Novaturas announces audited results, priorities for this year include improving customer experience and transforming the organisation

Novaturas, the largest tour operator in the Baltic States, has published its audited performance report for 2023 and adjusted financial results. Novaturas Group generated revenues of EUR 208,3 mln. in the Baltic States last year, which is an increase of 6%, compared to 2022. Its EBITDA (earnings before interest, taxes, depreciation and amortisation) reached EUR 5.5 mln. last year, which means that the loss of EUR 0.7 mln. recorded the year before has been replaced by an annual profit of EUR 3.6 mln.

By comparison, according to unaudited data, in February this year, the company announced revenues of EUR 209 mln., EBITDA of EUR 5.5 mln. and profit of EUR 3.7 mln. for 2023.

Last year, Novaturas served a total of 259 thsnd. customers across the Baltic States. This is a slight decrease (3%), compared to 2022.

 Aiming to improve the traveller experience 

“We view 2023 as a successful year for Novaturas Group, since we have returned on our road to profitable growth. The annual profit was achieved despite a more challenging fourth quarter due to complex reasons. Firstly, the military conflict in the Middle East, which has changed traveller behaviour. As a result, we have optimised our travel programme to Egypt, which is one of the main destinations in the Baltic region during the winter season. Out of concern for the safety of travellers, we have also cancelled planned trips to Jordan. We are also observing a marked increase in market dynamics and competitive environment. Nevertheless, we are looking forward to an active summer season, which we were first to announce on the market, and our goal this year is to continue to operate in a sustainable profitable way,” says Kristijonas Kaikaris, CEO of Novaturas Group.

According to him, the broadest offering of travel destinations in the region of the company and its prompt management in response to customer needs were decisive factors in maintaining profitability. Mr. Kaikaris emphasises that Novaturas will continue to improve traveller experience and offer new services.

“The aforementioned market dynamics can drive the conditions in the Baltic outbound tourism market, and this has been partly felt in the first quarter of the year. However, it is a decisive and timely response to the dynamic market situation and flexibility that have helped to navigate the diverse circumstances so far. In addition, our wide offering gives us the opportunity to diversify and focus on the destinations with the highest potential. We will focus on even more user-friendly tools for travel agencies and other partners. And we also have plans to develop the digital experience and other solutions to improve customer experience,” says Mr Kaikaris.

Proposing not to pay dividends 

When announcing its audited annual report, Novaturas Group has submitted a proposal to withhold dividends for 2023. According to the management of the company, the main reason for this is the current credit terms with the bank. These stipulate that the bank consent is required for the payment of dividends. Despite a profitable year, the bank lending to Novaturas is currently reluctant to approve the payment of dividends, given the current situation in the outbound tourism market and the more difficult last two quarters.

Gediminas Almantas, Chairman of the Board of Novaturas Group, says that the company is continuing negotiations with the bank on the amendment of the credit terms and the payment of dividends. “The aim is to base the terms primarily on the structure of the company’s balance sheet and to enable Novaturas to pay dividends to shareholders in the future, in line with the dividend policy of the company. If new terms are agreed, the payment of dividends and more specific time periods will also be reconsidered,” comments Gediminas Almantas.

At the same time, the management of Novaturas emphasizes that when distributing company’s profit, consideration should be given to increase its financial capacity, ensuring the balance of  working capital funds, and investing in organizational transformation processes, including the improvement of customer experience, strategic partnerships, and the organizationall structure. Novaturas will focus on projects that could enhance the competitiveness of the company, its revenue and profitability, and thus the long-term return to shareholders.

The final decision on the matter of dividends will be taken by the shareholders at the General Meeting of Shareholders scheduled for the second half of May.

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. Based on audited data, in 2023 Novaturas Group recorded revenues of EUR 208,3 million and served 259 000 passengers in Lithuania, Latvia and Estonia.    

Vygantas Reifonas   

CFO of AB Novaturas