Novaturas recorded revenue growth by 43% y/y in H1 2018
Novaturas, the largest tour operator in the Baltics, with shares traded on the Warsaw Stock Exchange and Nasdaq in Vilnius since March this year, recorded 43% y/y revenue growth in the first half of 2018 to EUR 80.2 million. From the beginning of the year, Novaturas Group handled a total of 134.5 thousand clients, denoting 42% growth in comparison with the same period last year.
In June alone, nearly 39 thousand people went on holiday with Novaturas Group, up by 27% y/y. This translated into a 26% jump in revenue from sales, which reached EUR 21.7 million (compared to EUR 17.2 million in June 2017).
“Like every year, we are adding new destinations to Novaturas Group’s offering. For the 2018 summer season, we are once again offering trips to the Tunisia. Turkey, Greece and Bulgaria have for years been the favourite destinations of people living in the Baltic countries. The range of holidays destination is very wide – in total we are offering more than 30 leisure holidays destination and 124 roundtrips by bus and plane. Our customers especially value high quality at affordable prices and this is the hallmark of holiday in the most popular destinations,” said Linas Aldonis, director general of Novaturas Group.
The 2018/2019 winter offer went on sale in May. Just as in the case of the summer offering, Novaturas Group’s clients may choose from a larger number of destinations. Cuba, Israel, Jordan and Tunisian island Djerba are debuting. This is supplemented by a range of permanent destinations with guaranteed sunshine: Maldives, Vietnam, Sri Lanka, India and Thailand (including the popular Phuket). Interest in foreign travel during the winter season is systematically growing amongst residents of the Baltic countries: aside from the most popular ski resorts in Europe, last year saw strong demand for Egypt and Spain, including the Canary Islands.
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.