Genting Hong Kong Slashes Full Year Loss
Cruise operator Genting Hong Kong managed to cut its full year net loss to USD 244.3 million from USD 504.2 million reported in 2016.
The reduction in loss is attributable to a number of factors including one-off gain of USD 205 million in respect of the disposal of certain available-for-sale investments and the absence of an impairment loss on ordinary shares in Norwegian Cruise Line Holdings of USD 305 million in 2016.
The result was offset by start-up losses in the Dream Cruises brand for World Dream that arrived in Hong Kong and the repositioning of Genting Dream to Singapore in November 2017, Crystal Cruises brand extensions in river cruises and the launch of AirCruises.
During the twelve-month period ended December 31, 2017, the group’s revenue from cruise and cruise-related activities increased 11.9% to USD 1.02 billion in 2017 compared with USD 908.1 million in 2016.
Furthermore, the increase in capacity days was primarily due to the inclusion of full year operation of Genting Dream and Crystal Mozart as well as the launch of World Dream, Crystal Bach and Crystal Mahler during 2017.
Dream Cruises, launched slightly more than a year ago, is performing well with improving occupancies and net yields in both the Hong Kong/Guangzhou and Singapore markets, according to the company.
However, the arrivals of new and large ships of competitors have caused smaller and older ships to relocate to ports where Star Cruises ships are positioned, creating downward pressures on occupancies and yields. This situation is expected to improve as competitors had announced approximately 18% reduction in capacity by the end of this year.