Osmozis: The summer season looks promising for Osmozis, the web services pro for campsites


(BFM Bourse) – The specialist in the digital transformation of campsites and holiday residences in Europe has significantly improved its accounts between September and February 2022-2023. A performance that is all the more remarkable as the first half is traditionally not very buoyant for Osmozis.

The summer holidays are fast approaching and Osmozis is approaching this pivotal period in very good spirits. Despite inflation, the French want to go elsewhere and have made their holiday budget sacred. Moreover, the SNCF anticipates a new record summer after an exceptional 2022 vintage.

For the leading operator of multi-service networks dedicated to campsites and vacation homes in Europe, the summer promises to be bright. The group based in Clapiers, on the outskirts of Montpellier, offers solutions allowing both holidaymakers to have an Internet connection and hoteliers to offer them various connected services (for example a bracelet allowing them to unlock their bungalow, reserve a deckchair, pay for a drink, etc.). And this activity logically peaks during summer holidays.

A clear recovery of the accounts

Monday evening after the stock market, Osmozis announced a clear increase in its revenues during its first half (period from September to February), confirming according to Osmozis the attractiveness of its offer. Over these six months when the company only realizes a minor part of its activity, the turnover nevertheless grew by 21% to 5.1 million euros.

The company’s half-year revenues were driven by premium subscription services, which to date account for more than 90% of Osmozis’ overall business. These recurring revenues are “from long-term contracts” and are decorrelated from the attendance of establishments”, recalls Osmozis. Connected services maintain this dynamic like OsmoKey whose sales have increased significantly during this first half of the year.

Activity was therefore dynamic during the low season. Better still, Osmozis took the path of profitability between September 2022 and February 2023. The gross operating surplus came out at the “historic and record” level of 1.4 million euros while the first half is traditionally in deficit. for Osmozis. This amount represents more than 2.5 times the gross operating surplus for the first half of 2021-2022 (553,000 euros).

Osmozis attributes this performance to a continuous growth of its half-yearly activity, combined with a “significant leverage effect of its operational structure”. The group also terminated historical contracts deemed unprofitable.

The corresponding margin has therefore clearly improved by 14 percentage points and represents 27% of the group’s revenues compared to 13% last year. The group indicates that it has mastered the trajectory of its operating expenses with regard to the growth of activities. For Pierre Laurent, analyst at EuroLand Corporate, the figures presented by Osmozis “continue to materialize the rise of the group’s model, which is now well calibrated to absorb growth”.

A little further down in the accounts, the efforts made by Osmozis are starting to pay off. The net result is very slightly in positive territory (4,000 euros) for the first time over a half-year, against a net loss of 454,000 euros in the first half of 2021-2022. A progression which is described as “remarkable” by Pierre Laurent who salutes “this first successful part of the exercise”.

As for the financial structure, it remains under control despite a highly capital-intensive activity. The company claims equity which reaches 8.3 million euros for a net debt of 12.5 million euros. The EuroLand Corporate analyst points out that the half-year debt is always higher than the annual, a situation explained by the seasonality of the group’s activity. Osmozis is not facing an immediate debt wall since 80% of maturities are repayable beyond 2023-2024.

The group also recalls having carried out a capital increase of 7 million euros last April. The funds raised within the framework of this operation will be dedicated for a large part to supporting the growth of the company and a third of this sum was intended to strengthen the financial structure of Osmozis. The group also proceeded to the early redemption of part of its 4 million euros of convertible bonds in May, for an amount of 1.2 million euros (including 0.2 million euros in prepayment).

“In the longer term, the capital increase should allow the group to export its model abroad, in particular through external growth, and to further sustain the already very solid fundamentals”, explains EuroLand Corporate. The company is already deploying its new OsmoX wireless Internet access terminal according to the WiFi 6 standard, with a view to maintaining its technological lead.

A renewed roadmap for 2022-2023

In this context, Osmozis management is renewing its roadmap for its entire 2022-2023 financial year. It expects strong growth in premium services revenue, similar to “previous years”. The company will also focus on improving profitability. It expects to achieve a gross operating surplus for 2022-2023, up from the 3.81 million euros achieved in 2021-2022, for an EBITDA/turnover margin which should remain at a “high level “.

The EuroLand Corporate analyst therefore slightly adjusts its revenue forecast to 13.3 million euros against 14.5 million euros previously, a new expectation which now implies annual growth of 15%. The specialist is still counting on the same level of margin (37%) for an EBITDA of 4.9 million euros and a net result of 1.2 million euros, taking into account an adjustment of a interest charge.

Thus, this publication confirms the design office in its recommendation to buy, with a target slightly lowered to 13 euros against 13.5 euros after an update of its valuation model, taking into account the capital increase. performed in April. “We continue to appreciate the file very much despite a relatively demanding valuation”, concludes EuroLand Corporate.

On the Paris Stock Exchange, the market also appreciates the content of the semi-annual accounts of Osmozis. The stock rose another 8% to 10.30 euros around 3:15 p.m. after gaining more than 12% at the height of the session.

Sabrina Sadgui – ©2023 BFM Bourse

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