During the first 9 months of this year, the company earned EUR 1.1 million net profit, while in the same period last year incurred a loss of EUR 3.7 million. The group's EBITDA during the first three quarters reached EUR 1.98 million, compared to a loss of EUR 1.58 million in the same period last year.
During the three quarters of 2021, the group served more than 123 thousand travelers, which is 191% more than in the corresponding period last year. The group's revenue during the 9 months of 2021 reached EUR 74.7 million and exceeded the results of the same period in 2020 by almost 145%.
"This year's summer holiday season was a success. In terms of holiday destinations available, we have approached the pre-pandemic years and “Novaturas” group exclusive holiday destinations such as Montenegro, Corfu and Kefalonia, have influenced good profitability ratios. Net profit earned during the 9 months of this year differs from the same period of highly successful 2019 only by 18%. Meanwhile, during the same period in 2020, we have incurred a net loss of EUR 3.7 million”, says Audronė Keinytė, Head of “Novaturas” group.
Active third quarter
The third quarter in the tourism industry is traditionally the most active period of the year when the highest numbers of served travelers are generated. This year is no exception. Italy, Sicily, Portugal, Madeira and Egypt have supplemented the usual summer season destinations portfolio, and the supply of holiday destinations has approached the pre-pandemic period. The company closed the third quarter of this year by serving more than 20 thousand travelers and generating more than EUR 15 million turnover each month group wide. In terms of the number of travelers served, the third quarter doubled the results of the second quarter.
"If the first quarter of 2021 we have called a restart of operations, then the second and especially the third quarter clearly show the recovery of tourism market, growing operational volumes and increasing sales. This summer season have generated not only good operational but also financial results. We tend to reinvest the generated incomes to the strengthening of our processes, improving the quality of services provided and meeting the changing needs of our travelers. We are constantly looking for ways to make it easier for people to plan future trips. During the quarantine, we have introduced the “COVID pause” service, and in September we have launched additional travel protection - “Self-isolation pause”. These additional services allow people to feel more confident while planning future holidays and use the benefits of purchasing trips in advance, such as more attractive prices, wider choice of destinations or hotels, without the fear of having to cancel their trips due to infection”, says A. Keinytė.
Growing numbers of early bookings
The third quarter of 2021 and especially September shows growing numbers of early booking sales. "While analyzing the results of the third quarter, we see that the tourism market is gradually returning to usual holiday planning in advance and last-minute sales are declining. Planning holidays in advance is very typical for the travelers from the Baltics. Such behavior is determined by the rational wish to buy future trips at better prices, to be able to plan holiday budgets, choose from the widest supply available”, explains the general manager of “Novaturas” group.
People not only from the Baltic States have actively traveled this summer. After a pause, Western European markets also opened up. Travelers from France, Great Britain, Germany have returned to their favorite resorts. Due to the returned tourist flows and the likely improving epidemiological situation, next summer season is expected to be extremely active, with most popular hotels to be booked well before the start of the summer season. "Having in mind these trends, we want to offer our travelers the best conditions for their future vacations. We have opened the early bookings to the most popular 2022 summer season destinations - Turkey, Greece and Bulgaria already in June. Soon we will launch the early bookings for the remaining summer 2022 destinations”, shares A. Keinytė.
The beginning of winter holiday season
This year, after one year break, winter holiday season is also coming back on track. People can plan their holidays not only in Egypt, Tenerife or the United Arab Emirates, but also in skiing and long-haul destinations. “Novaturas” group was the first tour operator in Baltics to open sales to skiing resorts already in August. According to the general manager, the remaining free seats on the planes to ski resorts are rapidly filling up. Trips to long-haul destinations are also gradually returning. This year people can already book their holidays in such exotic countries as Cuba, Mexico, Mauritius, Seychelles.
The growing volumes of the group's operations, generated revenues and positive market prospects allow the group to settle with financial partners before the terms agreed. At the end of July, the company redeemed part of the issued convertible bonds worth EUR 2.5 million. The bonds have been redeemed before the terms agreed without any additional restrictions. In September, the company repaid “Luminor Bank” AS long-term loan worth EUR 3.04 million also before the termed stipulated in the agreement and at the same time agreed to convert repaid EUR 3.04 million long-term loan into a credit line that can be used at any time if needed. Credit line is a common cash flow management tool in tourism business that allows to balance potential cash flow fluctuations due to the specifics of tourism business and seasonality.
Financial results of 9M 2021:
About “Novaturas” group
AB “Novaturas” group is the largest tour operator in the Baltic States, offering summer and winter package holidays in more than 30 destinations worldwide and more than 100 sightseeing routes. In 2019, the group served more than 293 thousand customers.
Head of Finance
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