Sostravel.com S.p.a. MIL:SOS
Sostravel com S p A : CFO SIM FY-25 results release Sostravel.com S.p.A.
Source: MarketScreener
Rating: Buy Price Target: € 0.60 (0.80) Upside/(Downside): 113.5% Last Price: € 0.28 Market Cap.: € 3.7m 1Y High/Low: € 0.89 / € 0.25 Avg. Daily Turn. (3M, 6M): € 13k, € 9k Free Float: 32.4% Major shareholders: Carmine Colella 20.2% Le terrazze di Porto Ottiolu Srl 20.2% RG Holding Srl 20.5% 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 Apr-25 Jun-25 Aug-25 Nov-25 Jan-26 Apr-26 Sostravel FTSE Italia Growth Stock price performance 1M 3M 12M Absolute -32.8% -45.5% -55.8% Rel.to FTSE IT Growth -36.4% -43.3% -71.2% Rel.to Peers -25.2% -28.4% -36.1% Analysts: Gianluca Mozzali +39 02 30343 396 Luca Solari, CFA +39 02 30343 397 Chiara Francomacaro +39 02 30343 394 | Estimates downward revised. New DCF-based PT at € 0.60 (€ 0.80). Buy reiterated Following FY-25 results release, we have updated our model by factoring in: 1) a downward revision of top line (almost entirely related to the Travel Booking BU), consistent with the ongoing repositioning, by prioritising business predictability and quality of margins; 2) a fine-tuning of NWC trends and, 3) a moderate uplift in capex to reflect the new initiatives' start-up costs and IT investments. Moreover, we introduced our 2028 projections. The combined result is an average decline of 24.9% and 23.9% in Revenues and EBITDA in 2026-27, respectively, and a sequential increase in NFP. As a result of the update of the valuation criteria and roll-forward of the DCF model, our new PT points to € 0.60/s (€ 0.80), 113.5% upside. In spite of the estimates cut, we believe the YTD de-rating was too severe, not reflecting SOTR's fundamentals and medium-term potential of new initiatives. Buy reiterated. Top line down by 23.2% YoY and below expectations, penalised by the strategy shift Revenues saw a double-digit decline (€ 17.8m, -20.8% YoY), mainly reflecting the ongoing strategy shift aimed at reducing the exposure to empty-for-full contracts and favouring bespoke high value-added services to accommodation facilities. Overall results came in below our expectations due to a sharper decline in the Travel Booking BU. The latter (90.8% of the total) dropped by 23.2% YoY to € 16.1m (vs € 21.0m in FY-24) and was below our expectation of € 18.3m (-11.8%), due to management's strategy to achieve a more balanced operating structure. Digital Passenger BU (9.2% of the total) rose by 16.7% YoY to € 1.6m (vs € 1.4m in FY-24) and came in well aligned to our estimate, reaping the benefits of the recent distribution agreements with major cruise companies and tour operators. EBITDA slightly above the break-even level (€ 105k), while bottom line turned negative EBITDA came in at € 105k, 0.6% margin (vs € 0.7m, 3.1% margin in FY-24), impacted by lower top line following the ongoing shift in the business model. By excluding some one-off items, Adjusted EBITDA was € 145k, 0.8% margin (vs € 0.8m, 3.4% margin). In the wake of slightly higher D&A charges and write-downs of € 563k (vs € 458k in FY-24) and financial expenses for € 66k, bottom line turned negative for € 0.4m (vs Net Profit of € 0.1m in FY-24), partially offset by a positive income tax item of € 112k. Adj. NFP worsened to € 1.2m debt, amid lower profitability and higher capex NFP stood at € 1.4m debt from € 0.3m debt in FY-24, well above our estimate (€ 0.4m debt), resulting from (i) an Op. CF absorption around € 0.3m, affected by a negative bottom line and an unfavourable trend in WC, reflecting slower receivables collection and higher prepaid expenses to secure low-risk distribution agreements and, (ii) capex for € 0.8m (higher than our € 0.3m estimate), intended to the renovation of the IT back-end infrastructure and a few projects to support the ongoing repositioning. Adjusted NFP was € 1.2m debt (€ 0.2 m cash in FY-24), after € 0.2m adjustments for security deposits. Sostravel.com, key financials and ratios | |
€ m 2024 2025 2026e 2027e 2028e | ||
Revenues 22.4 17.8 15.6 18.3 19.5 EBITDA 0.7 0.1 0.5 0.8 1.0 Adjusted EBITDA 0.8 0.1 0.5 0.8 1.0 EBIT 0.2 (0.5) (0.1) 0.3 0.4 Net Profit 0.1 (0.4) (0.2) 0.2 0.3 NFP (cash)/debt 0.3 1.4 0.8 0.3 (0.1) Adjusted NFP (cash)/debt (0.2) 1.2 0.6 0.2 (0.3) Adjusted EBITDA margin 3.4% 0.8% 2.9% 4.5% 4.9% EBIT margin 1.0% -2.6% -0.9% 1.6% 2.2% EPS stated € 0.01 (0.03) (0.02) 0.02 0.03 EPS growth -94.2% n.m. 47.1% n.m. 58.2% ROCE 3.4% Neg. Neg. 4.7% 6.5% EV/Sales (x) 0.65 0.54 0.29 0.22 0.18 EV/EBITDA (x) 18.9 90.8 9.9 4.9 3.7 EV/EBIT (x) 63.7 n.m. n.m. 13.5 8.3 PER (x) n.m. n.m. n.m. 17.7 11.2 Free Cash Flow Yield 18.6% -18.0% 14.6% 14.1% 13.2% |
S
2025 was a transitional year for Sostravel, marked by management's decision to undertake a sharp shift in strategy, favouring high value-added travel services to the detriment of volumes linked to empty-for-full contracts. The recent entry into the direct hotel management segment coupled with the ongoing scouting of M&A deals are poised to accelerate the strategic roadmap towards a more balanced and predictable model.
14th April 2026
FY-25 RESULTS RELEASE
RIC: SOTR.MI BBG: SOS IM
Strategic shift underway; focus on direct hotel management
Italy - Travel Services
COMPANY FY RESULT
CFO SIM Equity Research
The Company at a Glance
Sostravel is a travel-tech company offering an integrated suite of travel solutions via its all-around proprietary apps and web platforms. In particular, the company boasts an extensive experience in providing digital assistance services to passengers, including fast tracking and recovery of lost luggage, healthcare and insurance. Moreover, by leveraging on its technological platforms, it enables vacationers to choose among a vast array of highly sought-after destinations around the globe and plan their entire journey, from transportation and accommodation to car rental and booking of bespoke on-site experiences.
Currently, the company runs its operations through two distinct yet highly-complementary and integrated service-led business lines: Digital Passenger Services and Travel Booking. As regards the former, services are offered both online, through the apps Sostravel and, for certain services, Flio, and offline in more than 130 stores in 26 airports, on the back of a distribution agreement with Trawell Co. The same services are offered indirectly, through several distribution agreements with tour operators, travel agencies and welfare enterprises. As regards Travel Booking, Sostravel operates its proprietary web platform amare.travel.
2022 represented a year of a major transformation and transition towards a new business model following the merger with Digital Destination Company and its consolidation as from January 1st. FY-25 results exhibited Revenues of € 17.8m, Adjusted EBITDA of € 145k, 0.8% margin, while bottom line came in negative for € 412k. Adjusted NFP amounted to € 1.2m debt.
Revenues Adjusted EBITDA
2022 2023 2024 2025
2019 2020 2021
(0.4)
(0.9)
(0.1)
0.1
0.8
0.5
0.0
0.6 0.6
Merger by incorporation of
Digital Destination Company
2.2
17.8
17.1
2019-25 top line and Adj. EBITDA evolution
22.4
19.5
2025 revenues breakdown by geography
Europe (excl. Italy); 2.9%
Italy; 74.3%
RoW; 22.8%
2025 top line breakdown by business line
Travel Booking; 90.8%
Digital Passenger Services; 9.2%
Shareholder Structure
6.0% 0.7%
Carmine Colella
20.5%
Le terrazze di Porto Ottiolu Srl
RG Holding Srl
20.2%
32.4%
Trawell Co
Treasury shares
20.2%
Free Float
Peer group multiples table | ||||||||
EV & PER multiples x | Sales FY1 | Sales FY2 | EBITDA FY1 | EBITDA FY2 | EBIT FY1 | EBIT FY2 | PER FY1 | PER FY2 |
Destination Italia SpA | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
Emma Villas SpA | n.a. | 0.15 | n.a. | 2.5 | n.a. | 4.0 | 14.6 | 7.3 |
I Grandi Viaggi SpA | 1.27 | 1.12 | 13.0 | 10.5 | 22.8 | 16.9 | 38.1 | 28.6 |
Soges Group SpA | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
Median of Domestic Peers | 1.27 | 0.64 | 13.0 | 6.5 | 22.8 | 10.4 | 26.3 | 17.9 |
Booking Holdings Inc | 4.68 | 4.17 | 12.5 | 10.9 | 13.2 | 11.5 | 16.6 | 14.8 |
eDreams ODIGEO SA | 0.92 | 0.91 | 4.2 | 5.7 | 6.7 | 11.9 | 5.5 | 11.8 |
Expedia Group Inc | 1.75 | 1.50 | 7.0 | 5.9 | 10.5 | 8.4 | 12.0 | 10.5 |
Lastminute.com NV | 0.31 | 0.26 | 2.1 | 1.8 | 3.4 | 2.8 | 6.5 | 5.8 |
MakeMyTrip Ltd | 4.19 | 3.39 | 23.8 | 18.0 | 24.7 | 18.5 | 26.4 | 21.8 |
Trip.com Group Ltd | 2.40 | 1.87 | 7.9 | 6.2 | 8.4 | 6.4 | 11.6 | 10.1 |
Median of International Peers | 2.07 | 1.69 | 7.5 | 6.0 | 9.4 | 9.9 | 11.8 | 11.1 |
Sostravel.com SpA | 0.29 | 0.22 | 9.9 | 4.9 | n.m. | 13.5 | n.m. | 17.7 |
Sources: CFO SIM, Refinitiv Workspace | ||||||||
Income statement (€ m) | 2024 | 2025 | 2026e | 2027e | 2028e |
Revenues | 22.4 | 17.8 | 15.6 | 18.3 | 19.5 |
Value of Production | 22.5 | 17.9 | 15.7 | 18.5 | 19.6 |
Raw material and processing | 0.0 | 0.0 | (0.0) | (0.0) | (0.0) |
Services | (20.6) | (16.5) | (14.1) | (16.3) | (17.3) |
Personnel expenses | (0.8) | (0.9) | (0.9) | (0.9) | (1.0) |
Other opex | (0.5) | (0.4) | (0.3) | (0.4) | (0.4) |
EBITDA | 0.7 | 0.1 | 0.5 | 0.8 | 1.0 |
D&A, Provisions and Write-down | (0.5) | (0.6) | (0.6) | (0.5) | (0.5) |
EBIT | 0.2 | (0.5) | (0.1) | 0.3 | 0.4 |
Financials | (0.1) | (0.1) | (0.1) | (0.1) | (0.1) |
Re-devaluation of financial assets | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
Forex gain/(loss) | (0.0) | 0.0 | 0.0 | 0.0 | 0.0 |
Pre-Tax profit | 0.2 | (0.5) | (0.2) | 0.2 | 0.4 |
Income taxes | (0.1) | 0.1 | 0.0 | 0.0 | 0.0 |
Minorities | 0.0 | 0.0 | 0.0 | (0.0) | (0.0) |
Net Profit | 0.1 | (0.4) | (0.2) | 0.2 | 0.3 |
Adjusted EBITDA | 0.8 | 0.1 | 0.5 | 0.8 | 1.0 |
Adjusted Net Profit | 0.1 | (0.4) | (0.2) | 0.2 | 0.3 |
Balance sheet (€ m) | 2024 | 2025 | 2026e | 2027e | 2028e |
Net Working Capital | 0.6 | 0.8 | 0.3 | 0.2 | 0.2 |
Net Fixed Assets | 2.4 | 2.7 | 2.4 | 2.2 | 2.1 |
Equity Investments | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 |
Other M/L Term A/L | 1.6 | 1.8 | 1.8 | 1.8 | 1.9 |
Net Invested Capital | 4.9 | 5.5 | 4.7 | 4.4 | 4.3 |
Net Financial Position | 0.3 | 1.4 | 0.8 | 0.3 | (0.1) |
Minorities | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
Group's Shareholders Equity | 4.6 | 4.1 | 3.9 | 4.1 | 4.4 |
Financial Liabilities & Equity | 4.9 | 5.5 | 4.7 | 4.4 | 4.3 |
Adjusted Net Financial Position | (0.2) | 1.2 | 0.6 | 0.2 | (0.3) |
Cash Flow statement (€ m) | 2024 | 2025 | 2026e | 2027e | 2028e |
Net Profit before minorities | 0.1 | (0.4) | (0.2) | 0.2 | 0.4 |
Depreciation | 0.5 | 0.6 | 0.6 | 0.5 | 0.5 |
Other non-cash charges | 0.1 | 0.1 | (0.0) | 0.0 | 0.0 |
Cash Flow from Operations (CFO) | 0.6 | 0.2 | 0.4 | 0.8 | 0.9 |
Change in NWC | 0.1 | (0.1) | 0.5 | 0.1 | (0.0) |
FCF from Operations (FCFO) | 0.7 | 0.1 | 0.8 | 0.9 | 0.9 |
Net Investments (CFI) | (0.0) | (0.7) | (0.3) | (0.4) | (0.4) |
Free CF to the Firm (FCFF) | 0.7 | (0.7) | 0.5 | 0.5 | 0.5 |
CF from financials (CFF) | (0.6) | (0.6) | 0.5 | (0.0) | 0.0 |
Free Cash Flow to Equity (FCFE) | 0.1 | (1.2) | 1.0 | 0.5 | 0.5 |
Financial ratios | 2024 | 2025 | 2026e | 2027e | 2028e |
Adjusted EBITDA margin | 3.4% | 0.8% | 2.9% | 4.5% | 4.9% |
EBIT margin | 1.0% | -2.6% | -0.9% | 1.6% | 2.2% |
Net Profit margin | 0.3% | -2.3% | -1.4% | 1.1% | 1.7% |
Tax rate | 55.1% | n.m. | n.m. | 0.0% | 0.0% |
Op. NWC/Sales (%) | 2.8% | 4.3% | 1.8% | 1.1% | 1.1% |
Interest coverage x | 2.98 | n.m. | n.m. | 4.06 | 6.09 |
Adjusted Net Debt/EBITDA x | n.m. | 8.33 | 1.36 | 0.20 | n.m. |
Net Debt-to-Equity x | 0.07 | 0.33 | 0.20 | 0.08 | n.m. |
ROIC | 1.4% | Neg. | Neg. | 4.7% | 7.6% |
ROCE | 3.4% | Neg. | Neg. | 4.7% | 6.5% |
ROACE | 3.3% | Neg. | Neg. | 4.8% | 6.7% |
ROE | 1.5% | Neg. | Neg. | 5.1% | 7.5% |
Payout ratio | 73.4% | 0.0% | 0.0% | 0.0% | 0.0% |
Per share figures | 2024 | 2025 | 2026e | 2027e | 2028e |
Number of shares # m | 13.18 | 13.18 | 13.18 | 13.18 | 13.18 |
Number of shares Fully Diluted # m | 34.90 | 34.90 | 34.90 | 34.90 | 34.90 |
Average Number of shares Fully Diluted # m | 34.90 | 34.90 | 34.90 | 34.90 | 34.90 |
EPS stated € | 0.01 | (0.03) | (0.02) | 0.02 | 0.03 |
Adjusted EPS € | 0.00 | (0.01) | (0.01) | 0.01 | 0.01 |
EBITDA € | 0.02 | 0.00 | 0.01 | 0.02 | 0.03 |
EBIT € | 0.01 | (0.01) | (0.00) | 0.01 | 0.01 |
BV € | 0.13 | 0.12 | 0.11 | 0.12 | 0.13 |
FCFO € | 0.02 | 0.00 | 0.02 | 0.02 | 0.03 |
FCFF € | 0.02 | (0.02) | 0.02 | 0.01 | 0.01 |
FCFE € | 0.00 | (0.03) | 0.03 | 0.01 | 0.01 |
Dividend € | 0.0038 | 0.00 | 0.00 | 0.00 | 0.00 |
Historically focused solely on digital assistance services dedicated to airport travellers, the company has undergone a radical business model change since the reverse-takeover transaction with Digital Destination Company completed in 2022.
Currently, the company runs its operations through two distinct yet highly-complementary and integrated service-led business lines: Digital Passenger Services and Travel Booking. As regards the former, services are offered both online, through the apps Sostravel and, for certain services, Flio, and offline in more than 130 stores in 26 airports, on the back of a distribution agreement with Trawell Co. The same services are also offered indirectly, through many distribution agreements with tour operators, travel agencies and welfare enterprises. With respect to Travel Booking, the group operates its proprietary web platform, amare.travel.
Chart 1 - Sostravel.com, Company historySource: CFO SIM's elaboration on company data
Sostravel runs its operations through two distinct business lines:
Travel Booking (90.8% of FY-25 revenues): Sostravel operates its technological web platform amare.travel, primarily acting as an intermediary between providers of travel booking services and vacationers, enabling them to plan, book and monitor their entire journey, from accommodation (Hotel & Resorts) and transportation (by air, trains, ferries, car rentals etc.) to the arrangement of several experiences (hiking, guided tours, food-tasting etc.). Furthermore, it provides selected holiday packages catering to travellers' different needs and tastes, as well as enticing last-minute offers with discounts up to 50%, helping facility managers to optimise overall occupancy rates and bolster profitability.
Digital Passenger Services (9.2% of FY-25 revenues): the company offers a comprehensive suite of bespoke digital services dedicated to travellers, namely luggage tracking and return, telehealth assistance, travel insurance along with flights and airports real-time information.
22.4
19.5
17.1
17.8
2.2
Merger by incorporation of
Digital Destination Company
0.6 0.6
0.0
0.5
0.8
0.1
(0.1) (0.9) (0.4)
2019 2020 2021 2022 2023 2024 2025
Revenues Adjusted EBITDASource: CFO SIM's elaboration on company data
By drawing a distinction between financial results before and after the merger by incorporation of Digital Destination Company, in the 2018-21 period, Sostravel experienced a downward trend in both revenues and margins, mainly resulting from the outbreak of the pandemic. Indeed, in 2020-21, global travel restrictions to counter the spread of COVID-19 put a strain on travellers' demand for luggage tracking and return services and, ultimately, on the company's operations.
2022 represented a year of a major transformation and transition towards a new business model following the merger with Digital Destination Company and its consolidation as from January 1st. In FY-25, Sostravel achieved Revenues of € 17.8m, Adjusted EBITDA of €
0.1m, 0.8% margin, with Net Loss of € 412k, while Adjusted Net Financial Position stood at € 1.2m debt. Chart 3 - Sostravel.com, 2025 Revenues breakdown by business line and geographyBooking; 90.8%
Travel
Digital Passenger Services; 9.2%
Italy; 74.3%
Europe (excl. Italy); 2.9%
RoW; 22.8%
Source: CFO SIM's elaboration on company data
From a geographical standpoint, in FY-25 Sostravel's revenues were largely generated in the domestic market (74.3%), followed by Europe (2.9%) and RoW (22.8%). As regards the revenues breakdown by business line, in FY-25 Travel Booking accounted for 90.8% of the total while Digital Passenger Services' contribution stood at 9.2%.
CFO SIM Equity Research COMPANY FY RESULTS