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Spanish Travel Firm eDreams Sees Q2 Recovery

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Spanish online travel agency eDreams Odigeo expects its profitability to improve in the second quarter of this year.

"We reiterate that a downward trend is only expected to last for one quarter, and with a floor of 20 percent adjusted EBITDA margin," eDreams said in a statement to the Spanish stock exchange regulator.

It said the EBITDA margin would recover from the second quarter of its fiscal year 2014-2015.

On Monday the stock dropped by more than a third after analysts cut forecasts after the company warned on Friday of rising competition and other factors that could hurt business.

"We believe that there has been a misunderstanding of the implications that the change in the competitive landscape will have in our business," the online booking agency said.

It said it would take action to maintain profitability above that of its rivals including investing in marketing technology, which would help counter the effect of a change to Google's search algorithm.

It said it would have revenue margin growth for 2014-2015 in the range of high single digits to double digit.

(Reuters)

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