Published 27. October 2017.
Croatia’s leading tourism company, Valamar Riviera d.d. from Poreč, achieved HRK 1.740 million in total consolidated operating revenues in the first nine months of 2017, or 17% more compared to the same period last year. Operating profit also rose in the same period with adjusted EBITDA up by 19%.
Strong revenue growth was mainly driven by 20% more overnights and a 6% increase in the average rate. Valamar Riviera generated significant added value for its shareholders as enterprise value rose by 26% due to increased market cap, and currently stands at HRK 7.2 billion.
In 2017 Valamar Riviera expects operating revenues ranging between HRK 1,755 million and HRK 1,775 million, representing a 17.9%-19.2% growth over 2016 results. Higher revenues will drive strong growth in consolidated operating profit (EBITDA) expected to annually reach between HRK 600 million and HRK 610 million, or 87 to 97 million more than Valamar Riviera’s results in 2016.
2017 saw the successful completion of the announced largest annual series of investments by Valamar Riviera worth over HRK 900 million. Most of it was focused on repositioning destination Rabac with the construction of two new resorts-Family Life Bellevue Resort 4* and Valamar Girandella Resort 4*/5*, as well as the continual development of camping resorts with added value.
“The results achieved in the first nine months of 2017 confirm the successful strategy steering Valamar Riviera’s growth and development. They are based on continual investments in our products, employees and destinations in order to create added value for shareholders and other stakeholders. We have been achieving strong growth in business results and quality for three consecutive years. Consequently, Valamar’s market cap is growing at an average annual rate of over 30%, followed by progressive growth in salaries and number of employees. We have invested more than HRK 900 million and opened more than 1,000 new jobs in this year only. I would like to thank all our shareholders, employees, partners and destinations that contributed to our strong progress,” said Mr. Željko Kukurin, CEO at Valamar Riviera.
In line with the previously announced 3-year investments worth up to HRK 2 billion until 2020, Valamar Riviera is planning new large investments in 2018 that will be definitely determined at the beginning of December 2017.