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2019 02 20

Press release

Novaturas Group records sound financial results for 2018 despite challenging market conditions

Novaturas Group’s revenue for 2018 reached almost EUR 182 million and was 29% higher than in 2017. Last year’s EBITDA amounted to EUR 8 million, compared to EUR 10.6 million a year earlier, and the consolidated net profit stood at EUR 5.4 million vs. EUR 8.2 million in 2017. The Group’s profitability was affected by abnormal weather conditions in all Baltic countries during the summer season and additional costs incurred in Q4 2018 related to the replacement of troubled Small Planet Airlines as the Group’s aviation partner in Lithuania.


In 2018, Novaturas Group, which is the leading tour operator in the Baltics, listed on the Warsaw Stock Exchange and Nasdaq Vilnius, served 305,660 customers, 31% more than in 2017. This has translated into 29% y/y growth in revenue to EUR 181.8 million.

“In 2018, the number of customers served by Novaturas Group increased by over 30% in all our core markets, i.e. Lithuania, Latvia and Estonia, while in Belarus, our new prospective market, where we sell our Lithuanian products through Belarusian agencies, the growth exceeded 100%. Flight package tours continue to be our main product which accounts for over 85% of our total sales. The most popular destinations among Baltic citizens remain Turkey, Greece, Spain and Bulgaria in the summer season and Egypt in the winter season. For each season we introduce new destinations or reintroduce older ones. For the summer of 2018 we added Tunisia, and for the winter of 2018/2019 we added Jordan and Cuba. The wide variety of destinations in our portfolio enables us to satisfy our customers’ diverse needs,” said Audronė Keinytė, CEO of Novaturas.

The Group uses various channels to sell its products on different markets, making its distribution more efficient. The majority of Novaturas products are sold through travel agencies. In 2018, they were responsible for 72.7% of the Group’s total sales. Rather than focusing on its own retail offices, Novaturas invests in further development of its e-commerce channel

“As planned, last year we launched a new version of the company’s webpage in all three countries where we operate. The responsive design of the new webpage is much better suited to mobile devices, which customers use more and more not only to search for information, but also to make purchases online. In 2018, our e-commerce sales increased by over 26% to EUR 26.7 million,” pointed out Audronė Keinytė.

After very strong profitability in the first half of 2018, Novaturas Group experienced abnormally hot and dry weather in all Baltic countries during the summer season which has translated into lower interest in outbound trips. “In order to stimulate the demand, we had to adjust prices and reduce our profitability, especially in the third quarter of 2018 as well as, to a lesser extent, in the fourth quarter. Moreover, in the last quarter of 2018, due to financial difficulties of Small Planet Airlines, we had to change our aviation partner in Lithuania. The replacement of the aviation company resulted in EUR 0.4 million write-offs and higher costs of the aviation services which additionally affected our EBITDA and net profit for the fourth quarter and the entire year,” explained Tomas Staškūnas, CFO of Novaturas.

“On the positive side, we kept our operating expenses under control during the reporting period. They grew at a much slower pace than sales revenue, which means improving efficiency of the Group. After excluding commissions, which depend on sales revenue, and one-off expenditures related to the IPO and the replacement of the aviation partner, operating expenses in 2018 increased by only 1% vs. 2017, while in the fourth quarter alone they even decreased by 11% y/y,” said Tomas Staškūnas.

Ultimately, the Group’s EBITDA for 2018 amounted to EUR 8 million, compared to EUR 10.6 million a year earlier, and the consolidated net profit stood at EUR 5.4 million vs. EUR 8.2 million in 2017.


Novaturas Group – financial highlights

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About Novaturas

Novaturas Group is the leading tour operator in the Baltics 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 and low capital expenditures, 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.