Published 26. July 2016.
In the first six months of 2016, Valamar Riviera d.d. posted total revenues of HRK 507 million, up by 36 percent YOY, while sales revenues increased by 22 percent to nearly HRK 420 million. Operating profit before interest, taxes and amortization (adjusted EBITDA) went up by 135 percent to HRK 78.5 million (as compared to HRK 33.4 million in 2015), following excellent sales results in H1 and an increase in operational efficiency whereby operating expenses grew at half the rate or by 12 percent.
Furthermore, sales revenues grew mostly through the growth of board revenues amounting to HRK 323 million (up by 19 percent YOY) and higher a la carte revenues (up by 34 percent YOY). A successful realization of a large number of events in the destinations of Dubrovnik and Poreč, exceedingly good business performance of the highest-category properties in the tourism portfolio (the premium segment) and the acquisition of the company Baška all made an additional contribution to these excellent results. In the first six months of this year, Valamar achieved 1,434,810 overnights, which is 13 percent more than last year, while the average daily rate went up by 5.4 percent.
In early July, Valamar Riviera submitted to the Restructuring and Sale Center a binding offer for the purchase of 50.08 percent of the equity capital of the company Imperial d.d. Rab. Moreover, Valamar
Riviera has joined forces with the pension fund management company AZ d.o.o. in the process of privatizing Imperial in order to create new added value for the three companies’ stakeholders, using the combination of the experience and strength of Croatia’s leading institutional investor and the management expertise and track record of the country’s top tourism company.
“In line with Valamar’s new development strategy, which we presented at this year’s first Investors Day, we plan to invest between HRK 1.5 billion and HRK 2 billion in the existing portfolio, with a solid growth of EBITDA to a 35 – 38 percent level and an attractive, long-term dividend for the shareholders. At the same time, we will continue to develop the company based on responsible business practices and emphasis on sustainable destination development. The 2017 planned investment cycle is worth HRK 753 million, which is the largest investment cycle in the development of the portfolio in a single year in Valamar thus far”, President of the Management Board of Valamar Riviera, Željko Kukurin, stated.
The announced investment cycle for 2017 is directed at projects in Rabac, namely Family Life Bellevue Resort 4* and Valamar Girandella Resort 4*, with the aim of repositioning Rabac into the leading family holiday destination. Other large investments are focused on raising the quality of the offer and services in campsites towards the premium customer, namely in the Lanterna campsite in Istria, Ježevac campsite in Krk and Zablaće campsite in Baška. Significant investments are also planned in beaches, restaurants, outlets and family facilities in all destinations, as well as continuing investments into quality accommodation for the needs of seasonal employees in Poreč, Krk and Dubrovnik. Around 20 million HRK of investment is planned for digitalization and innovation projects in hospitality operations such as customer relationship management, web, new applications for guest services and IT systems for business operations as well as wifi quality.