Viking Line, the listed Finnish cruise ferry company, has reported a sharp deterioration of both second quarter and first half interims results, but says the full year operating result should match that of last year’s.

Group net profit in the second quarter narrowed to just €1.0 million from €17.4 million in the same period in 2013. Revenues contracted sharply, to €72.8 million from €104.7 million.

In the first half of the current year, the group suffered a loss of €14.7 million compared to a profit of €1.6 million. Again, revenues contracted significantly, to €146.9 million from €159.1 million.

“The decrease in consolidated sales is primarily explained by the prevailing pressure on prices in today’s tough competitive situation, which had a negative impact on net sales revenue per passenger,” the company said in a statement.

In January 2013, Viking Line took delivery of the cruise ferry Viking Grace and sold the 1989 built Isabella, there were no changes in the fleet in the first half of this year.

The number of passengers on Viking Line’s vessels during the report period decreased by 52,708 to 2,962,436 (3,015,144). During the report period, Viking Line reduced its market share on the Turku (Finland)–Mariehamn/Långnäs (Åland Islands, Finland)–Stockholm route by 2.3 percentage points to 56.6%.

On the Helsinki–Mariehamn–Stockholm route, market share increased by 0.4 percentage points to 45.7%. In cruise services between Stockholm and Mariehamn, market share decreased by 1.5 percentage points to 51.6%.

On the Helsinki–Tallinn route, market share increased by approximately 0.3 percentage points to 23.5%. On the short route over the Sea of Åland, market share increased by 2.3 percentage points to 42.5%. The Group thus had a total market share in its service area of approximately 33.6% (34.6).

Viking Line’s cargo volume was 64,428 cargo units (59,364) and it achieved a cargo market share of 21.8% (20.8).

Competition in Viking Line’s service area implies further pressure on both prices and volume. The economic downturn in Finland is another uncertainty factor. At present, the Board of Directors is nevertheless of the opinion that operating income will improve in 2014 compared to operating income in 2013, excluding the capital gain from the sale of the Isabella (€11.9 million).