Novaturas (NTU1L) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 declined by 6.6% year-over-year to EUR 152.4 million, with Q3 2024 revenue at EUR 61.1 million, down 3.6% year-over-year, due to intense competition and oversupply, especially in Turkey and Greece.

• EBITDA for 9M 2024 was EUR -4.1 million, down from EUR 6.9 million in 9M 2023; Q3 2024 EBITDA was EUR -2.6 million, and net loss for 9M 2024 was EUR -5.2 million.

• Passenger volumes fell 9% year-over-year to 191,800 for 9M 2024, with Q3 2024 serving 79,100 passengers, down 7.7%.

• Customer satisfaction improved, with Net Promoter Score rising to 51% in Q3 2024 from 37% in Q1 2023, though slightly down from the previous quarter.

• New CFO appointed during the period to strengthen financial stability.

Financial highlights

• Q3 2024 gross profit was EUR 3.5 million, down 53% year-over-year; 9M 2024 gross profit was EUR 12.0 million, down 47.1%.

• Gross profit margin for Q3 2024 was 5.7%, down 6 percentage points year-over-year; 9M 2024 gross margin was 7.9%.

• Q3 2024 net loss was EUR -2.9 million; 9M 2024 EPS was EUR -0.66 (9M 2023: EUR 0.71).

• Net cash flows from operating activities for 9M 2024 were EUR 4.4 million, down from EUR 11.9 million in 9M 2023.

• Market capitalization as of 30 September 2024 was EUR 17.02 million, down 28% in Q3.

Outlook and guidance

• Full-year 2024 guidance: 220,000–230,000 passengers, revenue of EUR 180–200 million, EBITDA of approximately EUR -4.1 million, and net loss of around EUR -5.1 million.

• Early bookings for the winter season are positive, with strong growth in Egypt, Canary Islands, UAE, and exotic long-haul destinations.

• Focus for 2025 is on profitability, smart capacity planning, and reduced exposure to highly competitive destinations.

• Management is in discussions with financial institutions to strengthen financial capacity and support service expansion.