Genting Hong Kong has announced its first half 2016 results, which saw the company post a loss.
Revenue from cruise and cruise-related activities increased 44.8% to US$384.0 million in 1H2016 compared with US$265.1 million in 1H2015.
Net Revenue in 1H2016 increased 41.2% to US$307.8 million from US$218.0 million in 1H2015 due to an increase in Capacity Days of 20.9% and an increase in Net Yield of 16.8%.
The increase in both Capacity Days and Net Yield was primarily due to the inclusion of full six months’ contribution of Crystal Cruises in 1H2016, as compared with its post-acquisition contribution since 15 May 2015 in 1H2015.
Revenue from non-cruise activities was US$51.9 million in 1H2016 compared with US$10.0 million in 1H2015 primarily contributed by revenue from yard repairs and conversion activities as a result of the acquisition of shipyards in Germany.
Total operating expenses, excluding depreciation and amortisation, increased 73.1% to US$344.7 million compared with US$199.1 million in 1H2015 due to additional operating expenses mainly contributed by Crystal Cruises and recently acquired businesses. Selling, general and administrative (“SG&A”) expenses, excluding depreciation and amortisation, increased 157.6% to US$119.3 million in 1H2016 from US$46.3 million in 1H2015 mainly due to inclusion of Crystal Cruises and recently acquired businesses, one-off acquisition related expenses, one-time start up and marketing costs for the launch of new Dream and Crystal cruise brands and products in 2016.
Net Cruise Cost per Capacity Day increased 45.7% primarily due to inclusion of Crystal Cruises and higher expenses of existing Star Cruises fleet, such increase was partially offset by lower fuel expenses (1H2016: US$283 per metric ton; 1H2015: US$388 per metric ton).
Total depreciation and amortisation increased 26.5% to US$57.7 million in 1H2016 compared with US$45.6 million in 1H2015 primarily due to the additional depreciation of Crystal Cruises fleet and shipyards in Germany.
The Group’s EBITDA for 1H2016 was negative US$28.1 million compared with US$29.6 million in 1H2015.