Genting Hong Kong Cuts Loss as Revenues Rise
- Business & Finance
Cruise operator Genting Hong Kong managed to cut its net loss in 2018, while revenue surged during the year.
The group recorded a slight improvement with consolidated net loss of USD 213.3 million in 2018, as compared with a consolidated net loss of USD 244.3 million in 2017. The result was recorded because of a significant one-time gain in the disposal of shares of Norwegian Cruise Line Holdings and The Star Entertainment Group Limited of USD 205 million in 2017 compared with a lower net one-time gain of USD 15.5 million in the disposal of the balance of NCLH shares in 2018.
Total revenue was USD 1.6 billion in 2018 compared with USD 1.2 billion in 2017, representing a growth of 34%, mainly due to the inclusion of the first full year operation of 2 Dream Class ships and the higher third party revenue recognised in the shipyard segment.
Cruise revenue was USD 1.35 billion in 2018 as compared to USD 1.02 billion in 2017, a growth of 33% with fleet capacity days increasing by 18.5% and occupancy percentage improving to 91% from 77% in 2017.
World Dream replaced Genting Dream in the dual Hong Kong and Guangzhou homeports in November 2017 with Genting Dream redeployed to the Singapore homeport.
“Cruise segment results are expected to grow further in 2019 with strong management focus on achieving acceptable investment returns for each brand,” Tan Sri Lim Kok Thay, Chairman and Chief Executive Officer of Genting Hong Kong, said.
“MV Werften, the Shipyard Segment, had improved results in 2018 with the keel laying of Crystal Endeavor and the first Global Class ship. Further improvement in 2019 is expected with even higher percentages of completion of Crystal Endeavor and the first Global Class ship. MV Werften is instrumental in the early delivery of new ships for the Group’s fleet commencing in 2020 while global orderbook of other shipyards now stretching to 2027,” he added.
Barring any unforeseen circumstances, cruise segment results should continue to improve due to the low penetration rate in Asia and reduction in cruise capacity in China in 2019. The shipyard segment is expected to improve with 82% of the Crystal Endeavor and 65% of the first Global Class ship due to be completed by the end of 2019. With that, the company said that its results should continue to improve in 2019.