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2019 07 31

Novaturas announces its half-year 2019 financial results: stable sales, profitability under pressure

During the first half of 2019, in the increasingly competitive market environment, Novaturas Group managed to attract 1.9% more customers and increase its revenue by 3.8% compared to the first half of the previous year. However, the oversupply on the market, which has been lingering since 2018, affected the profitability of the Group, as well as the entire sector’s.

In H1 2019, Novaturas Group’s products and services attracted more than 137 thousand passengers, i.e. 1.9% more than in the same period of the preceding year. The number of customers served by Novaturas grew y/y by 8.8% in Latvia and by 8.3% in Estonia, which was partially offset by a 3.3% decrease in Lithuania. This translated into 3.8% overall growth in revenue, which reached EUR 83.2 million.

Turkey, which remains the most popular destination among the Baltics’ citizens in the summer season, owing to its good price for the quality ratio and wide selection of accommodation, accounted for more than a half of revenue from flight package tours in Q2 2019 and over one third of revenue cumulatively in H1 2019.

“The ability to maintain sales growth in a dynamic and competitive market is definitely Novaturas’ strength. We compete by keeping our increasingly diverse offer affordable. This season Novaturas started to serve couple of new promising long haul destinations, such us Bali, Mexico and Seychelles, while keeping the average tour price at almost the same level as in the last two years,” Novaturas CEO Audronė Keinytė commented.

However, the dynamic growth of the tourism sector in the Baltics over recent years attracted new market players, further increasing the competition. Combined with hot weather in the source markets, especially in June, this has led to the oversupply on the market, affecting the profitability of the entire sector.

In H1 2019, the Group’s gross profit decreased by 28.7% y/y to EUR 10.7m, while its EBITDA amounted to EUR 1.7 million (vs. EUR 5.9 million in H1 2018), resulting in the net profit of EUR 0.4 million (vs. EUR 4.4 million in H1 2018).

“We are determined to keep operating costs under control and steadily increase our efficiency. In H1 2019, general and administrative expenses (excluding one-off items) decreased by 4.9% y/y. The Group’s total operating expenses increased by only 0.9% y/y, while total sales increased by 

3.8%. We continue to actively search for possibilities to make further efficiency improvements while maintaining high quality service level,” Novaturas CFO Tomas Staskunas pointed out. 

“In H1 2019, our profitability was still slightly affected by higher costs related to the change of our main aviation partner in Q4 2018, but this effect is diminishing and should no longer weigh on our financial results,” the CFO elaborated.

“We’re focused on defending our leading market position. We have prepared a very attractive and diverse offer for the upcoming 2019/2020 winter season, a significant part of which has already been booked. We have recorded a 5% y/y increase in early bookings, with significantly higher profitability as compared to the previous year. We are going to start next summer season with similar seats capacity as for 2019, constantly exploring opportunities to increase it further. For example, we are aiming at increasing volumes of sightseeing trip sales, with new sightseeing trips by plane already offered for Latvian and Estonian markets,” Novaturas CEO Audronė Keinytė announced.

Novaturas Group – selected financial results 

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H1 2019

H1 2018

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Gross profit








Net profit




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.