So with that, let's start with Chapter 1, our AI heritage. Turn to Slide 5. To understand the trajectory of eDO, you must understand that we aren't just using AI, we are defined by it. While many in the travel industry are currently reacting and scrambling to pivot to AI, at eDO, there is no pivot. We have been an AI-first company for over a decade. For us, AI is at our very core, fully integrated into every micro, macro decision we make.

Our journey began in 2014. While the rest of the travel industry was still focused on basic digital distribution, we established our first in-house data science team. Our first mission was critical, building a bespoke AI fraud prevention system. The results were more than just a success. We were transformative, improving our margins and security so significantly that it sent a shock to our entire organization. By proving that data was our most potent competitive lever, we achieved a level of margin security and operational precision that was previously thought impossible.

By 2015, we made the strategic decision to go AI-first. This wasn't just a tagline. We decentralized AI, making it available to every team across eDO. We didn't wait for off-the-shelf solutions. We built our own proprietary reinforcement learning algorithms to power our pricing. To put that in perspective, the reinforced learning tech we were using a decade ago is the same fundamental logic at the core of modern Agentic AI today.

By 2016, we had scaled personalization to the individual customer level. While competitors were still using broad segments, we were treating millions of customers as individuals.

In 2017, we deployed what remains one of the great moats, a proprietary reinforcement learning framework for pricing. This combined genetic algorithms with multi-objective optimization, effectively building a pricing engine that learns the market in real time.

In 2019, we were leading pioneers in generative AI. This is long before the world knew what a large language model was. We were deploying generative models, not to predict words, but to predict and create unique itineraries. We used our unique advantage, others did not have this capability of having a world-class flight booking business and AI to mimic the world's flight data to build travel routes that do not exist on any single airline website. This is how we became a creator of proprietary and unique travel products. During the pandemic years, we didn't slow down. We moved AI into the front lines of the customer service and performance marketing.

Please turn to Slide 6. By 2023, we were recognized by global giants like Google as a world leader in applied AI. At this point, AI wasn't just in our tech, it was in our HR, our finance, our operations, et cetera. 2024 was about developing in-house AI agents, expanding copilot tools and strengthening our technical collaboration with AI industry giants. But 2025 and 2026 represent the most significant leap in our history, our Agentic era. We have moved from chatbots to voice-based servicing agents and an agentic replanner that uses RAG, which is retrieval augmented generation and MCP, model context protocol. We currently have over 100 MCPs deployed, allowing our AI to actually act on our proprietary data.

As we look towards the end of 2026, we are pioneering agentic distribution. We aren't just waiting for traffic. We are integrating directly into the ecosystem of ChatGPT, Claude and Gemini. Internally, we have moved into agentic development. Using Claude and Cursor, we've moved from writing code to writing intent. The takeaway for you today is simple. We are architecting 2026 on a foundation that started in 2014. You can buy software, but you cannot buy a 10-year head start.

Please turn to Slide 7. A decade-long head start in AI isn't just a technical achievement. It is a powerful driver of customer trust and a fundamental competitive advantage. As you see on this slide, AI has been instrumental in transforming the customer experience within our Prime program. In terms of Trustpilot evolution, when AI was relatively nascent in the industry, in August 2021, eDO already led the category. We were already an AI-first company. Since then, we haven't just improved, we have accelerated. Our Trustpilot scores have surged by 33%, reaching a record score of 4.4 now in May 2026.

We are outperforming the competition. To put this into perspective, while other OTAs have seen a 19% increase, they are still struggling with an average score of just 1.9. Airlines have barely moved, inching up 6% to a mere 1.7. We aren't just ahead. We operate in a completely different league. Our satisfaction levels are now multiples higher than the industry average, proving that our AI-led model is solving the friction points that our competitors haven't addressed yet.

Beyond customer service, this improvement isn't just about automation and support. We have infused AI across the entire customer journey. We've used it to hyper-optimize the booking funnel and deliver personalized propositions that resonate with individual customers' needs in real time. We don't just sell travel, we anticipate it. All in all, we have a leading advantage. This brings us to a critical strategic moat.

In the emerging era of agentic search, trust is a critical currency. AI platforms, the Googles, OpenAIs of the world want to integrate with trusted, high-quality vertical providers that users actually love. Our industry-leading NPS and satisfaction scores prove that eDO is a partner of choice. We are the travel platform with the data sophistication and the brand trust required to win in an AI-intermediated world.

Let's now move to our competitive advantage and strategy, what exists today and what to expect from AI platforms in the future. Please turn to Slide 9. History tends to repeat itself. Every time a transformative technology emerges, a familiar debate resurfaces: the fear of disintermediation. Today, we've seen the same discussion happening again with the rise of Agentic AI. The reality, however, is fundamentally different. While customers are increasingly turning to AI for travel inspiration and discovery, they're not using it for the retail experience. General AI interfaces, whether it's ChatGPT or Google Gemini, lack the deep retail and fulfillment capabilities within travel that travelers require.

We see these platforms as partners and new acquisition channels, not competitors. They are masters of intent and discovery, but they are structurally disincentivized from taking the full accountability for the journey. They want to avoid the massive technical, regulatory, financial and operational complexities of travel fulfillment, areas where eDO has spent decades building a dominant competitive advantage. And this is a strategic advantage. This is where our model becomes truly ideal. We hold the trust of consumers and the proprietary data required to turn AI-driven inspiration into reality.

In short, AI platforms may provide the traffic, and eDO will provide the travel. We are the engine that will power its transition from a search tool to booking reality. And what does the future hold? We are moving towards a world of seamless automated execution with exciting emerging opportunities.

Please turn to Slide 10. In travel, discovery and fulfillment optimize for completely different economic objectives. General AI platforms optimize for information retrieval and user engagement. We optimize for the complex, highly precision world of travel logistics. Our unique proposition cannot easily be commoditized. Unlike a standard transaction on a competitor site, a Prime subscription is not a commodity. It is a long-term, high-value relationship built on a proprietary pricing engine and exclusive inventory that a general AI agent cannot simply replicate. On the contrary, as highlighted just now, AI platforms are structurally disincentivized from pursuing disintermediation.

Let's look at specific reality on Slide 11. We've broken this down into our strategic advantages versus the structural barriers facing general AI. First, in Box A, we have our direct-to-consumer engine. Our proprietary products and eDO Prime subscription model create a powerful pull factor. Because we offer exclusive value that cannot be found elsewhere, our members have a clear incentive to overcome -- sorry, to come to us directly. Now if we look at Box B, we can see why AI platforms are focused on a different path. These platforms face two massive structural barriers to entry into travel retailing. The fulfillment barrier.

AI platforms will not own the booking experience because they're unwilling to make a merchant of record liability. This means assuming the financial risk for chargebacks, refunds, insolvency, and this just names a small few. There's the operational barrier. Travel is full of edge cases. General AI is not designed for post-booking servicing or complex disruption handling. The high friction work that happens after the flight that is part of a package is canceled at 2:00 a.m. in the morning. Instead of fighting these barriers, their actual strategic objective is advertising monetization. Travel is one of the largest digital ad categories globally and AI platforms benefit from the massive ad budgets of established OTAs. They want to be the world's most sophisticated search engine. We are the engine that actually creates the real trip.

Please turn to Slide 13. To understand why we are structurally resilient to disintermediation, you have to look at what we actually sell. eDO has evolved far beyond being a simple intermediary of plain vanilla travel content. We have spent years building a portfolio of differentiated products that are extremely difficult to commoditize. Our competitive advantage is built on a powerful combination of four key pillars: One, Prime subscription model. Prime transforms eDO from a transactional shop into a subscription-led ecosystem with structurally higher LTV and retention. Prime provides an exclusive unmatched advantage that incentivizes our almost 8 million members to come to us directly rather than starting their journey on generic search.

Two, unique proprietary propositions. We create unique itineraries, combining, for example, rail and flight that are not available anywhere else. We offer eDO exclusive products.

Three, AI-first agility. As an AI-first company for over a decade, we are significantly more nimble and transformative than many other legacy OTA competitors.

Four, global content access. We manage billions of monthly searches, providing a clean high-performance signal to our customers through world-class AI caching. Within all of this, what is critical to understand is that transportation is the ultimate complexity play. The flight and rail services -- sectors offer endless possibilities for us to create superior, complex and unique solutions.

Let's now turn to Slide 14. Most OTAs are simply windows into plain vanilla content, the same flight and hotel that you find everywhere else. We have evolved far beyond that. We use AI to orchestrate billions of flight and rail combinations daily to build unique itineraries that simply don't exist with any single provider. In other words, we create travel.

Take the example of a trip combining two different airlines. In this case, a combination of British Airways and Lufthansa. No single airline can sell that. No general AI agent can fulfill that with the necessary financial and operational protections. However, we can manufacture, engineer this connection, offering the customer one single point of contact for servicing and disruption management with unique proprietary features. We sell engineered value, not just seat numbers. We are providing a proprietary solution that makes eDO the essential non-commoditized destination for the modern traveler.

Now let's take this one step further. Here, we can see another example, a return trip from Madrid to Barcelona, combining a train and an airline departing with AVE, which stands for Spanish high-speed train. And that's with a return flight with Air Europa. This is a complex multimodal journey, a high-speed rail connection feeding into a flight. No single airline can sell that, no train provider can sell that. No general AI agent, no matter how clever, can fulfill that with the necessary safeguards I mentioned before. We are the platform capable of engineering this connection.

Let's not stop there. In fact, here's another extremely interesting example, which perfectly demonstrates what we mean when we say, we engineer value where others only see fragmentation. We are looking at the journey from Toledo to Berlin. Toledo is a major cultural hub in Central Spain, but it has no airport. Traditionally, this traveler would have managed three separate interfaces, one for the high-speed rail to Madrid, another for the flight to Berlin and a third to coordinate the logistics and risk of the connection. eDO eliminates that friction, that hassle and all of the associated risks.

Our AI native platform orchestrates this entire journey into a single protected transaction. We bridge the gap between rail providers and flight carriers, in this case, Iberia, to create an itinerary that simply does not exist anywhere else in the market. An AI chatbot can tell you a train exists from Toledo to Madrid, but it cannot bond that train to a flight, issue a single ticket and provide the connection guarantee. If that train is delayed and the traveler misses their flight, eDO manages the disruption and re-accommodation. And even at the purchase stage, it is one purchase, not separate ones that open the customer to additional risks to price increases and/or availability issues and having in the end a ticket for only one part of their travel journey. This is the heavy lifting of travel and of eDO.

The three examples we've just seen are not just clever combinations. They represent the creation of smart inventory. By orchestrating fragmented carriers and multimodal providers into a single itinerary, we are providing options that simply do not exist. Even as we move into an era of Agentic AI, we represent the technical back-end integration that makes the trip a reality. A general AI agent can talk about a trip, but it cannot build it. It lacks the depth, the real-time API connections to link a high-speed train to a low-cost carrier while simultaneously layering on the connection guarantees and financial protections that the travelers demand. We are providing the connective tissue for the entire ecosystem. Without our back end, an AI agent is a travel agent with no tickets to sell. By mastering this complexity, we ensure that eDO is not just a destination for consumers, but an essential execution engine that future AI platforms can rely on to make travel a reality.

Please turn to Slide 19. Beyond the itinerary itself, we have engineered a layer of proprietary ancillaries that redefine product flexibility. We aren't just reselling standard airline add-ons, we are creating our own. Features like price freeze, cancel for any reason, et cetera, are innovations that solve the primary pain point of the modern traveler: uncertainty. These products are high-precision AI-driven solutions. Our ability to offer these features depends upon our capacity to predict price volatility and cancellation probabilities across billions of data points. This is an unmatched level of flexibility that a plain vanilla OTA simply cannot price and a general AI agent cannot fulfill.

Also, these ancillaries are a massive driver for Prime conversion retention. When a traveler knows they can freeze a price or walk away from a booking with one click, eDO becomes their indispensable partner. We aren't just selling travel. We are selling peace of mind, freedom and flexibility, all powered by a decade of AI-first risk modeling. In this first example, the price freeze allows customers to hold a price for up to 7 days for as little as EUR 1 or EUR 0 for Prime repeat members. We all know that flight prices on average increase over time and leisure customers want to take time to check with friends and family, consider other options, et cetera.

Here's another example. Traditionally in travel, flexibility has been a luxury for leisure travelers. Carriers often charge hundreds of euros, sometimes exceeding the original fare to provide the basic ability to cancel or refund a ticket. This is a legacy profit center built on consumer friction. We have completely disrupted this dynamic. By leveraging our massive data scale and AI-driven risk modeling, we can offer the same or superior flexibility for a fraction of the price, creating a powerful competitive advantage. This isn't just a feature. It is a customer acquisition and retention machine. It reinforces our position as the essential non-commoditized destination for travelers who demand both value, peace of mind, and flexibility.

And yet another example, in traditional travel, flexibility is siloed. If you book a flight with carrier A, your ticket will be locked into carrier A's rigid rules. But travel is rarely that simple. Our [ Flare Plus ] product breaks these silos by offering universal flexibility like name and date cancellations that can be applied across different airlines within a single itinerary. This adds massive value to a trip and our customers because we provide a level of freedom that makes eDO the logical choice for travel. And we don't just stop there. We continue to develop additional proprietary products.

If you could please turn to Slide 24. Now let's talk about flight plus hotel package protection. If a traveler books a flight and a hotel separately via a general AI agent or a traditional intermediary, they're holding two independent unprotected contracts. If the flight is canceled, the hotel remains nonrefundable for the consumer. Through our package protection by ATOL in the U.K. and the EU Package Directive in the EU, we provide an additional level of security. We take full responsibility for the entire itinerary. If one element fails, we orchestrate the solution for the whole.

Again, general AI agents are structurally designed to avoid this level of financial and operational accountability. They want the click and we want the responsibility. By offering this protection, we aren't just selling a holiday. We are providing insurance for the experience. And that's really the ultimate driver of trust, ensures that our trips are structurally superior and safer.

Here on Slide 25, we see the two biggest reasons why customers choose to book package with eDO instead of booking parts separately. When our AI combines a flight and a hotel, it unlocks exclusive package rates. Our AI finds hidden deals creating a final price that is difficult to match if you try to book the flight and hotel individually. It's a win-win. The customer saves money, and we drive higher conversion. But as I mentioned before, the real advantage is protection. When you book a package with EU, you are legally protected by the EU package, Travel Directive or ATOL in the U.K.

Now imagine a customer booking a flight today and within the next 24 hours, an AI agent has a hotel on top of it. In the eyes of EU law, that's no longer two separate bookings. It is formally legally a travel package. And because the AI agent put the two pieces together, it legally becomes the package organizer. Now that sounds like a small label, but it actually has massive implications. The organizer has to register with the regulator in every European country it operates. It has to put real money aside, be it through bank guarantees, insurance or trust accounts so that if any supplier on the trip goes bankrupt or there is a major disruption, customers get their money back or be provided with alternative travel plans.

It's also legally on the [ hook ] for every part of the trip. If the hotel overbooks or the airline cancels, the agent owns the problem. On top of that, the organizer has to give customers specific information upfront, help them on when things go wrong and stay reachable when the trip gets disrupted, which in practice means running a 24/7 multilingual customer service team. And to make this more complex, this isn't one rulebook. It's 27 national versions across the EU, plus the U.K., plus the EEA and Switzerland, each with its own registration body, financial requirements and enforcement regime.

So for an AI agent to generally act as a travel intermediary in Europe, it doesn't just need to be smart. It needs to take on the whole compliance, capital, customer service and be the traditional tour operator. The barrier here isn't technology, it's structural, and it puts a real ceiling on how independently these agents can actually transact and travel. And we've built all of this over decades.

Let's turn to Slide 27. One of the most critical technical competitive advantages is how we handle the scale of global travel data through search volume management and caching. We've evolved far beyond basic distribution to become a highly specialized technical intermediary. Airlines and hotels simply do not have the bandwidth to answer millions of search queries every day. We process over 100 million searches every day, a volume that would overwhelm most carrier systems. By protecting our airline and hotel partners from this massive amount of search queries, we ensure the long-term sustainability of our content acquisition and act as a protection layer for them. Our powerful caching technology stores accurate prices so we don't overwhelm airline systems. As a truly multimodal platform, including air, rail, cars and hotels, our technical infrastructure positions us as the leading one-stop shop for customers and AI agents alike, providing a level of reliability and depth that generic platforms simply cannot replicate.

Please turn to Slide 28. To address the risk of disintermediation, we have to look at the moat provided by our Prime subscription model. Generalist AI platforms cannot easily replicate the highly specialized vertical-specific features we have spent over a decade perfecting and that we continue to develop. Think of the difference between a general purpose smartphone and a specialized Garmin device for professional cycling. While a phone has an app for everything, cyclists pay for the specialized device because it is built for a single complex task. The same is true at the core of the tech industry. You have general purpose CPUs that run basic PC tasks, and then you have specialized NVIDIA chips engineered specifically for the massive demands of AI. That is the relationship between a general LLM and eDO. We aren't a generalist tool. We are a highly precision instrument and the specialist silicon for travel.

Our specialization is defined by the following layers: guaranteed value and prioritization. We don't just offer a price. We offer the best price guarantee and 24/7 VIP support. We have unparalleled flexibility. Price fees, cancel for any reason products, just to name a few, apply across all providers. To get this level of flexibility from the airline, a customer would typically have to buy the most expensive full fare business ticket. We democratize elite level flexibility for every traveler.

Navigating the messy core. There is an immense amount of back-end heavy lifting here. For example, our automated check-in must navigate the disparate laws and proprietary systems of every country we operate in. Generalist AI platforms are built to be broad. They're not built to handle the legal and technical friction of over 200 different jurisdictions. The instant wallet, our advanced refund lands in a customer's eDO wallet instantly. Crucially, these funds can be used across any airline or travel product, not just the one originally booked. We have created a universal travel currency. Generalist AI is focused on being everything to anyone. We are focused on being the specialized chip for travel. We handle the messy, the complex core of travel commerce.

Let's move to Slide 29. Here, you see how we have structurally decommoditized our business. To become the preferred partner for both travelers and AI platforms, we have built a pyramid of value. At the base are standard return flights with a single carrier. This is a commodity. Any airline or basic intermediary can do this. One level up, we use our technology to manufacture return journeys using two different airlines. This immediately gives our customers more choice and better pricing than any single carrier could ever offer. Climbing to the next level, we layer on our advanced proprietary ancillaries, products like price fees and cancel for any reason provide high-value flexibility. Very few competitors have the data sophistication to price this risk, let alone offer it. At the summit, we have Prime. This is our unique crown jewel. It combines top-tier service, cross-sell integration across rail, car, hotels and deep functionalities found nowhere else.

By building this multiproduct platform, we have created a proprietary stack. While a generalist AI agent might be able to find the base of the pyramid, it will find it nearly impossible to replicate the peak autonomously. At eDO, we are a vertically integrated platform that moves further away from commoditization with every layer we add. We provide the one-stop shop reality.

If you please could turn to Slide 30. Let's look at the strategic North Star of us versus AI platforms. Their objectives are fundamentally different from ours. These platforms are optimized for general intelligence and monetization. They want to be the horizontal layer of the entire Internet. Their business models rely on being asset-light and liability-free. When you look at their monetization strategies, they are focused on subscription fees for their models or high-margin advertising. They're building to provide the answer to a user's query because the scales infinitely with 0 incremental cost. They're not building to provide the fulfillment, which requires 24/7 support, merchant accountability, regulatory bonding and so, so, so many more things.

Furthermore, AI platforms need to capture ad budgets, and travel is one of the world's largest digital ad categories. Their primary incentive is to remain the top of the funnel gateway, not the bottom of the funnel travel agent. As an OTA already operating a massive scale and paid acquisition, we are their large and necessary customer. We provide the transactional reality that makes their search engine AI systems valuable. This isn't just theory. The industry leaders are telling all of us this directly.

Look at Slide 31, the quotes from Google, OpenAI, important financial institutions, all confirm discovery versus the fulfillment divide. When Google discusses their travel options or when OpenAI talks about agents, they focus on reasoning and personalization. They talk about helping a user decide where to go. They notably stay silent when it comes to travel on the plumbing, the details, the millions of little things in edge cases that need to happen in order for it to be fulfilled for the traveler. As these quotes illustrate, their goal is to be the orchestrater of intent. They want to be the brilliant concierge, which they do extremely well, but a concierge still needs a hotel to check the guest into and a car service to actually drive the car.

By their own admission, they are building the brain, while eDO has spent two decades building the body, the essential transaction backbone that turns their AI intent into a booked reality for the consumer. Thus, we aren't competing for the same dollar. We're providing the fulfillment.

Please turn to Slide 32. To understand the current environment, it is helpful to look at the history of vertical travel integrations. A significant example is Book on Google, which was launched in 2015 to reduce mobile friction. The time line for this project highlights the immense operational complexity inherent in our industry, and it demonstrates that travel is not a simple digital good. It is a layered commercial system full of edge cases. For a horizontal player, the strategic value lies in providing high-quality leads, while the vertical-specific fulfillment and servicing is the focus of specialized retailers like eDO who have spent decades mastering that operational complexity.

Turn to Slide 33, please. As we have underlined previously, global travel fulfillment is defined by profound operational complexity. Let's look, for example, at IATA licensing, which is a massive barrier for any AI entrant. To issue airline tickets directly, an OTA needs IATA accreditation and must join the local billing and settlement plan, BSP or ARC in the U.S. in every market it operates in. This is not a single global license. It is granted country by country, and each market sets its own rules. Each accreditation usually requires a local legal entity, financial guarantees, typically bank guarantees or default insurance, audited financial criteria and ongoing compliance obligations.

Accreditation in new country can take months and frequently human communication and negotiation between IATA and the distributor. There's only a few companies in the world with the level of IATA integration that eDO has. To match eDO's global content, an agent would need a vast network of multi-country IATA licensing. Even with accreditation in place, accessing competitive content requires a second layer of bilateral commercial agreements that cannot be automated into existence. For example, GDS contracts with Amadeus, Sabre, Travelport, multiyear volume-tiered agreements that determine both content access and unit economics. There's NDC agreements negotiated airline by airline, each with its own technical certification, commercial teams, revenue sharing models.

There are over 100 NDC capable carriers and content quality and pricing depends on the depth of each individual relationship. Direct hotel chain contracts and connections to bed banks, wholesalers, where preferred rates and inventory are a function of volume already shipped, a chicken and egg problem for any new entrants. Also low-cost carrier integration, which sits outside the GDS NDC entirely and requires direct technical and commercial deals. And there are so many more localized, specialized financial and legal complexities that we simply don't have the time to discuss today.

Please turn to Slide 34. Let's look at the financial reality facing AI agents. Despite the hype, AI companies are currently absorbing massive losses and the pressure to monetize is reaching a breaking point. Even a leader like Anthropic has reportedly had to throttle performance drop from 86% to 65% in mid-April to manage soaring compute costs. This proves that free intelligence is not a sustainable business model. Eventually, these platforms must follow the money. OpenAI, for example, is reportedly targeting $100 billion in ad revenue by 2030. To hit those numbers, they don't need to be the retailer. They need the click-outs to retailers. They need a high-volume, high-spending merchant to pay for the traffic they generate.

This plays directly into our core strength, performance marketing. Because these AI platforms won't be paid by the consumer for travel bookings, they must be paid by the merchant via advertising. Let me remind you why travel can be their North Star. It is one of the most lucrative ad categories on earth. In 2025 alone, the top four OTAs spent over $20 billion on marketing. AI platforms are competing to be the next gateway for our travel budgets. We aren't their target for full replacement. We are one of their most prized customers.

If you could please turn to Slide 35. Let's wrap up this section and distill everything we've discussed into three takeaways. One, AI does not equal disintermediation. We are dismantling the myth of disruption. eDO possesses proprietary differentiated products like our unique itineraries and advanced flexibility options. And we, of course, continue to build many more that simply cannot be commoditized away.

Two, AI represents a new traffic channel. Far from a threat, we view Agentic AI as an emerging acquisition funnel. The major AI platforms have started strategic reasons -- sorry, have stated strategic reasons as well as massive technical and legal hurdles that prevent them from wanting to own the actual booking. Instead, they are turning to advertising for monetization, which plays directly into our strength as a performance marketing leader.

And three, our moat is built on fulfillment plus Prime plus scale. Our resilience is anchored in three structural advantages; a, fulfillment. We handle the messy operational core of travel that platforms want to avoid; b, Prime. Our subscription model provides a relationship-based LTV that allows us to compete in these new advertising-based environments; and c, scale, our technical pipework handles the immense volume and accuracy requirements that these AI platforms demand from their vertical partners.

In summary, as AI brings more complexity to the surface of commerce and a specialized tech-forward intermediary becomes more valuable than ever.

With this, let me hand it over to Carsten to talk to you about our vision looking forward and how we are embracing the new AI opportunities with our technological capabilities.

Thank you, Dana. In this next section, I will address how leisure travel is going to change in the context of AI and also how in an advertising-based Agentic AI travel environment, the user journey of some customer segments may change with additional complementary future channels.

Please turn to Slide 38. As you look at the landscape of the global travel market, it's clear that channel fragmentation is a permanent feature of this industry, not a temporary one. Today's market remains deeply split. Nearly 40% of the travelers still book direct and a surprising 36% remain even with offline agents. The OTA segment holds a strong 25% share, but what's most telling is the sentiment behind these choices. Recent peer surveys confirm a massive trust gap. 66% of the customers explicitly prefer a specialized travel company over an AI platform and 68% simply do not trust AI to handle the financial and logistical act of booking on their behalf.

However, we are not complacent. While we are currently thriving on the high-intent traffic through various channels, we do recognize that Agentic AI is introducing new, highly sophisticated entry points into this ecosystem. Leisure travel will change. The search phase will become more conversational and more agent-driven. But as the complexity of the interface increases, the value of the trusted fulfillment partner on the other end of that agent becomes even more critical.

If you could please turn to Slide 39, let's discuss exactly how eDO is positioned to be the primary beneficiary of this evolution. We see a future where the existing travel funnel is being augmented by new high velocity channels. As we transition into an advertising-based agentic environment, we see two additional possible future pathways. The first one is new AI native ad formats. We expect the rise of AI native click-outs. Imagine a world where a user describes their dream trip to Gemini or to ChatGPT and the AI doesn't just give them a link, it presents a fully orchestrated eDO itinerary.

With one tap, the user is passed directly into our high conversion environment to finalize the deal. This is Performance Marketing 2.0, and we are perfectly positioned to lead in it. In fact, we are already experimenting on this. The second is the seamless agentic fulfillment. It's a more radical and less likely vision of the future because it translates into what we call an embedded agentic booking. This is a world where the AI would complete the entire transaction on behalf of the customer, leveraging our deep APIs.

The user would never leave the AI interface, but eDO would always remain the merchant of record. We would continue to handle the complex plumbing, the pricing, the ticketing and the fulfillment entirely behind the scenes. In both of these scenarios, eDO's role in the ecosystem doesn't just remain, it truly solidifies. We are becoming the essential vertical engine that powers global travel. Whether the customer sees our brands or uses our pipes, eDO is the infrastructure that makes agentic travel possible. We are the intel inside of the AI travel era.

Please turn to Slide 40. Now let's look at how this evolution I have just described translates into clear scalable monetization. The first and most evident path is one we've already mastered. It's a bidding and CPC model. In this scenario, AI interfaces like Gemini or ChatGPT act as the new Google. They suggest the trip, and we bid for the click-out that redirects the customer to eDO. We are already world-class at performance marketing at scale. So for us, this is simply a transition to a more efficient AI native ad channel. The second path has a very low probability. It's what we call the agentic booking.

Here, the AI platform would act as a digital subagent. They would complete the entire transaction via our APIs and potentially charge us a commission on the back end. This is still a highly efficient model for eDO because it essentially turns the AI giants into a global automated sales force for our proprietary inventory. The critical takeaway here is that while technology moves at light speed, human behavior does not and remains sticky. Just as off-line travel still commands 36% of the market decades after the internet arrived, different customer segments will embrace these AI journeys at different speeds.

But on top, we have an added advantage. We are not betting on a single outcome. We are building the infrastructure to thrive in both. Whether it's an app-driven click or an API-driven booking, eDO remains the essential engine behind the transaction. We are ready for the transition, however fast the consumer chooses to move.

To sum it up, by doubling down on our technical core, we have built a platform-agnostic powerhouse. We are positioned to win in every possible user journey, whether the customer chooses to click through to our interfaces or to settle the transition directly with an AI chat. We are essential engine for both. The transaction finishes with us.

If you could please turn to Slide 42. Because the question is not just whether the funnel will change, but it's also about why will we be the winner in this new world. And our confidence here isn't just based on optimism, it's based on three structural advantages: first, our Prime LTV advantage. Our subscription model fundamentally changes the math of customer acquisition. While traditional OTAs must fight and pay for every individual transaction, we are focused on acquiring long-term subscribers. And because Prime members have a higher and more predictable LTV than a one-off traveler, we can approach the bid for high-intent AI traffic with much greater efficiency and precision.

We have over 20 years of experience excelling in the world's most sophisticated performance marketing environment, and we know exactly how to turn a click into recurring relationship. This isn't about outspending competition. It's also about outmaneuvering them. We are building a high-value member base, while others are stuck chasing the next single transaction.

The second point is around our proprietary products. From our unmatched global content, our excellent customer servicing, our unique multimodal itineraries to proprietary ancillaries, we provide a level of value that generic LLMs cannot replicate. Any AI agent is only as good as the option it can offer, but we manufacture and own travel products that don't exist elsewhere.

And lastly, our high-performing platform and technical readiness. AI platforms like Gemini and OpenAI have zero tolerance for providers that do not meet the highest standards, be it on bookability, accuracy and latency. We share this, and we are ready. We are already meeting the strict industrial standards that these AI platforms demand. All in all, we are structurally set up to succeed in these new channels, and we have been leaders in performance marketing in hypercompetitive environments for the past two decades.

When I look at AI, I actually see opportunities, first and foremost, opportunities to deliver new value propositions, to create new travel features and to help our customers discover the world through Prime in more intelligent ways. Let me walk you through this in the next following slides.

And if you can please turn to Slide 45. Because indeed, AI is not just about efficiencies, but it's rather about opening up for these new opportunities for us and for the company. And we are more than ready to capitalize on these opportunities through three core levers. The first is capabilities. We are leveraging a mature extensible platform that allows us to innovate with a level of agility that is really outstanding. All of that platform is in place, and it's ready to run advanced AI use cases. We can leverage years of investment and launch rapid innovation on top of that super quickly.

Second, it's about results culture and mindset and execution. We are extremely results driven. Our delivery-first mindset has already shifted us from theory to practice, producing a massive new base of AI native features that actually add value. And I will show you examples of how AI is delivering value to our customers and us in the next moments.

And lastly, it's about new opportunities. AI-powered distribution is opening up a new frontier for eDO. And our industry positioning, our partnerships, our product offering plus our infrastructure are all creating this huge boost to rapidly capture these emerging opportunities.

If you can please go to Slide 46. Let's deep dive in our capabilities in our eDO technical platform. Because our technical foundation is a scalable cloud-native base, which is designed for rapid innovation. So what does it mean? First of all, we are cloud native. All of our platform have been running on the cloud for many years already.

Second, we are standards-based. No need to reinvent the wheel. We leverage best-in-class technology and a technical architecture based upon leading standards. Our ecosystem manages over 500 microservices and more than 100 model context protocol or MCP servers. And for those unfamiliar, MCP is an open standard that enables AI models, specifically large language models to securely and consistently connect to data and software. This robust infrastructure is what powers over 6 billion daily AI predictions across 247 apps and websites in 44 different countries.

And lastly, we are AI and data first. Data is the oil of AI. We utilize a data mesh architecture that handles over 100 terabytes of daily data ingestion and powers rapid innovation on the AI side. This scale and sophistication has been highly recognized in the industry, for example, by leaders like Google. To show you how this technical maturity translates into customer experience, I want to share a video of some of our AI customer-driven features. And to set the stage for this demonstration, you will see real-world examples of how eDO has moved from theoretical AI to a live end-to-end customer journey, leveraging this high-performance engine to refine travel.

And as mentioned before, we have been working on AI for over a decade. So this isn't just a prototype. You will see some of the over 100 AI features we have deployed across our business to improve conversion and customer satisfaction. So please roll the video.

[Presentation]

Wow, I hope it gives you a good flavor of our AI-first approach across everything that we do. But let's please turn to Slide 48, and let me show you how we're using AI within eDO. First of all, our innovation capacity is currently skyrocketing. We have fundamentally redefined the role of the engineer by turning AI into a massive force multiplier for our technical talent. Our engineering productivity increased by more than 47% year-over-year. This isn't just a marginal improvement, it's a structural step change in how we operate. In terms of engineering velocity, in our most advanced development teams, 100% of all the new code is now AI generated. Of course, always under human command and design and always human verified.

So how does this translate into business impact? We are seeing a fivefold increase in the number of business features delivered through agentic development. We have unlocked the ability to bring 5x more concepts to market. This is a remarkable achievement that allows us to scale our innovation without the traditional constraints of headcount.

Let's move to Slide 49. And let me show you some examples on how these productivity gains translate into a massive tangible impact across the business. And an easily understandable example is in our customer service transformation as we move from traditional human support to a sophisticated AI orchestrated model. Here are three core examples of why we believe we are leading in this area. First, we have a high-impact AI-powered voice assistant. It's a system that resolves customer queries in 5 languages without any human interaction.

Second, we built a proprietary Agentic AI orchestration layer. This allows us to automate complex end-to-end journeys like flight changes and cancellations by letting the AI interact with our back-end systems and no hallucinations.

And lastly, we have rolled out 24/7 chat resolution features. We deliver instant around-the-clock resolution for a wide array of customer needs. As you can see, the impact on our results is already very significant. We've achieved a 13% reduction in total service costs compared to the previous year. Nearly 1/3 of all the support calls are now solved entirely by AI with no human intervention required to resolve the issue. And most importantly, the AI CSAT levels are now comparable to human handled calls, proving that our customers value the instant results this technology provides. So AI is not a future promise at eDO, it's a live P&L-positive reality, which has been underpinning all of what we can do.

To show you this in action, we want to share with you a customer experience with a behind-the-scenes view of how AI agents are handling these calls. And please roll the video.

[Presentation]

You just saw an agentic AI voice agent listen and talk to a customer and perform action at the back-end to drive end-to-end resolution of incoming support calls. There are many parts of this moving puzzle, and we are extremely proud of what we have delivered already, and we're excited about what's ahead.

So if you could please now turn to Slide 51, let's take a look at another example in pricing. Moving beyond service, our productivity gains are delivering a massive tangible impact on our pricing strategy. We have engineered a proprietary in-house AI-driven revenue management ecosystem that is truly industry-leading. Our pricing engine executes 4 billion daily pricing predictions. We leverage deep neural networks and real-time competitor data to optimize for long-term customer LTV rather than just single one-off transactions. And this is delivering a competitive edge. This ecosystem increased value creation from AI-based pricing by 24% between fiscal year '25 and fiscal year '26.

Crucially, we achieved this while simultaneously improving our Prime price competitiveness, ensuring our members always get the best value. It's a clear example of how our decade-long head start in AI allows us to outcompete the market through superior data intelligence and intelligent tooling that we have built on top.

If you can please turn to Slide 52. Because to conclude on this section on our tangible AI results, I want to highlight how we are fundamentally transforming our marketing operations. By transforming our creative workflows, we are achieving levels of scale and efficiency that were previously impossible. We have fully transitioned our in-house creative agency to an AI-centered workflow. By implementing modular design systems, we've enabled high-quality AI-powered creative production at an industrial scale.

We've achieved a 3x increase in static creative and a 30x increase in video creative production. This enables us to fill the digital shelf with fresh relevant content across all of our global markets. And we have delivered this massive output while keeping our headcount stable and even slashing external production costs by 75%. This shift demonstrates exactly how AI allows eDO to produce more content at a higher quality and significantly lower cost, creating a sustainable competitive advantage in customer acquisition.

Please turn to Slide 53. Because we do not view AI-powered distribution as a threat, rather, it's a large opening for eDO to expand our global reach. We are uniquely positioned to capture these opportunities through three strategic levers: Through our expanded reach, we can now expose our differentiated value-add products outside of our core funnel to a much wider audience than ever before. By challenging market participants, we are prepared to challenge established leaders. By surfacing our Prime offering, which consistently beats the competition, we can drive growth on these new AI-driven services. And through co-innovation, our strong partnerships allow us to jointly pioneer new frontiers such as our ongoing experiments with large partners on agentic commerce. eDO is perfectly positioned to rapidly experiment, launch and seize these emerging opportunities in travel landscape.

And I will now hand it back to Dana for a recap of today's session and some closing remarks.

Thank you, Carsten. Everyone, please turn to Slide 55 for our closing remarks. To wrap up, let me revisit our unique moat and the immense opportunity ahead of us. As a specialized retailer, we own the deep operational fulfillment layer that AI platforms recognize as essential and structurally difficult to replicate. These platforms understand that the technical and regulatory complexities of travel retail requires a very specialized skill set. We have a clear strategic edge. We are leveraging this technological shift by integrating Prime and our proprietary products directly into these emerging AI channels. This brings huge new opportunities for eDO. Agentic AI as a new channel. We are transforming conversational AI into a high-performance engine for customer acquisition. Also enhanced experience.

We are utilizing these models to fundamentally improve the customer journey and sharpen our unique product propositions. Also innovation velocity. Our internal capacity is skyrocketing, allowing us to develop and deploy business features faster than ever before. We are more excited about the future than ever before. We have put a strategy in place to successfully leverage this opportunity and deliver accelerated growth to the benefit of our shareholders and customers alike.

Turn now to Slide 56. To conclude, by leading in the AI era, we are developing and delivering a fundamentally better and more resilient business. Our internal operational leverage is the engine behind this transformation. We've touched on the skyrocketing productivity, where we've achieved a greater than 47% productivity increase year-on-year. Also AI-generated code in our most advanced engineering teams, 100% of our code is now AI generated and always human verified. And accelerated innovation through our agentic development, we are delivering 5x more business features to the market.

These efficiencies directly translate into superior financial and strategic outcomes as we look forward to FY '30. And we have said we will deliver higher growth in which we're targeting 15% to 20% CAGR for Prime members between FY '27 and FY '30. That's very strong growth. We're also generating higher customer LTV. We see a greater than 13% increase in lifetime value for Prime annual members through our new monthly and quarterly payment models. With stronger loyalty, we are driving a greater than 10% increase in customer loyalty and the increased diversification. We have said that by FY '30, 66% of eDO volume will be driven by non-flight products and flights outside of the top 5 European markets, and that's up from 43% in the first half of FY '26.

To sum, we aren't just reacting to the AI era. We are leading it. The infrastructure is built, the results are tangible, and we are perfectly positioned for a new phase of profitable growth.

With that, we would now like to take your questions in relation to this session. Please refrain from asking questions about the financial results and outlook because we will, of course, cover those during next week's FY '26 results presentation. We'll now answer the questions sent to us in writing in the webcast. We'll take them on a first come first serve basis while grouping similar topics together to cover as much ground as possible. If we do run out of time before we get to yours, our Investor Relations team will follow up with you directly after this session.

With that, let's turn to our first questions.

The first one is from Guilherme Sampaio from CaixaBank. Would the subscription model be communicated in this channel?

Yes, absolutely. We would make the subscription model available and communicate the benefits of our subscriptions. And the LLMs would want to provide users the most complete amount of information. You can imagine also with the technology, the way in which things are going is that it allows for much more granular answers to customers' queries than if I can call it traditional search would do in the past. So absolutely.

The second question from Guilherme is, could eDreams customer acquisition cost change?

I'll take that again. Well, let me first put customer acquisition costs in the context of -- look, you can't just look at customer acquisition costs in isolation. Really, customer acquisition costs are nothing more than the function of LTV to CAC because you have to run a profitable business. And that's really what drives acquisition cost then. So we've proven in most competitive environments, be it in SEM, in metasearch, et cetera, that our superior LTV, the one that we get from Prime with our neat products, et cetera, and the proposition, that really does allow us to outperform most of our competitors. So when I think about in terms of the future about a native AI environment, this isn't any different in it. We would expect an LTV to CAC in the new agentic channels to be very similar to what we currently have in the highly, highly competitive channels such as Google and metasearch today.

Let's see. Guilherme has a third question. Could economics differ in an agentic versus a click-out channel?

Let me take that. I think the answer again is very similar to the previous one where we -- it really is a function of LTV to CAC, and we would expect an LTV to CAC and new agentic channels and AI-based click-out channels to be similar to what we currently have in the very high competitive channels that we see today and that we operate today, such as in Google and in metasearch.

Guilherme has a fourth question. And so it is -- let's see, likely, is a more structural agentic bias towards OTA versus supplier direct content considering the mentioned orchestration needs?

So I would say we do believe there is many reasons why Agentic AI would have a bias versus OTA versus going direct to one or a combination of travel providers as there are content advantages that we try to demonstrate in the presentation, right, where we facilitate things to a customer and make it far easier for the customer to do. They have a much better experience. We also showed how it's paying off in terms of our customer satisfaction, customer experience levels, and they're far superior.

So again, on average, Agentic AIs would likely bias towards those, the one-stop shopping as well. Also because of our Prime, we have -- prices will be lower in the context of that. So again, this plays very well to us, particularly as we think about in the new world with Agentic AI being able to surface far more information than what it did in the past. That absolutely does play towards us.

Those were all the questions from Guilherme.

Next set of questions are from Carlos Trevino from Santander.

The first one is, could Agentic AI new channels have a lower conversion rate into Prime members than traditional channels? At the end, consumers are looking for a booking, not for a subscription.

I would say, we don't see that. Well, but it is, to be fair, on low scales. But I don't think it would be hypothesized about that. Consumers do subscribe to Prime based on how much they would benefit from Prime in their travel. And so while they are looking for booking, they are, at the end of the day making, in a sense, a calculation on either benefits on -- huge portion of our customers are through actually word of mouth signing up to it and also the price savings that they would see right on the spot for it as well.

And so in an agentic world, the expectations would be very similar. In fact, it might be slightly biased towards us to be seen because Agentic AI does allow for a much easier surfacing of additional information than under a traditional search model point of view.

Carlos has a second question. How much are you reducing the time to market of new functionalities at using AI in the development? As an example, how can you reduce the time to market of all the necessities to launch Prime in a new country using AI?

So Carsten, why don't you take that one?

Yes, sure. First of all, the first answer I have to give is it kind of depends because the time savings we're seeing really depend also on the nature of the task. If it's very heavy on engineering, we see very, very meaningful reductions. And if it's more heavy on contracting and external dependencies, there's different time lines on this. So we are at the beginning of this journey on this. I believe there's immense opportunity, but it's going to be a very meaningful reduction in timings that we are expecting, and we're seeing in the initial results.

Very good. With that -- I'm just looking and I think that is the last question that we have. So with that, then let me just thank everyone for joining this AI update today. Hopefully, this was informative for you. But before we leave, I do want to remind you that on Thursday, the 28th of May, we'll be hosting our conference call in which we'll discuss in detail our FY '26 results.

Obviously, in the meantime, if there's any other queries that you do have upon reflection of this, of course, our IR team is here, and you can reach them through the e-mail address, [email protected]. With that, I want to thank you for your attention.

Good afternoon, everyone, and thank you all for joining us today for the Q3 fiscal year 2026 results presentation for the 9 months ending 31st of December 2025. I'm David de Roz, the Director of Investor Relations at eDreams ODIGEO. As always, you can find the results materials, including the presentation and our results report in the Investor Relations section of our website.

I will now pass you over to Dana Dunne, our CEO, who will take you through the first part of the presentation.

Thank you, David, and good afternoon, everyone. Thank you for joining us today. We're going to discuss 3 things. The first is I'll do a brief update of our first 9 months' results of FY '26 and the outlook, which we are on track. Second, David Elizaga, our CFO, will take you through the Prime model and how it continues to drive very strong growth. Third, I will then share some closing remarks on why we think we are significantly undervalued. Please turn to Slide 4, which is a summary of our performance for the first 9 months of fiscal year 2026.

We're firmly on track to deliver on our new guidance. In the first 9 months, adjusted EBITDA increased 74% year-on-year to EUR 138.4 million. Adjusted EBITDA isolates operational performance from cash timing effects of the move from annual subscription to annual subscription with monthly installments. So this 74% increase of adjusted EBITDA shows the strength of the underlying business absent the cash timing effects. Prime membership. We reached 7.7 million members, up 13% year-on-year. As of January, we hit 7.8 million subscribers and reaffirm our FY '26 target of 7.9 million. Cash EBITDA improved by 2% to EUR 126.7 million compared to the 9 months of FY '25, which was partially impacted by the investments we are making in the new businesses, the temporary instability in our Ryanair content, and the timing impact of the move from annual subscription to annual subscription with monthly installments.

Despite this, growth resulted in a substantial expansion of our profit margins and is also on track to meet our FY '26 target of EUR 155 million cash EBITDA. In terms of revenue mix, Prime-related revenue now accounts for 75% of cash revenue margin and grew 7% year-on-year. I will cover this in my closing remarks, but it's important to briefly highlight that our strategy review update back in November 2026 was done from a position of strength and is a high conviction move based on solid data from extensive live operations. All in all, we will deliver a much better business, faster growing, more profitable, and more diversified, and we are significantly undervalued.

Moreover, we are committed to shareholders' returns, and a proof of this is that we've repurchased 23 million in shares this quarter, with EUR 100 million committed through September 2027. We have already amortized 12 million shares, which is 9.4% of the share capital. And at today's prices, 24% share of eDO's market capitalization is pending to be repurchased between January 2026 and September 2027. And this represents a yield to our shareholders of around 33%, and very few companies out there are doing the same.

Now I'll pass this over to David, who will take you through our Prime model strong growth.

Thank you, Dana. If you could all please turn to Slide 6 of the presentation, I will take you through the Prime model. In the last 12 months, Prime cash revenue margin grew 7%, with Prime now representing 75% of the total. Even more impressive is the Prime cash marginal profit, which grew 18%, with Prime contributing a dominant 89% of our total cash marginal profit. This reiterates the fact that IDO is a subscription business focused on travel and that the strong growth of Prime more than offsets the anticipated decline in the non-Prime side of the business. If you could all please turn to Slide 7 of the presentation, I will take you through the key highlights of our Prime P&L.

Looking at the 9-month P&L, our cash EBITDA reached EUR 126.7 million, that's a 2% increase. This was achieved despite headwinds, including investments in new products, temporary instability in Ryanair content, and the timing impact of moving to annual subscription with monthly installs. Notably, our cash marginal profit margin expanded by 5 percentage points to 42%.

Looking at Prime's impact on profitability and the drivers behind that growth. Our cash marginal profit, a key measure of profitability, grew by 3%, reaching EUR 207.8 million. This shows that our business is not just growing, but each transaction is becoming more profitable. This improvement is due to the maturity of our Prime member base. As members stay with us longer, their profitability grows, which is evident in the 7% increase in cash marginal profit for Prime and its margin increasing by 4 percentage points over the past year. This is having a positive ripple effect on our entire business as our overall cash EBITDA margin improved by 3 percentage points from 23% in the 9 months of fiscal '25 to 26% in the 9 months of fiscal '26.

Cash EBITDA for the 9 months reached EUR 126.7 million, marking a 2% year-on-year increase. Adjusted EBITDA, which isolates operational performance from cash timing effects of the move from annual subscription to annual with monthly installments, increased 74% to EUR 138.4 million. Looking at revenue performance. In the 9 months of fiscal '26, we have observed a few key changes in our revenue margin. Cash revenue margin for Prime decreased by 1% versus the 9 months of fiscal '25. While member growth was a positive factor, it was offset by an enlarged test in the first quarter of fiscal '26 and the move from the second quarter of fiscal '26 to the annual with monthly installment subscription fees and the progressive implementation of this option in the current quarter.

Please turn to Slide 8 of the presentation. Revenue margin, excluding the adjusted revenue items, increased by 3% versus the 9 months of fiscal '25 to EUR 502.8 million. This improvement was driven by a substantial 16% increase in revenue margin for Prime, resulting from expansion of our Prime member base. The growth in revenue margin for Prime, as anticipated, was partly offset by the revenue margin for non-Prime, which decreased 24% versus the 9 months of fiscal '25, due to the switch of our customers from non-prime to prime and more generally to the focus on the prime side of the business.

Variable costs decreased by 15% despite revenue margin is 3% above the 9 months of fiscal '25, as the increase in maturity of the Prime members reduces acquisition costs. Fixed costs increased by EUR 3.3 million, driven primarily by an increase in provisions and higher external fees costs. As a result, adjusted EBITDA, which isolates the operational performance from the cash timing effects of the move from annual subscription to annual with monthly installments, increased 74% to EUR 138.4 million from EUR 79.7 million in the 9 months of fiscal '25. Adjusted net income stood at EUR 63.8 million in the 9 months of fiscal '26.

Turning now to Slide 9. I will take you through the cash flow statement. Our cash generation remains robust despite the transition to the annual with monthly installment subscription program. In terms of the operations, the cash flow from operating activities rose by EUR 31.1 million to EUR 79.1 million. In the working capital, we saw an outflow of EUR 42.9 million compared to an outflow of EUR 27.3 million in the 9 months of fiscal '25, primarily driven by a decrease of EUR 55 million in the variations of the prime deferred revenue. This variance is largely attributable to the timing impact of transitioning the subscription model from upfront annual payments to an annual subscription with monthly installments. This impact was partially offset by an improved working capital performance, notably driven by the hotel segment.

In financing, we used EUR 96.3 million in financing activities, which includes significant acquisition of treasury shares as part of our buyback of EUR 55.9 million for the 9-month period.

I will now turn the presentation back to Dana to do some closing remarks.

Thank you, David. Please turn to Slide 11 of the presentation. I'll take you through some of our closing remarks. Let me start by reiterating that our strategic review update back in November 2025 was done from a position of strength, and it is a high conviction move based upon solid data from having done this for over 1 to 2 years, and in fact, having run Prime now for well over 8 years. First, we are accelerating the growth and the profile of the business. We expect record net adds of 1.5 million to 2 million per year between FY '28 and FY '30. These are growth rates of 15% to 20% per annum, which is much higher growth profile than the trajectory that we were on.

Second, we have derisked the business model. The new guidance is built on conservative high certainty foundations. We have built our new guidance on conservative foundations by lowering expectations for Ryanair content and pivoting to annual commitment with monthly installment subscription fees. And third, this is a team that delivers. It is not just the first time we have announced a long-term plan. And in fact, each time we have announced one, we have met our 3-year guidance. We did this in 2017 to 2019. We did this in 2021 to 2025. All in all, while we face a temporary timing impact on cash metrics as we move to an annual subscription with monthly installments, this shift allows us to capture a much larger market share and higher-quality and more diversified revenue streams. And we are still guaranteed to get this money from customers. It is merely a timing difference in recognition of the money.

If you could please move to Slide 12. We are positioning for accelerated growth with a team that delivers. We are setting targets that are very clear, 13 million Prime members and EUR 270 million in cash EBITDA by FY '30. Our growth trajectory will deliver record net adds of 1.5 million to 2 million per year between FY '28 and FY '30. Cash EBITDA margins will dip to roughly 15% in FY '27 during the peak investment phase and will return to 23% by FY '30 as these new members mature. And to be very clear, the anticipated decline in EBITDA margin over the next few years is solely due to expansion into new products and geographies as a result of the initial investment to support the company's future growth.

You saw exactly this in FY '22 to FY '25, and you'll see this again in the coming years. Please turn now to Slide 13.

We've done this before. eDO is a team that delivers. It's not the first time we've announced a long-term plan, and each time we have met our 3-year guidance. We have clearly demonstrated our ability to deliver on our long-term plan, such as the very aggressive targets we put in November 2021 or March 2025. That strategic shift involves significantly more risk than this latest one, and yet we still delivered on the previous one despite headwinds like Omicron, Ukraine, Middle East wars, double-digit inflation, and consumer confidence below pre-pandemic levels. So the market should have no doubt that we will again meet or exceed all of our long-term plan targets. Furthermore, the current strategy is more conservative and designed to ensure future growth, building upon the existing solid foundation. If you could please move to Slide 14.

We believe there is a significant disconnect between our performance and our valuation. In terms of the implied multiples at current prices, we are trading at 4.4 and 4 FY '26 cash EBITDA and adjusted EBITDA. The opportunity, if we apply the average multiples of other OTAs or B2C subscription companies, they trade at roughly 8.3 and 11, respectively. So there's a massive upside potential as we hit the lowest point of our investment plan in FY '27 and accelerate thereafter. Please turn to Slide 15.

We think it's important to highlight that we are not alone. Other successful subscription companies like Netflix broadened their business, but yet it caused a share price decline, and then the share price rerated as the company executed on their plan. Again, we have a track record in 8 years' history of doing this. If you could please turn to Slide 16.

In sum, we are delivering a much better business, and we believe we are significantly undervalued. We are achieving higher growth with a 15% to 20% Prime member CAGR between FY '27 and FY '30. We are seeing higher customer lifetime value and stronger loyalty with a 10%-plus increase in NPS. By FY '30, 66% of our volume will be diversified away from the core European flight market. So we're inviting you to join us as we believe the current share price is significantly undervalued as we execute this final stage of becoming the world's preeminent travel subscription platform. The market is currently using conservative assumptions and high discount rates, valuing us at an implied 6.4x EV to cash EBITDA for FY '26, well below the 8.3 and 11x average for global OTAs and B2C subscription businesses. The onetime cash unwind is planned, but we are still guaranteed to get the cash. Growth will accelerate, and the valuation gap represents a massive upside for investors who recognize the strength of the world's leading travel subscription platform.

I will reiterate once again, this is a high conviction move based upon solid data from extensive time of running this business and not a defensive move. It was a change to a higher growth strategy done from a position of strength and confidence. And I will conclude by saying that we will continue the share buyback as we are committed to shareholders' returns. If you could please turn to Slide 17.

A proof of it is that we repurchased $23 million in shares this quarter, with $100 million committed from October 2025 through September 2027. We have already amortized 12 million shares. That's 9.4% of the share capital. And at today's share price, 24% share of eDO's market capitalization is pending to be repurchased between January 2026 and September 2027. This represents a yield to our shareholders of around 33%. There are very few companies out there doing the same.

This concludes my closing remarks, and I will now pass it back to David.

Thank you, Dana. With that, we will now take your questions.

[Operator Instructions] Should we not have time to respond to questions from the webcast, the Investor Relations team will make sure those are answered afterwards. Now I'm going to start reading the questions. The first set of questions comes from Carlos Crevigno of Banco Santander.

The first one says, how has your access to Ryanair's content evolved over the last 3 months? I'll take it.

[indiscernible] Ryanair, this situation is similar to the one that we announced back in November 2025, the last time we spoke. We still do have access to Ryanair, albeit at significantly lower levels than what we've had historically. I want to really point out this does not affect our new strategy plan, as we have derisked this plan as we explained in November '25 and use much lower assumptions. We are absolutely 100% focusing on our growth plan and really making this fundamental transformation switch from annual to annual commitment with monthly, quarterly, and growing in all of the new markets and the new product categories, which in turn has real upside for shareholders.

The second question from Carlos today is, could you comment on initial progress of Prime introduction in your new markets? I think this one is as well for you, Dana.

Sure. Let's see. Let me take us back to what we said in November 2025, is that we've been in these markets now for 12 to 18 months. And we know absolutely what the results are. And this is no different than having run Prime for actually over 80 in so many other markets. Now in these specific markets, the test -- sorry, the results are positive. We've concentrated on 5 key countries. And all of them today continue to perform extremely well as planned and as announced back in November as well, but even what we've seen over the past kind of 1 to almost 2 years now. We see very significant growth. We see very good attachment. We see very good NPS. We see very good LTV to CAC. All of our key metrics are absolutely on track.

The next question comes from Luis Padrón de la Cruz of GVC Gaesco, and it says, when you use OTAs ratios to your own valuation, you assume that OTAs are well valued, undervalued, or overvalued at current market prices.

I'll take that one. We actually made no judgment in that assessment as to if either the OTAs or the B2C subscription companies are undervalued or overvalued. We're just taking a view of what we think should be at the very least a floor valuation to ourselves, to eDreams. And if you notice, we take the lowest point in our projections to act as the driver of the valuation. We're taking the fiscal year '27. So the worst possible year that we could choose, and we're taking the 2 sets of comparables that we have. Even if you take the lowest point, the current valuation of the share doesn't make any sense. If I had done that same graph, I don't know, 1 month ago, the multiples would have been higher. That's to say independent from this. And maybe those multiples increase in the future. That's also independent of this. Even with our lowest point of financial projections, and you apply a multiple to it, the current share price doesn't make any sense. That's the point that we're making in that slide.

We now have a set of questions from Nizla Naizer from Deutsche Bank. The first one says, can you share some thoughts on how you view the threat from agentic AI agents that search, book, and pay for travel on behalf of individuals. Would you consider also launching an app within ChatGPT?

Absolutely. So let me take it. Overall, we believe that we're well-positioned for this, and I'll explain why. But I can understand that from a broader context, even though Nisla didn't actually use this, there's other questions as well from investors that say, are you concerned about LLMs, disintermediating, et cetera. And so let me kind of cover Nizla's and the broader question here. And in fact, I'm also going to weave into my answer how we even see opportunities within this for us. So let me cover 3 things or 3 parts to this.

The first part would be around complexity. It's really critical to understand how complex the business actually is. There are huge amount of technicalities like different IATA licensing, financial agreements -- sorry, financial guarantees, complexities and servicing, including delays, cancellation, amendments, refunds, different payments, et cetera. Remember also, there's post bookings, prebooking, people can be in airports, et cetera. There's huge amounts of complexities within there. And it's really important to focus on the key buying criteria of a customer so that they feel delighted on that. And there's a lot of price and non-price things within that in there. Now that complexity is extremely difficult to get right even from a price point of view, for an LLM. And that is where it really plays to, in essence, our advantage, but on all the non-price, all the technicalities, complexities, it really does play to us.

Let me just give you some simple examples on this. So you see lots of airlines are not even set up to offer advanced booking and post-booking capabilities. And even the large, let's say, call them legacy carriers also struggle to offer a seamless online booking flow. And we have built a business by offering a better user experience. When you look at the NPS of us versus anybody else, we have the best in the industry, and there's a big delta between us and everybody else. And we're years ahead. And we do that already, already today by using AI and agentic AI. Many of you that have known us for a while know that we were one of the first companies over 10 years ago investing in AI, and we leverage it. Let me just also make the statement that, look, we've heard this hype about blockchains are really going to disintermediate us. Voice assistants are going to disintermediate us. Google, in general, is going to disintermediate us and not only travel, but in all other industries. And it's simply not true because people don't appreciate the amount of complexity and making certain that you meet the consumers' key buying criteria for it and do it in a better way than anybody else.

The second part to this equation is around distribution and how an LLM and the business is monetized, which again relates to the concept of lifetime value of a customer. Now the LLMs need to make money. Many of them actually don't today. And the proven monetization model is one that Google has used for search. And most of them have said that they will pursue a similar type of model as well. And so that means that they'll pass on the transaction to a merchant like an OTA, for example. And so in this, let's say, emerging environment where the LLM passes on the transaction, a new option will be set up. Now we have subscription, and we have a better consumer proposition and higher monetization per customer. And so that means that we're able to outcompete most players in this distribution race. We see this, in fact, as playing more to our strengths for it.

Lastly, consumer. We have a cutting-edge platform, and we have the high levels of customer NPS, I mentioned. So what that has also translated into when we focus on the key buying criteria of customers, we have created new and unique products and offerings that either very few or in many cases, no one else in the industry does and create. And so that takes it one step further to even delight and provide even more value to customers. I would say just lastly is that our platform, because it is one of the leading-edge AI platforms, we are well prepared. We already get traffic from some of the LLMs, and we're absolutely set up to distribute our content through emerging agentic channels, regardless of what those would absolutely be, be it on an app, et cetera. Let me stop there.

The next question from Nizla Naizer is, can you give us an update on the rail product offered within Prime? Has this helped drive engagement and customer acquisitions already?

So let me take that, David. I think rail is absolutely performing very well for us. It's fully rolled out in Spain. There's also on our plan to do even more feature functionality changes because we think that we can actually create even more competitive advantage, even more barriers to entry, so to speak, even more stickiness and unique differentiation with our rail product in Spain and other countries. But already today it is highly competitive. I shared with you in November about how we're doing from a distribution and capturing customers. We're doing very well. I shared with you, I believe, on the NPS, and the NPS is extremely good for it. So overall, it is absolutely doing well.

And the last question from Nizla says, the Prime net adds in January of about 70,000 appear to be quite strong. Was there anything incremental driving this performance? Are you expecting this momentum to continue for the rest of the quarter?

So yes, yes, the performance has been good on the first month of, say, the quarter from January to March, but that was as expected. The seasonality of our business is one in which the quarter from October to December is overall a low seasonality quarter, whereas the quarter from January to March is a high seasonality quarter. So yes, the performance has been very good, but we continue to stick by our numbers of reaching 7.9 million card members by the end of March, which is 600,000 net adds.

The next set of questions come from [indiscernible] of Al Maria Funds. The first question says, looking at your strategic growth plans through fiscal '30, the cash EBITDA margins imply that you're still investing for Apple growth in fiscal '30 without providing official fiscal '31 numbers, and you talk at a high level for post fiscal '30 growth. How does a new plan with expanded markets and services compare to the previous post-fiscal '30 plan?

So let me remind first that what we have said. And what we have said is that from fiscal '28 to fiscal '30, we will grow the Prime member base by between 15% and 20% per annum. That is between 1.5 million and 2 million net adds per annum. and that we will grow the cash EBITDA by 33% per annum over that period. So as you can see, the cash EBITDA is going to grow more than the Prime member base. The reason for that is that as we incorporate a lot of new year 1 members in all of the areas of expansion that we're going into the new geographies, the new products like train, those in the first year have relatively low margins. And then when they go into the second and the third year, they come to much higher margins. So the same way that it happened in the cycle from 2021 to 2025, in which you saw top-line volume growth and you saw a much higher increase in the margins that compounded and get you much higher absolute EBITDA growth, you're going to see that as well in the cycle from fiscal '27 to fiscal '30.

Now you're asking about fiscal '31, now I get into the heart of your question. You're going to have in fiscal '31, still high top-line growth. I'm not going to venture a number, but you will still be in the double digits for sure. And you will have, at the same time, a continued expansion in the margins. We have said that the margins will go from a 15% cash EBITDA margin in fiscal '27 to about 23% cash EBITDA margin in fiscal '30. For fiscal '31, you should continue to expect an expansion of the margins. So you're going to have, again, a growth in EBITDA in '31, which will be higher than the top line growth with an expansion of the margin.

The second question has already been answered. It was about AI. The third question says, eDreams headcount is up 5% year-over-year. This is obviously to support future growth. There is a narrative that people in technology positions can be replaced. Can you talk about your experiences with this and thoughts on continued headcount growth to support the growth of eDreams?

I'll take that. I think if you look again, there's a very useful parallel in the cycle from '21 to '25 and how we executed that and the way we're going about the execution of this upcoming cycle. In the process going from '21 to '25, we went from 2 million members to 7.25 million members. And in order to achieve that growth and go to all of the markets in which we expanded Prime, we increased the headcount from roughly 1,000 employees to about 1,800 employees. So that's an 80% increase in the headcount. We're now going into a cycle in which we're going to go from 7.5 million, 7.6 million, like we were a quarter ago to more than 13 million members. That's actually in absolute and in percentage higher than the growth from 2 to 7. And we're going to do it by increasing the headcount, like you're saying, only by single digits.

That tells you that the leverage that we're getting from the new AI technologies that facilitate the coding make our software development workforce much more productive than what it was before. So absent that improvements in productivity, we would have had all other things being equal, to increase the headcount a lot more. So you already probably saw a press release that we did, I think, a few weeks ago, in which we let the market know that already, as of today, 30% of the software code that we put into production has been written by AI, supervised by a human, but it has been written by AI.

The fourth question says, in December, the Italian Competition Authority fined Ryanair EUR 0.25 billion for withholding content from OTAs and degrading the OTAs, including eDreams. Where are you at with Ryanair content? Does this ruling help speed up getting full access to the content? And lastly, the Italian authority unearthed evidence that the Ryanair CEO, in communications to the Board and shareholders, blamed their sales declines associated with blocking OTAs on a boycott from the OTAs and not an action taken by management. Do you think there will be any ramifications for Ryanair given this evidence unearthed by the Italian Competition Authority?

So let me take that. So I think I mentioned in terms of the access for Ryanair continues to be volatile. But I also want to just highlight to everybody, again, our results no longer depend upon Ryanair's meaning hitting our guidance, as we've derisked that in our projections. Now in terms of the question, the AGM ruling, yes, does confirm that Ryanair used massive disparaging campaigns to coerce OTAs into restrictive agreements. It's important to note that eDreams maintains its legal right to distribute flights without such agreements, and this has been confirmed by European high courts.

In terms of the denigration, as you may know, we have secured a significant legal win with an unfair competition condemnation against Ryanair in Spain, and we will continue to defend our business and seek enforcement of the ruling. At the heart of our business, though, is we have access to Ryanair on a volatile basis. We are absolutely on plan and derisk our plan. And we have a consumer-led business, which we've demonstrated again and again that consumers hold us in really high NPS and our existing base of customers, we have demonstrated and shared data repeatedly with investors and analysts that Ryanair-like customers stay with us irregardless of whether we have full access or not of Ryanair and that they have extremely strong retention rates, renewal rates and satisfaction Prime.

Now obviously, in terms of the ramifications of the evidence that you talked about, we've commented on those when the ruling came out, and we'll continue to monitor closely the situation to see if other authorities or anybody else takes actions on them.

The next set of questions come from Guilherme Sampaio of CaixaBank.

The first one says, do you still see no changes in churn or bad debt in the movement to a more phased payment scheme? I'd say that what we have seen in the 3 months since November is perfectly in line with the results of the test that we conducted for a period of 2 years. So no news. The second question from the same analyst is there are EUR 4 million nonrecurring items booked in the Q3 on those attached to LTIP. Could you provide more detail of the nature of this? And what is the level of nonrecurring costs that we should expect for fiscal '26? This EUR 4 million are tied to legal proceedings in Germany. There's a note that describes them. It's note 22.14 in the financial statements. So for full details, you can go in there. These are nonrecurring in nature, and you should expect that the level of nonrecurring items in the Q4 would be in line with other quarters, Q1, Q2, et cetera.

Let me go now to the next investor. The next investor is [indiscernible] from Barclays. Could you touch on average order basket trends in the quarter? And any color on current Prime booking volumes, it would be helpful.

Look, I would separate the 2 things. On the one hand is the booking volumes of the Prime members, and those continue to evolve according to the historical track record and in line with the increases in the Prime members. A different aspect is what we call the average basket size. And what we see in the comparison versus the past for this quarter is that we see a continued decrease in the average basket size. There are a couple of elements in the in which we are noticing changes in behavior from the customer. There is less percentage of the bookings on intercontinental routes, which are migrating to continental routes. So those are, if you want to simplify, Europeans preferring to go to European destinations as opposed to cross the ocean or going to Asia, let's say.

And then on the other hand, what we see as well is more occasions in which people break down the return flight from the original flights, and they book, let's say, 2 one ways instead of aggregate, and they disperse those in time, and that also affects the average basket value of each one of the individual bookings.

The next set of questions, although one is already answered. So the next 2 questions come from [indiscernible]. The first one says, can you provide more color on churn for Prime members and give us an idea on the split of monthly versus annual members, new versus existing Prime members, and number of products used by members?

Well, that's a rather long question. Let me try to take it in a fashion. The churn we don't disclose, but there's nothing new about the churn of the Prime members. In terms of new versus existing Prime members, of course, in a period in which we show less increase in the net adds, like this year, which we're going to have 600,000 net adds versus the previous year at 1 million net adds, you have more existing. And you can see that in the progression of the margins, right? The progression of the margins is because you have more members in the year 2, 3, 4, 5, which would have higher margins than the members in the first year.

In terms of the products used by members, let's say, there's no change there in terms of the frequency of the bookings that we see. T

he second question says what metric or trigger would result in the business stopping share buybacks during the expansion phase. I'd say that as long as we continue to see performance in line with our expectations of the plan, so if we deliver the cash EBITDA that we have forecasted, and therefore, the cash flows that follow, there is going to be no change in the share buyback. So share buybacks are financed by the cash flows produced by the business. So as long as the business produces the same level of cash flows, we are going to have the same plan of repurchases. What we are not going to do, I mean, just be triple clear, is to incur additional debt in order to fund purchases of shares. The purchase of shares are funded with the cash flows produced by the business.

Next question from Lazar is actually repeated from the previous one. The next question from Martinez [indiscernible] Capital is what is driving the ARPU decline?

Okay. Let's remember what the ARPU -- how the ARPU is calculated. The ARPU is the cash revenue margin over the last 12 months divided by the average number of Prime members over that same period of time. So therefore, it is a cash metric. So one of the consequences of starting to incorporate into our member base, those that get into an annual subscription, but with monthly payments is that for people that joined, let's say, 6 months ago, we have received 6 monthly payments but not 12 monthly payments, whereas when you had the whole member base being on annual upfront payment, even if they join on day 365 of the period, they still pay you the full subscription fee. So you're going to see a natural softness in the ARPU going until the end of fiscal '27 derived precisely for this. And this is already a guidance that we gave to the market, and we said that the ARPU was going to go to a range between 60 and 65, and then after that would start to increase in fiscal '28 and beyond.

There's another question that says from Cos of Swiss Life. Don't you think that it makes more sense from a stakeholder perspective to buy back your bonds roughly 50 points below par at 8% plus yield level versus continuing share buybacks? Well, I disagree, and the math is not very complicated to do. You point to an 8% plus yield level. I'd say the free cash flow yield from our projections is well in excess of that 8% plus. And therefore, it is a better financial investment to repurchase shares than to repurchase bonds.

The next question comes from Linda from [ Arc ]. It says in terms of maintaining and defending your credit rating, which actions are currently on the table? Among others, would you consider the suspension of share buybacks? I'd say that the rating agencies have just refreshed their assessment on us based on the strategy that we communicated in November. And that strategy included inside the plan to repurchase 100 million of shares over a period of 24 months. So that's already factored in. It doesn't -- therefore, to defend the current rating, we don't need to change the action plan for that.

The next question comes from [ Alice Stack ] of DB. You report 11,000 net adds in the Q3 compared to around 70,000 net adds in January alone from the fourth quarter so far. What reason would you attribute to this inflection in membership growth? Sorry, this is a repeated question. We already responded this question in the set of question from [indiscernible]. The next question from BNP Paribas is also answered. The next question has also been answered. It's a question from Giacomo Fumagamani of Arm. And it says, when you say that hotel performance was weak, what specifically do you mean? Less hotel supply, users changing habits, et cetera?

I'm very confused about the question because we have never said that the hotel performance is weak. Actually, we're very satisfied with the performance of our hotel segment. And it continues to make very good progress. The penetration of how many hotels do we sell for every flight that we sell continues to increase. The amount of customer satisfaction of the members that use the hotel product is superior to the customer satisfaction of those that only use the flight product. So I actually don't know what this investor is referring to.

The next question says, what has been the trend -- is from the same investor, what has been the trend in user base for Prime users in terms of age and user type?

I'll do that. Yes. So first of all, overall Prime pretty much represents the market. So when you try to segment the market and look at, let's say, age distribution or socioeconomics, or you can think about even long-haul, short-haul, et cetera, many different types of things. We pretty much represent the online market with the following exception, we skew positively in a couple of segments and quite strongly in 1 of the 2 in particular. And that's obviously Gen Z. We over skew versus the market and also in millennials as well.

Yes. I'm going to jump over several questions, which are repeated with the ones that have already come up. I'm going over to -- this one is new to Bharath Nagaraj from Cantor Fitzgerald. It says, how is the health of the consumer currently and travel still high on priorities for consumers despite worries about job losses, fears from AI generating job losses, et cetera.

I'd say it's very consistent with the trends that we have seen in the previous quarters. If you look at public data out there that anyone can look at, you see, for instance, the data that IATA publishes on a monthly basis about the number of flights which are booked by people, or you look at another source is Eurocontrol that reports about the number of planes that actually fly in discount. It's another angle of the same thing. You can see that there are increases in volumes of about mid-single digit year-on-year, and that has been consistent over the last 2, 3 quarters. So in terms of leisure travel, I'd say that nothing has really changed upwards or downwards. It is a very resilient category in which people prefer to give up other discretionary expenses before they give up travel, and we continue to see that with the behavior of the consumers.

And the next question is from Serena Mont of Santander. It says the recent legal requirement in Spain for subscription services to inform a customer whether he or she wants to renew or not. Could this have an impact in churn rate in your opinion? Have you noticed some early signals on that?

Absolutely. So first of all, obviously, we're fully compliant with local regulations in each markets where we operate. We're fully transparent. We're transparent with our customers. We have not seen a structural churn deterioration from increased transparency. And I think we've even made comments about how, actually, in the sense our retention of customers is increasing. If you look at our NPS scores also, they continue to increase in these markets, including in Spain. And that all supports the fact that we have a strong offering is valued by customers, and we have as good, if not even better retention of customers than what we had, let's say, a year ago.

The next question comes from -- it's a new question from an investor that already asked before [indiscernible] and it says, can you comment why other OTAs are not following a similar subscription business model?

Yes, absolutely. So let me take that. So there's a couple of things. The first one is that we've been at this for over 8 years. Now in that period of time, there have been other companies that have come into the market and then have exited from a subscription-based business. And I think there's a lot of things that one really needs to do in order to get it right. And you've seen the NPS is very high for us. And you've also seen that our margins are good in the first year when you acquire a customer initially, and you have the CAC, obviously, the margins are very low. But assuming you have a really strong, good proposition, then you get into the year 2 plus, where you have very good margins. And that's what you've seen. And you've seen that like, for example, in '21 and 2025, as we grew the base of year 2-plus customers as a proportion to year 1, our margins continue to grow, and you even see that in our most recent results. And that also links with obviously the investment phase, as we acquire more year 1 customers proportion than what we had in the past, it does put some pressure in our margins, and then it comes back as we move the proportion of the year 2 plus customers, and we get to higher basis of those customers.

That whole dip or that funding, a lot of companies don't want to go through. They also need to transform their business because subscription is fundamentally different offering, and you have to do things from the different types of, let's say, pricing, marketing, customer servicing, even cash management, every aspect of the company has to be transformed. Now we've done that, but it's a massive company transformation. So these are probably some of the reasons why some companies either have decided not to do it and/or some of the companies that did decide to try to do it have pulled back. David, back to you.

Yes. There is a second question. Can you comment on the mix of products customers use? I understand holiday packages to be more profitable compared to just flights. Where do you see the mix shifting over your expansion phase? Will there still be a high focus on flights? Or is there an expectation that this will evolve over time?

Yes. Why don't I take it? A couple of things. One is that we're really a consumer-led subscription-led consumer business. So we focus on that individual consumer. And so the most important driver for us is obviously the number of members, and then obviously moving those into year 2+, which we do very well. In terms of the individual product categories, we don't make, let's say, more money or less money on a certain product category. What we did when we set up our model a long time ago is we said that we're going to set up a model that's very similar to Costco in the sense that you don't try to price really a profit margin into your daily transactions of it. And instead, if I call it the profit pool is your subscription.

Now because you don't price in a profit margin there, obviously that gives -- it meets a key buying criteria of the customer, and it delights them and they'll be coming back and coming back at the end of, let's say, the year period, they'll be more likely to renew because they've been relying on one of their key criteria for it. So that's where we've set up our model. So it's important to focus much more on the NPS that we have on the satisfaction of the customers and on the number of customers we actually have.

The next question comes from [indiscernible]. Says you're currently executing a share buyback, of which EUR 77 million remain until September of 2027. Why don't you consider a tender offer at, say, EUR 5? This company should be trading between EUR 10 and EUR 15. This is a very low, low price.

Of course, I agree with you, we've said repeatedly that the share price is severely undervalued. But then let me bring back together a couple of things that I said to separate questions today that I think are going to help you to understand the path that we're taking. The commitment to invest EUR 100 million over a period of 24 months is one in which we, let's say, face the repurchases with the production of the cash flows. So we first generate the cash flows, and then we invest the cash flows. And another thing that I've said today is that we do not intend to increase debt to fund repurchases of shares. So if we wanted to invest tomorrow, EUR 77 million, we would have to incur that to then do the tender offer and then repay the debt over the next 20 months or so as we generate the cash flows. That's the path that we said that we are not comfortable taking. So we will continue to buy progressively according to the generation of the cash flows.

I think we're out of time. Thank you very much for a lot of interest in the business and joining our webcast today. Before we conclude the call, I would like to inform you that on Thursday, the 28th of May, we will be hosting our conference call for the full year 2026 results presentation. In the meantime, we will be very happy to receive your questions via our Investor Relations team or in the investor e-mail address, which is [email protected]. Have an excellent rest of Thursday and rest of the week, and looking forward to speak soon. Thank you.

Good afternoon, everyone, and thank you all for joining us today for our second quarter fiscal year 2026 results presentation for the 3 months ending 30th of September 2025. [indiscernible] David de Roz, the Director of Investor Relations [indiscernible]. As always, you can find the results materials, including the presentation and our results report on the Investor Relations section of our website. Let me inform you that today's presentation will be a little longer than usual as we discuss our new quality strategic plan and our financial outlook for the 4-year period.

I will now pass you over to Dana Dunne, our CEO.

Thank you, David. Good afternoon, everyone, and thank you for joining us. Today, we're going to discuss 3 things: first, we will do a brief update on our first half year results of FY '26, which are on track; second, we will share our new 4-year strategic plan in which we accelerate significantly [indiscernible] growth and further diversify and strengthen our business; and three, we will discuss the immediate headwind that is hitting us, which is right there that is recently intensified their OTA blocking efforts.

On today's call, David will take you through the brief update of the first half of FY '26 results. I will then take you through the key drivers of our new 4-year strategic growth plan. David will follow with the immediate headwind, financial implications and our financial outlook for the new long-term 4-year guidance. I will then share some closing remarks.

Now I'll pass it over to David, who will take you through our first half FY '26 results highlights.

Thank you, Dana. If you could now please turn to Slide 5 of the presentation, I will take you through the key highlights of our results. In the first half of the fiscal year, eDO continued to show strong performance. Our prime members grew 18% reaching 7.7 million with EUR 457,000 added in the first half. Cash EBITDA reached EUR 94 million for the semester, growing 16% year-on-year and growing the last 4 months margin by 7 percentage points in one year. And we remain committed to shareholder returns. In the first half, we invested EUR 32.6 million in share repurchases and year-to-date, we have canceled 5.98 million shares, that's 4.7% of shares outstanding.

If you go please turn to Slide 6 of the presentation, I will take you through the key highlights of our current [indiscernible]. In the first half of fiscal '26, the prime model continued to show that it is the engine of our growth, and we saw significant improvements in profitability, driven primarily by the increasing maturity of our Prime member base.

Looking at Prime's impact on profitability and the drivers behind [indiscernible], our cash margin [indiscernible], a key measure of profitability grew by 10%, reaching EUR 144.2 million. This shows that our business is not just growing, but each transaction is becoming more profitable. This improvement is due to the maturity of our Prime [indiscernible]. As members stay with us longer, their profitability grows, which is evident in the 15% increase in cash margin or profit for Prime and its margin increasing by 6 percentage points over the past year. This is having a positive ripple effect on our entire business as our overall cash EBITDA margin improved by 5 percentage points from 22% in the first half of fiscal '25 to 28% in the first half of fiscal '26. Cash EBITDA for the semester reached EUR 94 million marking a 16% year-on-year increase.

Looking at revenue performance. In the first half of the year, we have observed a few key changes in our revenue margin. While our overall revenue margin increased by 5% compared to the same period last year. Our cash revenue margin saw a 6% decrease. The shift is primarily due to a 20% growth in Prime revenue margin, driven by an 18% increase in Prime numbers. However, this growth was largely offset by a 22% planned reduction in non-Prime revenue margin. [indiscernible] for the Prime segment grew by 2% versus the first half of the last fiscal year. While member growth was a positive factor, it was offset by a test of monthly subscription fees for a subset of our customers.

As we said in our results call on the previous quarter, the increase in Prime deferred revenue was again positive for the second quarter as we decrease the sample size of the test of Prime monthly payments. The 6% decrease in overall cash revenue margin was due to the planned decline in the non-Prime segment.

Let me pass it over to Dana, who will take you through key drivers of our new 4-year strategic growth plan.

Thank you, David. Please turn to Slide 8 of the presentation. I will take you through the key drivers of our new 4-year strategic growth plan. As you know, we've been running a number of tests of monthly and quarterly payments and the results are very positive. We have identified a number of use cases in which a monthly or quarterly payment of the subscription results in higher lifetime value and therefore, makes more sense than charging an annual fee upfront. We have also identified that monthly payments are enabler for future growth along 2 additional dimensions as it allows us to pursue growth opportunities we are offering new products incompatible with a single annual payment and additional growth opportunities in middle-income countries that are more receptive to monthly payments.

In summary, this will lead to more top line growth in the next 3 to 5 years, alongside a short-term investment. I will now take you through the areas of growth sharing the results and the opportunity to create more shareholder value by investing in accelerated growth.

Please turn to Slide 9 of the presentation. The first key strategic driver is evolving our payment model. Customers have clearly told us that they generally prefer monthly payments over annual wise. Our survey data which is based upon 1,740 customers confirm this, 49% preferred monthly payments, while only 25% annual payments and 25% have no preference.

We also have seen other subscription businesses move increasingly to monthly as well. For example, over the past several years, Amazon, Adobe, Microsoft 365 have increasingly moved from annual to monthly payments, to name a few companies. As a result of this customer preference, we have been testing monthly and quarterly payments for several years, across 10 Prime markets and 5 products. That means flight, rail, accommodation, price freeze and Prime stand-alone, in order to see how to make this work given the uniqueness of travel and Prime.

Please turn to Slide 10. The results from our tests are compelling showing customers clearly prefer monthly quarterly payments over annual wise. NPS, the Net Promoter Score, is over 10% higher with monthly payments and conversion from free trial to a paid member is 8% higher based on data from June 2024 to September 2025. This is a clear message, consumers prefer monthly.

Please turn to Slide 11. With the introduction of Prime of monthly and quarterly payments, we unlock new growth opportunities for Prime across product and geographic expansion for new products. This model is a better fit for rail customers due to lower average basket values of rail bookings and a higher purchase frequency versus flights. Consumers clearly prefer this for lower ticket items.

For new product expansion, eDO offers some products in unique ways such as price freeze. These products have high customer satisfaction levels. Now with the smaller monthly or quarterly payment, the value perception is much higher. For new markets, smaller monthly payments are also better suited for growth in new middle-income economies, increasing prime penetration in these markets. In sum, monthly and quarterly payments facilitate additional growth opportunities.

Please turn to Slide 12. Furthermore, the monthly quarterly payment model demonstrates superior results. In positive scope, the aggregate lifetime value is higher by 13% compared to the annual payment option. In summary, we will roll out monthly and quarterly payment models where LTV is positive versus annual payments, which is true in a majority of scopes for new member acquisition.

David will speak with you in the financial section about the implications of the onetime unwinding impact of the cash deferred, which has a onetime negative consequence on our cash EBITDA.

Please turn to Slide 13. Geographic expansion is our second key growth driver. We will invest in new prime markets beyond our initial 10 countries to accelerate subscriber growth. We invested Prime in 14 new markets in the last year, and the results are positive, showing further growth opportunity. The new international markets showed promising metrics compared to our European top 5 markets, including higher Prime household penetration in year one, NPS and Prime attachment rate.

Please turn to Slide 14. Based on these promising results, we will focus on scaling Prime further geographically. Our strategy involves fueling growth in the most promising markets through further traffic acquisition and improving product, price competitiveness and operations in the most promising new markets. Our first phase will focus on growing a set of markets that showed great potential including Mexico, Argentina, the United Arab Emirates, Poland and South Africa.

Please turn to Slide 15. Our third driver of growth is product expansion, starting with rail. We are entering the attractive European rail market, which is largely growing at over EUR 40 billion. This will complement our leading flight proposition to drive subscriber growth and increase member engagement. Europe has one of the most dense, high-speed rail networks in the world and it is opening up. Already, the rail market has taken a huge share from the short distance flight market, which provides good upside for us. For example, the Paris Bordeaux route, the rails market share is now 90%. That's 90% and Madrid to Barcelona is now 72% rail. Europe is further liberalizing its rail market with a number of new rail providers entering across countries. All of this provides exciting growth opportunities.

Please turn to Slide 16. Prime gives us a unique competitive advantage to succeed in this market over rail-focused transactional competitors. Prime generates 4x more revenue margin compared to other transactional rail OTAs. This, in turn, gives us more revenue to play with to win versus transactional businesses. In over 95% cases, [indiscernible] cheaper prices than rail operators for rail OTAs. Moreover, we see higher conversion rates compared to flights and higher Prime renewal rates as the number of products increases.

To Prime, our leading technological platform, coupled with our advanced AI capabilities, our skills in acquisition and marketing and our leading European OTA brand makes eDO a natural winner in this market.

Please turn to Slide 17. I want to dedicate a word to hotels since we have said this is also a priority. Since the Capital Markets Day, we have made significant progress in our hotel business proposition and further invested in hotels for growth. The global online hotel market is at EUR 293 billion and has an OTA penetration of 62%. We're already seeing promising results. Our unique visits to hotels are up 42%. Our LTV of Prime hotel repeat customers has increased by 33% and Prime hotel per flight booking is up 33% year-on-year.

In summary, in hotels, Prime is a unique offering with superior price proposition, excellent customer experience, wide inventory selection and growing and flexibility. With over 7.7 million Prime members, Prime for hotels gives us increased retention of Prime customers as we move from being a flight-centric proposition and come [indiscernible] to an overall travel-centric one and one that is unique in its subscription offering.

Please turn to Slide 18. Finally, as most of you know, we are one of the leaders in Europe in AI. With this new plan, we are leveraging our AI leadership to support this accelerated growth. We have already achieved master scale adoption of Generative AI with a run rate of well over 400 billion tokens per year. Tokens are a number of words or data chunks being processed by all of our Generative AI use cases, and this is a key enabler and a key benchmark for how sophisticated our company is in Generative AI. This level of AI consumption places us clearly amongst the leaders of AI across the global e-commerce industry.

If you could please turn to the next slide, I would like to share with you some of the most current use cases across the organization. In customer service, our generative and agentic AI solutions are revolutionizing how we serve customers, enabling end-to-end agentic automation of even complex tasks such as canceling and booking. In IT, we've seen a step change in productivity on the back of our leadership in AI adoption, with more than 30% of our code now being AI generated.

And across the business, we are seeing how [indiscernible] complex processes can be automated through AAP. For example, AI is now automating the management of our in-house dynamic pricing engine, which previously required scarce data science expertise.

Now let me pass it back to David, who will take you through our immediate headwind, the financial implications of the plan and our financial outlook for the next new long-term 4-year guidance.

Thank you, Dana. Now let's address the immediate headwind hitting our business. If you could please on to Slide 21. Ryanair has recently identified their OTA blocking efforts, which is increasing instability in Raynair [indiscernible] coverage. Since mid-September, 2025, our average daily booking for Raynair have been reduced by over 80%. It is important to stress that this has impacted our new customer acquisition, but not the churn of our existing Prime customers. Customers who booked our Raynair flight demonstrate a similar renewal rate to the average of the company as they find alternative lines and maintain a similar Net Promoter Score.

If you could please turn to Slide 23. Given the investment for accelerated growth and the impact of the headwind, we're issuing a new long-term financial guidance. In Prime members, despite the headwind, we are accelerating growth, we will deliver 40% more Prime subscribers than the market consensus by increase by year 3. In the second half of fiscal '26, we will be affected by the recent stability in Ryanair [indiscernible] and we will grow our Prime member base in the whole fiscal year by 600,000 members. In fiscal '27 as we anniversarize the impact of the Ryanair stability, we would also grow our Prime member base by another 600,000. From fiscal '28 onwards, when our new investments start to pay off, we will grow our Prime member base at 15% to 20% per annum to reach more than 13 million members by fiscal '30, dramatically more than the analyst consensus of only 4% per annum and more importantly, achieving record levels in annual net adds by adding in the range of 1.5 million to 2 million new Prime members per year between fiscal '28 and fiscal '30.

Regarding the ARPU of Prime, average revenue per user, due to the introduction of monthly and quarterly payment installments, our ARPU will temporarily reduce in fiscal '26 to fiscal '27 to the low mid- EUR 60 and is projected to recover to approximately EUR 70 by fiscal year '30. In terms of the Prime deferred revenue, it will reduce to an amount of negative EUR 18 million in the aggregate of fiscal '26 and a negative EUR 6 million in the aggregate of fiscal '27 and then contribute over EUR 30 million positive per year from fiscal '28 to fiscal '30.

If you could please turn to Slide 24. We will have a period of investment during the second half of fiscal '26 and the first 3 quarters in fiscal '27, and we will start showing growth from the fourth fiscal quarter of fiscal '27 in cash EBITDA. Cash EBITDA will come down to an estimated EUR 155 million in fiscal '26 and EUR 115 million in fiscal '27. We expect the investment period to be 5 quarters so cash EBITDA will start growing year-on-year by the fourth quarter of fiscal '27. You can see the largest investment is a timing impact over the move to monthly and quarterly payments, with the onetime change in deferred revenues, which happens over the next 12 months and its impact on cash EBITDA. From fiscal '27 to fiscal '30, we expect cash EBITDA to grow by more than 33% per annum, reaching over EUR 270 million by fiscal year '30.

Now let me pass it over to Dana, who will do some closing remarks.

Thank you, David. Let me start by saying that I've been in this business for 13 years, and I've never been more excited about the future we eDO. We're going to grow this business more rapidly and further diversify and strengthen the business and its attractiveness to customers. With the move to monthly, we will go to new product categories, such as rail and other lower value ones as well. We will go to more geographies, some of which are lower income ones than in Western Europe, and we will continue to lead in our investments in skills in AI, which creates lots of value for customers that of eDO. .

Let me be clear, separate from this, we have a headwind, which we have [indiscernible] by minimizing its financial impact in our new guidance while we build an even stronger and more diversified business.

Now please turn to Slide 26. I'll follow by saying we've done this before. We have transformed the business dramatically in the past and at the same time, delivered on our long-term guidance. For instance, in our last 3.5-year plan, we set very ambitious plans, and we delivered. Well, we grew our Prime numbers from less than 2 million in 2021 to 7.25 million in 2025. We improved our cash EBITDA from EUR 3 million to EUR 180 million. We deleveraged the company from 8.6x to 1.7x. We transformed our business from transaction to subscription business with now 74% of revenues and 88% of cash marginal profit from subscribers, whereas it used to be 38% and 15%, respectively and we created a stronger consumer business. In sum, we have a team that delivers.

Please turn to Slide 27. In closing, despite the negative headwind, we are building a much better, much stronger business. We will deliver higher growth. We will deliver 40% more Prime members than market consensus by FY '30. We will deliver a higher customer LTV. The new payment model results in a 13% higher lifetime value for Prime. We will deliver stronger customer loyalty. The new payment model delivers over a 10% increase in NPS scores and increase customer stickiness. We will deliver more diversified business. 66% of eDO's volume will be driven by nonflight products and flight outside of the top 5 European markets in FY '30. This transforms us from a fundamentally European flights business to a global travel business.

And we will continue with our share buyback. We have committed EUR 100 million for the next 2 years to continue our share buyback program. Over the years, we have demonstrated resilience, transformation and an unwavering commitment to delivering shareholder value. Today, we are strengthening our foundations, not just for the next quarter but the next decade, transforming from a mainly European flights to a global travel business, trust in our track record and our vision, securing a sustainable and highly rewarding future for all of us.

Now let me pass it back to David.

Thank you, Dana. With that, we would now like to take your questions on the webcast. [Operator Instructions] Now let me go to the first set of questions that comes from Francisco Ruiz, the analyst of BNP Paribas. The first one is, can you put an example on monthly payments similar to what you did with the EUR 55 annual payment? If I book a flight to New York from Madrid, and previously, I get this kind of EUR 30, will I get this discount as well under the monthly one?

Good question. Absolutely. And the answer is yes. It is exactly the same value proposition to the customer. The only thing that is changing is that yearly, you collect the subscription fees in one time, that's the past. And at the beginning of the program, while on a monthly model and the same for quarterly, we collect the monthly subscription fees with a lower price than the yearly one, of course, every month during the course of that year. But in terms of the benefits now, not just in a sense, the cost to the customer, the benefits of the customer stay exactly the same.

And in fact, if I just highlight this opens up a lot of new customer segments that we can go into by doing this. And by doing that, we're going to enter into rail. And so all of our existing customers will get rail within their subscription fee as well. So it's a win-win.

The second question that comes from Francisco Ruiz as well is, what is your opinion on the Google AI tool Canvas in your business? If this is not a threat, could you help us to understand why?

Absolutely. So first of all, as all of you know, we're one of the leading AI companies across any industry within Europe. Many of you also know that we have a small business in the U.S., and there are far larger travel companies in the U.S. than us. Google's announced these partnerships with the largest travel companies in the U.S. and we look forward to participating in these opportunities from a European point of view.

As you can see in the new plan, we're also investing in AI to keep this leadership and we view AI search results as a potential new channel or variation of existing channels through which we can acquire customers. In fact, if you look at the new announcement of the new model being out Google stated, especially that they're not becoming a transactional company. They're passing off the customer through its partners. So we absolutely welcome this and welcome it from a European point of view.

Okay. The next set of questions come from Carlos Trevino from Santander. The first question is, could you elaborate on the nature of the investments in the second half of fiscal '26 and fiscal '27? Could you provide the breakdown between fixed costs and verbal costs?

Well, let me take that one. And let me actually start from the from the second half of it, which is the one about fixed cost or variable cost. I can tell you the fixed cost, and you can actually go to the variable by difference, right? The amount of fixed costs that you should expect towards the end of the forecast period. So by fiscal year '30 is about EUR 140 million starting from the level that you have seen today, which we're doing now approximately EUR 25 million, EUR 26 million per quarter in the first 2 quarters of this year. We're going to increase somewhat the number of members. There's a lot of new developments to actually pursue in the business and going into all of those new verticals, going into new countries, going into new products like rail, going into smaller ticket items.

So if we -- like we said at the time [indiscernible] the factory, we believe that, that, coupled with the enhanced productivity that we are seeing from AI, like we have shown you earlier today, more than 30% of our code is right now generated already. We feel that we can deliver that speed in the number of new things that [indiscernible] to be produced.

Now about the other size of the nature of the investments, that is some of the investment that is also on the variable cost nature. When you go into, again, new verticals, you don't have the advantage of an established customer base that which results in higher cut than otherwise, right? At the end of the day, the cost of acquisition in one of our established countries is the blended mix of how many people come to you direct and those are either former transactional customers of you in the past or friends and family referrals of the existing Prime members. So when you go to a new country in which you don't have a meaningfully established base and you go -- or you go into a new vertical in which you're acquiring customers, [indiscernible].

And then over time, it will decrease to more normal levels of [indiscernible] you see in a more established business and the more established verticals. That's the nature of the investments [indiscernible] but because you asked about those and with the labeling that we have done in the slide which we run you through the cash EBITDA, let's just remind everyone that the biggest impact by far is the onetime timing difference of collecting monthly from a large portion of our customers from collecting yearly.

The next question from Carlos as well is, will there be any kind of commitment to those subscribers choosing monthly quarterly payments?

Yes, let me take that one as well. The monthly subscription [indiscernible] that we have is one of installments [indiscernible]. So when the customers join the new program, they actually join a yearly program with monthly payments, but they have a commitment to continue to pay for it in advance.

And last question from Carlos Trevino is apart from the Ryanair no impact, have you seen an increase in your churn rate over the last month?

The simple answer is no. I compare from the Capital Markets Day to today, churn rates are stable. Moreover, I just want to make the point again because it's a really important one for all investors is that if we look at customers that had a [indiscernible] towards Ryanair who have joined our program, we do not see a change in the churn rate of them at all over the past year, over the past 2 years, et cetera. And what in fact happens is many of these customers simply take another airline.

The next set of questions comes from Andrew Ross, who is analyst at Barclays. He says what percentage of Prime subscribers on annual versus monthly subscriptions in fiscal '26 and fiscal year '30 year assumptions, will you shift everyone to monthly?

I want to refer you again to Slide 12 of the presentation, where we have a chart that talks exclusively about that. That is a very important question indeed. We will go with monthly on the new markets and we will go with monthly on the new products at 100%. So the rate will be monthly from the beginning, and we would not have customers that joined via rail being annual payments. And then in the existing market, existing products, is approximately 50% that will be on monthly versus annual. And that is a very large part of our customer base, of course.

The next question says, would it be possible to cancel a subscription midway through the year and pay only, say, a few months? Is that not a risk given relatively low annual frequency on the flight side and amongst Prime subscribers in Europe?

So we've tested a number of models over the past number of years. And the model that works really well that you see the results there that you see the MPS increase, that you see the LTV, et cetera, is a monthly program with an annual commitment to it. So therefore, no, there isn't a risk and everything is baked in within our numbers based upon the long duration that we've been running this program in the test.

The next question from Andrew is what percentage of gross bookings from nonflight within the top 5-euro countries by fiscal year '30? .

Well, that's we don't tend to break down the gross bookings even in the actual data. So therefore, there's no point breaking it down for the forecast data, but you can take as a proxy that the majority of the prices, particularly in the part of new products, goes into monthly. So at least the subscription fee -- the subscription fee, again, will be on a monthly basis but the gross bookings themselves come with every transaction. So the goal on the [indiscernible] depending on the transaction.

The next question says, what does this mean for shareholder returns in the next couple of years, leaving leverage will step up?

Of course, leverage is going to stay the same. Net leverage is going to go up from the level of about 1.8 that we have just published today to something in the surrounding of just under 3 or around 3, more or less. I think this -- we start this, let's say, a new cycle of growth from a very solid financial position with the lowest leverage that we have [indiscernible]. That's one of the things that help us to maintain very solid, I would say, as of the return of cash to shareholders with a commitment from us, and it will be EUR 100 million in the next 2 years.

The next question says, will you sign a strategic partnership with Ryanair, given the impact on bookings recently? And why haven't you done this?

Absolutely. So let me explain how our situation is different. And then also, let me explain to you what our criteria is or deal with any partner. First one is where the situation is. As many of you know, we're absolutely leading in technology. And so therefore, we have had access to Ryanair, albeit unlimited. And today, we still have access to Ryanair, but it is dramatically less than what we had before. And we've been very open and transparent with you, but it's not 0, whereas most of the other competitors of us have had 0 because they don't have the platform, they don't have the technology that we have. And so if you have 0, then sign your deal, gives you more than 0. So that's an upside. For us though, that's one starting point [indiscernible]. .

The second one is also in terms of Prime. We are not a transaction-based business unlike the other [indiscernible] out in the marketplace. We are the only subscription one. And that model drives us to certain different behaviors, different decision-making and others. We are very focused not just on getting the business but that's making sure that the customer has a whole good trip that they do another trip, another trip, another trip, and when day 365 comes up, that they renew with us. And that is fundamental about our model and our business. It's unlike a non-subscription-based business. So therefore, we're very, very focused on the end-to-end customer experience, right? So that is our 2 fundamental things that are different when we evaluate deals versus someone else in it.

Now come to our criteria. Our criteria is threefold. The first one is obviously, shareholder value, right? What are our options and which one creates the most amount of shareholder value versus the next option, right? And so we simply dispassionately compare that bit. The second criteria is around the customer experience, and I think I explained to you a little bit more about why that is so important to us. And the third one is about compliance in terms of regulation, laws, rules, et cetera, from Europe. And so we make this passionately that situation. And any deal not just this one but with any partner, that is how we'll make them in the best interest of those 3 criteria.

The next question from Andrew is, which markets are the focus for rail in particular?

Absolutely. So we're focusing first on Continental Europe. And within Continental Europe, the markets that are really opening up as soon as, which is Spain, Italy and [indiscernible]. And by the way, they're at later stages, and we can go to [indiscernible] as well.

Next seems to be the last question from Andrew. He says Expedia and Skyscanner have tried our trains in Europe in the past with limited success, whereas a single product focus from train line seems to be working. What are your thoughts on this? .

So let me take it, David. So first of all, the obvious thing is, I can't speak for Expedia and Skyscanner. Really important to point out, Skyscanner is [indiscernible], which is an absolutely entire different business model, not just from us but from other OTAs. Now Expedia as an OTA is a different business than ours, and I'm not -- was not privy to their results, so I can't comment on.

What I can comment on, we are unique. We are prime. We have a technology leadership. We have a really strong transport brand, and we have been running this for a while and are basing our plan and our actual results. This is not about ideas, but an actual results that we have been doing well in.

The next set of questions come from Bharath Nagaraj, analyst from Cantor Fitzgerald. The first one says, when you say you're planning to enter the railway market, is that by building partnerships with rail travel supplies directly or what is the plan? And similarly, with regards to hotels, remind us again as to how you're growing supply of hotels is that via direct relationships?

Yes, absolutely. So great questions. So the first one, if I take the rail market, absolutely, we are signing partnerships with a number of rail providers on that, and we're going market by market. We also have our platform as well that allows us to get rail content from other parties from third-party providers as well that would have that content.

In terms of -- for hotels, we have [indiscernible] multi -- with hotels, sorry, you're talking about we have almost 200 million hotels on our platform. The hotel market is fundamentally different in terms of, let's say, content and the amount of a number of, let's say, content sources that you need to in order to have a robust business.

Now within that, we've built a platform that is a multi-provider platform. So we get some by going direct to hotels, but then we get a lot from let's say, third parties, and we have relationships with a number of really key third parties that allows us together. And then we've built on top of this a layer that allows us to deduplicate because we'll have -- having so many different providers we're getting duplicity of content. So we need to do duplicated, and we need to figure out which is the best one in order to offer and close that hotel booking for.

The next question is what was the churn when it came to monthly payments, it would have picked up as well right versus annual payments?

Let me take this one. We are rolling out -- I'm going back again to the Page 12 and the Page 11 before that. We are rolling out the monthly instead of annual in those places where the LTV is positive versus yearly, which means that when we do it, the balance between new members that you get or extra members that you get. And the churn evolution is positive overall. .

The next question says, what's the results of the monthly payment model for just air, not including rail?

They're both positive. They are positive for rail and they're positive for flights. In rail, it is a precondition, right, like we have said, rail is part of those type of, let's say, product in which you have lower average basket value and you have more frequency of consumption. And it ties a lot better with monthly installment payments. And in the case of air is, of course, the vast majority of it is sample because that's the one that we were able to as more extensively over a period 2 years.

The next question says, given Ryanair was always against OTA, what have we done exactly since mid-September? Remind us again how much of your group was still Ryanair driven prior to mid-September?

The relationship with Ryanair from a technological point of view has been for a number of years, if you will, kind of like [indiscernible]. They try for us not to access the content, and we go around the hurdles that we put. What they have taken are increased [indiscernible] measures that preclude us from giving a good customer experience to our numbers. And that has increased from September. The possibility that we go around those hurdles is a good possibility like in the past, but we have decided for this forecast to box it in. So that risk forecast that we have shared with you today are not dependent on us going over the hurdles like we have done in the past. .

The next question is from Nizla Naizer, the analyst from Deutsche Bank, and the economics of time still work if the subscription is shorter?

Yes, absolutely. And that is demonstrated by the data that we have shown today that the LTV is 30% higher in the use cases in which [indiscernible], of course, in the ones in which it is lower, [indiscernible] where we're not [indiscernible] and we're keeping only the annual payment option.

And then -- well, the next one is actually a repeat from the previous. And the following one is I think that was repeated as well. We have questions from Chuck Garcia from Schwartz Investment Counsel. He says most of the decline in cash EBITDA, [indiscernible] look to be coming from a decrease in deferred revenue, given the new nonannual prime programs. Just looking at EBITDA, taking the working capital performance of cash EBITDA out of it, what does the change in EBITDA estimate look like, if any?

I think the easiest way to do that is to look at the adjusted EBITDA as opposed to the cash EBITDA. Now you can put together 2 data points that we provided today. The first one would be the expectation of cash EBITDA by the end of fiscal '26 of EUR 155 million. And the second one is that in the aggregate of the year, we expect to have negative EUR 80 million in the change in deferred revenue. If you put the 2 together, you get to an adjusted EBITDA of EUR 173 million. EUR 173 million is almost a 30% increase in adjusted EBITDA versus the adjusted EBITDA we reported about EUR 134 million in fiscal '25. And that evolution is net of all of these timing effects, one time of the change to monthly for a good portion of our numbers.

The next question comes from [indiscernible]

What efforts are being made to reconcile with Ryanair? And what will the financial impact be if the issues with Ryanair can be resolved? .

And let me take the second part, which is more of a financial question, and then Dana can go on the first one. First of all, there's not a lot to say because we've talked enough, I think, about the 3 elements of -- that would potentially underpin a deal with Ryanair. On the financial, it will, of course, be positive, right? And we just don't want to venture how much positive because there is a range of options, right? You could go back to the levels that we had just for September. You could go [indiscernible] and we prefer to talk about our forecast, absolutely boxing in Ryanair so that it's not an impact. If there is an impact, it will be positive versus what we're showing today.

The next question comes from Paul Simenauer from BNP Paribas. Are there other players that may seek to do, what Ryanair is trying to do that create further downside risk to EBITDA guidance?

Let me take that one. So first of all, Ryanair has been consistent about this, that they have been going after this for minimum 15, it's actually been over 15 or like probably 20 years consistently. So in that time, you've been able to see everybody, been able to see the market, and that approach to it. In fact, what they're doing is really counter to the basic fundamentals of fixed asset owners. .

When you look at fixed asset owners and what they do, not just in travel, right, like other airlines or other or hoteliers, but look at theme parks, look outside of even the kind of travel entertainment, leisure industry. There's lots of other fixed asset industries. What you're fundamentally doing is running an auction. And you want to bring as many people as possible to the auction, particularly when you have a perishable asset like you [indiscernible] an airplane that's expiring at certain date. You want to bring as many people as possible. It's not just to sell that seat, not just to fill that kind of theme park, it would be actually to be able to yield manage and push it up and up enough and the more people you bring to your auction, the more likely you are to be able to close out at a higher and higher price. This is exactly what other fixed asset businesses owners do. This is exactly what you see, for example, Disney, with its theme parks, where you see even a semi-fixed asset owner, Apple does this by using so many other types of companies as well on this [indiscernible].

When you look at [indiscernible], we not just as a, let's say, a potential point to bring people to an auction. There is uniqueness in us. And there's uniqueness in primarily because we have Prime. And if you look at our customer base, if you look at our disclosure that we've shared before, is that only 5% of our Prime customers actually go to an airline website. That's 5% go to airline website. So 95% don't. And that is what we bring to the auction. That's where we bring to an airline. That's what we bring to other fixed asset partners.

Now if you look at as another factors that airlines have participated in our Prime Days, have seen about 173% growth in their bookings versus airlines that don't participate in the Prime Days. So again, it just shows the amount of kind of value that we can bring and the collaboration that we do bring to other fixed asset providers.

The next question that we have comes from Guilherme Sampaio, the analyst at CaixaBank. Could you comment on how do you expect the different parts of the LTV on a single customer bases to change with the movement to monthly payments in most subscription models, there is a churn spike around the payment date. Do you see that in your numbers?

Well, actually, we define churn as when people don't take. So yes, it comes around more [indiscernible] on the payment date because when we know if we have a churn number or not because up until that payment date, they can use the service, all of them anytime they want. .

Now on the parts of the LTV, it's a little bit of what we said earlier to a different question. You have an increase in conversion that we have shown [indiscernible] which from visit to a number of [indiscernible] finally joined, there's a [indiscernible] increase. On the other hand, there are certainly different behaviors around the term, but net-net of the 2 things, which are the 2 most important things. You have a 13% increase in LTV for those use cases, again, which the LTV is positive, and we're only rolling out monthly or quarterly payment installments in those use cases in which the LTV is positive.

That is the last question that we have now in the webcast. So with that, I'm going to thank everyone for joining the webcast today.

Dana wants to share closing remarks.

Absolutely. So look, I know that some of you are long, more short-term oriented shareholders. investors with a short-term horizon would, I acknowledge, we prefer that we postponed doing these investments. But let me be clear, as a shareholder, I'm telling you that it is not in the best interest of the long-term growth of the company and of overall shareholders. For the analysts that cover us, we look forward to working with you in helping you understand in more detail the implications for your models.

Lastly, again, as a significant shareholder, I can say this is absolutely the right thing to do. it makes our company far more diversified. And it turns us into a global travel company as opposed to a European flights business, which, in turn, makes us more valuable and attractive to different types of stakeholders. It gives us [indiscernible] customers, which, in turn, makes us more valuable. It gives us much greater growth profile in the coming year for investors, and that's 40% higher than the analyst consensus, which again is very valuable and we will execute this plan while we buy back EUR 100 million of our stock over the next 2 years.

With that, let me pass it back to David.

Thank you, Dana. I echo your words. I'm a significant shareholder as well as significant [indiscernible] shareholder. Before we conclude the call, I would like to inform you that on Thursday, the 26th of February, we will be hosting our conference call for the 9 months result presentation. And in the meantime, we will be happy to receive your questions via the Investor Relations team or the investor email address, which is [email protected]. Have a nice evening. Thank you very much for joining.