CVCB3 CVC

CVC Brasil Operadora e Agência de Viagens S.A., which uses the corporate identity CVC Corp and has common shares traded on B3 under the ticker CVCB3, has established itself as one of the largest travel and tourism agencies in Latin America in terms of passenger volume and departures. The company originated in 1972 in the city of Santo André, in the State of São Paulo, initially focusing on selling bus tickets to the working class in the ABC industrial region of São Paulo. Over the following decades, the company expanded its target audience to the Brazilian middle class, added airline tickets with exclusive flights to popular leisure destinations, and innovated in travel retail by opening stores in shopping malls and expanding its network through exclusive agents. The corporate restructuring that began in 2009, the entry of the Carlyle private equity fund, and the subsequent consolidation of several operations in the sector marked the company’s transition to a publicly traded capital structure and multinational operations.

CVC Brasil’s IPO, completed in 2014 with an initial public offering of shares on B3, was an important milestone for the company, which began using the corporate brand CVC Corp and, as of the first quarter of 2015, no longer had a defined controlling shareholder under Brazilian Corporate Law (Lei das S.A.). From this stage on, the company implemented an intensive acquisition cycle, including Grupo Duotur (Advance, Rextur and Reserva Fácil), SV Viagens, Viatrix (Experimento brand), Grupo Trend, Visual Turismo and Esferatur, consolidating a relevant presence in airline ticket consolidation, corporate travel, study abroad and the multibrand channel in Brazil. In parallel, it strengthened its international operations with acquisitions in Argentina, such as Biblos, Avantrip, Ola and Grupo Almundo, as well as the vacation home rental business VHC Hospitality LLC in the United States. This M&A drive aimed to increase scale, diversify sales channels and reinforce its competitive position in the leisure and corporate travel segment in Latin America.

CVC Corp’s business model is centered on the intermediation of travel and tourism services, operating as a tour operator and travel agency across multiple channels. The company has no goods production process, focusing instead on services, including the sale of packages that combine air and ground transportation, lodging, cruises, travel insurance, park tickets, car rentals and other complementary services. The company’s revenue is based mainly on net intermediation revenue, which amounted to R$ 1,420.9 million in the fiscal year ended December 31, 2024, and on its distribution reach via franchises, own stores, multibrand agencies and digital platforms. The portfolio is designed to serve different income brackets and consumption profiles, with brands specialized in leisure, study abroad, luxury tourism, corporate travel and support for independent travel agents.

CVC Corp’s operating structure is organized into two main geographic segments: Brazil and Argentina. The Brazil segment accounts for most of the confirmed bookings, with around 80% of the total in 2024, and concentrates approximately 84.3% of net sales revenue. In this segment, the CVC Viagens brand operates as a leisure tour operator with the largest network of travel agencies in the region, using a phygital model that integrates physical stores, website and app. Experimento specializes in cultural exchange and international education, while Rextur Advance, Trend, Esferatur and Visual Turismo operate in the consolidation of tourism services, mainly airline tickets and customized solutions for corporate and leisure travel. In the Argentina segment, which accounts for around 20% of bookings and 15.7% of net revenue in 2024, the company aggregates the Almundo, Biblos and Ola brands, which combine physical agencies, digital service and a focus on different niches such as luxury tourism, leisure and support for multibrand agents.

The distribution of CVC Corp’s products and services is based on a broad and decentralized sales network. As of December 31, 2024, the company had 1,492 stores, of which 1,341 in Brazil and 151 in Argentina, as well as approximately 8,300 accredited multibrand agencies in Brazil. The Brazilian network includes 1,286 CVC-branded stores and 55 Experimento-branded stores, spread across more than 550 cities, with a strong presence in shopping malls and high-traffic commercial corridors, while the structure in Argentina is mostly franchise-based. The franchise system allows the use of the CVC and Experimento brands for the intermediation of tourism services, with 10-year contracts and compensation based on service fees on sales, which enables a business model with low investment in fixed assets and high scalability through entrepreneurial partners.

CVC Corp operates within a specific regulatory environment for the tourism sector. In Brazil, the company is mainly regulated by the Ministry of Tourism, which is responsible for public policy, oversight of the activity and maintenance of the Registry of Tourist Service Providers (Cadastur), in which the company is duly registered. Applicable legislation includes the Tourism Law, which governs the formalization and supervision of tourism service providers, and the Travel Agencies Law, which sets rules for travel agencies and tour operators, including with respect to liability for acts of agents and third parties hired. Failure to comply with these rules may result in penalties such as warnings, fines, suspension of activities and cancellation of registration or license. The company also interacts with the Brazilian Agency for the International Promotion of Tourism (Embratur), which promotes Brazilian destinations abroad, although it is not a direct regulator of the company’s commercial activity.

In terms of corporate governance, CVC Corp has been listed on B3’s Novo Mercado segment since 2013, which entails adherence to higher standards of transparency, shareholder rights and corporate structure. CVCB3 shares are included in key indices of the Brazilian stock exchange, such as Ibovespa, IBrX 100, IBrA, ICON, IGC, ITAG, IGCT, IGC-NM, SMLL and IBHB, reflecting liquidity and presence in the capital markets. The company adopts professional management and a governance structure with a Board of Directors composed solely of independent members, in addition to Internal Audit and Internal Controls areas created in 2020, focused on mitigating compliance risks and strengthening the control environment. Since 2023, the company has been undergoing an operational and financial restructuring process, with reduced losses and growth in adjusted EBITDA, supported by cost-cutting initiatives, synergy capture and portfolio rationalization.

Digital transformation is a central pillar of CVC Corp’s recent strategy. Since 2020, the company has been making significant investments in technology, totaling more than R$ 500 million, with a highlight in 2022, when investments in property, plant and equipment, intangible assets and equity interests reached R$ 245 million. In 2024, technology investments amounted to R$ 86.6 million, focused on integrating physical and digital channels, expanding product offerings on online platforms and improving the customer journey. The company developed the Atlas project, a customer relationship platform active in all stores in Brazil and also available to B2B agents, as well as CRM tools and proprietary recommendation engines for destinations based on large volumes of data. New payment methods were incorporated, such as Pix, NuPay and advanced installment plans, and a Financing Center (credit marketplace) was created in partnership with financial institutions, expanding travel financing options. These initiatives aim to support omnichannel operations, increase commercial efficiency and reinforce CVC Corp’s position as a relevant intermediary in the leisure and travel sector in Latin America.

With respect to environmental and social aspects, the company is subject to environmental legislation at the federal, state and municipal levels and may be inspected by competent agencies regarding compliance with regulations. Although the activity of tourism intermediation is not asset-intensive from an environmental standpoint, as in industrial or infrastructure sectors, the regulatory framework imposes obligations regarding socio-environmental practices and operating standards, and any non-compliance may result in administrative, civil or criminal penalties. With the combination of governance aligned with Novo Mercado requirements, presence in multiple B3 indices and a prominent position in Brazilian and Argentine tourism, CVC Corp presents itself as a group specialized in travel services with strong exposure to the consumption cycle and to the income and credit dynamics of households and companies.