Valamar Riviera (RIVP) Q3 2024 earnings summary

Executive summary

• Operating revenues for the first nine months of 2024 reached EUR 390.1 million, up 12.2% year-over-year, driven by strong demand and prior investments in premium hotels and camping resorts.

• All destinations performed well, with Dubrovnik rebounding to pre-pandemic levels; premium and family segments showed notable growth.

• Direct sales accounted for 65% of board revenues, with stable guest structure dominated by German and Austrian visitors.

• Net profit for the period was EUR 72.4 million, impacted by extraordinary legal costs and higher depreciation.

• Significant investments in sustainability, employee compensation, and major projects like the Pical 5* resort continued.

Financial highlights

• Total revenues for the first nine months of 2024 were EUR 392.4 million, up 12.1% year-over-year.

• Adjusted EBITDA reached EUR 147.7 million, a 4.6% increase, with EBITDA margin down by 2.7pp to 37.9%.

• Net profit decreased by EUR 3.4 million year-over-year, mainly due to EUR 4.6 million in extraordinary legal costs and a EUR 3 million rise in depreciation.

• Operating expenses rose 16.3% to EUR 239.1 million, driven by higher staff costs (+15.4%) and material costs (+11.5%).

• Net debt (excluding tourist land liabilities) reduced by 13% to EUR 189.5 million.

Outlook and guidance

• 2024 consolidated operating revenues are expected between EUR 411–415 million, up 10.4–11.5% from 2023.

• Adjusted EBITDA guidance for 2024 is EUR 117–120 million, a 6.9–9.7% increase over 2023.

• Management expects a slight improvement in earnings margin by year-end, despite seasonal and cost pressures.