In the first six months of 2015 Valamar Riviera realized total revenues of 372 million HRK, which is a 16% increase compared to the same period last year, while sales revenue grew 10% to 343 million HRK. Over the same period earnings (EBITDA) increased by 36 million HRK as a result of increased revenue and operational efficiency.

The first half of the year shows satisfactory performance in pre-season as a combination of increased arrivals and overnights as well as a moderate rise in prices led to a growth of revenues. The results of organizational restructuring and measures taken to increase operational efficiency are evident in effective management of operating costs (-2,7% or 8,5 million HRK less compared to first half of 2014) and an increase in EBITDA margin. During the first six months of 2015 Valamar Riviera completed a 330 million HRK investment cycle in the existing portfolio. The biggest investment of 250 million HRK in Valamar Isabella Island Resort 4* is realizing planned revenue growth and achieving excellent bookings this tourist season.

Earlier this summer Valamar Riviera successfully completed its first acquisition on the Adriatic by acquiring a majority stake in Hoteli Baška d.d., thereby confirming its strategy of future growth through expansion on the Adriatic and in the region. After this acquisition, Valamar Riviera became the largest Croatian hospitality company operating 24 hotels, 9 apartment complexes, two hostels and 12 campsites, with a total daily capacity of more than 48.000 guests.

In the first half of 2015 Valamar Riviera recorded an increase in overnights of 5,2%, accommodation units sold of 6,6% percent, and average price growth in comparable accommodation units of 3,6%, which drove board revenues up by 8,2% or by 20,5 million HRK. The largest portfolio investments in 4* and 5* accommodation capacities in Dubrovnik and Poreč also achieved the highest growth in board revenues of 13%. This is a direct result of significant investments in competitiveness of our hospitality products and facilities, continuous innovation and service quality, which confirms that investments are one of the crucial success factors in tourism.

Financial revenues of Valamar Riviera in the first six months came in at 17 million HRK, while financial expenses amounted to 41,2 million HRK. Financial results are impacted by changed dynamic of quarterly recording of unrealised foreign exchange differences stemming from foreign exchange losses recorded to 25,7 million HRK (mainly due to appreciation of the Swiss franc exchange rate).

“In the upcoming period we aim to continue investing in increasing the quality of our current portfolio as well as developing tourism of experiences and our destinations. Also, we will continue to improve operational efficiency. After the successful realization of the acquisition of Baška on Krk, we continue to actively pursue expansion, partnership and acquisition opportunities in Croatia and the region. Promptly resolving touristic land regulation, as well as decreasing the VAT rate in line with other Mediterranean countries would further accelerate investment, growth and business development”, said Željko Kukurin, CEO of Valamar Riviera.