Crikvenički Jadran Continues to Report Loss

The Crikvenica hotel and tourism company Jadran ended the first half of this year with a loss of 20.54 million kuna, which is a 13.3 percent larger loss than in the same period last year, according to the financial report from the company on the Zagreb Stock Exchange.

Jadran was, as stated in the company’s report commentary, under a bank account blockade in the first half of this year. This actually continues its years-long difficult operations due to financial difficulties and unresolved ownership issues. Total revenues of Jadran in the first six months of this year decreased by 14.5 percent compared to last year, amounting to 17.69 million kuna, while total expenses simultaneously increased by 13.8 percent, reaching 38.23 million kuna.

In the commentary, Jadran notes that their total revenues are within the plan, but that their business revenues, which increased by 10.8 percent in the first half of the year to 16.97 million kuna, are lower than planned. The tourist traffic is also below expectations, and as stated in the commentary, the total number of overnight stays is 8 percent lower compared to last year. The operations of Crikvenica’s Jadran relate to seven hotels, two hotel resorts, and two campsites, with a total capacity of around three thousand accommodation units. At the end of June this year, there were a total of 531 employees in these facilities, according to the report.

The majority ownership stake in Jadran is held by the state – 55.35 percent by the Croatian Pension Insurance Institute, and 25.83 percent by the Croatian Privatization Fund. Zagreb’s Croatia Lloyd holds 8.36 percent, while the remaining share is divided among more than two thousand small shareholders. Discussions about the possible privatization of Jadran have intensified in recent months, and in the past month, both the unions and workers of Jadran have requested the government to continue meetings to find a way to privatize Crikvenica’s Jadran. (Hina)