Novaturas Group has recorded a stable progress within the second quarter and after the primary half-year its EBITDA has now exceeded the end result for the complete 12 months 2019. The immediate response to modifications in journey demand, the diversification of locations, the improved high quality of service and the administration of gasoline value threat enable to extend full-year monetary forecast once more.
“A nicely thought-out and confirmed programme of locations, a deal with aviation high quality and punctuality, and strategically deliberate gross sales for subsequent summer season and winter have all contributed to the monetary sustainability of the Group. This has allowed us to revise our 2023 forecast to the constructive end result, as we now have already executed after the primary quarter. We’re adjusting the EBITDA forecast of EUR 3–5 million at the start of the 12 months to EUR 6–8 million, and the online revenue forecast to EUR 4–6 million as an alternative of EUR 1–3 million,” says Vitalij Rakovski, CEO of Novaturas Group.
Commenting on the precise outcomes for the primary half-year, Mr Rakovski provides that EBITDA was constructive at EUR 5.8 million, in comparison with a unfavorable EBITDA of -EUR 750 000 within the first half of final 12 months. This vital change is once more as a result of gradual diversification of the programme, the early market launch of future season journey and the prudent administration of journey yield threat.
Within the first half-year, the corporate generated revenues of EUR 102.5 million, which is a rise of 12 per cent in comparison with the identical interval final 12 months. A complete of 124 000 travellers have been served, which is a lower of three per cent in comparison with 2022.
Group-wide, round 80 per cent of the complete 12 months programme was bought between January and mid-August.
Aggressive benefit via diversification of locations
Even because the aggressive atmosphere intensifies, the corporate succeeds in sustaining its management and a robust place throughout the Baltic international locations.
“In summer season, we targeted not solely on Turkey, the place provide has been rising lately and the competitors is the fiercest, but additionally on different locations. We have now reacted and intentionally modified our volumes in Turkey, because the profitability on this vacation spot is decrease this season, so we compensated for this via the immediate providing of different locations which might be engaging to travellers. On this approach, we’re additionally shaping new habits and inspiring the invention of extra numerous vacation locations,” feedback Mr Rakovski.
The gross sales of all locations, besides Turkey, have grown by greater than 10 per cent by July in comparison with final 12 months, with some locations standing out particularly. Gross sales to Montenegro have elevated by a half and gross sales to Tunisia have nearly doubled.
Flexibility, punctuality of flights and deal with sustainability
The up to date high quality standards for air carriers have led to improved punctuality of flights within the first half-year. Final 12 months, nearly 3 per cent of flights have been delayed by greater than 3 hours on a group-wide foundation, whereas this 12 months the determine has dropped to 1 per cent.
When selecting air carriers, the corporate takes into consideration their influence on local weather change. In Latvia, partnership with airBaltic has been strengthened this summer season and the airline firm has lowered its CO2 emissions by 20 per cent in 2021–2022. Final 12 months, this air provider acquired the award for Europe’s youngest fleet, with a median plane age of two.87 years. airBaltic can be decreasing its gasoline consumption, with 29 per cent much less gasoline used per flight in 2022 in comparison with 2021.
Contemplating higher journey instances, consolation and buyer expertise, the corporate has added FreeBird Airways and Turkish Airways to its flights from Riga to Turkey this season.
A brand new web site for buyer comfort
In August, Novaturas launched a renewed web site, which is presently present process additional improvement. Among the most notable modifications embrace quicker functioning and a extra user-friendly journey planning and buying characteristic.
Among the targets outlined by the corporate in its new technique are to attain technological progress and enhance buyer expertise; subsequently, extra trendy options have been required as regards the web site. It’s seen as a probably rising gross sales channel.
In line with the corporate’s information monitoring instrument, within the first half-year, round 50 per cent of consumers who opened the web sites of main tour operators in Lithuania, Latvia and Estonia visited the web site of Novaturas.
First available on the market to announce the journey programme for the subsequent summer season season
The corporate was the primary on the Baltic tourism market to announce the beginning of the 2024 summer season season and to open bookings for journey to Turkey at the start of August. Novaturas presents a beautiful bundle of additional companies that gives travellers with flexibility, safety ensures and extra choices. The total summer season 2024 programme and new locations will likely be introduced in September.
Group modifications – new board, deal with sustainability
The newly elected Board of Administrators started its work this summer season. Tomas Korganas and Gediminas Almantas joined the Board (G. Almantas as Chairman), whereas Ugnius Radvila continues his work because the Board member.
The group additionally welcomed Audronė Alijošiutė-Paulauskienė, Head of Sustainability. The corporate will focus much more on lodges, air carriers and different companions which adhere to sustainability ideas, in addition to on training for the group and travellers.
In spring, Novaturas Group offered its 2023–2025 technique and is specializing in the next key areas: technological development, higher traveller expertise, sustainable journey and worker engagement.
Efficient threat administration
Novaturas Group has now hedged greater than 80 per cent of its complete gross sales volumes with spinoff monetary devices in opposition to aviation gasoline value and foreign money fluctuations.
Efficiency of Novaturas Group for the 1st half-year of 2023 (EUR 000’s):
| Monetary indicators | 1st half-year of 2023 | 1st half-year of 2022 | 1st half-year of 2021 |
| Income | 102 536 | 91 647 | 29 114 |
| Gross revenue | 15 663 | 7 854 | 5 164 |
| EBITDA | 5 829 | (750) | 1 790 |
| Internet revenue (loss) | 4 744 | (1 660) | 1 120 |
Concerning the firm
Novaturas Group is the biggest and the one constitution flights‘ native tour operator within the Baltic States, providing summer season and winter journeys to greater than 30 locations worldwide and greater than 100 excursions. In 2022, Novaturas Group recorded revenues of EUR 197 million and served 267 000 passengers in Lithuania, Latvia and Estonia.
Vygantas Reifonas
CFO of AB Novaturas
+370 687 21603
- Novaturas Group FS 2023 6M EN
