Novaturas (NTU1L) Q2 2024 earnings summary

Executive summary

• H1 2024 income/revenue decreased by 10% year-over-year to €91.3m, with EBITDA at -€1.6m and net loss of €2.3m, reflecting intense competition and market oversupply.

• Operational efficiency improved: long flight delays (>3 hours) dropped from 8 to 3, and NPS rose from 37 in Q1 2023 to 56% in Q2 2024.

• The company maintained Baltic market leadership and is preparing for a CFO transition.

• Management is evaluating capital raising options, including a bond issue of up to €8m, to support investments and financial stability.

• Strategic focus remains on customer trust and service expansion despite short-term losses.

Financial highlights

• Q2 2024 revenue fell 8% year-over-year to €56.8m, with an 11% drop in passenger numbers; H1 2024 revenue was €91.3m, down 9.9%.

• Q2 2024 EBITDA was -€1.9m, down from €3.1m in Q2 2023; H1 2024 EBITDA at -€1.6m.

• H1 2024 net loss was €2.3m, compared to a €4.6m profit in H1 2023.

• Gross profit margin for H1 2024 was 9.3%, down 5.9pp year-over-year; Q2 2024 gross margin was 7.1%.

• SG&A expenses as a percentage of income increased due to lower sales, with general/admin expenses up 17% year-over-year.

Outlook and guidance

• 2024 passenger volume expected between 220,000 and 240,000; revenue guidance is €180–200m.

• Full-year 2024 EBITDA forecasted between -€2m and €0; net profit expected between -€3.5m and -€1.5m.

• Early bookings for the rest of 2024 and winter 2024-2025 are up, with Lithuania and Latvia seeing 20–25% higher loads.

• New hybrid travel packaging and eSIM services launched to diversify offerings.

• No dividends planned for 2024 due to negative EBITDA; dividend resumption targeted for next year if market stabilizes.