Royal Olympic Cruises (ROC) has reported a net loss of $10.2 million, or $0.73 per share, on revenues of $36.0 million for its six-month period ended May 31, 2000, compared to a net loss of $12.5 million, or $0.89 per share, on revenues of $35.3 million for the same period last year.
Margins improved year-over-year. As a percentage of revenues, total costs were 126 percent for the six-month period of this year, compared to 136 percent for the same period last year.
Operating costs were 84.9 percent of revenues this year, compared to 93.0 percent last year; selling and administrative expenses were 28.9 percent of revenues this year, compared to 30.9 percent last year. ROC pointed out that it has been able to reduce operating costs despite what it called a huge increase in the price of bunkers. The company attributed the improvement to more efficient management and various synergies derived from the association with Louis Cruise Line, such as lower food costs, lower lay-up and drydock costs, lower hotel costs, and lower insurance premiums.
ROC stated that the first half of the year is traditionally a very slow period for the area of the cruise market in which it operates and that it expects to improve its position for the rest of its fiscal year 2000.
In 1999, the first six months accounted for 36 percent of total revenues.
ROC’s new ship, the Olympic Voyager, entered service on June 24, 2000.
ROC listed total assets of $215 million and total debt of $113.1 million. Shareholders equity was $102.5 million including accumulated losses of $9 .5 million.
At press time, ROC shares were listed at $2.50 on the NASDAQ.