Genting Hong Kong, the Hong Kong based cruise shipping group, has reported a fourfold increase in the loss from its cruise operations for 2015 on the previous year, but sales gains significantly lifted the group's overall result.
The cruise operations, which include the Far East focused contemporary market Star Cruises and the luxury market Crystal Cruises that is based in Los Angeles, booked a loss of $49.5 million from its cruise operations last year, compared to a loss of $9.8 million in 2014. Revenues increased to $652.8 million compared to $530.7 million. Ticket revenues more than doubled to reach $289.1 million from $141.4 million, while on board revenues fell slightly, to $363.3 million from 389.4 million.
"Passenger ticket revenue increased significantly in 2015 due to the contribution from Crystal Cruises. However, the higher provision against trade receivables in 2015 has resulted in an increase in segmental loss of our “cruise and cruise-related activities”. The increase in segmental loss of our ‘non-cruise activities” was mainly due to higher operating loss from our international marketing activities in relation to our Manila operations and lower revenue from aviation operation," the company said in a statement.
Genting Hong Kong's cruise related assets were valued at $3.49 billion at the end of 2015, sharply higher than than the $2.24 billion figure at the end of the previous year. Again the acquisition of Crystal Cruises accounts for the increase. Cruise related liabilities also increased significantly, to $927.7 million from $601.6 million. Loans and borrowings accounted for $519.2 million and 448.9 million of these, respectively, while the rest was made up by other liabilities.
Genting Hong Kong, which is domiciled on Bermuda and listed in Hong Kong, was able to increase its net profit to $2.11 billion last year from $397.8 million in 2014 due to a sharp increase in sales gains, which reached $2.22 billion compared to $397.8 million. This was due to large scale sales of shares in Norwegian Cruise Line Holdings, Ltd, the world's third largest cruise shipping group. Revenues of Genting Hong Kong climbed to $689.9 million from $570.8 million.
