NOVATURAS AB - Novaturas earned EUR 61.1 mln. in the third quarter and recorded a profitable September

Spis treści:
1. REPORT
2. INFORMATION ABOUT THE ENTITY
3. SIGNATURE OF PERSONS REPRESENTING THE COMPANY

Spis załączników:

1. Novaturas Group FS 2024 9M EN (2022111)_signed.zip
   

POLISH FINANCIAL SUPERVISION AUTHORITY

UNI - EN REPORT No 206 / 2024

Date of issue: 2024-11-11

Short name of the issuer

NOVATURAS AB

Subject

Novaturas earned EUR 61.1 mln. in the third quarter and recorded a profitable September

Official market - legal basis

art. 17. 1 MAR.

Unofficial market - legal basis

Contents of the report:

Novaturas Group, the largest tour operator in the Baltic States, generated revenues of EUR 61.1 mln. in the third quarter of this year. This is 3,6% less than in the corresponding quarter of 2023. The company’s EBITDA (earnings before interest, taxes, depreciation and amortisation) was negative and amounted to EUR 2.6 mln., whereas the net loss was EUR 2.9 mln. However, the negative results for the quarter were mitigated by a profitable September.

“In the third quarter, we still felt the negative impact of previously mentioned reasons, i.e. oversupply of travels and fierce price competition on the market, especially for trips to Turkey and the Greek Islands. In order to ensure the satisfaction of our customers and to maintain their trust, even in the face of oversupply, we have been optimising quite moderately. In addition, the scope for optimising the travel programme was also limited due to our early commitments to airlines. However, by taking advantage of our wide range of destinations, we were able to mitigate the loss for the quarter and to record a profit in September. Considering the dynamics of the tourism market this year, we view this positively,” says Kristijonas Kaikaris, CEO of Novaturas.

In the third quarter, Novaturas served 79.1 thsnd. customers. To compare, the company served 85.7 thsnd. customers in the corresponding quarter last year. The change is primarily due to lower customer volumes in Turkey (-11.2% group-wide) as a result of the considerable supply on the market this season. However, the range of destinations available allowed for at least partial diversification. The strongest growth in the number of customers served in the said quarter was in Spanish resorts (+137% group-wide), which was due to the company’s expansion in Malaga in all markets, the reintroduction of Mallorca after a break, as well as to the growing popularity of the Costa Brava and Costa Dorada resorts.

Plans to strengthen financial capacity

In January–September this year, the company served a total of 191.8 thsnd. travellers (-8,7% compared to January–September 2023) and generated revenues of EUR 152.4 mln. (-6,6%). The company’s 9-month EBITDA amounts to EUR -4.1 mln. and its net loss to EUR -5.2 mln. As previously announced, the company intends to use external financial instruments to contain the loss and to secure its financial capacity.

“We are already planning the volumes for next year, as well as the summer season, taking into account the lessons learned this year, the changed market situation and the need for greater flexibility in risk management,” says Mr Kaikaris. “Our immediate goals for the last quarter of the year are to ensure financial stability. This is important in balancing the fluctuations in cash flow that occur due to the nature of business and seasonality. We aim to plan the coming seasons efficiently and thus get back on the road to sustainable profitability.”

Novaturas reports that it is continuing a dialogue with financial institutions on possible solutions to strengthen its financial capacity, which at the same time would open up opportunities to invest in further improvement of the customer experience and expansion of services. The company will inform about the solutions in a separate announcement via the stock exchange.

Optimistic due to the growth of early winter bookings and exotic destinations

Looking at the third quarter as a whole, the company recorded increased early bookings for the winter season in all markets. In July–September, bookings for the winter season in Lithuania and Latvia increased by 29.7% and 42.6% respectively, compared to the same period last year. Decline has been recorded in Estonia for a while due to the overall more difficult macroeconomic situation in the country; however, the sales volume for the whole quarter grew by 22%.

A stronger growth was recorded in Egypt, the Canary Islands and the United Arab Emirates (Dubai). In addition, Novaturas has observed a higher interest in exotic destinations than last year (+31.8% group-wide). Among the company’s long-haul winter destinations, Vietnam (Saigon), Mexico (Cancun) and Indonesia (Bali) recorded the strongest growth.

The growth in early bookings reflects both the trust of travellers in Novaturas and their habit to plan trips in advance, which is encouraged by the company. This gives travellers the opportunity to choose from a wide range of flights and hotels, whereas the company can plan volumes with greater certainty
.
Hybrid packaging and webpage updates

The company continues to develop solutions to improve the customer experience, including hybrid travel packaging, which will expand the hotel offer for travellers. By integrating new accommodation service providers, Novaturas plans to offer customers more flexibility and more attractive prices. In addition, the hybrid packaging solution is also linked to operational efficiency improvements, as it will contribute to the filling of scheduled flights. Hybrid travel packages are expected to be available to customers in the fourth quarter of this year.

Another upgrade planned for this year is the continued improvement of the company’s website, thus also consistently strengthening direct sales. Taking into account customer feedback, the travel search function and the display of results are being improved. Novaturas also plans to use artificial intelligence tools to provide more detailed descriptions of hotels and to collect reviews from different platforms so that customers can choose the most attractive hotel option for them.

Performance of Novaturas Group for 9M of 2024 (EUR 000's):

Financial indicators 9M 2024 9M 2023 9M 2022
Revenue 152,425 163,281 151,745
Gross profit 12,006 22,681 14,834
EBITDA (4,122) 6,952 43
Net profit (loss) (5,155) 5,505 (218)

About the company 
Novaturas Group is the largest and the only charter flights‘ local tour operator in the Baltic States, offering summer and winter trips to more than 30 destinations worldwide and more than 100 tours. Based on audited data, in 2023 Novaturas Group recorded revenues of EUR 208,3 million and served 259 000 passengers in Lithuania, Latvia and Estonia.

Annexes

File Description

Novaturas Group FS 2024 9M EN (2022111)_signed.zip
Novaturas Group FS 2024 9M EN (2022111)_signed.zip

NOVATURAS AB

(fullname of the issuer)

NOVATURAS AB Usługi inne (uin)

(short name of the issuer) (sector according to clasification of the WSE in Warsow)

LT-44245 Kowno

(post code) (city)

A.Mickeviciaus 27

(street) (number)

[phone] [phone]

(phone number) (fax)

(e-mail) (web site)

(NIP) (REGON)

SIGNATURE OF PERSONS REPRESENTING THE COMPANY

Date Name Position / Function Signature

Darius Undzenas CFO