THR-Marea Neagră turns a profit

Tourism, Hotels, Restaurants Marea Neagră (EFO), a company in the portfolio of Transilvania Investments, reported operating income of 31.2 million lei for the first six months of the year, well above the 3.2 million lei in the first semester of last year, while the net profit amounted to 11.8 million lei, compared to a loss of 15.2 million lei, in the first half of last year, according to the company's report published yesterday on the website of the Stock Exchange of Bucharest Stock Exchange (BVB).

"As a result of the shareholders' decisions from November 2022 and March 2023, it was decided to change the company's development and restructuring strategy, with the application of the Capitalization Plan through the sale and lease of assets of the entire company's patrimony", the document states. "The action materialized in the first part of 2023 by leasing the assets: Complex Narcis-Cleopatra, Complex Cerna, Complex Hora, Complex Balada, Complex Vraja Mării, Bufet Narcis, Gradiniţa Hora, Bai Reci Nămol, Complex Semiramis and the sale of the Venus Complex in Eforie Nord, of the Jupiter Household Group and the Eforie Nord Household Group plus workshops. This leads to the abandonment, at least in 2023 and possibly until the expiration of the validity of the rental contracts (three or five years), to the activity of providing tourist services. Therefore, the predominant activity actually carried out in the first semester of 2023 was that of renting own real estate".

In these conditions, according to the report, the significant increase in the company's income compared to the same period of the previous year is due to both the income obtained from the sale of the Venus complex in Eforie Nord, and the income obtained from the rental of new assets. In the structure, revenues from rental activities amounted to 10.6 million lei, 535% more than in the first six months of last year, while revenues from asset sales were 19.6 million of lions.

In April, the company sold the Venus Complex in Eforie Nord for four million euros.

On the other hand, operating expenses amounted to 17.4 million lei, 4.1% below those of the first six months of last year. Expenditures with fixed assets sold and assets held for sale amounted to 9.8 million lei, while expenses with staff and collaborators were 2.7 million lei, compared to 5.4 million lei in the first half of last year.

Tourism, Hotels, Restaurants Marea Neagră operates through its work points located in the tourist resorts: Eforie Nord, Eforie Sud, Neptun, Venus and Saturn, being among the main profile companies in the country. Transilvania Investments owns 78.8% of the company with a tourism profile, whose stock market valuation amounts to 165 million lei.