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Genting Hong Kong reports sharp rise in cruise operating losses

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.

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