Valamar Riviera (RIVP) Q2 2024 earnings summary

Executive summary

• Operating revenues for H1 2024 reached EUR 122.3 million, up 16.1% year-over-year, driven by investments in premium hotels and campsites and strong demand in all destinations, especially Dubrovnik.

• Net loss for the period was EUR 35.9 million, reflecting higher labor costs, earlier property openings, and increased depreciation.

• Major investments in employee compensation, sustainability, and property upgrades continued, with EUR 83 million invested in the 2023/24 cycle.

• The company remains Croatia's top tourism employer, with 8,200 employees as of July 2024.

Financial highlights

• Total revenues for H1 2024 were EUR 125.1 million, up 17.4% year-over-year; sales revenues rose 14.8% to EUR 119.6 million.

• Adjusted EBITDA was EUR -2.0 million, down from EUR 2.4 million in H1 2023, due to increased costs.

• EBIT was EUR -37.1 million; EBT was EUR -44.0 million, both lower year-over-year.

• Net debt increased to EUR 328.7 million (including IFRS 16), with cash and cash equivalents at EUR 10.3 million.

• EPS for H1 2024 was EUR -0.26.

Outlook and guidance

• Based on strong H1 revenue growth and positive booking trends, the company expects to achieve its 2024 targets, barring significant negative events.

• The Pical 5* premium resort project (EUR 139 million investment) is on track for completion by December 2025.

• Ongoing focus on premium segment growth, sustainability, and employee development.