Valamar Riviera (RIVP) Q1 2025 earnings summary

Executive summary

• Operating revenue rose 55.5% year-over-year to EUR 17.5 million, driven by the inclusion of Austrian hotels; total revenues reached EUR 18.6 million, up 41.4% year-over-year.

• Net loss for the quarter was EUR 32.5 million, reflecting seasonality and higher costs; adjusted EBITDA was EUR -20.9 million, nearly flat year-over-year.

• Major investments continued, with EUR 161 million allocated for 2024/25, including the Pical Resort (EUR 200 million total) and Arba Resort (EUR 54 million), both on schedule.

• Valamar was again recognized as Croatia's top tourism employer and a leader in sustainability, with significant ESG initiatives and certifications.

Financial highlights

• Sales revenue increased 58.0% year-over-year to EUR 16.9 million; foreign sales rose to 67.8% of total sales.

• Operating costs rose 23.5% to EUR 38.4 million, mainly due to higher material and personnel costs from Austrian operations.

• Net debt increased 11.2% to EUR 307.2 million, primarily due to a EUR 56.9 million decrease in cash.

• Cash and cash equivalents fell 79.6% to EUR 12.2 million as of March 31, 2025.

• EPS was EUR -0.23 for the quarter; share price rose 6.9% to EUR 5.60.

Outlook and guidance

• Booking trends indicate potential for another strong tourist season; strategic focus remains on double-digit annual growth and value creation.

• Dividend of EUR 0.24 per share (4.3% yield) proposed, a 9.1% increase year-over-year, pending General Assembly approval.

• Investment plan through 2026 targets EUR 450 million, with Pical and Arba as premium resorts.