Good afternoon. Welcome to Novatora's meeting with investors. I'm Emilia, an Account Manager at Nasdaq Birlnus, and I'm delighted to be the moderator for today's event. The agenda couldn't be simpler. We start with a presentation from the management, which will be followed by the Q and A session.
As always, I encourage every one of you to ask questions during or after the presentation in the question box of your screen. With that said, I'm pleased to introduce today's presenter, the CEO of Novaturas, Odrona Kenita. Mrs. Kenita, please, the floor is yours.
Good afternoon, dear investors, dear members of financial community. I'm glad to be here today and to present the financial and other performance results of Novotraz Group of the Q1 of 2021. Together with me, there is also our financial director, Thomas Dascunas, who will also assist me, especially in the Q and A session. So I will start our presentation and overview of the first quarter results. To start with, I would like to highlight and to mention once again that the year of 2021 has happened with the strictest, I would say, the most strict lockdown restrictions throughout the world.
And still, we are the pandemic situation is continuing and is not getting less. So on the other hand, the most of the sectors, including also the aviation and tourism sector, have adapted the new have adopted the new reality and also adapted to the may be the adaptations in terms of their business activity. So, disregarding the strict measures implemented in all Europe and I would say most of the world, the tourism industry also has implemented certain measures that allowed tourism business activities to be restarted and ongoing. So, safe travel has become realistic, has become available. There are a lot of certain requirements which are obligatory in order that people could travel.
So first of all, I would say in most of European countries, and I would specifically talk more about the Baltic markets, in all Baltic markets, we have certain obligations, which are inevitable, such as, for example, PCI tests when you are traveling, when you are departing from the source market, also before you are coming back to your home. So the tests are they have become kind of, to this, reality. As well, there are also other measures implemented such as self isolation after coming back from the destination. In each Baltic markets, self isolation requirements are quite different. But basically, it is more or less 10 days of self isolation with certain exceptions.
As well, of course, the aviation industry has adopted very strict health requirements in order to ensure that movement and that the clients of the clients will be safe. So, this is being controlled very strictly. And finally, the destinations have also implemented a lot of needed health security requirements that also ensure that the clients can would have safe holidays on the destinations. So, with all those, let's say, all those factors of new reality, tourism business has become possible even in the most during the most strict lockdown in the Baltics. And we are happy to say that we could restart the operations, the flight operations in February.
Unfortunately, January month was we did not have any operation except just some departure flights from the destinations after the Christmas and New Year period. And then in the beginning of February, we have resumed our flights to Enerica. So to Enerica, we have resumed our flights from Lithuania and Estonia in the beginning of February. As well, from the beginning of March, we have resumed our flights to Tenerife from Latvia. Also, the flights to Egypt have been opened as well to from Lithuania and Estonia during the month of February.
And in the end of March, the flights to Egypt have also been opened from Latvian market as well. So this is the restart of the destinations. And we'll actually have an even digitary usual and traditional our main destinations during the winter season. So we are happy to have been able to open those main destinations, though, of course, with much smaller capacities than usual. The capacities have been growing gradually.
We have started with very few chains and then we have increased our flight locations to Egypt. That's why the real pickup or recovery of the capacities to Egypt or to the destinations was much more noticed or was much more visible during the month of March. So finally, with this restart of the flight operations, we have reached the following results. In terms of the revenue of turnover, we have achieved €5,600,000 of turnover, which is still quite significantly lower compared to the previous year or the year of 2019. I would also like to note that during our presentation of this quarter as well as during the presentations of the other quarters, we will always be comparing the figures and the achieved results with the year of 2020 2019.
Because 2020, it is an exceptional year, whereas the comparison might not always be rational. So considering or talking about our turnover, €5,600,000 compared to 2020, it is 76% lower and also it is even by 80% lower compared to 2019 of the same period. On the other hand, our financial achievement in terms of EBITDA is significantly higher than during the Q1 of 2020 and even of 2019. In the Q1 of 2021, we have reached a positive EBITDA of €615,000 While in the 2020, the EBITDA was negative. It was recorded in minus €190,000 And in 2019, we have achieved 83,000 of EBITDA.
And finally, this is also reflected in the net profits. So the net profit of the Q1 of 2021 is almost 200,000. Last year, we had also the year of 2019, both years, our net we had net loss as well with a significant difference. So, the financial results, and analyzing group's financial results, we will, of course, have a much more detailed explanation of the factors that have affected those financial results of the Q1, but I would name the basic ones, the following ones. First of all, it is effective crisis management.
We have been living in this mode since the start of the pandemic. So from the from March 2020, we have entered into a very strict and effective crisis control, meaning post optimization, meaning constant work and initiatives with our partners in order to review our obligations and in order to minimize our the net cost of our services. And also, very strict cash flow control. Also looking or searching for all possible tools to ensure the company's liquidity, and of course, seeking dialogue and solutions together with the states in Lithuania, Latvia, and Estonia. Another factor that influenced or affected very positive financial results of the Q1 is, I would say, leadership in the business decisions.
So, we have taken, on one hand, risky and brave, on the other hand, very much paying off business decisions to open the flights to such destinations like Egypt, to open them during the lockdown periods when the market is quite weak. There are very strict requirements for travel between the countries. And we were and we are, of course, greenfield market because we have realized that there is a market demand. And in general, talking about the future, this, of course, brings us a lot of optimism. But most important that people, of course, wants to open the flights to those destinations and especially to Egypt, whereas the other market players have followed later on.
Finally, of course, this helped us to maintain our leadership position in the markets in terms of our communication, our position in front of our clients, in front of our partners, retail agencies. We have been actively working with all our, let's say, distribution channels to ensure that our plans materialize with such results as we have done today. And one more factor that also was very strong factor and brought or contributed a lot into those results is that, as mentioned already, that we have already realized that the market is becoming more active and there is a strong will, strong thirst to travel. And despite those strict requirements for traveling, there are people who are traveling, though the traveling tendencies are changing. And this is what I will experience in more videos later on in the next slides.
So, this is more or less about overview. I would also like to mention the main, let's see, events or significant facts that happened in the Q1 of 2021. So first of all, we have managed and we have finished all the refunds processes for the groups that have been canceled during the pandemic. So the refund processes have ended in have been finalized in the beginning of March of this year. And of course, we are very much grateful to our clients who trusted in us and and who have trusted our sustainable decisions in order to ensure continuity of our company operation.
As well, we have also agreed on €10,000,000 investment in the company's bonds once for a period of 6 years with the state investment management agency in Lithuania. So, this is, of course, a very significant step and significant achievements that's especially considering that. The pandemic is continuing and we will have to live in this those circumstances for a longer period than anybody would forecast. This is a huge, I would say, factor of trust in a company's liquidity and continuity of the business activity for a better amount of time. Now, before we go into the details of our let's see, and the explanations of our and overview of more detailed performance indicators, I would also like to say a few words about the Q2 and the upcoming year.
Unfortunately, due to the pandemic, which is still continuing, we are not able to provide a detailed forward looking statement for the Q2 as well as for the upcoming year. Yes, even living with very, obviously, short term planning and daily monitoring of participation and daily modification, if needed, of our planned capacities and revenues and margins and any other actions that need to be taken due to constant changes. We have to admit that the situation is still very much dynamic. It is very much dynamic in our markets because we are depending a lot on the governmental decisions. So, the governmental decisions are being reviewed constantly and accordingly, they can affect our business activity and our flights and our operation in general.
As well, we are depending also on the governmental decisions of the destinations. And therefore, the planning, the forecast is very short term. It is in maximum quarterly. And on the other hand, as mentioned, that we are on a daily basis monitoring the situation and adapting our planning capacities and operations according to the circumstances. But talking about the upcoming year, I would also like to say that there is much more optimism than previously.
Of course, the vaccination processes are ongoing everywhere. And though still, it is not as fast as maybe we would like it to leave, but they are in the process. And the more vaccinated citizens we will have, the more market will, let's say, appear for the tourism sector. As well, together with the vaccination and the general COVID control, there are initiatives which are extremely important for the tourism sector, so initiatives of European Union. I'm talking specifically about the green pass, which would allow and which would bring a common system, 1 common uniform system for all European Union countries, which and it would bring 1 system from traveling.
And it would, let's say, make traveling less bureaucratic, less costly. And of course, if some isolation requirements would be removed for vaccinated or the ones who already had COVID. Or in general, if they would become softer, then again, the market activity or the potential would increase significantly. So with all those factors and all those thoughts and quite positive movements toward and within all our destinations and all our markets, we are entering bit by bit to the summer season in the quarter June. So talking about the summer season, in April 2021, we have already opened our flights from all markets to Turkey, from Lithuania, Latvia, and Estonia to Antalya region, specifically, which is the most important destination for the Baltic travelers in Turkey.
In May, we are going to open Greece. And Greece has already announced about its opening plans. And they also have announced already all the procedures needed to travel to the country. As well, they also announced about all the health protocols that the destinations had to acquire and to implement in order to have to be able to serve our travelers safely. Talking about Greece, I'd also like to mention that even in 2020, during the, let's see, the start of the pandemic, Greece has managed to open their destinations from July.
And we have also operated the flights to Greece in 2020. And this destination has already proven that they can adapt and they can implement 100% the health, safety measures. And let's see, the incoming tourism can operate to all majority of Greek destinations. Also, in June of 2021, we are opening our flights to Bulgaria from all Baltic states. Bulgaria also has already announced about its opening and its preparation for the safe to accept the travelers safely.
And finally, as well, white and exclusive products, and I would say very much missed product from all the travelers. It has long haul destinations. So, 3 destinations that also open the air borders to international travelers, such as Bali in Indonesia, Seychelles and Primitives, they are open already from the summer season. And therefore, we will also include those destinations into our product portfolio and our travelers will be able to choose also the long haul exotic destinations, which unfortunately, while we accept Maldives, but the rest of the long haul destinations have been closed for the international travelers throughout all year of 2020. Now, talking about more specific plans of or forecasts of the Q2, As I have already mentioned, that it is still difficult to plan more than 1 month ahead.
And on the other hand, we are targeting around or approximately 10,000 passengers per month for the Q2 during the Q2. And once again, I would like to see that the restrictions are still on the highest level. So whenever the restrictions are getting less and whenever we see that the market is market potential can increase due to this, of course, the capacities are being modified very much dynamically, so those numbers can be increased very easily. Profitability. Still, it is difficult to plan the 2nd quarter sales profitability.
Demand is still strongly affected by constantly changing restrictions applied to the tourism sector. Therefore, we do not or are not able to provide with forecast in terms of this. On the other hand, we are targeting a positive EBITDA for the 2nd quarter. So, the this is more or less the forward looking statements that we can name at this moment. But as I have mentioned, that the situation is very much dynamic and the I would say that the market or the demand of the market capacity is still very highly measurable due to constantly changing requirements, restrictions and quite strict requirements.
Therefore, we have to continue operating and acting very much dynamically. Now moving to the indicator clear performance indicators or detailed performance indicators, I would try to have a quick overview of them. So first of all, already mentioned that in terms of the turnover, unfortunately, we are still reporting quite a bit drop compared to the previous years. Compared to 2020, the Q1 of 2020, we have 71% decrease in terms of the number of passengers sold. So during 2021, the Q1, we have sold we have had almost 9,000 of the passengers.
And in terms of revenue, we have a decrease of 76% compared to the Q1 of 2020. Once again, I'd like to highlight the numbers to be completely different if the restrictions and the requirements for traveling would be different. Now, the current requirements that we have, such as this, for example, they increase the budgets of the trip of the package. Secondly, the self isolation is not, let's say, cannot or how to say, is not acceptable, maybe, for all travelers who want and would be ready to travel. Talking about the product category, we have a significant change.
So as we see that in package by package stores, we have generated 75% among the it has a 75% share in the total revenue, while previous year, it was almost 85. But there is a huge increase in the share of in the revenue of flight only. So we have 25% compared to previous year when we had 14%. So yes, the traveling trends have changed significantly, especially during February March, we have during the Q1, we have recorded a huge number of travelers who are buying flight to Munich. The Nerida was one of the destinations which was which gained a very high popularity among this.
I would also say that the length of the trips have increased has increased a lot. We have 2 weeks, 3 weeks and even 1 month stake in the destination. Of course, the pandemic circumstances have made all such traveling trends as vacation possible because many people, they were leaving from here, from Lithuania, due to very strict restrictions here in Lithuania and staying for a longer time in the destinations with warmer climates and less restrictions, and also being able to fulfill their professional, educational or other duties remotely. So, the that's, I would say, the today's trends of the pandemic tourism, which are still partly continuing for the Q2. And I would say that it would maybe continue on a lower extent for the future, but there are talking about the in general changes in the trend in the travel trends, we see that the clients are choosing more quality products.
They are, let's say, capable to pay more for their trips and they are choosing longer trips. So the 2 weeks package holiday became quite a popular product among our sales. Okay. So then now if we look into the chart, which indicates the trends and the figures for each market Lithuania, Latin and Estonia. In this chart, we have the packs sold by countries.
So as we see that in Lithuania, well, traditionally, Lithuania was always the main market among our, let's say, turnover or tax total numbers. So traditionally, it used to be around 50%. So the Q1 is not an exception. And we have had around 5,000 clients from Lithuania, which is around 60% of the total group results. Estonia sorry, 55%.
Estonia has generated around 30 31% of the total results and Latvia, 13%. Well, Latvia usually was quite, let's say, had a bigger share in the total group's portfolio. But this year, especially on the Q1, Latvia, as a result, was very much affected by quite, what we'll say, restrictions of the highest level for revenue. So, the Latvian government implemented the strongest restrictions, and that also translated into lower figures among our group's revenue and tax sold. So, Latvia has reported the highest decrease compared to previous year.
And in Lithuania, for example, the number of passengers sold has decreased by 60% compared to 2020 Q1. Now talking about the destinations. Well, not a good choice compared to our previous years, although in general, the vendor product portfolio is always a little bit more narrow than the summer portfolio. On the other hand, while as we see, Egypt has 61% of the total capacity revenue, Spain has 36%. So those are, as usual, the main destinations, and we have the biggest share during this year.
What would have helped us to generate more capacity, it is skiing, because of course skiing is gaining more and more popularity each year in all markets. Unfortunately, this year due to pandemics, none of these key destinations, none of our usual traditional ski destinations such as France, Italy, Andorra has been opened for the international travelers. Therefore, we could not resume our flights there, unfortunately, but we are ready to do this next year with double demand, I'm sure. Now, the other destinations such as long haul destinations as well were not available, most of them. So, the exotic or long haul destinations were closed for the international travelers, except very few of them.
So, for example, we could open or add more to our product portfolio as well. We could also add Dubai to our product portfolio. And this is where those little figures are also coming from. Now, we are moving to the distribution review. And again, we see changing trends.
First of all, as we all know, the travel agencies are our main distribution channel and we are focusing on this strongly. We are we have been working and continuing working with our legal agencies and searching for, for operational solutions during this pandemic because it affected all of us. And that's where our main production goes still. On the other hand, we have an increasing proportion of ecommerce, revenue from e commerce. So during the Q1, we have generated or the share of the e commerce is 22% compared to 17% in the Q1 of 2020.
Well, this also is very much affected by the fact that we have a lot of flight only bookings, which are coming from the GDS systems or from the vessels. So therefore, this, let's say, new driving trend is also reflected in the new in the changes of new reality of the distribution channels. Then talking about the profitability, well, the Q1 of 2021 was marked by positive liability ratios. We have 36% drop in gross profits. So we reached €1,600,000 of gross profit.
However, our EBITDA is positive, euros 115,000 and the net profit is also positive almost €200,000 Once again, I would like to say that this I mean, I'm very positive in the context of the pandemics, very positive profitability ratios are the result of very effective, very dynamic crisis management and crisis decisions as well as the strong and brave leadership in the business decisions, including also the strict expenses from travel. Efficiency and productivity ratios, so load factor profit per tax and the tour package price. So load factor is more or less similar to the previous year, to the 2020, Q1. However, the Q1 of 2020 has been already affected by the pandemic. But the well, considering that our usual profitability not profitability load factor is 97%, Also, we have to be get used to a little bit lower load factor during the pandemic periods because of the COVID.
Well, for example, we have also created and implemented a new product, which is called COVID course, which means that if the traveler has a COVID case before his trip, he can change his trip to the future and that's, of course, causes that we might have less or lower load factor on the sites. On the other hand, once again, as I have mentioned that the in general, that during the pandemic, the traveling trends are changing, growth factors as well due to already mentioned reasons. Then the profit effects, profit effects has increased significantly compared to the previous years. Well, it is affected also by several reasons. We have the clients are booking better products, the clients are booking longer stays.
As well, we have managed to decrease our net costs of the services of the destinations and this has reflected in the very positive, I would say, exceptionally positive profit per tax during the Q1. And I would also like to say that since the situation is changing very much dynamically, it cannot be taken as indicator for the next quarters. This is a very exceptional look, I would say, positive and high profit per tax. And average store packaged store price has increased by not that much significantly. On the other hand, the average of the tour package price has been affected by the fact that we have a lot of flight on rebookings.
So in general, as mentioned before, the clients are booking better and higher category and more expensive hotels. So but on the other hand, there are there is a big part of the clients which are booking flight only, which is lower priced product. Therefore, the average package to price is not does not have such a big increase compared to previous year. But if you look only to the hotel package, average price, we will see a much more significant difference. And finally, we are coming to the OpEx, to the operational expenses.
And while during my presentation, I have mentioned this not only once that we have been following very strict operational costs, control and optimization. This has been done throughout 2020, and we have continued June. So for the 2021. During January February, it was still on continued with the on the same level. Now of course, once we are entering the summer period, we have to have more resources.
So this is being, let's say, modified and brought to another level. But in general, our operational expenses have decreased in total by 60 1st 63 expenses have decreased in total by 63% compared to the Q1 of 2020 and by 73% compared to the same period of 2019. If you would exclude one off expenses and commission, it would be 52% compared to previous year and 62% compared to 2019. And so once again, I would like to see that for us, having the asset light business model, having very strong engagement of the management into data monitoring of the crisis situation and making needed decisions, The cost optimization, efficiency increase needed to organizations have brought us this result that we are having now. So of course, once again, for the Q2, we are already on a different level of our resources, because we are having bigger capacities and we will be gradually increasing them And so following very much the market potential, the restrictions, the governmental decisions and acting proactively in order to be, of course, the first ones on the market and to strengthen our leadership position.
So, to summarize, I just would like to say that the pandemic is still not over. Of course, we are still living in those very challenging circumstances. And we, of course, cannot relax. On the other hand, we have much more optimism, much more optimism because of the factors mentioned before, vaccination, insurance, health insurance, including COVID cases, all the health and health safety measures implemented in the destinations, releasing restrictions from the governments, and of course, because of the clients of the market, which is becoming more and more hungry for traveling. This is very much visible.
And of course, we are counting on this very much. So the first quarter results are very much satisfying, and we are very much, of course, grateful our clients and to the investors for the trust, to our employees for the solidarity, for the loyalty, for the professionalism, and to our partners for support. So thank you very much for your today's attention. We will be happy now to answer any questions you might have.
Thank you, Mrs. Kenita, for the comprehensive presentation. As you have said, now we will proceed with the questions. And before that, I would like to remind everyone that you can send in your questions in the question box of your screen. So let's proceed.
The first question is as follows. From this year, one of the biggest store operator, Coral Travel, started its business in Lithuania. As you know, Lithuania's customers don't have loyalty to trademark. Coral Travel offered flights with new comfortable aircrafts, free catering on flights, good prices of tours. Your products don't have this service, so it is possible you will lose market share.
What is your plans for offering better services and prices? Thank you.
So first of all, I would like to say that the strength or the let's say, the success of Ultra Operator is defined by a lot of factors, including the ones mentioned in this question or statement. And there are a lot of factors that help us to reach the leadership position and to maintain the position in the Baltic this position in the Baltic markets for many years. And those factors could be the following. This is the product portfolio, including the destinations, the number of the destinations, the diversity of the destinations, including the hotels and other accommodation types, the resorts, number of those hotels and accommodation types and diversity. As well, that is the quality of the services, quality of the services before the trip, quality of the services during the trip, the native speaking language services on the destinations.
This is the prices and the position in the destinations and in the hotels. That is the long term practice and experience with the distribution channels. And of course, it takes time to reach a certain strength within different distribution channels. And the diversity of the distribution channels is also one of the very important points of success for the operator. Finally, know how of the Baltic markets and very strong concentration on the Baltic market and the needs of the Baltic market clients.
We are the Baltic markets operators. We produce, we do the product that is the most suitable, the most needed for the travelers of the Baltic markets. And we are very easily due to our asset light business model. Due to very effective and very light organizational structure, we are very flexible in terms of the modifications of the product and any other, let's say, actions or the capacities in the markets. So, this position reached has taken, let's say, time.
And with all the experience we gained during all these years, of course, that we will maintain and we will do our utmost to maintain our leadership position, to maintain the trust with our clients, with our partners, and to continue growing for the future years, especially whenever the pandemic is over. Because the most just obstacle of the proper suit or usual business operation currently is the pandemic. As well, I would like to say that during all these years of our business activity, we have had a lot of different competitors coming to the market. Some of them survived, some of them no. We have also had examples of the competitors entering that are also parts of the groups.
But till now, we do not have any significant results of those competitors. And it's the ones that ended in the last years. And therefore, a name of being a part of the group does not necessarily mean very high or let's say sudden and significant results. Finally, we are not how to say, we are used to the competition. It is normal in markets to have the competition.
And the competition just, how to say, I would say, is also very usable very useful and brings benefit to the clients. It can improve the services. It can bring more choice and more variety to the clients. And that's why we're ready to compete in the market, whatever it is.
Thank you very much for your answer. We have received another question related to the Coral Travel, your competitor, which is as following: 80% of your sales go via travel agencies. During the pandemic, travel agencies question you as a reliable partner. By the way, Coral Travel offered for travel agencies higher commission than your company. Obviously, travel agencies will reduce sales of your product.
Sales are expected to fall by 20%, 30%. What actions do you plan to take? How do you plan to restore your image as a reliable partner? Thank you.
So, well, yes, of course, not only during this presentation but during many other presentations as always, our business model is very much based on the travel agencies and we assume and we know that and we always are very proud with our cooperation with travel agencies. We have a lot of long term partners among them. Our key partners that's where we have very strong trust, full cooperation throughout the years. The commission policy or any other commercial conditions, that's our Novartis group, general, let's say, B2B or retail agencies commercial policy that I'm not capable now to comment comparing to other competitors. We have we are following our commercial policy in terms of the retail agencies, of course, ensuring that our sales are not dropping, they are increasing on the contrary.
And finally, the business models or the business model Novartis Group is operating and already proved to be a sustainable business model. So therefore, we are always maneuvering between, let's say, distributions cost control, between the margins, between the net costs and many other and also the attractive or the most competitive selling prices to the customer. So that would be the answer.
Thank you very much. I would like to remind every one of you that you are free to send your questions in the question box of your screen. So let's proceed. The third question is as following. The State has provided €18,500,000 in support to your company in the form of loans, subsidies and guarantees.
Granting the support may have violated the Competition Act, so there is a possibility that you will have to return the support. Do you have a plan for how to proceed in this case? Thank you.
Thank you. Hello to everybody. I would start from the point that most of mentioned amount we have received as a group, as a company, are in the loans which will be returned. All those loans are also having some interest payments. So we have received very little amount of support or subsidies from our government.
And all these support measures were according to the approved programs by the local governments. All these programs were approved with European permission. And we strongly believe that all the necessary law requirements were always taking into account, approving those problems. So we do not have any doubt that we will increase in volumes of operation. We will be able to repay all those loans, also pay the interest, which is payable according to those loans.
And I have I don't see any significant risk.
Thank you very much for your answer. We have one more question, which is what are the forecasts for the company's EBITDA and net income for 2021, 2022? Thank you.
So the company has already started to giving forecasts in the very beginning of 2020 when the pandemic struck all the world. And we have taken back the forecast for 2020 because of better dynamically changing situation. And currently, we are still in a very dynamic changing, very dynamic and changing situation. And we are not ready yet to provide longer term forecasts. But as soon as the situation will come down and will be more predictable, We will, again, plan to forecast our future operational results.
Thank you very much for your answer. I see that all the questions are answered. On behalf of Nasdaq Vilnius, thank you, everyone. It was my pleasure being with you today. Recording of the presentation will be available in the Nasdaq Baltic YouTube channel.
Dear management, thank you for the presentation and a very interesting Q and A session. Have a good day, everyone. Goodbye.