BREAKING NEWS – 11.11.2024

In the press release of November 7, 2024, Destination Italia SpA, Italy’s leading Travel Tech company and leader in high-quality inbound and experiential tourism for international tour operators and travel agencies, listed on Euronext Growth Milan, announced the acquisition of 50.6% of Il mio viaggio in Sicilia Srl, a company founded in 2018 as SiciLife and renamed Empeeria in 2022. During 2023, Empeeria recorded a Production Value of € 0.98 mln, reflecting an increase of 103.0% compared to € 0.48 mln in 2022. This growth reflects the success of its digital solutions and its innovative business model, which includes an integrated experiential channel and itineraries using Augmented Reality. The company generated an EBITDA of € 0.05 mln and reports NFP of € 0.18 mln. These results indicate a solid business model, albeit still in a phase of consolidation. In detail, the acquisition was structured through a capital increase totaling € 75.497,50: € 53.927,50 in cash and € 21.570,00 in kind through the transfer of assets tied to the Charming Sicily brand. This mixed approach indicates an investment strategy aimed at leveraging existing brands and digital resources without requiring significant capital expenditure. A strategic element is represented by the call option that Destination Italia may exercise after 36 months and up to 48 months to acquire 100,0% of the share capital of Empeeria. This option allows the Group to consolidate full control over Empeeria, providing time to evaluate the complete integration and the added value that Empeeria can bring in the medium term. The Board of Directors of Empeeria will be composed of three members, two of whom are appointed by Destination Italia (Dina Ravera and Massimiliano Cossu) and one by Empeeria (Cristina Coppola). The appointment of Dina Ravera as Chair strengthens governance, ensuring strategic continuity with Destination Italia’s objectives. For Destination Italia, Empeeria represents a cornerstone for the tourism development of Sicily, a strategic destination. Empeeria, in fact, is transforming the tourism and cultural sectors through a suite of cutting-edge digital tools developed to enhance and promote local excellence by offering new immersive and interactive experiences. One of the pillars of this transformation is their digital platform, designed to gather and present a wide range of unique activities and experiences in the region. Through this platform, visitors and tourists can intuitively discover the most captivating offerings of the area, from cultural experiences to outdoor adventures, and personalize their itinerary. Empeeria has also developed an innovative software, now part of the Hubcore.AI module, which brings a revolution to the management of experiential services. This tool not only simplifies the organization and enjoyment of experiences, but also enables tourism operators to optimize resource management, improve visitor interaction, and ensure a higher quality of service. The acquisition will thus allow the Group to strengthen its offerings with around 300 Sicilian experiences already managed by Empeeria and to further develop new regional presences. The collaboration will also bring significant benefits in multichannel distribution, thanks to integration with Online Travel Agencies (OTAs) such as Get Your Guide, improving the visibility and accessibility of Destination Italia’s experiential offerings. This synergy perfectly aligns with Destination Italia’s mission to bring together local businesses and create a tourism ecosystem that combines local resources with advanced technologies. Additionally, the use of Empeeria’s digital resources, such as Augmented Reality tours, offers a competitive advantage for Destination Italia, meeting market demand for immersive and authentic experiences. Empeeria’s expertise in the sector also allows the Group to connect with Sicilian culture, offering an authenticity that would be difficult for non-local operators to replicate. The acquisition of Empeeria by Destination Italia, therefore, aligns with the Group’s ambition to expand widely across Italian tourist destinations, strengthening its “Glocal Travel Tech” model through digital innovation and the enhancement of local experiences. The significant growth in Empeeria’s financial results in 2023, combined with technological know-how and a strong territorial connection, makes this acquisition a strategic move to consolidate Destination Italia’s competitive positioning. Considering the press release and the significant opportunities that the acquisition may offer to Destination Italia, we confirm our estimates: Rating Buy, Target Price €1.80, and Medium risk.

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