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Genting Hong Kong narrows first half loss

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Genting Hong Kong narrowed its loss to US$141.3m in the first six months of 2018, down from $203.2m in the first half of 2017.

Revenues rise 46%

Revenues ballooned 46%, to US$778m, up from $533m.

Cruise revenue increased 36% to $642m, compared to $471m, on 26% more capacity days, thanks to the inclusion of Dream Cruises' World Dream and four Crystal River Cruises vessels, while net yield rose 12.3%, to $176.90 from $157.50. Occupancy was 84.4%, up from 75.7%.

Net cruise costs increased 18% to $451m from $382m, excluding start-up costs for new ships in the first half last year. However, net cruise costs per capacity day declined 6%, to $155 from $165, due to efficiencies, offset by higher fuel prices.

Cruise-related adjusted EBITDA, excluding start-up costs for new ships in the first half of 2017, improved to $63m from $18m. The improvement was partially offset by lower cost capitalization for shipbuilding costs for the shipyards in the first half this year, as a result of a lower than expected production level.

Higher cost capitalization for shipbuilding forecast

With the keel-layings for 20,000gt expedition ship Crystal Endeavor this month, and for the first 204,000gt Global-class ship in September, Genting HK expects shipyard utilization to increase, leading to higher cost capitalization for shipbuilding.