Arena Hospitality Group (ARNT) Q4 2024 earnings summary

Executive summary

• Achieved record revenue of €142.3M in 2024, up 12.5% year-over-year, surpassing 2019 levels.

• EBITDA rose to €35.0M from €28.0M, driven by strong performance in Croatia, Germany, and CEE.

• Net profit increased to €5.95M, up from €3.65M in 2023.

• Q4 2024 marked a low-activity period due to the highly seasonal nature of operations, with most business occurring in Q2 and Q3.

• Recent investments and asset refurbishments contributed to growth and improved occupancy.

Financial highlights

• Revenue grew by €15.8M to €142.3M; EBITDA up €7.0M to €35.0M year-over-year.

• Profit before tax reached €8.7M, up from €5.8M in 2023.

• Net cash from operating activities was €25.0M–€26.5M; cash and deposits at year-end were €29.9M–€37.3M.

• Operating expenses increased, mainly due to higher labor and service costs.

• Consolidated gross margin improved, with operating expenses rising at a slower pace than income.

Outlook and guidance

• Ongoing investments in campsites to upgrade facilities, with €11.9M allocated.

• Dividend increase proposed to €1.10 per share, up 47% from 2023.

• Continued share buyback program and focus on high-yield capital investments.

• Positive industry trends and macroeconomic improvements expected to support growth.

• The company emphasizes the seasonal nature of its business, with Q4 typically contributing minimally to annual results.