One of the largest Croatian tourism companies has published an earnings report – a closer look at Valamar Riviera.
In the first nine months of this year, Valamar Riviera Group recorded a double-digit growth in business results – total revenues grew by 10.4 percent over the same period last year and operating profit (EBITDA) increased by 11 percent, according to data from the consolidated report published by the company, reports tportal.hr on October 26, 2018.
EBITDA amounted to 857 million kuna, an increase of 11 percent compared to the same period last year. The Group’s total income for nine months amounted to 1.9 billion kuna, up 10.4 percent. Valamar said that the revenue growth was a consequence of its strong investment cycle which increased competitiveness and raised the quality of the company’s facilities and services.
Valamar Riviera pointed out that, over the first nine months of this year, the company for the first time generated more than six million overnights, which was an increase of four percent, while the average price increased to 584 kuna (a five percent increase).
According to data, total operating expenditure in the first nine months amounted to 1.3 billion kuna, an increase of 11.6 percent. The total operating expenditures recorded a 10 percent growth. “The personnel costs increase was planned, in line with our policy of increasing employee salaries and opening new positions which are necessary for offering quality service in the new premium and upscale tourism products. The intensification of investments in human resources will be the largest challenge for growth and development in the coming years as well,” Valamar said.
The company expects that it will generate total revenues of between 1.96 billion to 1.98 billion kuna by the end of this business year, while the expected EBITDA will range from 690 million to 700 million kuna, which will be an increase of between 13.9 and 15.5 percent.
Valamar said that in 2019 it plans to invest the total of 752 million kuna, with a side note that the final decision on the investments would be made by the end of this year. In 2019, investments will represent a continuation of the strategy for repositioning the portfolio by offering high value-added services and focusing on the premium segment of tourism in Istria and on the islands of Rab and Krk.
Valamar Riviera is among the leading tourist companies and tourist groups in Croatia. In addition to this year’s acquisitions of Makarska Hotels and Matthias Aichmann GmbH, which includes the Petersbühel hotel in Austria, the Valamar Riviera Group operates facilities in seven destinations, from Istria and Kvarner to Dubrovnik in Croatia, and in Obertauern in Austria, and it manages about 12 percent of the categorized tourist accommodation capacities in Croatia. The Valamar Riviera portfolio includes 34 hotels and summer resorts and 15 campsites, which offer more than 21,000 accommodation units that can accommodate nearly 58,000 guests each day.
Translated from tportal.hr.
