Hi all, I do a bit of work here in case the 15m shares coming out of escrow presents an opportunity this week. I like the story in ANZ but very skeptical of European story.
See slide 27 - "For further European organic expansion", so they do not seem to intend to buy Yescapa.
Yescapa are a long way in front in western Europe IMO and it's not just about the fleet on the platform either. They have local websites with multilanguage support (French/Portugal/Spanish).
PaulCamper is a pretty closed ecosystem to Germany. I live in Portugal and I can't get on their website to book one in Germany (VPN defaults me to PaulCamper - UK, which cross sells me to Camplify UK where I can only view UK fleet). So they seem likely to only get German customers with this set up.
Although Germany is the biggest market in terms of "# of RV"s owned", I would argue that Camplify are partly looking at the wrong metric. We should look at "# of RV rental trips" which is quite different here in Europe to how many are owned. It is a different set up to Australia due to geographically diversity).
I think most RV trips are here further south in Europe. It takes 24hrs to drive to Germany from Lisbon. Many Germans fly into the south and then rent a camper one when down here, for that they will need to use YesCapa. Furthermore, I think the Americans/Australians seem to go to France/Spain/Portugal and use Yescapa. Germany don't really have a coastline.
PaulCamper has been in Germany a long time, the founders were not forecasting growth when they sold (it could indeed be why they sold), this was presented in the capital raising presentation, see below. Switching for equity in Camplify which was high growth in other markets seems to me a good play for DIRK.
All in all, I think there's quite good reasons why DIRK didn't already expand across Europe.... Yescapa is one of the main reasons, as time passes, it gets even harder..... I am skeptical Camplify can change this. (Same like we have the MOAT in ANZ markets).
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