April 28 (SeeNews) - Croatian hotel operator Valamar Riviera [ZSE:RIVP-R-A] said on Friday its negative consolidated EBITDA increased to 84.6 million kuna ($12.4 million/11.3 million euro) in the first quarter of 2017, from 47.8 million kuna in the like period of last year.
First-quarter consolidated revenues dropped 25.9% on the year to 64.1 million kuna in the three months through March, while sales revenue plummeted 39.4% to 27.9 million kuna, the company said in a filing with the Zagreb bourse.
"Taking into account the seasonal character of the Group’s business, first quarter results are not indicative because of the low influence of first quarter sales revenues on total annual revenues", Valamar said.
The negative EBITDA is also typical for the first quarter due to a decreased business volume, the hotel operator explained.
The company recorded a 5.6% drop in overnight stays (83,857) in the review period, while accommodation units sold decreased 15.8% to 51,573.
Valamar Riviera’s largest series of investments worth over 870 million kuna is underway and is expected to be completed for the start of the summer tourist season.
The Valamar group runs hotels, apartment villages and campsites in Istria and in Dubrovnik and on the Adriatic islands of Krk and Pag.
Tourism is a key industry for Croatia, generating around a fifth of the country's gross domestic product.
(1 euro=7.47252 kuna)