The tourism industry giant from Poreč is having another excellent business year.
Valamar Riviera from Poreč, one of the leading tourist companies in Croatia, recorded 1.74 billion kuna of total consolidated operating revenues in the first nine months of this year. This is an increase of 17 percent compared to the same period last year. At the same time, the company also recorded a growth in operating profit, reports tportal.hr on October 29, 2017.
The strong revenue growth is the consequence of a 20 percent growth in the number of overnight stays and an average price increase of six percent. The company created significant added value for its shareholders, since there was a 26 percent growth in the value of the company, as a result of the growth of market capitalisation. The company is currently valued at 7.2 billion kuna.
This year, Valamar Riviera plans to realise between 1.75 and 1.77 billion kuna in revenues, up by between 17.9 percent to 19.2 percent in comparison to last year.
The revenue growth will be accompanied by strong increase in consolidated operating profits (EBITDA), which will reach between 600 and 610 million kuna by the end of the year, which will be between 87 and 97 million kuna more than Valamar Riviera realised last year, announced the hotel group.
This year, Valamar Riviera completed the largest annual investment cycle worth more than 900 million kuna, of which the majority was invested in the repositioning of Rabac as a destination, which included the construction of two resorts – Family Life Bellevue Resort 4* and Valamar Girandella Resort 4*/5*, with continued investments in raising the quality of campsites.
“Business results achieved in the first nine months of this year are a confirmation of the success of Valamar Riviera’s growth and development strategy, which is based on continuous investments in products, employees and destinations, with the aim of creating value for shareholders and other stakeholders. For the third consecutive year, we have achieved strong growth in business performance, and quality and, accordingly, the market capitalisation of Valamar is growing at an average annual rate of more than 30 percent, with a progressive growth in salaries and employment. Just this year, we have invested more than 900 million kuna and opened more than a thousand new jobs. I would like to thank all the shareholders, employees, partners and destinations which participated in this major step forward,” said Željko Kukurin, the CEO of Valamar Riviera.
In accordance with the announced three-year investment cycle, which will reach two billion kunas by 2020, Valamar Riviera plans to continue significant investments in 2018, with the final decision on the exact amount expected to be made in early-December.
Translated from tportal.hr.
