For investors

Our strategy

Key elements in Novaturas Group’s strategy: 

  • Retain leading position in the Baltics and benefit from further market growth

We have been the leader of the travel market in the Baltic countries since 2004. We intend to maintain this leading position and benefit from further market growth, protecting our market share from both existing and new competitors. The organised charter flight market in the region is consolidated around several significant players (including Novaturas Group). Any new entity faces high barriers of entry. We believe that it will be difficult for potential competitors to build up a reasonable scale of business and for existing market players to substantially increase their market shares through organic growth.

Novaturas Group’s leading market position, combined with a diversified product portfolio and an extensive distribution network, allows us to observe client behaviours. This gives us the opportunity to quickly react to changing market trends and to adapt our offering accordingly. This lets us secure the leading position in the Baltic countries in the future.

  • Continuous expansion of offering in order to retain existing clients and attract new ones, which translates into sales growth 

We continue gaining new clients thanks to an attractive and well-tailored offering as well as the high quality of our services. We offer summer and winter package holidays as well as sightseeing trips by plane and coach to more than 30 destinations around the world, including the most popular resorts in Southern Europe as well as selected locations in Northern Africa, the Middle East, Asia and Latin America.

  • Further geographic expansion in Belarus 

Aside from the Baltic countries, we are also present in Belarus, where we sell our products through local partners. The short distance between Minsk and the airport in Vilnius gives us a clear advantage in developing our business in this promising market with 9.5 million people and a very low level of saturation as far as travel services are concerned. 

  • Maintain well-balanced distribution channels with growing importance of e-commerce

Maintaining diverse and complementary distribution channels is one of the elements of our strategy. We work with over 400 travel agencies, including the largest ones in the Baltic countries and more than 60 in Belarus. We also operate our own locations in the major cities of Lithuania, Latvia and Estonia, and we are investing in further developing our e-commerce channel. Online sales go through our own websites and the international platform GDS (Global Distribution Systems), where we offer airline tickets. Sales in the e-commerce channel are systematically growing, as is this channel’s share in our overall sales mix. In 2017, e-commerce sales exceeded EUR 21 million (up by 36% y/y) and accounted for 16% of total sales and we recorded 3.2 million unique visits to our websites. 

  • Further growth in business scale combined with high profitability and cash generation 

Growing demand for our tours is driving growth in the scale of our business and market share, translating into dynamic growth in financial results. Our strategic goal is to retain high profitability and cash generation ratios, allowing us to pay dividends to our shareholders. We are monitoring profitability and sales dynamics on a daily basis and we are looking for better contract terms all season long. This lets us maintain strong margins and ensure profitable business growth. 

  • Regular dividend payments to shareholders 

Our business model features high operating cash flows (exceeding 100% of EBITDA) and low capital expenditures, allowing us to pay out a large portion of our earnings to our shareholders. Regular dividend payments are one of the key elements in our strategy. 

The Management Board expects to pay out an interim dividend of approx. EUR 6 million based on audited financial results for the first half of 2018. In the long term, the Management Board expects to recommend annual dividend payments corresponding to 70-80% of net profit.