LONDON (ShareCast) - (Sharecast News) - Global Ports Holding cut its losses in the first half of the year and expect to report a profit in 2019 as the cruise port operator reported a 14% increase in revenues to $56.6m, a 7.5% increase at constant currencies thanks to strong cruise sales.
Boosted by currency movements, the London-listed, Turkish-owned group posted record segmental adjusted operating profit up 25.2% to $40.3m in the six months to 30 June, with consolidated EBITDA rising 20.4% to $36.1m, in line with management expectations. Cruise EBITDA rose 45% and commercial EBITDA 16%.

Loss for the period of $3.6m was cut from a $6.7m loss a year before. A $16.0m amortisation expense was taken in relation to port operation rights, up from $14.8m last time, but the change in underlying profit was driven by the higher operating profit, the higher income from equity accounted investees, partly offset by higher tax charge.

An interim dividend of $17.5m (22p/share) was declared, in line with last year, and house broker Shore Capital said that assuming a similar final payment would equate to a dividend yield of 9%.

Global Ports Holding, which is 65.63% owned by Istanbul-listed Global Investment Holdings, is the world's largest cruise port operator. It is not to be confused with Global Ports, the leading container terminal operator serving Russian cargo flows.

Cruise revenues and profits were boosted as passenger numbers grew 6.2% to 1.6m in the period, driven by a strong performance at Barcelona and Malaga cruise ports and growth in ancillary services revenues. The equity accounted associate ports Venice, Lisbon and Singapore also rose strongly.

An agreement was signed to operate Havana cruise port - the group's first in the Americas - and a partnership agreement was signed with Dreamlines, a fast-growing online travel agency for cruises.

In commercial, general & bulk cargo volumes were down 1.6% and TEU throughput up 0.6%. TEU stands for Twenty-Foot Equivalent Unit which can be used to measure a ship's cargo carrying capacity.

Port Adria's performance continues to improve after completion of investment program, with operating profits at Port Akdeniz supported by weak Turkish lira.

Chief executive Emre Sayin said: "Trading since the period end at both our cruise and commercial ports has continued to perform in line with our expectations. Despite significant volatility in Turkish lira during this period, business has not been affected because we are a global business with over 95% of revenues in hard currency.

"We look forward to welcoming a record number of passengers to our cruise ports in 2018 and expect to deliver full year results towards the upper end of expectations."

Global Ports, which floated in London in May last year at 740p but fell below 400p this March, was up 5% on Friday at 515p.

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