BREAKING NEWS – 21.07.2023

In the press release of July 20th, 2023, Destination Italia SpA, the leading Italian Travel Tech company, leader in quality incoming tourism and experiential tourism for tour operators and international travel agencies, listed on Euronext Growth Milan, announced the results obtained, during the first part of 2023, from online platforms aimed at the B2C market, which the Company acquired following the incorporation of Portale Sardegna SpA. As of July 17th, 2023, the transaction volume of tourist services aimed directly at final consumers amounted to more than € 8.90 million. This value marks a strong growth (+11.0%) of the market compared to the equivalent figure of 2022. The increase in online sales revenues, related to the B2C branch, is mainly due to the growth in demand from the domestic market, which stands at +14.0% compared to last year. Specifically, a preference emerges for domestic travellers compared to destinations such as Sardinia, which marks a growth of +8.0%, and Sicily, with +16.0%. This incremental trend is accompanied by a slowdown, albeit moderate, in demand from the foreign market, which marks a -18.0% compared to 2022. This decline is closely related to the strategic choice made by the Company in 2022, which plans to focus IT development on platforms for the domestic market. The improvement of usability and booking platforms for Charming-branded platforms has been postponed to 2023. This process has been initiated in recent months and is still ongoing. Therefore, the benefits associated with the Charming network will be measurable, in their entirety, from the year 2024.  Another positive note is the growth in bookings in the non-hotel segment, coming from the subsidiary Welcomely Srl, the company operating in the Group’s property management business. In fact, Welcomely Srl recorded, on July 17th, 2023, an increase in transaction volume equal to +30% compared to 2022. For the second consecutive year, therefore, the strategic choice to establish a company specialized in the development of local tourism that acts as a driver of local tourism innovation, improving the connections between holiday homeowners and Local Experts. In line with this trend, a positive progression is expected in the near future. SEO and online advertising initiatives have played a decisive role, which have led to a positive market response and in line with what was estimated at the beginning of the year by the Group, stimulating demand in the winter period and improving supply through the enhancement of commercial collaborations between operators. Specifically, a significant propulsive boost was conferred by the early booking service, which is confirmed as a relevant marketing tool both for the Company and for the market in general. Finally, the data relating to the average duration of the stay remains stable, which is confirmed equal to the value of previous years for all the destinations proposed by the Group, namely 7 nights. This testifies to the fact that Destination Italia travellers continue to value the Group’s offer positively despite the increase in prices and do not seem to be willing to give up their holidays. Taking into account the press release, we confirm our estimates: Target Price € 2.90, Rating Buy and Medium risk.

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