Novaturas Reports 16% Revenue Growth and Optimistic Outlook

Novaturas Group's Remarkable November Performance

Novaturas Group, a prominent name in the Baltic tourism sector, witnessed impressive growth in both its revenue and traveller numbers this November. The company achieved revenues of EUR 11.5 million, representing a 16% increase from EUR 9.9 million in the same month last year. Additionally, Novaturas served 11.7 thousand clients in November, up 7% from 10.9 thousand customers during the same period in the previous year.

Year-to-Date Insights and Future Expectations

From January to November in the recent year, Novaturas reported total revenues of EUR 190 million and welcomed 232 thousand customers. In the same timeframe last year, revenues stood at EUR 201.6 million, with the number of customers reaching 251 thousand, highlighting the competitive nature of the tourism industry.

"This is now the second consecutive month we've observed a revenue increase compared to last year, with our customer numbers also on the rise. This is partly due to our partnership with various organizations which allowed us to host the largest workation event in Lithuanian tourism history for Tesonet accelerator companies, leading to a 32% surge in travellers heading to remote destinations. Lower last-minute trip sales contributed to our strong revenue this November, reflecting our operational efficiency," stated Kristijonas Kaikaris, the CEO of Novaturas Group.

Financial Forecasts and Improved Earnings Potential

Following a challenging summer marked by high competition and market saturation, Novaturas is now on a path to more sustainable and profitable results as the year progresses. The company is optimistic that recent revenue growth and positive forecasts for December indicate better overall results for the year than previously projected. Initially, the group anticipated an annual EBITDA of EUR -4.1 million and a net loss of EUR -5.1 million. However, forecasts now suggest that EBITDA may improve to EUR -2 million, alongside a reduced net loss of EUR -3.4 million.

The Company’s Operational Efficiency

In November, Novaturas achieved a remarkable load factor of 98.9% across its flights, reaching an impressive 99.6% on long-haul flights. This high efficiency trend is continuing into December, showcasing the company's ability to meet traveller demand effectively.

The company's most popular flight destinations this November included Egypt, the Canary Islands, and Turkey, where the significant workation event took place. Novaturas also made strides in servicing long-haul destinations, reporting substantial increases in customer numbers for Vietnam (209% more clients), Bali (+60%), Zanzibar (+55%), and Bangkok (+12.5%). This uptick in remote travel can be attributed to adept early booking initiatives and a significant reduction in last-minute sales, which were at half the levels seen in the previous year.

Key Highlights from the Workation Project

The significant workation event organized in partnership with the Tesonet Accelerator companies, including Nord Security, Oxylabs, Surfshark, Cyber Care, and Mediatech, has been a standout achievement for Novaturas. This event, which took place in Turkey, involved over 2,500 employees traveling on charter flights operated by Novaturas, marking it as the largest group trip ever organized by the company.

Building on experiences from last year, Novaturas refined its processes to enhance customer satisfaction, ensuring seamless travel for participants. Kaikaris emphasized, "The key to organizing large workation events is not only about logistics but also creating a tailored experience for every participant. Maintaining close collaboration with clients and partners ensures we meet and exceed expectations."

As workation trips continue to gain popularity annually, the need for companies to establish long-lasting partnerships is becoming more critical. "Having dependable travel organization partners fosters a deeper understanding of customer needs, ensuring better service quality. That's why both holidaymakers and organizations consistently return to the same partners for their group travel requirements," Kaikaris elaborated.

About Novaturas Group

As the foremost charter flight operator in the Baltic States, Novaturas Group provides summer and winter trips to a diverse range of over 30 destinations globally, alongside various tour options. In the past year, Novaturas has generated revenues of EUR 208.3 million, serving approximately 259,000 passengers throughout Lithuania, Latvia, and Estonia.

Darius Undz?nas
CFO
+370 678 05749

Frequently Asked Questions

What contributed to Novaturas' revenue growth in November?

Revenue growth was driven by a combination of increased customer numbers, efficient operations, and successful early bookings for long-haul destinations.

What is the company's outlook for the rest of the year?

The company is optimistic, forecasting improved EBITDA and a reduced net loss compared to prior estimates for the full year.

What were the popular destinations for Novaturas in November?

Popular destinations included Egypt, the Canary Islands, Turkey, Vietnam, Bali, Zanzibar, and Bangkok.

How did Novaturas ensure a high load factor on its flights?

Consistency in high load factors was achieved through effective planning and a strategical decrease in last-minute trip sales.

What is the significance of the workation organized for Tesonet?

This workation marks Novaturas’ largest group travel experience, demonstrating their capability to manage large-scale travel events effectively.

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