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Saga to go public in London

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 30 April 2014 30 April 2014

Saga Limited, the leisure to financial services group that serves the over 60s market in the UK, says it has decided to go public and offer £550 million worthy of new shares in an initial public offering on the London market.

Media reports say the offer would value the company at around £3.0 billion

Saga is a major retailer of cruises and its Saga Cruises brand has two ships of its own, the 37,000 gross ton Saga Sapphire and the 18,800 gross ton Saga Pearl II. The company intends to cut debt to £700 million by issuing new equity. It has recently completed a £1.25 billion refinancing programme.

Saga has a database that covers 10.4 million people over the age of 50, almost half of the 22.8 million persons in the UK in that age bracket at the end of last year. About 400,000 new names are added to the database each year. Persons over the age of 50 control 68% of all privately held wealth in the country.

 

NYK’s cruise operations enjoyed strong year

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 30 April 2014 30 April 2014

Nippon Yusen Kaisha (NYK), the Japanese shipping giant, says its cruise operations enjoyed a strong year to 31 March 2014, with both its brands performing well.

Recurring profit of JPY0.7 billion compared to a loss of JPY3.7 billion in the previous 12 month period. While operating result improved to a profit of JPY0.9 billion from a loss of JPY 3.4 billion. Revenues rose to JPY45.2 billion from JPY35.0 billion in the same period a year earlier

“Sales were robust for both Crystal Cruises in North America and Asuka Cruises in Japan. Profit structure reforms also took effect with implementation of various sales marketing and cost reduction measures,” the company said in a statement. “As a result, the cruises segment showed significant improvement and sharply higher revenues compared with the previous fiscal year.”

Norwegian Cruise Line reports profit for the first quarter 2014

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 29 April 2014 29 April 2014

Norwegian Cruise Line today reported results for the quarter ended March 31, 2014. The company also announced that its Board of Directors today has authorized a three-year, $500 million share repurchase program (see separate story).
 
First quarter highlights

– Adjusted EPS improvement to $0.23 from $0.06 in 2013
 
– Net Yield increase of 3.8% (3.9% on a Constant Currency basis)
 
– Revenue increase of 25.9% to $664.0 million
 
– Adjusted EBITDA increase of 39.6% to $139.3 million; 200 basis point margin improvement
 
– Successful introduction of Norwegian Getaway to the fleet
 
First quarter results
 
"Our strong results in the quarter include an almost four-fold increase in earnings on an adjusted basis," said Kevin Sheehan, President and Chief Executive Officer of Norwegian Cruise Line. "With both Breakaway class ships now in our fleet, it is easy to appreciate the impact of their impressive earnings power, which includes commanding double-digit premiums over other Norwegian ships in the same itinerary," continued Sheehan.

For the first quarter of 2014, the Company reported an increase in Adjusted EPS to $0.23 on Adjusted Net Income of $49.6 million compared to $0.06 and $12.9 million, respectively for the same period in 2013. On a GAAP basis, diluted earnings per share and net income were $0.24 and $51.3 million, respectively.

Net Revenue in the period increased 27.8% to $499.3 million, driven by a 23.2% increase in Capacity Days and a 3.8% improvement in Net Yield. The increase in Capacity Days was primarily from the addition of Norwegian Breakaway and Norwegian Getaway to the fleet in May 2013 and January 2014, respectively. The Net Yield improvement of 3.8%, or 3.9% on a Constant Currency basis, was a result of higher passenger ticket and onboard and other revenue. Revenue for the period increased to $664.0 million from $527.6 million in 2013.

Adjusted Net Cruise Cost excluding Fuel per Capacity Day increased 3.7% (3.4% on a Constant Currency basis) mainly due to inaugural and launch-related costs for Norwegian Getaway along with incremental expenses for the planned dry-dock of Norwegian Spirit. The Company’s fuel price per metric ton, net of hedges, was $643 compared to $673 in 2013. Fuel consumption per Capacity Day in the quarter decreased 6.8% which excludes an additional benefit of 0.7% from dockside charters for vessels used as floating hotels.

Interest expense, net for the quarter was $31.2 million compared to $127.7 million in 2013. Interest expense, net in 2013 included $90.5 million in charges related to the prepayment of certain credit facilities and the redemption of certain of the Company’s senior notes with proceeds from both the Company’s initial public offering and other transactions. Excluding these charges, Adjusted Interest Expense, net was $37.2 million in 2013. The year-over-year reduction in interest expense is due to lower interest rates in the period resulting from the Company’s capital structure optimization initiatives carried out in 2013  which more than offset the impact from higher debt balances related to the financing for Norwegian Breakaway and Getaway.

The Company recorded an income tax benefit of $9.4 million compared to an expense of $2.2 million in the prior year. The income tax benefit in 2014 is primarily related to the election of an alternative, acceptable tax methodology in connection with the change in the Company’s corporate entity structure completed in 2013. This election resulted in a $6.7 million non-recurring benefit which has been excluded from Adjusted Net Income and Adjusted EPS.

MSC Cruises to re-deploy Divina to the Med in summer 2015

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 25 April 2014 25 April 2014

"MSC Cruises is strengthening its commitment to serving the North American market with the deployment of the MSC Divina to the Mediterranean during the summer of 2015. The first of the line’s ships dedicated to North American travelers, MSC Divina will bring its signature service and onboard experiences to the most sought-after Mediterranean seven-night itineraries beginning May 16 through October 3, 2015," the company said in a statement.

MSC Divina is currently sailing Eastern and Western Caribbean cruises from PortMiami which continue through April 2015.

"After exposing MSC Divina to thousands of guests in the Caribbean, customer surveys are showing an increased desire for North Americans to sail onboard MSC Divina in the Mediterranean," said Richard E. Sasso, president, MSC Cruises USA. "The enhancements made at the start of the Caribbean season to ready MSC Divina for the North American market have certainly paid off with positive ratings and increased repeat business. This has led to our decision to maintain the MSC Divina onboard product designed around the senses of American taste, palette, entertainment and comfort and expand her offerings into the Mediterranean, the hottest and most desired vacation destination by North Americans today," continued Sasso.

MSC Divina will begin her Grand Voyage on April 26, 2015, from Miami making a stop in New York, King's Wharf, Bermuda and then continuing onto Ponta Delgada, Lisbon, Cadiz, Barcelona, Naples and Civitavecchia. From May 16, 2015 through October 3, 2015, the ship will sail seven-night Mediterranean cruises departing from Civitavecchia and visiting the ports of La Spezia, Cannes, Palma de Mallorca, Barcelona, Naples and returning to Civitavecchia.  While in La Spezia, MSC Divina will offer late night stays allowing guests to visit nearby cities of Pisa, Florence, Portofino and Cinque Terre. In addition, the call in Naples will allow time to visit Pompei, Capri, Sorrento, and the Amalfi Coast.

Guests will have the opportunity to embark in two marquee ports, Civitavecchia on Saturdays and Barcelona on Wednesdays, allowing for a customized vacation experience with outstanding pre- and post-cruise opportunities and ample airlift from the United States and Canada.

In October 2015, upon completion of her Mediterranean season with a unique 10-night cruise, MSC Divina will enter dry dock in Europe. While in dry dock, the ship will receive some surprise enhancements specifically for the North American market before returning back home to South Florida for a third season of seven-night Caribbean cruises starting in November 2015.

“We are very excited to extend to our travel agent partners the ability to now offer the best of MSC Divina in both the Caribbean and the Mediterranean,” said Ken Muskat, executive vice president, sales, PR & guest services.  “Continuing our Serving You commitment to the trade, we will be offering extensive training on how to best sell MSC Divina in the Mediterranean, provide online toolkits with ready-made marketing and selling materials, and launch a new e-learning online tool to ensure our partners are completely confident selling the MSC brand in Europe.  Our recent sales force expansion was not only for MSC Divina in the Caribbean, but a strategic long term decision given the opportunities we have with Europe and expectations that future new-builds will be coming to our market,” Muskat continued.

Michelle Fee, president & CEO of Cruise Planners, called the decision “opportune” given the fact that MSC Divina has quickly established a name for herself in the North American market and demand for a North American product in the Mediterranean is increasing.  MSC Divina provides a comfort to the market that can now be extended to other destinations.

MSC Divina's 2015 Mediterranean season will first open for pre-sale to past guests of MSC Cruises on Tuesday, April 29, 2014.  Bookings will then be open to the general public on Thursday, May 1, 2014.  Bookings made by July 31, 2014 will be eligible for an exclusive balcony upgrade plus onboard credit.