Notification on material event
Preliminary financial results for 11 months of 2019
Novaturas Group turnover in 2019 November reached EUR 9 million and was 6% lower than at the corresponding time last year. Nonetheless, the total January-November turnover of EUR 170.7 million reached the same level as last year.
In November 2019 Novaturas Group served 11.7 thousand clients - 18 percent less than in the corresponding period last year. During January-November the company serviced 282.4 thousand tourists. The number of clients was slightly (3%) lower than last year. In November, fewer customers chose to go for vacation to the Canaries and Egypt, and long haul trips to the far-off countries sustained growth.
The company notes that the winter season is the least intense in the Baltic tourism market, with particularly low customer flows in November, December and January. In response to these trends, the company focuses on better sales, not on higher customer flows, during the lower intensity period.
The company remarks that business performance is also positively influenced by changing customer habits to purchase holidays in advance. Having started early booking sales for the 2020 summer season (from 1st August), the company recorded positive customer reactions and a significant increase in early bookings compared to last year.
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.
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