MyHotelMatch

• MyAgency, a travel agency specialised on ultra-luxury tourism and spending, was acquired by MHM in June 2022. It was fully consolidated in H2 22.
• MyAgency’s full revenue of €12.8m in FY 22 was above our initial expectation of €10m.
• As far as H2 22 was concerned, revenue was €7.8m vs. our estimate of €5m.
• Top line registered the full volume of business billed (flights, hotels, etc.), the gross margin has yet to be made public.
• No FY 22 guidance was given and the FY full set of figures is due to be published in late April 2023.
• Matching app (MyHotelMatch.com) will be up for first testing in the coming weeks.

The €7m of revenue recorded in FY 21 was up 78% in FY 22 (€12.8m) thanks to the grand re-opening, pushing high-end consumers to increase their luxury travel expenses and other spendings. Even if one could attribute a portion of the top-line growth to: i/ the favourable basis of comparison of a poor 2021, and ii/ global inflation raising the price of each transaction, it is a fact that the MyAgency business stands above its earlier records.

Both the operational indicators of the number of clients (up 10%) and average ticket per client (up 20%) are sufficient to demonstrate a positive trend. Consequently, consolidated revenue booked in H2 22 (€7.8m vs. €5m in H2 21) stood well above our initial expectations.

The identified trend should be confirmed in 2023 due to the conclusion of contracts with luxury companies intending to accompany their own clients with enriched experiences. We will have to revise upward the contribution of MyAgency in 2023 and beyond. We believe that a €12-14m top line allows it to reach significantly above breakeven. If validated, we would be able to attribute a value to MyAgency alone (SOTP) by revising our consolidated valuation.

The demo of MHM’s matching app was made in Cannes in early February 2023 (World Artificial Intelligence Cannes Festival). MHM will start the first tests with a selection of users / clients. MyAgency’s clients will be offered the opportunity of testing the app first.

The date of the full public launch of the group’s app is unavailable to date. Due to the tests, we believe it could be the end of 2023 with an acceleration in marketing and a grand opening in early 2024.

The existing warrants will expire in December 2023. If exercised, they should provide MHM with €8.5m cash-in. At pixel time, the share price of €0.021 trades below the warrants’ strike price of €0.025 per unit.

MyAgency’s full turnaround is very good news. We will have to revise our operational estimates upward for this business line without modifying our target price. Should MyAgency turn out to be consistently growing and profitable, it could account for a significant portion of MHM’s current market cap of €6m and play as a tangible valuation benchmark.

Beyond MyAgency, general MHM’s investment case leans mainly on the successful launch of the matching app. The latter’s first exploitable feed-backs (registrations, footfall, dynamic) will be made available in 2024 (AV estimate). FY 23 will allow for the detailing of development costs on top of the financial aspects of the app’s start, beyond the warrants remaining to be exercised.