Preliminary financial results for 4 months of 2020
Due to the COVID-19 pandemic and the restrictions imposed, Novaturas Group has suspended its operations since the second half of March. Restrictions imposed have resulted in Novaturas Group not generating turnover in April this year. During the same period in 2019, the Company has reached a turnover of EUR 14.4 million and served 23.7 thousand travellers.
In order to manage the situation caused by COVID-19, Novaturas Group has taken strict cost-saving measures, negotiated with business partners abroad, and uses a state aid measure that allows it to compensate part of the employees' salaries. The company is also expecting the final decisions of the Lithuanian government on aid measures to ensure liquidity. While expecting state aid, the Company is also looking for alternative sources of financing.
In assessing possible future scenarios, the Company relies on the recommendations of the responsible authorities and information from business partners abroad and local authorities on the possible resumption of travel. Novaturas Group is ready to resume travel operations as soon as the restrictions are lifted and aviation and foreign partners will be ready to ensure the safety of travellers according to new safety requirements.
About Novaturas Group
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.
Finance director,
Tomas Staškūnas
,
+370 687 10426
