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(Alliance News) - Global Ports Holding PLC on Wednesday reduced annual earnings expectations amid a weak performance in its Commercial business.
The stock was trading 8.0% lower in London on Wednesday at 230.00 pence a share.
The company now expects to deliver for 2019 a decline in earnings before interest, taxes, depreciation and amortization in percentage terms of mid-single digits against 2018.
In 2018, Ebitda was USD90.7 million, while adjusted Ebitda was USD83.7 million.
The London-based cruise and commercial port operator said revenue in the three months to the end of September was down 2.7% year-on-year, at USD36.9 million. On a constant currency basis, revenue slipped by 1.9%.
For the first nine months of 2019, Global Ports' revenue stood at USD91.5 million, down 3.1% on the prior year and down 0.9% in constant currency.
Global Ports said third-quarter passenger volumes were hurt by the US authorities' decision to prohibit authorised travel to Cuba via cruise ships under the People to People programme. As a result, the number of customers fell by 4.2% to 1.6 million from 1.7 million.
Passenger volumes for the nine months, meanwhile, rose by 11% year-on-year.
"I am pleased with the performance of our Cruise business, which once again has delivered record results in line with our expectations," said Chief Executive Emre Sayin. "Trading at our Commercial business remained challenging in the third quarter."
The company explained macro-economic factors such as trade tariffs continued to hurt its Commercial business in the third quarter, particularly the port of Akdeniz in Turkey.
Throughput container volumes were weak in the period, Global Ports noted, and this sustained weakness has continued into the final quarter.
Looking ahead, the company said its Cruise business continues to perform well in the final quarter of 2019 and looking into 2020 and 2021, Global Ports expects organic growth to be "strong", driven by a "significant" increase in passengers at both the Ege and Bodrum ports, both in Turkey.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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