Cuba Ventures
Announces First Quarterly Results Since Travelucion Acquisition and Provides
Corporate Update
GlobeNewswire•Nov
1, 2016 8:32 AM
VANCOUVER, British Columbia,
Nov. 01, 2016 (GLOBE NEWSWIRE) -- Cuba Ventures Corp. (CUV.V)
(MPSFF)
(IJA2.F)
(the "Company") is pleased to provide a corporate update now that its
first full Quarterly Financial Statements and Management Discussion and
Analysis have been filed on SEDAR. Cuba Ventures announces the financial
results from the quarter June through August 2016, being the first full quarter
since the acquisition of Travelucion which is now a wholly owned subsidiary of
Cuba Ventures.
Sales results from completed
travel trips and bookings less refunds and cancellations ("booking
revenue") amounted to CDN $606,590 for the Company`s recent quarter. The
gross profit on the CDN $606,590 booking/service revenue was CDN $155,405
representing a gross profit margin of 26%. The results illustrate the strong
growth from Travelucion`s 2015 results as well as the recently released audited
financial statements for the year ended May 31st, 2016. Over the last few
years, Travelucion`s booking revenues have grown at over 100% annually as the
company has continued executing on its business plan and as the Cuban travel
market has opened especially to Americans. Management expects continued growth
into the next two quarters, which cover the holiday season and are historically
the busiest season for travelers heading to Cuba. Furthermore, there is a
significant CDN $188,433 in deferred revenue for this last quarter as the
Company has received this revenue but it is not included as earned sales or
booking revenue until the travelers have completed their trips. This will occur
in the next quarter and thus the next quarter will see this accrued volume
earned and recorded.
Travelucion`s revenues have
been on a strong growth trajectory since 2013 and management expects this to
continue from last year`s full calendar year booking revenue of approx. CDN
$1,600,000. Cuba Ventures plans to continue this growth through several
developments and initiatives including:
- Overhauling and
modernizing the current travel platform and booking websites
- Bringing these sites in
line with current online travel trends of multicurrency booking options,
xml compatibility and GDS integration
- Reintroduction of
flights, package deals and specialized Cuba travel services into
Travelucion`s travel options; due to the historic recommencement of
commercial flights between Cuba and the US, Travelucion intends to offer
its increasing US web visitor traffic to online flight offers originating
in the US in partnership with those airlines approved to fly commercially
to Cuba
- Offering over 4,000
private residences or "casa particulares" for travelers to stay
at on the booking platform
- Introducing several
digital media partnerships to continue to monetize our web traffic of over
35 million annual web page views; examples of this include our recent deal
announcements with SPORTTU in New York and Mercosur Chamber of Commerce in
South America (see news releases dated Oct. 19, 2016 and May 31, 2016)
Recent Strengthening of
US-Cuban Relations
Over the past few months, we
have seen US policy continue to shift favorably towards a strengthened US-Cuba
relationship, which has brought an increase in the number visitors and web
traffic towards Cuba focused sites. Travelucion`s websites historically
received 5-6% of their worldwide traffic from the US, whereas, in 2015, the
year after President Obama`s speech in December 2014, when he authorized a rapprochement
with Cuba, website visitors from the US soared to an average 34.7% of total
visits over 2015 and has since climbed to 36.3% in 2016. On August 31st, 2016,
the first US commercial flight landed in Havana, courtesy of Jet Blue Airways
and a second airline, Alaska Airlines, began flying in late September. There
will eventually be 110 available commercial flights per day from US airlines
with flights from the US west coast commencing in January 2017 with 12 flights
per day initially planned. On September 27th, 2016, the Obama administration
appointed Jeffrey Delaurentis as the US ambassador to Cuba, the first
ambassador in Cuba in over 50 years. Even more recently, on October 14th, 2016,
Obama announced further legislation changes to ease trade, travel and financial
restrictions including removing limitations on bringing Cuban rum and cigars
back to the US. Obama stated these changes that have been made by his
administration are "irreversible." The strengthening of the
relationship between the US and Cuba is correlated to the increase in American
web traffic to our portfolio of 432 websites from 6% of our overall global
traffic to over 35% since President Barack Obama and Cuban President Raúl
Castro announced the beginning of a process of normalizing relations between
Cuba and the US.
Cuba Ventures in the
News
With the recommencement of
commercial flights from the US to Cuba, including those starting in January
2017 from the US west coast, CEO Steve Marshall was recently interviewed in
both San Diego and Los Angeles (see news release dated Oct. 19, 2016). Last
week Mr. Marshall was invited to the studio of NBC Seattle to offer further
insight to Seattle residents:
About Cuba Ventures
Corp.:
Cuba Ventures Corp. is a
publicly traded Canadian company capitalizing on the growth and unique
opportunities in the USD $3.5 billion per year Cuban travel and tourism
industry. Travelucion Media, a wholly owned subsidiary, is a digital media and
marketing company which owns a vast portfolio of Cuba related websites and
online portals providing travel information, featuring individual web assets
for Cuba`s popular cities and towns, online booking solutions and online
reservations through proprietary software, catering to international visitors
to Cuba. Travelucion`s online travel division is a duly licensed retail travel
supplier handling millions of dollars in sales annually.
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