Preliminary September results for Novaturas: solid start to next summer’s sales, decision to repurchase a part of own shares

Novaturas Group, the market leader in the Baltic tourism market, recorded revenues of EUR 24.1 million in September, compared to around EUR 24 million at this time last year. The company served more than 29 th. customers while last year September ended with 32 th.   

In total, 164 million revenue was recorded between January and September, 7% more than in the same period in 2022. 210 th. customers were served, compared to around 216 th. in the same period last year. 

  

“In August, we were the first to launch next summer's Turkey sales and in September we launched a full programme of 19 destinations. This early start gives us a competitive advantage, as we estimate that the group-wide customer base for next summer is already around 50 planes full.   Travellers’ desire to plan their holidays in advance is growing, so we are responding and this year we have set ambitious targets to launch in September – last year, early booking sales for all summer destinations started almost a month later. Customers receive a solid package of additional services through pre-sales, which helps the company to ensure financial sustainability and a higher load factor,” comments Vitalij Rakovski, Novaturas Group CEO.     

Turkey, the popular Montenegro and the Greek islands are among the best-selling destinations for next summer. In addition, travellers are also interested in Cyprus, newly introduced in the company’s 2024 summer holiday programme.   

Bought back part of its shares to be given to employees  

In September, the company announced that it had earmarked almost EUR 0.25 million to buy back its own shares, which will be distributed to employees over the next three years. It is common for listed companies to buy back shares when their market price is below the growth potential estimated by financial analysts. Buying back shares increases value for the company's shareholders by giving a higher share of profits per share. In addition, it often results in a higher share price.  

It should be recalled that Swedbank's financial analysts have assigned a 'buy' rating to Novaturas shares, with a target recommended share price of EUR 4.5. This is approximately one third above the current price of Novaturas shares on the stock exchange. Meanwhile, the latest analyst estimate from Enlight research puts the target recommended base share price at EUR 4.27 (almost one third higher). In an optimistic scenario, Enlight research estimates the share price ceiling at EUR 4.74, while in a pessimistic scenario it is EUR 3.81.  

The programme is designed to seek exceptional clients’ experiences  

The company works closely with partners and tourism boards in different countries to develop destinations programme and find unique experiences for clients. Familiarisation trips are organised for representatives of travel agencies to get to know the different destinations. According to the company, currently around 70% of sales are made through agencies, so relationships with them are constantly being strengthened.   

In August and September alone, representatives of agencies and Novaturas visited Vietnam, Sicily and Madeira - on such trips, tourism experts are more familiar with the range of hotels and other special features of the destinations. In Montenegro, a trip was organised for the heads of major travel agencies. By the end of the year, at least 10 more destinations are planned to be visited with agency representatives.   

In addition, events on Jordan, Egypt and hotels presentations were held in Lithuania, Latvia and Estonia, which were visited by foreign partners. In the near future, the company will welcome guests from Bulgaria, Turkey, Greece and other countries in its travel programme. 

About the company  

 

Novaturas Group is the largest and the only charter flights‘ local tour operator in the Baltic States, offering summer and winter trips to more than 30 destinations worldwide and more than 100 tours. 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