4 travnja 2017

Financial overview

2018

Reported total revenue increased by 5.6% to HRK 757.7 million (2017: HRK 717.2 million), as we benefited from an improved trading performance across our operations in Croatia, Germany and Hungary. It is worthwhile highlighting that the first half of the year reflected an improvement in trading outside the summer season which resulted in a positive EBITDA performance in the period for the first time. Accommodation revenue grew by 6.7% to HRK 615.1 million (2017: HRK 576.4 million), driven by an 80 bps improvement in occupancy to 54% and a higher average daily rate of HRK 576.2 up 2.9% year-on-year.

Croatia’s tourism industry goes from strengthto- strength as it continues to grow in popularity, with a record number of passengers (715,000) travelling through Pula Airport in the year. We once again worked hard to extend the high season period by ensuring we have hotels and facilities that can cater for the shoulder months of the year. Our strategy of operating both hotels and resorts, self-catering holiday  apartments and campsites as well as city hotels is working well and complementing each other. Germany has benefited from increased demand and the ramp-up of Park Plaza Nuremberg was the most significant contributor to our revenue growth in the region. We discontinued the management of art’otel dresden effective from 31 July 2018, which resulted in the loss of revenue in the form of management fees from this property.

Reported EBITDA increased by 0.8% to HRK 214.7 million (2017: HRK 212.9 million). This increase was primarily driven by an increase in revenue and lower rental expenses following the acquisition of two hotels; art’otel berlin kudamm and art’otel cologne in Germany in February 2017. In Hungary, our lease for art’otel budapest, which was due to expire in 2020, has been renewed for a further 20 years with effect from 1 January 2019. This hotel continued to perform well in 2018, reporting double digit year-on-year growth. We plan to invest in the renovation of the public areas (bar, spa and meeting rooms) in early 2019. There were industry-wide headwinds in the period which put pressure on margins. This includes the growth of labour costs resulting from a shortage of workforce, increased cost of cleaning services, and increased waste management costs due to a new policy that is required for introducing a better quality system and protection of the environment as a fundamental social value. As a result, EBITDA margin in 2018 was 28.3% (2017: 29.7%). Financial results represent our eighth year of consecutive EBITDA and revenue growth.

2017

2017 was a record year as we continued to transform the Group in line with our strategy, whilst delivering a strong operational performance across the business. We are proud of the significant progress we have made in achieving our key business priorities of driving growth through expansion of our portfolio in the  CEE region whilst maintaining operational efficiency and a high EBITDA margin.

 Total reported revenue increased by 64.5% to HRK 717.2 million (2016: HRK 435.9 million), as the Group benefited from the first-time consolidation of results from our German and Hungarian operations and significant organic growth across our Croatian operations. On a like-for-like basis, total revenue increased by 8.5% to HRK 669.6 million (2016: HRK  616.9 million). Reported earning before interest, tax, depreciation and amortization (EBITDA) increased by 61.3% to HRK 212.9 million (2016: HRK 132.0 million). This HRK 80.9 million improvement was primarily driven by the first-time consolidation of our German and Hungarian operations, as well as excellent trading throughout the 2017 season in Croatia. The strong financial results represent the seventh year of consecutive EBITDA and revenue growth.

2016

Arena Hospitality Group’s trading performance again improved year-on-year, with Arena Hospitality Group’s total revenue, room revenue, EBITDAR and EBITDA all increasing. All this, when put in a three-year perspective, demonstrates positive trends which is in line with our development strategy of focusing on raising the quality of both accommodation and services.

Total revenue in 2016 increased by 8.2% to HRK 435.9 million (2015: HRK 402.8 million), while room revenue increased by 7.3% to HRK 353.6 million (2015: HRK 329.6 million). Hotels generated 47.0% of room revenues, resorts 21.4% and campsites 31.6%.

Earnings before interest, tax, depreciation, amortisation and rental expenses (EBITDAR) increased by HRK 15.1 million to HRK 140.8 million (2015: HRK 125.7 million) which represents growth of 12%. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 12.9% to HRK 132.0 million (2015: HRK 116.9 million).

In 2016, the share of EBITDA in total revenues was 30.3% which is a year-on-year improvement of 130 bps (2015: 29.0%).