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During the first half of this year, the company served over 46 thousand customers, which is 48% more than in the corresponding period last year. The group's revenue for the 6 months amounted to 29.1 million euros and exceeded the results of the first half of 2020 by 24%. During the first half of this year, the number of people served, and the income earned are still lower than the corresponding time in 2019, but the company is steadily reducing the difference every month.
With the gradual resumption of operations, the company's operating expenses reached 3.6 million euros and were 1% lower as to compare with first half of 2020. Excluding the impact of commissions and one-time expenses, operating expenses decreased by 17% compared to the same period in 2020. "Taken leadership in being the first in the market to open safe holidays destinations, increasing flight programs, and the acceleration of vaccination processes - all these factors had a positive effect on first half profitability ratios”, says Audronė Keinytė, Head of “Novaturas” group.
Recovery of the tourism sector and plans for autumn
The company started 2021 holiday season in February with scheduled flight programs and gradually increased its operations since March. In the first quarter of this year the company operated flights to Tenerife and Egypt. During the second quarter, after a year break, “Novaturas” resumed flights from all the markets to the most popular summer holiday destination – Turkey. In May the Greek islands of Crete, Rhodes and Corfu were added to holiday destinations portfolio. In June the planes took off to Bulgaria and Montenegro. The latter holiday destination became a star of this summer season and because of its high demand, the company doubled planned flights to Montenegro.
In June, most of the restrictions were lifted in Lithuania, vaccination processes started, and it gave the impulse travel abroad more freely and actively. In June the company have served 17 thousand travelers, i. e. 7 thousand more than in May.
In the middle of 2021, the pace of vaccination process has accelerated. The EU digital COVID certificate that has come into force in July, stabilized the rules of travelling and it opened the possibility to travel safely to a larger number of people. Testing services have become widely available to the travelers, in many countries’ tests can be done at the airports. Insurance companies and banks have also adapted to these changes and offer special COVID-19 insurances that cover the cost of treatment in case the travelers get infected with the virus. All holiday destinations are fully adapted to the new travel reality and have implemented safety and hygiene protocols that are mandatory for all segments of the tourism sector: hotels, restaurants, wellness centers, transportation services providers, etc.
People who are vaccinated or have recovered from the virus travel even much easier these days. "Testing and isolation requirements do not apply to them. While perhaps not as fast as one would like, but the number of vaccinated people around the world is steadily increasing, they continue to travel safely and comfortably, making plans for their future trips. The number of people planning their holidays in July and August is approaching to the pre-pandemic years.
We are monitoring the trends of holiday packages purchases and, reacting to market conditions, started highlighting our travelers flexible booking conditions. From September, in addition to the holiday destinations currently on offer, we also plan flights to the traditional autumn destinations - Portugal, Italy and Spain. The number of bookings in advance is growing and it allows us to predict that in the third quarter, the number of people each month traveling abroad at the group level will reach 20 thousand. We hope that more people will find motives to continue vaccinating in order to develop significant universal immunity not only in Lithuania, but also around the world” says the general manager of “Novaturas”.
Return on investment
In February 2021, “Novaturas” agreed with the State Investment Management Agency on 10 million euros investment in company bonds for a period of six years. The investments in ordinary and convertible bonds have reached the company in May and June, respectively. The company have allocated the first part of the investment received for ordinary bonds to its strategic priorities - development of relations with partners abroad, strengthening company's positions in the holiday destinations and improvement of the e-commerce system. The good results of the first and second quarters of 2021 allow the company to redeem part of the issued convertible bonds before the terms agreed. “The PVF investment was carefully considered decision that paid off. Also, it showed that our business model during difficult times for the tourism sector proved to be right. The attracted investments have given us stability during unsettling times and allowed to focus on generating revenues and rapid recovery of operations. We monitor the recovery of the tourism market every month and it reflects in our results”, says A. Keinytė.
Financial results of 6M 2021:
|6M 2021||6M 2020||6M 2019|
|Revenue||29 114||23 476||83 260|
|Gross profit||5 164||2 661||10 060|
|EBITDA||1 790||-840||1 728|
|Net profit||1 120||-2 244||437|