(Alliance News) - Global Ports Holding PLC on Tuesday reported a widened loss but noted encouraging signs for the coming year, as customers return to cruise ships following a miserable period of trading due to the pandemic.
The London-based cruise port operator posted a pretax loss of USD122.7 million for the 15 months ended March 31, substantially widened from USD24.5 million in the 12 months ended December 31, 2019. The loss was primarily driven by the impact of Covid-19, which battered leisure travel in 2020.
Revenue during the 15 months was USD79.4 million, larger than the shorter prior year reporting period of USD70.4 million, but adjusted revenue was only USD26.8 million. Cruise revenue dropped to USD17.5 million from USD63.0 million.
Cruise volumes remain low versus historical standards, however activity levels are steadily increasing, Global Ports highlighted. In May, there were just 48 cruise ships in service; however for August this number is expected to have risen to 190 ships.
"The Covid-19 crisis has caused unprecedented disruption to both, global economies and the global travel sector. The cruise industry effectively shut down for the first time in its history. However, GPH's flexible business model and our decisive actions to reduce costs early in the crisis means we have successfully navigated through this crisis," commented Chief Executive Emre Sayin.
Despite the disappointing results for financial 2021, Global Ports said there had been a significant increase in customer activity since the financial year ended in March. The positive outlook also has been supported by the gradual recovery of the cruise sector, the company noted.
"Global Ports expects a steady increase in cruise ship calls and passenger volumes over the remainder of the year," Sayin added.
Following its successful bid for a 20-year concession, Global Ports said that the Taranto cruise port in Italy is expected to have a record year and that the pipeline of potential new cruise port opportunities is "very encouraging".
No final dividend was declared, with all payouts suspended since March 2020.
Global Ports shares were trading 0.9% higher in London on Tuesday at 118.50 pence each.
By Will Paige; willpaige@alliancenews.com
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Global Ports (GPH)