Arena Hospitality Group (ARNT) Q2 2024 earnings summary

Executive summary

• Total consolidated revenue for H1 2024 reached EUR 50.3 million, up 18.9% year-over-year, driven by strong demand across all regions and segments, especially in leisure and corporate travel.

• EBITDA improved significantly to EUR 3.2 million from EUR 0.4 million in H1 2023, mainly due to strong performance in Germany and Austria.

• The Group is entering its peak trading period, particularly in Croatia, with positive trends expected to continue into the summer season.

Financial highlights

• Total revenue increased 18.9% year-over-year to EUR 50.3 million; accommodation revenue rose 17.2% to EUR 39.5 million.

• EBITDA surged to EUR 3.2 million, a 700% increase compared to H1 2023.

• Loss before tax widened to EUR 9.8 million from EUR 9.1 million year-over-year, mainly due to higher depreciation and financial expenses.

• Cash position remained strong at EUR 31.0 million as of June 30, 2024.

• Utility costs decreased, notably electricity expenses down 19% year-over-year.

Outlook and guidance

• Trading since June 30, 2024, is in line with expectations across all regions.

• Croatia is expected to maintain positive momentum through the summer, though last-minute bookings impact visibility.

• Germany anticipates further occupancy and ADR growth, benefiting from international events.

• The Group remains focused on liquidity, regular investments, and exploring new growth opportunities in Croatia and CEE.