Press Announcement Accompanying Release of Consolidated Audited Annual Accounts for the year ending 31 December 2014
Introduction to Invia
Invia Group is the regional leader in Central & Eastern Europe, holding number 1 positions in the Czech Republic, Poland and Slovakia and ranking second in Hungary in online travel agency (“OTA”) business. Through its minority investment in Travelata it is also present in the Russian market.
As an OTA, the Group provides its clients with access to a vast array of travel inventory and content especially for vacation packages products which are the area of key focus of Invia Group. Supplementary product offering includes insurance, hotel accommodation, flights and other travel-related products and services. Via its principal OTA business model Invia Group offers travel packages of more than 351 travel agencies, exploring best deals for its 125 336 customers, which purchased at least one product from Invia Group in 2014. Total number of tours sold in 2014 was 338 671.
Strong Growth in Transaction Values and Customer numbers
In 2014, Invia Group transacted CZK 5.93 billion worth of travel services to its customers (“TTV”, Total Transaction Value), which is 35 % growth compared with 2013. In 2015 Invia Group expects its group-wide growth of TTV of 25 % and 15 % in 2016.
Customer numbers are also expected to grow (to 158 851 in 2015, 27 % growth compared with 2014), as more and more customers are switching to Invia’s full online offering, confirming the long-term trend of switching to e-tailing also in the consumer services space. Invia enjoys benefits of first mover advantage and is well ahead of its competitors in the OTA market.
Successful Business Model
Given its 13 years of experience in the OTA business, Invia Group has refined its business model best suited to the Central European customers – closely linked online and offline distribution and service capabilities. Therefore, the company is differentiated in its ability to service customers seeking assistance by providing active call centre support in the sale of product offering, while providing a full online purchase system for more online savvy customers. It is thus uniquely positioned to exploit significant opportunity existing for vacation packages and capture further growth from dynamic development of the online travel market in the CEE region.
Invia successfully carried out expansion outside of its home Czech market – its experience helped it to acquire leading positions via acquisitions and organic growth, e.g. transfer of best practice to subsidiaries operating under the Invia brand in Slovakia and Hungary and to its majority-owned subsidiary in Poland, Travelplanet.pl S. A.
As a financially strong market leader, Invia Group is ahead of its rivals, prepared for next stage of development in the OTA market, leading to wider usage of the mobile distribution channel and majority of customers using the online-only offering.
Overview of Financial Performance
Invia Group’s leading market position and subsequent strong growth of TTV has been transformed into strong growth of revenues – principally commissions from tour operators, where Invia, thanks to it prominent market position, benefits from more preferential terms of cooperation. Higher top-line growth then generates higher operating profitability, given economies of scale.
Invia’s capital structure benefits from strong operating cash-flow and low levels of indebtedness (net debt stood at only 171 million CZK as of 31 December 2014).
|Year||TTV (billion CZK)||Adjusted Sales (million CZK)||EBITDA (million CZK)|
|Year||TTV (annual growth)||Adjusted Sales (annual growth)||EBITDA (annual growth)|
|2013||22.9 %||18.9 %||34.9 %|
|2014||32.6 %||35.1 %||62.2 %|
|2015 (estimated)||22.8 %||23.2 %||24.6 %|
* Values from the minority investment in Travelata are not accounted for.