Press release
Novaturas, the largest tour operator in the Baltics, listed on the Warsaw Stock Exchange and Nasdaq in Vilnius, increased its consolidated revenue from sales in the first nine months of 2018 by 30% y/y to EUR 140.2 million. During this period, the Group served 243.6 thousand customers, up by 32% on the previous year and more than in the entire 2017 (233.5 thousand customers).
“Number of served clients have increased in almost all destinations, and Turkey, Greece and Bulgaria already for many years have been the most popular summer destinations for residents of the Baltics. Like every year, we are also adding new destinations to Novaturas’ product portfolio. In the 2018 summer season, we once again offered holidays on the Djerba island,” said Linas Aldonis, CEO at Novaturas.
In the first half of the year the Group reported very good results, but the third quarter significantly affected year-to-date results for the first nine months of 2018. The year-on-year decline in profits in the summer months was caused by unusually hot and dry weather that had begun already in May in all three Baltic states and lasted through June, July and August. “Hot weather reduced demand for traveling abroad and, as a result, negatively affected prices of ‘last minute’ offers. In order to stimulate demand and sell the remaining seats, we had to adjust prices, which affected the profitability of sales,” Linas Aldonis explained.
Cumulatively for the first nine months of 2018, consolidated EBITDA reached EUR 7.4 million (down 20% y/y%), while net profit came to almost EUR 5.7 million (-25% y/y).
Novaturas Group – financial highlights
|
(EUR 000s) |
9M 2018 |
9M 2017 |
Change |
|---|---|---|---|
|
Revenue |
140 240 |
107 978 |
+29,9% |
|
Gross profit |
20 304 |
20 128 |
+0,9% |
|
EBITDA |
7 373 |
9 183 |
-19,7% |
|
Net profit |
5 656 |
7 548 |
-25,1% |
About Novaturas
Novaturas Group’s market share in the organized chartered flights segment exceeds 40% in the Baltic states.
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. 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 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. Every year the Management Board expects to propose for distribution 70% – 80% of the Company’s net profit.