(Alliance News) - Portale Sardegna Spa reported Monday that 2022 ended with a value of production of EUR8.9 million up from EUR6.4 million in 2021.

In fact, the board of directors approved the consolidated financial statements as of December 31, 2022 reporting a worsened net loss to EUR500,000 from EUR230,000 in 2021.

Ebitda remains negative EUR500,000 from a negative EUR230,000 in the previous year. This result, the company explains in a note, depends on the non-start of the Welcome to Italy project due to the still ongoing completion of the IT platform and the process of harmonization with the combined reality in terms of distribution policies and brand strategy, an increase in personnel costs due to the inclusion of new units, GTV of the higher-margin core brands still partially distant from 2019 values and offset by the volumes generated with lower margins by the subsidiary Welcomely Srl.

Ebit is negative EUR500,000 from negative EUR100,000 after amortization of subsidiary Pavoneggi and write-downs of EUR150,000 from EUR130,000 in 2021.

Net financial debt amounted to EUR5.8 million from EUR4.7 million in 2021. The change is mainly due to the cash absorption dictated by investments made during the year and the burden due to financial expenses, the company points out.

As for the future, the company points out that gross travel value in the first quarter increased by 48 percent compared to the same period in 2022.

In addition, it specifies that "considerations regarding the possible evolution of the group's management in fiscal year 2023 take into account the extraordinary merger by incorporation of Portale Sardegna into Destination Italia underway, which is likely to be concluded by May 2023."

"The assets owned by the two companies, economies of scale and technological know-how put into system will be able to create, in the opinion of top management, the competitive advantage necessary for success in the international tourism market."

Massimiliano Cossu, chief executive officer of Portale Sardegna, pointed out that "the extraordinary operation due to its complexity was extremely challenging and had "suspensive" repercussions even on some activities that had been planned for 2022: in particular, as far as SIMEST contributions are concerned, the planned investments both in technology and aimed at internationalization have been dilated since they will have to be harmonized with the distribution and branding strategy policy of the new combined reality."

"The same "harmonization" process is underway for the Welcome to Italy project, in which Portale Sardegna has invested significantly in recent years and which will be enhanced thanks to the decisive contribution of Destination Italia."

"The Group's GTV stands at the overall values similar to 2019 thanks to the contribution of Welcomely, whose profitability, however, has not been able to compensate for that resulting from the loss of GTV of the core Portals due to the latest aftermath of the pandemic crisis," the CEO concludes.

Portale Sardegna on Monday closed at par at EUR3.06 per share.

By Chiara Bruschi, Alliance News reporter

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