Press release
Novaturas Group, traded on the Warsaw Stock Exchange and the Nasdaq in Vilnius since March this year, recorded 43% y/y growth in revenue in the first half of 2018, to EUR 80.2 million, strengthening its position as the largest tour operator in the Baltic countries. The Group’s EBITDA after this year’s first six months reached nearly EUR 5.9 million, up by almost 36% on the preceding year, while net profit came in at EUR 4.4 million, denoting 24% growth from the same period of 2017.
In the first half of 2018, 134 500 people went on holidays with the largest tour operator in the Baltics. In this year’s second quarter alone, Novaturas Group had close to 97 000 clients, up by 39% from the same period of 2017.
In this year’s first half, Novaturas recorded a substantial increase in client numbers in all three of its key markets: Lithuania and Latvia (43% growth in passengers y/y) and Estonia (up by 38%). Novaturas Group also offers its products in Belarus, where the number of clients grew in the first half of this year by almost 86%.
“After the very strong financial results in this year’s first quarter, second-quarter results were also better than in the comparable period last year. The demand for our products remains strong, which translates into the significant growth in the Group’s revenue. Simultaneously, we keep our operating expenses under control while increasing efficiency of the company. As a result, in the first half of 2018 we improved earnings on all levels,” said Linas Aldonis, CEO of Novaturas Group.
“Flight package tours remain Novaturas Group’s most popular product. Turkey is the favourite destination in the summer season, with 34% more clients visiting the country in this year’s first half year-on-year, while Egypt is the most frequently selected destination in the winter season. Residents of the Baltic countries are also very frequently vacationing in Greece, Bulgaria and Spain. All together are offered 34 different packages destinations and a program of 111 round trips by bus and 60 by plane. Our clients especially value our high quality at an affordable price, which is a key feature of holidays in the most popular destinations,” summarised Linas Aldonis.
Novaturas Group – selected financial results
|
(EUR 000s) |
Q2 2018 |
Q2 2017 |
Change |
H1 2018 |
H1 2017 |
Change |
|---|---|---|---|---|---|---|
|
Revenue |
54 394 |
38 886 |
+39.9% |
80 239 |
56 194 |
+42.8% |
|
Gross profit |
9 312 |
7 508 |
+22.5% |
14 113 |
10 392 |
+35.8% |
|
EBITDA |
4 588 |
4 144 |
+14.7% |
5 875 |
4 478 |
+35.6% |
|
Net profit |
3 457 |
3 402 |
+1.6% |
4 402 |
3 538 |
+24.4% |
About Novaturas
Novaturas Group is the leader of the tour operator market in Lithuania, Latvia and Estonia, in terms of both sales value and passenger volume. The Group’s market share in the organized chartered flights segment exceeds 40% in the region.
Since 21 March 2018, Novaturas shares have been dual-listed on the Warsaw Stock Exchange and on Nasdaq Vilnius.
Novaturas was established in 1999, became the market leader in the Baltics in 2004 and has maintained the leading position ever since. Aside from the Baltics, Novaturas has begun offering its products in Belarus, where they are retailed through local partners.
Novaturas continues to attract new clients thanks to its attractive and diverse offering and the high quality of its services. The Group offers both summer and winter package holidays as well as sightseeing tours by coach or plane to more than 30 destinations worldwide, including the most popular holiday resorts in Southern Europe as well as select locations in North Africa, the Middle East, Asia and Latin America.
The Group's strategy also aims to retain diverse and complementary distribution channels. Novaturas works with over 400 travel agencies, including all of the major agencies in the Baltics, and more than 60 in Belarus. It also operates retail offices of its own in main cities of Lithuania, Latvia and Estonia, and is investing in further development of its e-commerce channel.
The rising demand for the Group's tours drives growth in operational scale, which translates into dynamic growth in financial results. In 2017, Novaturas Group’s revenue amounted to EUR 141 million, EBITDA reached EUR 10.6 million, while net profit reached almost EUR 8.2 million.
The Company’s asset-light business model, which is characterized by strong cash flows from operating activities (exceeding 100% of EBITDA) and low capital expenditures (EUR 0.3 million in 2017), allows it to pay out a large part of its earnings to shareholders. Paying regular dividends is one of the key elements of the Company's strategy. The Management Board expects that, based on the audited interim results of the Company for the first half of 2018, an interim dividend of about EUR 6 million will be offered for payment. In the long term, the Management Board expects to propose for distribution 70% – 80% of the Company’s net profit.