Liburnia Riviera Hoteli published their H1 2019 results yesterday, showing a 3% YoY decrease in sales, 2449% increase in EBITDA and a 51% YoY decrease in net loss which amounted to HRK 24m.

In H1 2019 Liburnia recorded a 5% decrease in the amount of overnight stays when compared to the same period last year. Meanwhile, sales amounted to HRK 100m, representing a 4% YoY decrease. However, a strong improvement was recorded on the operating line as EBITDA surged to HRK 28.5m from last year’s low of just HRK 1.1m. Note that the strong improvement was not caused by an improved operating performance, but instead it was due to the lack of one-off expenses which the company experienced last year. As a reminder, in H1 2018 the company paid out a HRK 14m net bonus to their departing CEO. When grossed the amount rises to HRK 28m which burdened last year’s result.

Below the operating line, net financial result improved by 48% YoY amounting to HRK -0.9m. Finally, as a result of the above mentioned, net loss was sliced in half, amounting to HRK -24.2m.

Turning our attention to the balance sheet, the company remains mildly indebted with net debt amounting to HRK 201.9m. This translates into 1.8x net debt/EBITDA.

Finally, since majority of tourist activities occurs during Q3, results posted thus far are not a good indicator of what one might expect from the full year results.