The tourism company Valamar Riviera achieved a net profit of 105.3 million kuna last year, which is double compared to 2014, according to data from the provisional unaudited report for 2015 that Valamar published on the Zagreb Stock Exchange on Monday.
In the statement regarding last year’s results, Valamar emphasizes that the total consolidated revenues of the company in the business year 2015 amounted to nearly 1.3 billion kuna, which is 18 percent, or 197 million kuna more than in 2014.
An operating profit before interest and depreciation (EBITDA) of 423 million kuna was achieved, which is 49 percent or 139 million kuna more than the previous year.
Last year, Valamar recorded an 11 percent increase in overnight stays, which, along with a 7 percent increase in average prices, led to a rise in accommodation revenue to 1.04 billion kuna, or 147 million kuna more compared to 2014, the company highlights.
“The excellent business results in 2015 are the result of the synergy of several important factors – increased operational efficiency due to the reorganization and restructuring of the business, significant investments in the portfolio and services that stimulated strong growth, acquisitions of companies in the Baška destination, and generally a very good tourist season, which created added value for shareholders with a 20 percent increase in market capitalization,” commented Valamar’s CEO Željko Kukurin.
As the company points out, with the successful acquisition of a company in the Baška destination, Valamar Riviera became the largest tourism group by capacity in Croatia in 2015, which includes 30 hotels and resorts and 13 camps, accommodating around 48 thousand guests daily. They also emphasize that last year Valamar realized an investment cycle worth 358 million kuna, and the largest investment of the previous year, Valamar Isabella Island Resort on the islet of St. Nicholas in front of Poreč, achieved excellent results in its first season of operation.
“The largest increase in accommodation revenue was achieved by 4 and 5-star hotels and apartments, confirming the thesis that continuous investments in increasing the competitiveness of tourism products, innovation, and quality are one of the key factors for successful and sustainable business in tourism. Therefore, in the upcoming period, we will continue with an investment cycle worth around 260 million kuna aimed at raising the quality of facilities, services, and content in the portfolio. For growth in tourism, investments are the most important, so we find the announcements from the relevant ministry about reducing the VAT rate on accommodation services and resolving the status of tourist land encouraging, as this would allow for a significant increase in the level of annual investments for both Valamar and the entire tourism sector,” conclude Valamar.
