According to unaudited data, Novaturas, the largest tour operator in the Baltic States, generated revenues of EUR 209 mln. last year. This is an increase of 6%, compared to 2022. The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 7 times to EUR 5.5 mln. The loss of EUR 0.6 mln. recorded for 2022 was replaced by an annual profit of EUR 3.7 mln. last year.
“Last year was a truly successful year for Novaturas, with revenues and EBITDA outperforming the recent five years. In this increasingly competitive environment, the key factor was our broadest offering of destinations in the region and its prompt management in response to customer needs. In addition, falling fuel prices made travel more affordable for travellers and had a positive impact on profitability,” said Kristijonas Kaikaris, CEO of Novaturas Group.
According to him, last year’s focus was not only on the main holiday destinations popular among travellers, such as Turkey, Greek islands, Bulgaria, Italian and Spanish resorts, Egypt, Tenerife, Madeira, but also on the growing number of travellers to Montenegro, which has become a business card of Novaturas, as well as to Tunisia. According to the data of the company, every second organised tourism traveller who went on holiday to Montenegro chose Novaturas.
The company also offers a wide range of tours and exotic destinations, skiing trips, as well as the increasingly popular workation. Novaturas has been steadily growing in the organisation of large group trips. Last year, together with its partners, the company implemented the largest workation in the history of Lithuanian tourism for the Tesonet Accelerator. Novaturas charter flights carried almost 2.5 thsnd. passengers.
Prompt response and flexibility
In 2023, Novaturas served a total of 259 thsnd. customers, which is a slight decrease (3%) compared to 2022. This is due to both an increased competition in the market and the war in Israel as a result of which Novaturas, in order to ensure security and to respond to travellers’ behaviour, had to temporarily discontinue trips to Jordan and optimise the Egypt programme.
“Last year we were valued by travellers for our responsible response to the situation in Israel, when we promptly cancelled trips to destinations that were less safe at the time out of concern for our customers, and for our flexibility and prompt action in the wake of the fires in Rhodes Island. It is crucial that travellers feel safe even in unexpected situations, and our aim is to provide all the assistance they need without delay,” said Mr Kaikaris.
According to the CEO of Novaturas, a decisive and timely response to the dynamic market situation helped the company to achieve solid financial results last year.
Tailoring the travel programme and maintaining profitability
Looking ahead to 2024, Mr Kaikaris, CEO of Novaturas Group, emphasizes that the company will continue to improve the traveller experience and ensure efficiency to maintain leadership in the region.
"In 2024 we aim for sustainable profitability. We will focus on profitability of the levels that were achieved last year, at the same time carefully monitoring impacts of increased market competition. We are ready for flexible action against market dynamics, adoption of travel program to possible economic or geopolitical uncertainties, basing our decisions on their profitability," comments Kaikaris.
According to him, one of the strengths of Novaturas, is the widest offering of destinations, which gives flexibility and allows customers to choose their preferred trips, flight times, and the range of hotels. „In order to achieve efficiency and profitability, we will respond to our customers’ needs in a targeted manner, monitoring changes and adapting our travel programmes accordingly – by focusing on the destinations with the highest potential, and planning winter and summer early booking programmes,” says Mr Kaikaris.
E-commerce potential, sustainable hotel offer
One of the strategic directions of the company is to further improve the customer experience and focus on technology and data analytics-based solutions.
“We have a wide distribution network and can also see a growing potential for e-commerce – last year we launched a new company website, which we continue to develop. We want to be easily accessible to our customers in a way that is convenient for them, so we will focus on even more user-friendly tools for travel agencies and partners, and strengthen our sales channels as well as develop the digital user experience,” comments Mr Kaikaris.
The possibility to choose more sustainable hotels is among the innovations the company introduced last year. Novaturas was the first of the major tour operators to use the “Sustainable Choice” label on its website to mark accommodation that contributes to environmental protection, conserves resources, sorts and reduces waste, and helps local communities. Sustainable hotels account for about one third of the offering of the company and the range is planned to expand.
Better punctuality and new flight partners
Another area where Novaturas improved its customer experience last year was punctuality of flights. The number of flights delayed by more than 3 hours was less than 1% last year. Compared to 2022, the number of such delays has been reduced by 3 times.
Novaturas also announced new and strengthened partnerships with airline companies. Last year, in Latvia, the company expanded cooperation with airBaltic, which stands out in Europe for its one of the newest and most environmentally friendly fleet of aircraft.
Meanwhile, in Estonia, Novaturas announced a new long-term partnership with Heston Airlines. This partnership is expected to make a significant contribution to travellers’ comfort, service quality, safety and sustainability. Heston Airlines will fly Novaturas customers on a modern Airbus A320 aircraft, which ensures better fuel efficiency.
Novaturas will also organise flights to Turkey with Turkish Airlines this summer season. In addition, the company will fly to Antalya not only from Vilnius, but also from Kaunas, which will add flexibility.
Changes in management and options for employees
In the middle of last year, Novaturas Group elected the Board for a new term of office. In addition to Ugnius Radvila, who will continue his work on the Board, two new members have been appointed: Tomas Korganas and Gediminas Almantas as Chairman of the Board.
At the end of the year, the Board of Novaturas Group appointed Kristijonas Kaikaris as the new CEO. He has many years of experience in managing local and international companies in aviation, transport and IT: from Microsoft and Oracle to Small Planet Airlines and CityBee.
In November, the company also completed its share buy-back. Novaturas Group bought back almost 76 thsnd. of its own shares (about 1%) for almost EUR 0.25 mln. and intends to distribute them to employees in Lithuania, Latvia and Estonia over the next three years. This is the company’s way of looking after the well-being of its employees, increasing employee engagement and attracting new talent.
Performance of Novaturas Group for the year of 2023 (EUR 000's):
| Financial indicators | 2023 | 2022 | 2021 |
| Revenue | 208.553 | 196.676 | 108.995 |
| Gross profit | 26.853 | 19.088 | 13.489 |
| EBITDA | 5.518 | 694 | 2.820 |
| Net profit (loss) | 3.685 | (605) | 1.176 |
About the company
Novaturas Group is the largest and the only charter flights‘ local tour operator in the Baltic States, offering summer and winter trips to more than 30 destinations worldwide and more than 100 tours. In 2023, Novaturas Group recorded revenues of EUR 209 million and served 259 000 passengers in Lithuania, Latvia and Estonia.