- Richard Welge is new Vice President Customer Experience of AIDA Cruises
- Costa Group Appoints Rahul Chakkara as New Chief Digital Officer
- UK law firm Hill Dickinson successfully defends class action in Norovirus case
- P&O Cruises Australia to refit Pacific Pearl
- Quantum of the Seas debuts Kung Fu Panda Noodle Shop
- Genting Hong Kong to sell its casino business
- RCCL raises 2015 EPS forecast by $0.15 to up to $4.75
- RCCL reports interim profit rise on strong Caribbean, China yields
- Bridgepoint to sell Ponant to Artémis
- Two innovative ships for Costa Cruises as part of multi billion contract with Meyer Werft
- Exit from Norwegian to markedly lift Genting Hong Kong earnings
- Carnival Corporation expands fleet in China to an industry-leading six ships in 2016
- Published on Friday, 31 July 2015 13:08
- Written by Kari Reinikainen
Genting Hong Kong, the owner and operator of Star Cruises and Crystal Cruises, is to offload its casino business based on Jeju Island, South Korea. Alan Lam reports.
Having reported a major lift of earnings in the first half of 2015, as a result of its gradual exit from share ownership in Norwegian Cruise Line Holding, Genting Hong Kong now plans to exit from its land based casino business on Jeju Island, ostensibly to focus further on its cruise business. This move follows the company’s recent announcement of a major expansion for its newly acquired Crystal Cruises brand.
The disposal could see the group putting even more resources into expanding its better performing cruise business.
Disposing of a casino business may seem counterintuitive to the operator of Star Cruises, which is inextricably intertwined with gaming. When looking closely at the status quo of the gaming industry in Asia, a different picture emerges. In the last decade, the industry experienced a massive expansion in various parts of the Asia Pacific region, driven mainly by the outbound Mainland Chinese travellers.
Because of China’s recent anti-corruption policy, which also cracks down on conspicuous consumption and vice activities of its citizens, casino businesses in Asia have suffered. Many major venues in Macau, for example, have seen their revenues fallen by as much as 50% so far this year.
Genting’s shifting of focus is therefore logical. Moreover, it is clear that there is a mounting demand for financial resources from the group’s cruise business expansion strategy. Disposing gaming assets will help ease the situation.
- Published on Friday, 31 July 2015 13:04
- Written by Kari Reinikainen
Royal Caribbean Cruises, Ltd., the world's second largest cruise shipping group, says it has updated its full year Adjusted EPS guidance to a range of $4.65 to $4.75.
"The $0.15 increase versus April guidance is driven by beneficial currency and fuel rates. Better than expected performance in the Caribbean and China in Q2, and a modest increase in costs are essentially offsetting each other and are neutral to earnings. The cost increase in the second half of the year is for some additional marketing activities focused on 2016," the company said in a statement.
Constant-Currency Net Revenue Yields are now expected to increase in the range of 2.9% to 3.9%, versus previous guidance of 2.5% to 4.0%, and Net Cruise Costs excluding fuel are expected to be better than flat, versus previous guidance of flat to down 1%.
Bookings since the April earnings call have been healthy and the company continues to be booked ahead of last year in both load factor and available passenger day (APD). A solid Caribbean environment is more than off-setting softness on Latin American sailings associated with our Pullmantur brand.
Taking into account current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company expects 2015 Adjusted EPS to be in the range of $4.65 to $4.75 per share.
"Momentum in the Caribbean continues at a solid pace, and our strong booked position in the third and fourth quarters gives us confidence as we move through the second half of 2015," said Jason T. Liberty, chief financial officer. "The trajectory of our brands is firmly on course for another record year of earnings, with healthy trends extending into the first quarter of 2016."
While it is too early to provide a detailed picture for 2016, first quarter bookings are running well ahead of last year at higher prices, with improvements in the Caribbean continuing at a robust pace.
Full year 2015 forecast:
Net Yields are expected to increase in the range of 2.9% to 3.9% on a Constant-Currency basis (down 1.1% to 0.1% As-Reported).
Net Cruise Costs (NCC) excluding fuel are expected to be better than flat on a Constant-Currency basis (down approximately 2.5% As-Reported), including some increased investment in marketing activities.
Adjusted EPS is expected to be in the range of $4.65 to $4.75 per share, a $0.15 increase from the mid-point of the company's previous guidance, driven by beneficial currency and fuel rates.
"The Double-Double introduced demanding but achievable targets for our organisation, and I am proud of our company's focus on delivering this program," said Richard D. Fain, chairman and chief executive officer. "We continue to focus on the strength of our brands to drive these improving results."
- Published on Friday, 31 July 2015 12:59
- Written by Kari Reinikainen
Royal Caribbean Cruises Ltd., (RCCL), the world's second largest cruise shipping group, has reported a rise in both second quarter and first half interim profits on strong yields in the Caribbean and China markets plus favourable development of costs, the company said in a statement.
Group net profit rose to $184.9 million in the second quarter of the current year from $137.7 million in the same period a year ago. Revenues rose to $2.06 billion from $1.98 billion.
In the first six months of the year, the group profit rose to $230.2 million from $164.1 million although revenues only rose to $3.87 billion from $3.86 billion
"Overall, the year will be another solid step towards the Double-Double. Commercially, the business continues to perform as expected and the biggest drivers of our increased guidance are better foreign exchange and fuel rates," the company said in the statement.
It raised the following points regarding second quarter 2015 results:
Net Yields were up 4.2% on a Constant-Currency basis (down 0.2% As-Reported), modestly better than guidance mostly driven by strength in the Caribbean and China.
Net Cruise Costs ("NCC") excluding fuel were up 3.4% on a Constant-Currency basis (down 0.1% As-Reported), better than guidance mainly due to timing.
Adjusted Net Income of $185.0 million, or $0.84 per share, versus $146.7 million, or $0.66 per share in 2014.
US GAAP Net Income was $185.0 million or $0.84 per share, versus $137.7 million, or $0.62 per share in 2014.
- Published on Tuesday, 28 July 2015 12:34
- Written by Teijo Niemelä
Ponant, the specialist luxury cruise operator and market leader in specialist polar cruises, is to be sold by Bridgepoint to Artémis, the holding company of French entrepreneur Francois Pinault. The value of the transaction is not disclosed.
Headquartered in Marseilles, Ponant currently transports over 30,000 passengers per year to the polar regions and other locations, operating in the growing luxury cruise segment. It was acquired by Bridgepoint in 2012 from Groupe CMA CGM, the French container shipping company. Founded in 1988 and employing 189 personnel, Ponant has the youngest and best invested fleet in the market (currently five vessels with an average age of 2.5 years).
Under Bridgepoint ownership, the company has doubled sales to €140 million and tripled profits. This was achieved thanks to a combination of factors: 1) increasing and upgrading the capacity of the fleet by 11% p.a., boosted by the addition and funding of two new ships to the fleet and withdrawal of two older ones; 2) geographical expansion with opening of sales offices in China and Australia; and 3) the acquisition of TDI, a further sales distribution channel in the important North American cruise market.
Jean-Emmanuel Sauvée, Co-Founder and President of Ponant, said: "We have worked well with Bridgepoint during a period of expansion for our business. In the last three years we have introduced our specialist luxury cruises to new customers, launched new ships and grown our business significantly. Today, we are entering a new period with a similar shareholder who shares our vision and ambition for Ponant within specialist luxury cruise market."
Xavier Robert, partner of Bridgepoint in Paris, said: "The transformation and progress achieved by the company have been outstanding and we are proud to have worked with the management team and contributed to its success. The planned transaction ensures the continuity of the company's ambitions with the acquisition of our interests by a likeminded long-term shareholder."
The transaction is subject to standard Works Council and other EU clearances.
- Published on Tuesday, 28 July 2015 11:26
- Written by Teijo Niemelä
Costa Cruises today announced an order to build two next-generation cruise ships, with the largest guest capacity in the world. They will feature a revolutionary “green design”: the two ships will be the first in the cruise industry (together with the two new ships previously announced for Aida Cruises, the German brand of Costa Group) to be powered at sea by Liquefied Natural Gas (LNG), the world’s cleanest burning fossil fuel, representing a major environmental breakthrough.
The two ships will be built by Meyer shipyard in Turku, Finland, with delivery in 2019 and 2020. Each of them will exceed 180,000 gross tonnage, offering more than 2,600 passenger cabins for a total of 6,600 passengers onboard.
Costa order is part of a multibillion dollar contract with two Meyer shipyards in Turku (Finland) and Papenburg (Germany), including also two new ships for Aida Cruises. The contract with Meyer is the result of a larger previously announced memo of understanding between Carnival Corporation & plc, the home company of Costa Group, and leading shipbuilders Meyer Werft, Meyer Turku and Fincantieri S.p.A. for nine new ships between 2019 and 2022.
“These ships will expand the leadership position for the Costa Group, the market leader in all the major continental European markets,” said Michael Thamm, CEO of the Costa Group. “The multibillion dollar contract with Meyer mirrors our strategy to constantly innovate our vacation offers and to deliver unmatched cruise experience to our guests.”
“The two Costa ships are real innovation for the market, setting new standards for the whole industry: they will be the first green ships powered with LNG and they will offer an extensive number of guest-friendly features. Furthermore they will be the expression of the new positioning Italy's finest.” – explains Neil Palomba, President of Costa Cruises – "The order also confirms that Costa brand will continue to grow, becoming even stronger and keep on generating a positive economic impact in the main countries where it operates, including Italy."
Pioneering a new era in the use of sustainable fuels, Costa new ships will be the first in the cruise industry to use LNG in dual-powered hybrid engines to power the ship both in port and on the open sea. LNG will be stored onboard the ships and used to generate 100 percent power at sea – producing another industry-first innovation for Costa. Using LNG to power the ships in port and at sea will significantly reduce exhaust emissions to help protect the environment and support the company’s aggressive sustainability goals.
“We are honoured that Costa Group has entrusted us with the technical design and construction of their next generation ships for Europe, featuring a revolutionary green cruising design implemented to meet specific Costa Group’s needs.” - commented Jan Meyer CEO of Meyer Turku Oy and added: “We are building the ships with a strong team in Turku and with the support of mostly European suppliers, who are the best in their field. Among those leading suppliers, there are also a number of Italian companies, which we have worked well with in Finland as well as in Germany. We are aiming to continue this successful legacy.”
The new order represents a remarkable opportunity also for Italy. According to Costa Cruises forecast, about 750 Italian crewmembers are expected to be hired to work on the two ships. Furthermore Italy will be featured in the onboard guest experience: the new ships will be ambassadors of Italy’s finest at seas, allowing thousand of international guests to discover the excellence of the Country in terms of style, hospitality and enogastronomic specialities, entertainment.
The new ship order will allow the Costa Group to continue to build on its leadership position in the continental European cruise market – a market in which five out of ten cruise guests in 2014 sailed onboard a Costa Group ship.
Alternative flash content
Ports & Destinations
- Swan Hellenic offers discounts for singles on some 2015 summer cruises
- Fred. Olsen Cruise Lines in twin for sole occupancy offer
- Royal Caribbean offers up to $200 onboard credit during five-day WOW Sale
- Princess Cruises offers cruise savings during 'Great Getaways Sale'
- Norwegian's Freestyle Choice Spectacular available until end of July
- STX France begins construction on world's largest cruise ship
- Crystal creates visual magic with water for the AquaTheater on the Oasis and Allure
- Allure of the Seas features 3D digital cinema engineered by FUNA
- Allure of the Seas sails with KONE people flow solutions
- Starbucks and Royal Caribbean to offer first ever Starbucks at sea on Allure of the Seas
Products & services
- Eco-ferry Texelstroom launched in Spain
- Damen launches second of two ferries for the Government of Newfoundland and Labrador
- Trimline appoints new CFO
- Wärtsilä to adjust its Ship Power business to reflect the weak market situation
- MSC Cruises selects Thordon Bearing's COMPAC system for Seaside newbuilds