STA, 25 November 2020 - Tourism facilities in Slovenia recorded slightly more than 173,000 tourist arrivals in October, which is 63% less than in the same month last year, which is mostly attributed to the coronavirus epidemic and more specifically, the government locking down tourism facilities as of 24 October.

While the number of Slovenian guests increased by 2% to almost 134,000 in October, the number of foreign tourists dwindled by 88% to around 40,000 year-on-year, the Statistics Office said on Wednesday.

Overall, they accounted for more than 543,000 overnight stays, which is 49% less than in October 2019. Domestic tourists generated 25% more stays (412,000), while the number of stays generated by foreigners was down by 82% to 131,000.

Germans accounted for the largest number of overnight stays by foreign tourists (16% or 20,000), followed by citizens of Austria and Italy (13% each), Serbia (10%), Bosnia-Herzegovina (8%) and Croatia (6%).

An increase in overnight stays was recorded only in agritourism farms (up 24% or around 16,000), with 88% of total overnight stays accounted for by Slovenian guests.

Between January and October, slightly more than three million tourist arrivals were recorded in Slovenia, which is 46% less than in the same period last year. The number of overnight stays dropped by 37% to slightly more than nine million.

What is probably a result of free tourism vouchers granted by the government and partial border closure, the number of Slovenian tourists increased by 39% and the number of overnight stays they generated was up by 49% year-on-year.

On the other hand, the number of arrivals of foreign tourists dropped by 72% and the number of their overnight stays was down by 68% compared to the January-October period in 2019.

More details on this data

STA, 20 November 2020 - The suspension of the real estate services in the spring lockdown has had no impact on property prices since the housing market was swiftly revived after the restrictions were lifted. The prices even went up a bit. The commercial property market has been slower to pick up though, a report by the Surveying and Mapping Authority (GURS) says.

The semi-annual report notes that Slovenia's property market was deeply impacted by the epidemic in the first half of 2020.

Property trade was virtually brought to a halt for two months in spring. There were significantly fewer transactions, however it transpired that the developments have not affected property price trends.

Following May, when most anti-corona restrictions were lifted, the situation soon went back to the pre-epidemic levels.

The prices mostly rose to a certain extent in the first six months of 2020 despite a decline in transactions.

GURS recorded some 13,300 property transactions totalling some EUR 900 million in this period, a more than 25% drop in the number of transactions and down by a third regarding their total value compared to the second half of 2019.

Taking into account the same period last year, that is the first half of 2019, a drop in the number of sales/purchases is also more than a quarter, whereas a decrease recorded in the total value is bigger, by 37%.

The downward trends are not as strong as expected given the epidemic and record figures in 2019, GURS said.

The number of flat transactions totalled some 6,300 in the first half of 2020, down by 28% on the second half of 2019 and 26% on the first half of 2019. The total value of the deals made in the first half of 2020 was EUR 614 million.

The average price of a second-hand flat exceeded the threshold of EUR 1,900 per m2 for the first time at the national level in the first half of 2020, up by 3% on the second half of 2019 and a 6% increase compared to the same period in 2019.

Ljubljana remains a hotbed of record-high flat prices, with the average price of a second-hand flat topping EUR 2,900 per m2 for the first time, a 3% rise compared to the second half of 2019 and up by 5% on the first half of 2019.

The prices went up the most in Kranj in the north where the average price of a resale flat rose by 7% on the second half of 2019 and 6% on the first half of 2019.

The only area where the prices went down a bit on average is the seaside, a trend which is a result of fewer holiday flats transactions, according to GURS.

The average price of a house with land attached stood at EUR 130,000 in the first half of 2020, down by 2% on the second half of 2019 and up by 4% on the first half of 2019.

The most expensive houses on the market are still seen in Ljubljana, where the average price was more than EUR 300,000, followed by the coast, Koper excluded.

The commercial property market has been hit worst by the epidemic, GURS said. Price growth continued to stagnate in this sector, with over 700 transactions recorded in the first half of 2020, down by 42% on the second half of 2019 and down by 36% on the first half of 2019. Their total value was estimated at EUR 93 million.

The impact of the second epidemic wave will depend on the duration of lockdown restrictions and further epidemiological developments as well as on stimulus measures, GURS said, adding that even if the market went through a major crisis, the prices would not plummet anytime soon.

STA, 20 November 2020 - The financial situation of many Slovenian households has deteriorated since the outbreak of the new coronavirus, shows the latest Valicon survey. While in March 13% of respondents said things were tougher, in November this share is over 20%. Almost three-quarters said they had or would reduce spending.

Some 21% of the respondents in Valicon's survey conducted among 527 respondents between 13 and 15 November said their financial situation had deteriorated and that they had reduced spending.

Another 23% expect their financial situation to deteriorate and just 28% said they had not and did not intend to cut their spending.

The survey has also shown that the share of workers on furlough has risen significantly, to 14%, which is similar as at the end of May, just before the first wave of the epidemic was declared over and the share started dropping again.

During the spring epidemic, the share of workers on furlough stood at 20-30%. At the moment, one in four employed Slovenians is not working. The share of people on sick leave has also gone up, to 5%.

Exactly three-quarters of staff is working, whereas 44% of them have the same workload as before the virus, a quarter has bigger workload and 6% work shorter hours.

The authors of the survey say that optimism which was detected two weeks ago is picking up. The share of those who believe things are looking up is now the same as the share of those who think the situation is deteriorating. Two weeks ago, almost two-thirds saw no silver lining.

Currently, 63% of respondents assessed the situation the country is in now as negative and only 37% as positive. Three-quarters are concerned about the virus, which is a little less than two weeks ago.

STA, 20 November 2020 - Insurance group Sava Re, Slovenia's second largest, reported a net profit of EUR 47.6 million for the nine months to the end of September, an increase of 26.4% year-on-year, as gross premiums written rose by 12.4% to EUR 527.1 million.

The unaudited financial report, filed with the Ljubljana Stock Exchange, shows the group's operating revenue rising by 16.4% year-on-year to EUR 489.5 million.

The growth in profit, operating revenue and gross premiums is attributed in great part to the acquisition of life insurer Vita, consolidated in the group accounts as of 31 May 2020.

The acquisition contributed EUR 9.9 million to the increase in profit, and without this effect group net profit would have broadly been at the same level as in the same period last year.

Since its inclusion in the group Vita generated a profit of EUR 2.9 million and in addition EUR 7 million was one-off income from the excess of the fair value of the net assets acquired over the purchase price.

Growth in operating revenue was driven mainly by the inclusion of Vita, expansion of freedom of services business written by the insurer in EU member states, and greater volumes of Slovenian non-life business and international reinsurance business.

The inclusion of Vita contributed EUR 28 million to the growth in gross premiums written, with additional contribution from the insurance business written with various companies in the EU. Excluding that business, the growth in gross premiums written would have been 9.5%.

The net expense ratio improved by 1.6 percentage points y/y, also as the result of the integration of Vita, which operates at an even more favourable expense ratio compared to other group members.

Improved expense ratios were also achieved in the reinsurance and Slovenian non-life segments, mainly because income grew faster than expenses due to both the fixed nature of certain expenses and certain cost optimisation measures adopted to mitigate the negative impacts of Covid-19 on the group's operations.

Profitability was also supported by a more favourable claims experience thanks to a lower loss rate in motor business and the absence of catastrophic loss events.

Despite the profitability, the insurer will not pay out dividends and the shareholders' meeting to take a decision on that was cancelled a few days ago due to increased risks detected relating to potential additional negative impact of the Covid-19 pandemic on the operations.

"After the reporting date, Sava Re was informed of new circumstances that had arisen in certain EU insurance markets and in the United Kingdom related to potential additional adverse effects of the Covid-19 pandemic on the operations," the company's release reads

Based on current detailed analyses of its insurance exposure, the group has concluded that Covid-related business interruption claims are not covered under its policies written directly under freedom of services rules in the EU.

"Regarding its exposure under reinsurance contracts, there may be coverage in some cases. In line with preliminary estimates, in the last quarter of 2020, the group will most likely set a provision of up to EUR 10 million for potential legal expenses and reinsurance claims in this regard," it said.

Even with this provision for Covid claims, the management expects - in the absence of any major loss events - that the group will achieve its full-year 2020 plan, that is more than EUR 50 million in net profit and an operating revenue of up to EUR 640 million.

STA, 20 November 2020 - The energy group Petrol saw its revenue drop by 30% year-on-year in the first nine months of the year to EUR 2.29 billion. Its net profit was at EUR 40.5 million, a 49% drop compared to the same period in 2019, the core company said in a press release on Friday following a supervisory board meeting.

The group's adjusted gross profit for the first nine months stood at EUR 301.9 million, a drop of 13% year-on-year.

The drop in performance has been attributed to "a drop in petroleum product sales resulting from movement restrictions introduced by governments to contain the pandemic and from the economic downturn the pandemic had caused".

Earnings before interest, taxes, depreciation and amortisation (EBITDA) dropped by 25% year-on-year to EUR 114.4 million. This was, however, still better than Petrol's main competitors in the region, the company said.

About 44% of EBITDA was generated by petroleum product sales, 21% by merchandise sales and related services, 17% by the sale of other energy products such as natural gas, electricity and LPG, 15% by the sale of energy and environmental solutions, and 3% by renewable electricity production.

Petroleum product sales were down 21% to 2.3 million tonnes, liquefied petroleum gas sales totalled 114.3 thousand tonnes, which was 17% less than in the same period of the previous year. Electricity sales stood at 15.7 TWh and natural gas sales at 19.9 TWh.

The group generated EUR 345.2 million in merchandise sales, a 3% decrease compared to the same period of the previous year.

At the end of September, the group operated 510 service stations, of which 318 in Slovenia, 110 in Croatia, 42 in Bosnia-Herzegovina, 15 in Serbia, 15 in Montenegro and 10 in Kosovo.

The group has drawn up different scenarios for operations this year due to the uncertain conditions. The projection is that amount of petroleum products sold will reach between 83% and 86% of last year's figure.

Gross operating profit could stand between 73% and 79% of last year's of between 77% and 84% when not factoring in one off events, with EUR 11 million worth of these having been excluded from last year's operating profit.

The Petrol group spent EUR 46.4 million on net investments in property, plant and equipment, intangible assets and long-term investments, which compares to EUR 84.3 million in the first nine months of 2019.

Out of the above amount, 33% was allocated for sales in Slovenia, 23% for energy and environmental solutions, 18% for sales in SE Europe, 10% for the upgrading of information and other infrastructure, 9% for renewable electricity production, and 7% for mobility.

The group had a 5,230-strong workforce at the end of September, 35% of which at subsidiaries abroad. The number of employees decreased by 45 compared to the end of 2019.

STA, 19 November 2020 - The services sector has been heavily affected by the Covid-19 epidemic. In Slovenia, the biggest monthly drop in services income was recorded in April, a 18.4% decrease. Pub, restaurant or cafe owners and travel agencies were hit worst in the months following the first epidemic declaration, a Statistics Office study shows.

Following the April drop, income figures were rising for three consecutive months and in July they were higher by 6.6% on June. However, services income dropped again in August, this time by 2% on the month before.

The August figure also indicated a 10.7% decrease year-on-year, a smaller drop compared to downward trends at the annual level in the first months after the epidemic was declared in March - for example, in April, the year-on-year drop was 28.9%.

Restaurants, bars and cafes closed in mid-March and some of them were open again for business in early May. Food deliveries and take-aways were their only options in the lockdown period.

Their income in March was already lower by 57.7% compared to February and they recorded a 62.4% monthly drop in April, the study, released on Thursday, shows.

In May, when restrictions were mainly lifted, the figure increased by 214.9% on April, however it was still 45.1% below the figure recorded in May 2019.

The summer months brought some relief, but income was still reduced by 10%-20% compared to the same period in 2019.

Travel agencies or other travel-related services have had it even worse though, having suffered the biggest decrease in income in the services sector. They recorded a 71.7% monthly drop in March and a 83% decrease month-on-month in April.

Following May the situation improved, however a year-on-year analysis again shows that 2020 has been a difficult year for them. The biggest annual drop was recorded in April - by 95.5% and during the May-August period year-on-year decreases were always above 70%.

The study provides further data indicating that Slovenian tourism was completely crippled in March and April. Between mid-March and mid-May there were none tourist arrivals and virtually zero overnight stays.

In June, the numbers of arrivals and overnight stays were at some 35% of the figures in June 2019.

Accommodation services recorded a 78.1% monthly drop in April. In June, the figure rose by 185.8% on May, likely due to the government measure introducing holiday vouchers, however it was still reduced by 60.8% on June 2019.

When it comes to annual comparisons, a Covid-related drop in income was less significant in summer. In July, the year-on-year decrease was 21.8% and in August 15.8%.

All our stories on Slovenia and covid

STA, 19 November 2020 - The spouses Iza and Samo Login remain the wealthiest Slovenia, topping the list of the Manager magazine for the seventh years running. The total assets of the 100 wealthiest Slovenians amount to an estimated EUR 5.8 billion, EUR 147 million more than last year. The threshold for the list fell by 6% to EUR 20.9 million.

The Logins, the main founders of popular apps company Outfit7 that was sold to China's United Luck Group for US$1 billion in 2017, are estimated to have EUR 689 million worth of assets, the same as in 2019.

Commenting on the Logins, Manager magazine argued that while the time to sell Outfit7 seemed ideal in 2017, "we find that Outfit7 could be worth two or three times as much today".

There has also been no change in second spot, but the gap of Sandi Češko and his partner Livija Dolanc, who sold their 55% stake in omni-channel retailer Studio Moderna in 2019, to the Logins has been reduced by about EUR 50 million, with Češko and Dolanc estimated to be sitting on EUR 345 million, 17% more than last year.

Holding on to third place is Marko Pistotnik, another former owner of Outfit7, whose assets are believed to have remained unchanged at EUR 210 million.

Placing fourth again is the Lah family of financial investors with EUR 164 million, down 3%, followed by Damian Merlak, who sold his cryptocurrency exchange Bitstamp in 2018 and is estimated to be worth EUR 148 million, up 19% on 2019.

The biggest climb has been recorded for Jure Knez, the owner of measuring instruments maker Dewesoft, who doubled his assets to EUR 73.8 million.

There are six new members of the TOP 100, among them NBA veteran Goran Dragić with an estimated EUR 51.4 million and NHL star Anže Kopitar with EUR 31.5 million. Slovenia's new NBA sensation Luka Dončić, still on his first contract, made the list of the wealthiest young millionaires this year. He is estimated to be worth EUR 16.5 million.

Top 10 wealthiest Slovenian according to Manager magazine

1 Samo and Iza Login         EUR 689m (+ 0%)
   ex-owners of app developer Outfit7

2 Sandi Češko, Livija Dolanc EUR 345m (+17%)
   ex-owners of omni-channel retailer Studio Moderna

3 Marko Pistotnik            EUR 270m (+ 0%)
   ex-owner of app developer Outfit7

4 Lah family                 EUR 164m (- 3%)
   financial investors

5 Damian Merlak              EUR 148m (+19%)
   ex-owner of cryptocurrency exchange Bitstamp

6 Igor Akrapovič             EUR 139m (+ 3%)
   owner of exhaust maker Akrapovič

7 Tatjana and Albin Doberšek EUR 123m (- 2%)
   founders of Engineering Doberšek

8 Franc Frelih               EUR 123m (+10%)
   owner of a number of companies, including Oil maker Gea

9 Šešok family               EUR 120m (+38%)
   owners of electronics group Iskra

10 Tone Strnad                EUR 118m (+36%)
   owner of pharmaceutical company Medis

STA, 19 November 2020 - Chemicals company Cinkarna Celje generated EUR 130.4 million in sales revenue in the first nine months of this year, a 3% decrease year-on-year. Net profit fell by 27% to EUR 13.8 million, shows the company's report released on Thursday.

Sales of titanium dioxide pigment, Cinkarna Celje's flagship product, were up by 4.8% compared to the same period last year, but average selling prices were 4.6% below those in the comparable period in 2019, the company said. Results for other programmes, apart the agro line, were below last year's levels.

CEO Aleš Skok assessed that the decrease in revenue was minimal given the circumstances, with sales reaching 75% of the target for the entire year.

The impact of Covid-19 was mitigated by the absence of Chinese producers on the European market at the beginning of the year, which reflected in more demand for pigment in the first quarter. However, after that, a drop in production and stocks accumulated by buyers led to a drop in sales in the second quarter. The situation improved again in the third quarter along with the epidemiological situation.

Cinkarna Celje spent EUR 8.8 million on investment in the first nine months, which is 44% of the sum planned for the year. The company said non-urgent investment and maintenance was suspended during the epidemic, but that it was also usual that most investment payments fell into the final part of the year.

Skok wrote that the key focus remained on titanium dioxide pigment and the "rationalisation of the portfolio of strategic business areas which is focused on the core programme and the phasing out of non-profitable activities".

He added that the financial side of things remained conservative in line with tradition. The company is stable financially and can meet all obligations undisturbed and on time.

The management believes that original targets for this year - a revenue of EUR 174.2 million and a net profit of EUR 14.1 million - are still attainable in case there is no significant deterioration in the epidemiological situation.

STA, 19 November 2020 - The group around the drug maker Krka generated EUR 1.16 billion in sales revenue in the first nine months of the year, which is 6% more than in the same period last year. Net profit was up by 22% to EUR 210.14 million. Sales were up the most in east Europe, where the most revenue was generated.

Operating profit jumped by 57% to EUR 300.75 million and profit before tax, depreciation and amortisation (EBITDA) increased by 40% to EUR 384.6 million, the group said on the web site of the Ljubljana Stock Exchange.

According to CEO Jože Colarič, the group was successful in the first nine months, posting record results. "We have adjusted some business processes and started using e-communication tools more. Our good financial situation, broad range of quality pharmaceutical products, undisturbed production and supply, and innovative approaches in all areas of our work have allowed us to achieve our strategic goals," he said.

In the first quarter, a notable rise in demand and sales was recorded along with an increase in supply of the products in the distribution chains because of the epidemic. Subsequently, demand was somewhat lower in the second quarter. In the third quarter the impact of the pandemic on sales decreased, so sales returned to the level that had been planned.

In the absence of autumn and winter colds, a significant drop was recorded in the sale of antibiotics and seasonal over-the-counter drugs this year compared to previous years. However, more prescription drugs for chronic therapies were sold on some markets and more veterinary products for disinfection.

In terms of quantity, sales were up by 8% in the January-September period, and the group exported 96% of its products. The biggest absolute and relative growth was recorded in eastern Europe, where most of the sales, 32.6%, were generated.

"Sales were up compared to the same period last year in all regional markets, except Turkmenistan, but the crucial growth was that in Russia, a leading market for the region and Krka's largest individual market, where we have achieved the biggest absolute sales growth in the region.

"In Russia, we sold products worth EUR 240.3 million, thus exceeding last year's figure by 10%," Krka said in its business report.

The group allocated EUR 53.8 million for investment in this period, EUR 39.9 million of which went to the controlling company. Because of the pandemic, investments in construction were lower than planned.

The core company saw an 11% increase in sales revenue to EUR 1.12 billion in the first nine months, while net profit was up by 13% to EUR 197.26 million.

At the group level, the sale of products and services for the entire 2020 is expected to reach EUR 1.52 billion, which is 2% more than in 2019.

Prescription drugs remain the most important group of products, accounting for 85% of total sales. "We expect that because of the value and quantity of the products sold profit will exceed plans and stand at some EUR 260 million," Krka said.

But the final results could be affected by coronavirus restrictions that are also affecting the stock market, and Russia's ruble.

Next year, the group expects sales to reach EUR 1.53 billion and profit to stand at EUR 265 million. The group also plans to increase its workforce in Slovenia and other countries by just over 1% in total.

STA, 17 November 2020 - The European Commission disbursed EUR 200 million to Slovenia in the form of loans under favourable terms as part of the SURE instrument on Tuesday out of the total of EUR 1.1 billion in support approved to the country to mitigate unemployment risks in an emergency.

The Commission today disbursed EUR 14 billion to nine EU countries in what is the second instalment of financial support to member states under the SURE instrument.

Commission President Ursula von der Leyen had already announced the first funds would be available to the country from Tuesday in an interview with the public broadcaster RTV Slovenija aired last night. She said the EU wished to help Slovenian employees and companies.

"Companies have a hard time keeping their staff. We are sending them the message not to lay off staff even though there is not enough of work. The SURE instrument will help them pay out wages so that know-how will stay in the companies," she stressed.

Loans will be very favourable but talks on the terms are still under way with member states, she said, adding that cooperation with social partners would be crucial to determine which companies should be backed by loans to help them keep their staff and resume work once the crisis is over.

Economy Minister Zdravko Počivalšek said in a separate interview with RTV Slovenija that the government was eagerly awaiting EU funds. Labour Minister Janez Cigler Kralj has a programme of spending ready - the money is to be used to finance existing measures and those that will follow to preserve jobs, he said.

The seventh stimulus package, which is also being drawn up, addresses the issues of entrepreneurs across industries that have not been addressed yet, Počivalšek said.

In its application for the financial support under the SURE instrument Slovenia listed measures such as the furlough and short-time work schemes, the basic income and exempting the self-employed from the payment of social contributions, among other things.

Von der Leyen also presented efforts to purchase Covid-19 vaccines, noting the Commission would close the fifth contract on the purchase of the vaccines on Tuesday, this time with the company Cerevac.

Počivalšek meanwhile pointed to potential logistic problems in the transporting of Pfeizer's vaccine, which must be stored at -80 degrees Celsius, noting the government had already discussed the matter and would prepare solutions as soon as possible. "But I wish we act responsibly as a state and solve the Covid-19 issue with or without a vaccine," the minister said.