(AOF) – Osmozis announces the acquisition in the United Kingdom of Camping Connect, a company specializing in the provision of WiFi services, “profitable and with a customer base offering strong commercial synergies”. The specialist in the digital transition of campsites and holiday villages believes that this operation “strengthens its position among the European leaders in the digitalization of the campsite and holiday villages industry”. The amount of the acquisition of 100% of the shares of Camping Connect amounts to 2.2 million euros.
The acquisition price will be paid 70% in cash, thanks to the proceeds of the fundraising carried out in 2023, and 30% in self-held Osmozis shares, valued on the basis of a fixed price per share of 10. 25 euros.
The company deploys offers equivalent to Osmozis’ Wifi Sharing and Wifi Premium, on approximately 60,000 connected pitches spread over 360 customer sites across the United Kingdom, the second largest European market after France with 3,500 campsites. This acquisition will bring the total number of locations managed by Osmozis to approximately 400,000.
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Downgraded outlook for smartphones
Faced with a decline in consumer purchasing power, participants in the global smartphone market had to face sales falling by 14% in the first quarter of 2023 compared to the same period in 2022.
According to IDC, global sales will be lower than expected in the second half, showing a decline of 3.2% compared to 2022. A drop of 1.1% was previously estimated. The Gartner firm predicted from the start a decline of 4% in the market. Chinese brands are particularly impacted. Very exposed to their domestic market, Xiaomi, Oppo and Vivo have already lost market share in 2022 and the situation is expected to continue this year.
Apple and Samsung are doing better because, even if sales volumes drop, these players can play on prices and maintain their business more thanks to high-end positioning.
The market situation is expected to improve in 2024: growth is expected to become weak but continuous.
End of price decline
Thanks to the price war, French consumers have benefited from some of the lowest internet prices in Europe. But little by little, subscription prices are increasing. According to the telecommunications authority (Arcep), in 2021 they increased by 3.1% for mobile and 5.1% for landline. If the current inflationary context can explain this rise in prices, it is not the only reason. All stakeholders are, in fact, seeking to improve their margins. They have already managed to outsource part of their investment expenses linked to the deployment of their fiber and mobile infrastructures (4G and 5G). Now they just have to increase their income. This is an important issue to benefit from a development of their performances. Generating a satisfactory level of available cash flow (free cash flow) also allows them to benefit from attractive financing conditions, in a sector which requires significant investments. Investments in the sector have almost reached 15 billion euros in 2021, a historic level. The increase has reached almost 50% since 2017.