(MENAFNEditorial) We are delivering the review of the Novaturas performance for the period of 3 months of 2018.
Management announcement:
2018 first quarter:
Novaturas turnover amounted to 25.8 mn EUR and was 49% higher comparing to the same period in 2017. Gross profit amounted to 4.8 mn EUR and was 67% higher than in the same period of 2017. Operating expenses amounted to 3.6 mn EUR and was 36% higher comparing to the same period in 2017. Eliminating the impact of commissions and one-time expenses, operating costs increased by 12% compared with the first quarter of last year. EBITDA amounted to 945 thousand EUR and was 286 percent higher than in the first quarter of 2017. Novaturas earned 945 thousand euro net profit and it was 595% higher compared to 2017 first quarter. In the first quarter of 2018, 'Novaturas' served 37,6 thousand clients, it was 51% more than in the same period of 2017. Early bookings of the 2018 summer season at the end of March were 51% higher compared to the same period last year. Management Comment:
We are pleased with the strong first quarter of 2018 - the results of the company were significantly better than in the first quarter of the previous year, revenue increased by 49 per cent due to high demand for flight package tours, which also resulted in a higher net profit, which was even 595% higher than in the same period of the previous year. Eliminating the impact of commissions and one-off spending, operating costs increased by 12% compared with the first quarter of last year. The one-time expenses incurred in the IPO and legal expenses in Estonia amounted to 339 thousand euros. Including one-time costs, operating costs without commissions paid rose by 23 percent. All costs, including also commissions, grew by 36 percent.
We see a strong increase in demand for the flight package tours, as previously, the most popular winter holiday destination remained Egypt. Restarted flights to Sharm Al Sheikh resort made Egypt's travel growth strongest compared to other winter season travel destinations.
The number of clients served grew in all three source markets where Novaturas operates. The strongest growth was recorded in Lithuania, where in 2018, 68 percent more passengers were served in the first quarter than in the same period last year, while the Latvian market grew by 42 percent and Estonian market 36 percent more passengers were served comparing to the last year.
More and more people can afford to go abroad or go on holiday several times a year. This is determined by the favorable macroeconomic environment of the Baltic States. Holidays abroad are enjoyed by guaranteed weather conditions and competitive prices compared to Baltic resorts. We noticed that our clients are increasingly planning their holidays in advance. People saw that due to increased demand, the choice of travel abroad was quite limited at the last minute.
Considering the consistently growing demand for flight package tours offered by the company, in 2018, we offer our customers a 34% higher summer season program comparing to 2017 year summer. Early bookings of the 2018 summer season at the end of March were 51 percent higher compared to the same period last year. Travelers also seem to appreciate advantages of the early booking. It ensures the greater variety of travels and hotels options at very favorable prices. (Exact conditions are announced publicly, starting with the early booking sales on the company's websites).
On March 21, 2018, the Company started trading its shares on the Warsaw and Vilnius Stock Exchanges. Novaturas debut on the Warsaw and Vilnius stock exchanges follows the initial public offering of the Company's shares with a total value of over EUR 22 million (approx. PLN 93 million), making it the first sizeable IPO in Lithuania since 2010. It was also the first public offering carried out simultaneously in Poland and Lithuania. The offering ultimately covered 2 104 648 shares, i.e. 27% of the Company's existing shares. The Company's capitalization according to the final share price in the IPO, i.e. EUR 10.50 per share (and its equivalent in Polish zloty of PLN 44.13), reached EUR 82 million (approx. PLN 345 million).
Investor relations manager
Gytis Smolskas
Attachments
AB NOVATURAS ketvirtinė ataskaita EN Novaturas Q1 2018 results MENAFN0805201800703653ID1096828841
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