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Without one-time NCLH gains, Genting HK swings to first half loss

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Genting Hong Kong posted a first half loss of US$54.6m, down from its $2.1bn profit a year ago when the results included major one-time items related to Norwegian Cruise Line Holdings.

Totaling nearly $2.2bn, those were a one-off accounting gain from the reclassification of the company's investment in NCLH and a gain from NCLH share sales. Genting HK had earlier issued a profit warning.

Turnover was $436m, up from $275m and including a nearly 45% increase in revenue from cruise and cruise-related activities of $384m, up from $265m.

Net revenue rose more than 41%, to $308m, due to nearly 21% more capacity days and a 16.8% increase in net yield, both thanks to the inclusion of a full six months' contribution from Crystal Cruises.

Specifically, net yield was $185.60, up from $158.90, capacity days reached nearly 1.66m, up from 1.37m, passenger cruise days went to 1.36m from 952,000, and occupancy was 82.2%, up from 69.4%.

Revenue from non-cruise activities was $52m compared to $10m, mainly due to added revenue from repair and conversion activities at the shipyards Genting HK acquired in Germany.

Operating expenses, excluding depreciation and amortization, rose 73%, to $344.7m due to additional operating expenses mainly from Crystal and recently acquired businesses. Selling, general and administrative expenses more than tripled (up 157%), to $119m from $46m, due to Crystal and recently acquired businesses, one-off acquisition-related costs and one-time start-up and marketing costs for launching Dream Cruises and Crystal brand products.

Net cruise cost per capacity day went up nearly 46% on the inclusion of Crystal and higher expenses at Star Cruises, partially offset by lower fuel costs of $283 per metric ton compared to $388 in the first half of 2015. Excluding fuel, net cruise cost per passenger day was $174.70, up from $107.70.

The group's earnings before interest, tax, depreciation and amortization were a negative $28m, compared with a nearly $30m positive result the year before.