The company reported lower results due to decreased other operating revenue and management bonus.
As Liburnia Riviera Hoteli published their 2018 preliminary results, we are bringing you some key takes from the report. According to the report, in 2018, the company observed a 1% YoY increase in tourist nights, while their revenues slightly decreased by 0.3% YoY. The company notes that the decrease in revenues could be attributed to a lower than expected demand and closing of
LRH Revenues (2015 – 2020e)
Non-adjusted EBITDA is down by HRK 40m (or 33%) to HRK 82m. Note that there was a negative HRK 12m impact from decreased other operating revenues (as explained above), and a further HRK 28m related to management bonus. Namely, in June 2018, the supervisory board approved the termination of the contract of the company’s CEO, Igor Šehanović.
High expenses lead to the company having a negative EBIT of HRK -15.8m, net loss before tax of HRK -16.7m and a net loss of HRK -12.9m. Note that in 2017, Liburnia observed a net income of HRK 16.3m. If we were to exclude the bonus paid to the CEO, Liburnia would have reported EBITDA of HRK 110.1m (- 9%), EBIT of HRK 12.2m (-47%) and a net income of HRK 15.1m (-7%).
LRH EBITDA (2015 – 2020e)
Turning our attention to the company’s investments, in April 2018, Smart Selection hotel Istra was open. Further, Liburnia invested in six extra rooms and an outdoor pool in Remisens hotel Marina. In May, Remisens Premium Heritage hotel Imperial 4*, which was refurbished, was open.
The management also noted in a document from August 2018, that in the period 2018/19, the company will have investments due to quality retention of the hotels. As a result, Liburnia’s CAPEX increased by 26% YoY, amounting to HRK 123.1m.