(AOF) – Osmozis continued its growth momentum in the first quarter of 2022-2023. Turnover for the first three months of the year increased by 40% to reach 1,463,000 million euros, as of November 30, 2022. The group aims to maintain the profitable growth trajectory of its activities for the financial year In progress. Revenue growth should experience higher growth than the previous year (+21% in 2021-2022) with an increase in EBITDA (3,809,000 euros in 2021-2022)
The specialist in the digital transformation of campsites and vacation homes in Europe is also targeting an EBITDA/revenue margin which should remain at a high level, thanks to its operational structure and the continuation of its commercial deployment, primarily by organic development. This profitable growth will automatically improve Osmozis’ cash flow.
The group will be able to rely on guaranteed recurring income which increases each year. They represented approximately €7.5 million in 2021-2022 and should increase further in 2022-2023 under the impetus of the dynamic deployment of Premium Subscription Services.
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The Threat of Open Technology, RAN
Equipment manufacturers will have to face this threat in the next few years. This new architecture consists in replacing the traditional antennas by software allowing more interoperability thanks to the cloud. Telecom operators will thus be able to reinforce innovation and increase their choice of suppliers. They will also be able to have access to more services and flexibility for network deployment and management costs which should decrease. For the moment, none of the major operators has switched to this new technology. Nevertheless, the freedom of choice of suppliers is a decisive element, underlined by the decision of Europe and the United States to sanction the Chinese Huawei for national security reasons.
End of the price drop
Thanks to the price war, French consumers have benefited from internet prices that are among the lowest in Europe. But gradually, subscription prices are increasing. According to the telecoms authority (Arcep), in 2021 they increased by 3.1% for mobile and 5.1% for fixed. If the current inflationary context can explain this rise in prices, it is not the only reason. All players are indeed seeking to restore their margins. They have already succeeded in outsourcing part of their capital expenditure related to the deployment of their fiber and mobile infrastructures (4G and 5G). Now they have to increase their income. This is an important issue in order to benefit from the development of their performance. Generating a satisfactory level of available cash (free cash flow) also allows them to benefit from attractive financing conditions, in a sector that requires substantial investments. Investments in the sector almost reached 15 billion euros in 2021, a historic level. The increase has reached almost 50% since 2017.