TUI reports continued strong cruise demand in Germany and UK as operating profit leaps
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 10 August 2017 10 August 2017
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
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 08 August 2017 08 August 2017
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.”
Norwegian Cruise Line Holdings second quarter and first half profit jumps
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 08 August 2017 08 August 2017
Norwegian Cruise Line Holdings Ltd, the world’s third largest cruise shipping company, has reported a fiorn rise in net and operating results for the second quarter and the first half on robust demand on key markets.
Net profit in the second quarter rose to $198 million from $145 million in the same period last year. Operating profit reached $275 million from $227 million and revenues rose to $1.34 billion from $1.19 billion.
In the first six months of the year, the net profit increased to $260 million from $218 million, while operating profit rose to $394 million from $358 million. Revenues rose to $2.49 billion from $2.26 billion in the first six months of last year.
“Positive consumer sentiment in North American and key international markets has resulted in a robust booking environment that continues to be one of the strongest in recent history which, combined with our targeted strategic revenue initiatives drove second quarter revenue and yield growth well above expectations,” said Frank Del Rio, president and chief executive officer of Norwegian Cruise Line Holdings Ltd.
“All three of our brands benefitted from strength across each of their respective markets and contributed to our second quarter earnings beat.”
Gross Cruise Cost increased 10.6% compared to 2016 due to an increase in total cruise operating expense and marketing, general and administrative expenses.
Gross Cruise Costs per Capacity Day increased 4.9%. Adjusted Net Cruise Cost Excluding Fuel per Capacity Day increased 2.7% on a Constant Currency basis and 2.6% on an as reported basis primarily due to an increase in marketing, general and administrative expenses partially offset by lower other cruise operating expenses. Fuel price per metric ton, net of hedges was $469, which is commensurate with prior year. The Company reported fuel expense of $86.7 million in the period.
Interest expense, net decreased to $64.2 million in 2017 from $68.4 million in 2016. Interest expense for 2017 reflects an increase in average debt balances outstanding primarily associated with the delivery of new ships and newbuild installments, as well as higher interest rates due to an increase in LIBOR. Interest expense for 2016 included a write-off of $11.4 million of deferred financing fees related to the refinancing of certain of our credit facilities in 2016.
Other net expense amounted to f $5.6 million in 2017 compared to an expense of $10.8 million in 2016. In 2017, the expense was primarily related to losses on foreign currency exchange of $8.1 million, partially offset by other income. In 2016, the expense was primarily related to unrealized and realised losses on fuel derivative hedge contracts and foreign exchange derivative contracts, partially offset by gains on foreign currency exchange.
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