Cruise ship revenues slump at Global Ports
POLITICAL unrest in one of its biggest markets has meant that maiden results from cruise and cargo port operator Global Ports Holding were a washout.
Shares in the company – which floated at 740p a piece in London three months ago – tumbled 10.3pc to 612p after revenues from cruise ship passengers fell and its cargo operations managed only modest growth.
GPH operates more than a dozen ports and is focused on increasing revenues from cruise ship passengers transiting through its facilities.
However, Emre Sayin, the chief executive, said that upheaval in Turkey – which over the past year and half has seen a series of terror attacks and a failed coup – had deterred passengers from visiting the country, hitting reve- nue at the firm’s ports there, which are the most profitable in its portfolio.
As a consequence, revenues from cruise operations fell 15.9pc to $18.5m (£14.4m) in the six months to the end of June. Cargo operations fared better, with revenue up 1.6pc to $31.3m, though traders took flight at the performance, which resulted in a pre-tax loss of $6.5m almost three times bigger than the same period a year ago. Referring to recent terror attacks in Barcelona, Mr Sayin said cruises could benefit as passengers look for alternative forms of holidays.
“Cruises are a very controlled environment,” he said. “The cruise industry is very small in terms of penetration into the travel market as a whole so there is plenty of room to grow.”
GPH listed in mid-may. The City had hoped it would be one of the biggest flotations of the year in London. However GPH priced near the bottom, valuing the business at £460m at the time.