The cruise operations of Genting Hong Kong, the rapidly expanding cruise shipping group, plunged to a deep loss in the first six months of the year despite a significant increase in turnover as one-off expenses hit the company.
The company owns Star Cruises, the Asia-Pacific focuded contemporary market line, Dream Cruises that focuses on the premium market in the same region and Crystal Cruises, the Los Angeles based luxury market line.
Loss from cruise operations amounted to $49.5 million compared to a profit of $0.3 million in the same period last year. Ticket revenues increased sharply, thanks to the Crystal Cruises’ acquisition last year, and reached $201.9 million compared to $99.5 million in the first half of 2015.
On board revenues increased too, to $182.0 million from $165.6 million, which pulled total revenues to $383.9 million from $265.1 million in the first six months of 2015.
“Passenger ticket revenue and onboard revenue increased significantly for the six months ended 30 June 2016 due to the full six months’ contribution from Crystal Cruises. However, one-time start-up and marketing costs for the launch of new Dream and Crystal cruise brands and products in 2016, together with higher overall operating and selling, general and administrative expenses including depreciation and amortisation resulted in segmental loss of our cruise and cruise-related activities,” the company said in a statement.
The group held $793.1 million in cash at the end of June, a fall from $1.25 billion at the end December 2015. "The Group adopts a prudent treasury policy with all financing and treasury activities being managed and controlled at its corporate head office. The Group manages its foreign exchange exposures primarily through forward rate agreements. It is also the Group’s policy that hedging will not be performed in excess of actual requirement," Genting Hong Kong said.
