SosTravel.com (BIT:SOS) Research Initiation

• Arrowhead is initiating its coverage on SosTravel.com S.p.A. (“SosTravel” or “the Company”) with a fair value bracket of EUR 1.28 – EUR 1.56 (Share Price on Dec 03, 2021: EUR 1.06) based on Discounted Cash Flow Valuation and Company Comparable Valuation
• SosTravel.com S.p.A. (“SosTravel” or “the Company”) operates two digital platforms – SosTravel and FLIO (acquired in July 2019) – that act as marketplaces for peripheral travel services specifically focused on air travelers. The Company’s ultimate aim is to build a one-stop digital platform that provides travel services for passengers using various modes of transportation i.e. air, rail, bus, and sea
• SosTravel’s key services are Lost Luggage Concierge, Travel Insurance, Telemedicine, Flight Tracking, Airport & Airline Information, Flight Compensation, and Aviation Services
• SosTravel’s primary service is the Lost Luggage Concierge, which it offers in partnership with TraWell Co. Lost Luggage concierge helps customers track their luggage and get compensation in case of delays. The Company’s agreement with TraWell Co also allows it to leverage TraWell Co’s infrastructure present at airports as a sales funnel to direct prospects to the SosTravel website
• SosTravel signed an exclusive 5-year contract with Health Point Plus Inc. in 2020 to offer Telemedicine services (“Dr. Travel”) through the SosTravel platform.
• The Company plans to start major expansion initiatives imminently with a special focus on the US ecommerce space since US is the world’s largest aviation market. The Company has prepared a detailed roadmap for this expansion
• SosTravel, like most other travel businesses, was significantly impacted by the Covid-related travel restrictions. Recovery can be seen for SosTravel and other companies in the travel industry with the travel restrictions easing gradually since mid-2021 due to an improving Covid situation. We expect SosTravel to achieve strong revenue growth in the coming quarters if the Covid situation remains under control and there are no further travel restrictions due to the emergence of new variants of Covid