Notification on material event
Novaturas takes over Aurinko operations in Estonia
The leading tour operator in the Baltics Novaturas Group has agreed with Aurinko to carry out its operations in Estonia starting from the beginning of next year. One of the most capacious tour operators in Estonia and a Finnair subsidiary Aurinko has announced previously leaving the Estonian market and entrusted Novaturas for its proper know-how and stable financial status. The legal agreement has been signed between Novatours OÜ, subsidiary of Novaturas Group in Estonia and Aurinko OÜ.
Novaturas Group will fulfil the obligations for the tourists, travel agencies and airlines for the winter season from January to April 2020. The company will handle tours to of the most popular winter destinations for travellers in Baltics – Dubai, the most populous city in the United Arab Emirate, and Tenerife, the largest island of the seven Canary Islands. The flights will be continued to operate with SmartLynx Airlines.
"We are pleased with our cooperation in Estonia, the market that we are present and familiar with more than 15 years already. This will strengthen our position and capacities in the Baltic countries", says Audronė Keinytė, CEO and Chairman of the Board of Novaturas Group.
Novaturas Group has all the relevant experience in the tourism industry, obliged capacities and in-depth knowledge of the Baltic market. Last year only, more than 300.000 Baltic travellers have chosen Novaturas as their vacation provider. The number of clients significantly grew in all three core markets – Lithuania, Latvia and Estonia.
Both counterparties ensure a smooth handing over and Aurinko will inform its clients directly, therefore neither travel agencies, nor customers have to initiate any actions.
Novaturas Group is the leading tour operator in the Baltics states. Since 21 March 2018, Novaturas shares have been dual-listed on the Warsaw Stock Exchange and on Nasdaq Vilnius.
Novaturas was established in 1999, became the market leader in the Baltics in 2004. Aside from the Baltics, Novaturas has begun offering its products in Belarus, where they are retailed through local partners.
Novaturas continues to attract new clients thanks to its attractive and diverse offering and the high quality of its services. The Group offers both summer and winter package holidays as well as sightseeing tours by coach or plane to more than 30 destinations worldwide, including the most popular holiday resorts in Southern Europe as well as select locations in North Africa, the Middle East, Asia and Latin America.
The Group's strategy also aims to retain diverse and complementary distribution channels. Novaturas works with over 400 travel agencies, including all of the major agencies in the Baltics. It also operates retail offices of its own in main cities of Lithuania, Latvia and Estonia, and is investing in further development of its e-commerce channel.
The Company’s asset-light business model, which is characterized by strong cash flows from operating activities and low capital expenditures, allows it to pay out a large part of its earnings to shareholders. Paying regular dividends is one of the key elements of the Company's strategy. Every year the Management Board expects to propose for distribution 70% – 80% of the Company’s net profit.
CFO of AB “Novaturas”
firstname.lastname@example.org, tel. +370 687 10426