A+ A A-

Genting Hong Kong reports sharp rise in cruise operating losses

  • Written by Kari Reinikainen
  • Category: Top Headlines

Genting Hong Kong, the rapidly expanding cruise shipping and shipbuilding group, has reported a sharp rise in operating loss of its cruise operations in the first six months of the year compared to the same period last year.

Operating loss (EBIT) deepened to $102.2 million from a $75.6 million loss in January-June last year. Revenues rose to $471.2 million from $383.9 million, reflecting bigger fleet.

“Passenger ticket revenue and onboard revenue increased significantly for the six months ended 30 June 2017 was mainly due to the full six months’ operation of Genting Dream and Crystal Mozart.

“However, additional depreciation of Genting Dream and Crystal Mozart, higher marketing costs and startup costs of new Crystal river ships resulted in segmental loss of our cruise and cruise-related activities,” the company said in a statement. It owns Crystal Cruises, Dream Cruise and Star Cruises.

In addition, higher overall operating and selling, general and administrative expenses including depreciation and amortisation as a result of full six months’ startup and newbuild activities of the shipyards in Germany in 2017 as compared with its two months’ post-acquisition activities for the six months ended 30 June 2016.

“Higher revenue of non-cruise activities was primarily contributed by revenue from its shipyard activities. The increase in segmental loss of our “non-cruise activities” was mainly due to startup costs of new Crystal AirCruises operations,” Genting Hong Kong said..

The group as a whole reported a first half net loss of $203.1 million, about four times the $54.5 million loss it booked in the first six months of 2016. Revenues rose to $532.5 million from $435.8 million.

The group’s equity and liabilities amounted to $6.1 billion on 30 June, of which $4.9 billion was financed by equity.

TUI reports continued strong cruise demand in Germany and UK as operating profit leaps

  • Written by Kari Reinikainen
  • Category: Top Headlines

TUI AG, the German tour operator that has its main listing in London, has reported a strong rise in the operating profit (EBITDA) of its cruise operations and said that the demand remains strong both in Germany and the UK.

The group’s cruise operations that comprise of a 50% stake in TUI Cruises in Germany plus the fully owned Hapag-Lloyd Kreuzfahren unit in Gernamny and Thomson Cruises in the UK, increased EBITDA by 49.3% to €67.1 million in the third quarter of the group’s financial year. This exceeded the 25.3% rise in turnover of the business, which reached €214.1 million.

In the first nine months of the group’s financial year, EBITDA rose to €147.5 million from €94.3 million, while revenues increased to €560.2 million from €479.9 million.

“TUI Cruises continues to deliver significant growth in its all inclusive German offering, whilst maintaining a strong occupancy and rate performance. Mein Schiff 6 was launched during the quarter, initially based in Kiel (Germany) before moving to New Jersey for itineraries in the USA and Caribbean,” TUI said in a statement.

“Thomson Cruises delivered significant growth in earnings, with continued modernisation of the fleet, including the launch of TUI Discovery 2 in the Mediterranean. There was also a good rate and occupancy performance across the fleet as UK demand for cruise remains very strong,” TUI continued.

Finally, earnings for Hapag-Lloyd Kreuzfahrten increased in the quarter, with overall increased average daily rate and good expedition cruise performance offsetting the lower number of operating days.


TUI Cruises. Occupancy rate remained stable at 101.2% in the third quarter year on, while that of Thomson cruises increased by one percentage point to 100.3%. Hapag-Lloyd Kreuzfahrten, however, experienced a drop in the figure to 73/1% from 73.4% in the third quarter of the TUI group’s financial year 2015-16.

Norwegian raises floor of 2017 EPS guidance on accelerating rise of yields

  • Written by Kari Reinikainen
  • Category: Top Headlines

Norwegian Cruise Line Holdings Ltd, the world’s third largest cruise shipping company, has raised the floor of its guidance for result development for the full year on the back on an anticipated firming rise of net yoelds.

The company forecasts earnings per share (EPS) of $3.93 to $4.03 for the full year 2017 compared to a forecast of $3.79 to $4.03 the company made on 10 May, when it published its first quarter interims. EPS in the second quarter rose to $0.87 from $0.64 in the same period last year.

The company raised its guidance for rise in newt yields to 4.0% in as reported terms, an increase from a 2.255 rise on 10 may. Net cruise cosyts, meanwhile, should only rise by 1.75% this yerar, which is half a percentage point less than in the 10 May forecast.

“We are pleased to report strong booking trends across all markets for the back half of 2017 where pricing and occupancy are now up mid-single digits over prior year,” said Wendy Beck, executive vice president and chief financial officer of Norwegian Cruise Line Holdings Ltd.

“Strong booking volumes and firm pricing have benefitted our booked business for the next four quarters, contributing to the increase of our 2017 full year outlook and further solidifying our expectation for strong earnings growth.”