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2018 05 09

Press release


Novaturas dynamically increases sales and improves profitability

Novaturas, the largest tour operator in the Baltic states, listed on the Warsaw Stock Exchange and Nasdaq Vilnius since March this year, recorded 49% y/y growth in sales in the first quarter of 2018. The Group’s EBITDA reached EUR 1.3 million and net profit was over EUR 0.9 million, denoting in both instances growth by several times from the same period last year. 

In the first quarter of 2018, Novaturas Group’s services attracted 37 600 passengers, which is 51% more than in the preceding year. This translated into 49% growth in revenue from sales, which reached EUR 25.8 million. The online channel is increasingly making a larger contribution – in this year’s first quarter it accounted for over 16% of total sales (compared to 14.4% in the same period of 2017). More than one million unique users visited the Company’s websites in this period. 

Alongside stronger sales, Novaturas Group also reported a substantial improvement across all other levels of the profit and loss statement. Gross profit on sales in the first quarter of 2018 reached EUR 4.8 million (up by 67% y/y), EBITDA came in at EUR 1.3 million and was nearly four times higher than in the preceding year, while net profit exceeded EUR 0.9 million, compared to just over EUR 0.1 million in the first quarter of 2017. 

 

Novaturas Group – selected financial results 

(EUR 000s)

Q1 2018

Q1 2017

y/y change

Revenue

25 845

17 308

49%

Gross profit

4 801

2 884

67%

EBITDA

1 287

334

286%

Net profit

945

136

595%

 

The Company has a diverse product offering available across various complementary distribution channels, allowing it to reach a wide group of clients and flexibly respond to their changing preferences.

In this year’s first quarter, Novaturas recorded substantial sales growth in all three key markets: Lithuania, where its passenger numbers went up by 68% y/y, Latvia with growth of 42% and Estonia with growth of 36%. 

“We are observing consistently rising interest in organised flight holidays. Egypt has for years been the most popular winter-season destination amongst the residents of the Baltic countries, followed by Spain, including the Canary Islands,” said Linas Aldonis, CEO of Novaturas. 

Given the seasonal nature of the tourism industry, Novaturas Group traditionally generates the largest demand and revenue in the second and third quarter. This year’s summer season is looking very promising for the Company. Observing record client activity, Novaturas decided to significantly increase its organised travel offering as part of its Summer 2018 programme. It is 34% larger than the Company’s summer holiday programme last year. 

“Early bookings for organised trips for the 2018 summer season at the end of March this year were 51% higher than in the same period last year, and we should remember that 2017 has been a record year for our business thus far. We are also content with the consistently strong effectiveness indicators, including further growth in profit per pax or the load factor for charter flights, which reached over 98% in this year’s first quarter. This is why the entire 2018 is looking very promising for Novaturas Group, both in terms of sales, profitability and cash generation,” summarised Linas Aldonis.  

 

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.

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