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Norwegian cruise line stake sale boosts Genting Hong Kong H1 profit

TAGs: Genting, genting hong kong, Resorts World Manila, travelers international hotel group

norwegian-cruise-line-stake-sale-boosts-genting-hong-kong-h1-profitCasino cruise ships operator Genting Hong Kong Ltd. posted a profit for the six months to June 30, mainly attributable to asset sales and one-off accounting gains.

Genting HK profit jumped 898% to $2.16b in H1 2015, compared to $216.7m over the same period a year ago while EBITDA increased 31.7% to $29.6m from $20.2m in H1 2014.

The company recorded a total gain of $599.6m from the sale of its shares in Norwegian Cruise Line Holdings in March and May. It also had a one-off accounting gain of $1.56b upon reclassification of NCLH from an “associate” to an “available for sale investment.”

Cruise and cruise-related activities revenues increased 2.5% to $265.1m. Net revenue increased 6.4% year-on-year to $218.0m due to higher passenger ticket revenue as a result of the $550m acquisition in March of Crystal Cruises, but was offset by lower onboard revenue attributable to lower gaming revenue.

Revenue from non-cruise activities decreased 56.2% to $10m due to lower income from aviation, travel agents and international marketing activities in relation to its Manila operations.

Genting HK owns 50% of Resorts World Manila (RWM) in the Philippines, through its stake in Travellers International Hotel Group Inc, a joint-venture with Alliance Global Inc.

In H1 2015, Travellers’ total revenues dropped 7% to $318.4m mainly due to lower gaming volume.

Travellers International said that it will continue to expand Resorts World Manila to include more gaming space and two new hotels to be managed by Hilton Hotels and Resorts and the Sheraton brand of Starwood Hotels and Resorts.

Genting said it has two new cruise ships on order from Germany-based Meyer Werft GmbH, Papenburg, which will be delivered in the fourth quarters of 2016 and 2017. Crystal Cruises plans to expand into fast-growing ocean yachts and river cruises by leveraging its luxury client database.

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