Novaturas AB (NYSE:NTU1L) Q1 2019 Earnings Conference Call - Final Transcript
May 02, 2019 • 09:30 am ET
Dear ladies and gentlemen, good morning everyone and welcome to the Quarter Webinar for Novaturas. Today, NASDAQ Vilnius is hosted by CEO of the Company Audrone Keinyte and CFO of the Company Tomas Staskunas. Firstly, Audrone Keinyte will comment Novaturas unaudited financial results of the first quarter of 2019. Right after the presentation, we will open the floor for the questions. All questions will be addressed after the presentation. I invite you to use their question box on the right side of the screen. Mrs. Keinyte, the floor is yours.
Good morning dear partners, investors and members of financial community. Thank you for joining today's presentation addressing Novaturas Group results of the first quarter of the year 2019. The presentation will be approximately half an hour and shall be followed by questions-and-answers session. During today's presentation, we will review financial and other important indicators. As you can see from the slide after strong growth in the first quarters of 2017 and 2018, the growth in the first quarter of 2019 was slower. Though compared to the same period of previous year, there was a growth of over 9% in terms of served clients and a growth of 11.5% in revenue. Profitability of the first quarter is less than previous year, due to decreased demand in January, which then picked up in February and March as well as increased aviation costs because of the bankruptcy of Small Planet, which was the main carrier -- main carrier of Novaturas in Lithuanian market.
Considering above factors as well as increasing competition in the markets, in 2019, we expect lower growth or a similar turnover to the year 2018. Our efforts this year and in a long term shall be focused and concentrated on improving Company's efficiency and our operational profitability. On the other hand, as of the end of March, we have recorded 2.6% increase in the number of packs booked in early bookings for the summer season compared to the same period of the previous year.
As it is reported in previous presentations, first quarter of 2018 was exceptionally positive. Therefore reviewing our main performance indicators, we will also consider the figures of 2017. Also other details during today's presentation which will be held by me, Audrone Keinyte, the Chief Executive Officer of Novaturas Group; Company's Chief Financial Officer, Mr. Tomas Staskunas is the also present today and will be pleased to answer your questions at the end of the presentation. As usually we will start by macroeconomic indicators of the Baltic markets, which continue to be favorable, GDP growth rate is in the level of 4% to 5%. Unemployment rate is stable at the level of 5% to 7% with the lowest unemployment rate in Estonia and the highest one in Latvia.
Average monthly salary continues growing gradually and the inflation rate is between 2% to 3% among all three Baltic countries. Summarizing all those indicators define a positive business environment, which is also reflected in the numbers of the clients served.