Viking Line, the listed Finnish cruise ferry operator, has issued a profit warning, saying that its 2016 operating result would be lower than last year compare to a previous forecast of somewhat lower following a dip in second quarter earnings.

Group net profit fell to €1.6 million in the second quarter from €2.5 million in the same period last year, while revenues fell to €131.1 million from €134.1 million.

In the first six months of the year, the company made a net loss of €8.9 million compared to a €5.7 million loss in the same period last year. Revenues fell by €1.0 million to €238.0 million.

The number of passengers carried in the second quarter was unchanged at 2.90 million from a year ago and the number of freight units also remained stable, at about 67,000. Passenger-related revenue increased by 0.6 % to €214.0 million (212.8 million second quarter 2015), while cargo revenue decreased by 7.2% to €22.5 million (€24.3 million),” the company said in a statement.

“The Group’s vessels served the same routes as during 2015. The extensive vessel modernizations that were carried out during the spring caused longer service interruptions than normal, which adversely affected the Group’s market share,” Viking Line said.

“Competition in Viking Line’s service area means there is greater pressure on prices as well as volumes. The economic trend in Finland is still an uncertainty factor. However, the bunker price has so far had a favourable effect on earnings. The Board of Directors' assessment is now that operating income will be lower in 2016 than in 2015. The Board’s previous assessment was that operating income would be somewhat lower,” the company concluded.

In 2015, Viking Line’s operating income (EBIT) was €26.4 million and net profit €18.7 million.