Saga financial results show ‘exceptional’ growth for cruise
Further growth is expected for Saga ocean and river cruising, according to the company’s interim results for the six months ending July 31.
Ocean cruise recorded an underlying profit before tax of £28m, more than double the £12.9m in the prior period.
Revenue was £121.5m, 17% higher than the same period the year before.
Saga also achieved a 90% load factor, 7 points higher than the same period last year, and a per diem of £362, which was 9% higher.
As a result, ocean cruise trading EBITDA (excluding overheads) was £55.8m or £27.9m per ship, trending well in excess of Saga's £40m per ship annualised target.
River cruise
River cruise reported an underlying profit before tax of £2.9m, 93% higher than the same period last year.
Revenue was £26.4m, 13% and £3m ahead of the prior period, reflecting a load factor of 86% and a per diem of £340, which were 3ppts and 15% ahead respectively.
Major progress
Saga Group CEO Mike Hazell said, ‘Saga made significant progress in the first half of the financial year, with ocean and river cruise delivering exceptional growth, while we continued to position the group for long-term success through the exploration of potential partnership opportunities.
‘The group delivered an underlying profit before tax that increased more than threefold when compared with the same six months in the prior year and we reduced net debt by £42.8m over the same period. In line with our debt reduction plans, we also repaid our £150m senior unsecured bond in May.
‘Ocean and river cruise had an excellent start to the year, with load factors and per diems, across both businesses, well ahead of the same period last year.’
Strategy
The continued momentum in the year to date in cruise and travel, alongside a strong pipeline of future bookings, is expected to drive further growth across those businesses for the full year.
The current ocean cruise load factor for 2024/25 continues to be strong, at 90% with a per diem of £359. These compare with a load factor of 87%5 and per diem of £331 at the same time last year.
As a result, ocean cruise trading EBITDA (excluding overheads) is expected to materially exceed the £40m per ship annualised target.
The current river cruise booked load factor of 88%5 and per diem of £327 are also trending well and ahead of the same point last year by 3ppts and 15% respectively.
New river cruise ship Spirit of the Moselle will be delivered next July.
Net debt reduced
Saga Chairman Roger De Haan stated, ‘Saga made significant progress during the first six months of the financial year with the performance of our cruise and travel businesses being a particular highlight.
‘Net debt reduced significantly when compared with the same point last year and debt reduction continues to be a key strategic priority for us. Alongside this, we more recently executed amendments to the group’s financing facilities to provide us greater flexibility in the short to medium-term.’
He added, ‘We continue to generate exceptionally high customer demand for our ocean and river cruises and expect occupancy levels and revenue to remain strong for the full year.
‘This strong performance and outlook is reinforced by our customer satisfaction surveys, which show that customers are enjoying our ocean and river cruises more and more …’
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