Louis Public Company Ltd. has announced an improvement in third quarter results, compared to the same period last year, with an 11% rise in turnover for the cruise business and 18% in the hotels.
A company announcement said this was due mainly to sustaining costs and an increase in the cruise fleet and hotel portfolio, despite the spiralling fuel costs during the company’s most operational 3-month period.
The company’s earnings before interest, taxes, depreciation and rental (EBITDAR) rose from CYP 24,4 mln to CYP 26,5 mln in the quarter.
Nine-monthly figures saw turnover rise 15% from CYP 112 mln in 2004 to CYP 129 mln this year.
Although operational profits for the nine-month period ending September 30 were at the same level as in 2004, a reduction in earnings from the cruises division was compensated by an increase in the hotels.
Overall profits were lower at 13,2 mln for the nine-month period compared to CYP 14,2 in the corresponding period last year, while profits attributed to shareholders stood at CYP 11,9 mln, compared to CYP 14,8 last year. Net profits from the cruise division dropped to CYP 3,9 mln, less than half the CYP 9,6 mln recorded in the same period last year.
The company attributed the fall in profits to the unprecedented rise in fuel costs and the initial entry into the Greek market. Louis was also hit by exchange control losses due to the strengthening of the US dollar against the Cyprus pound, with some CYP 2 mln as non recurring.
Overall profits were doubled in the case of the hotels operation, with the figure rising from CYP 4,6 mln in the 9-month period last year to CYP 9,4 mln this year. This came out of a better control of costs, and a reduction in the provision for deferred tax due to a further reduction of the tax bracket in Greece. As a result, the hotels’ contribution to Group profits rose from CYP 5,2 mln to CYP 8,0 mln.
Projected rise in 2005 profits
Based on data available to date and projections of profits attributable to shareholders and before exchange losses for the whole of 2005, Louis Public Company Ltd. is expected to show an increase in overall profits for 2005 compared to the previous year.
A company announcement said that all will depend on USD/CYP exchange rate on December 31, 2005, as a strengthening of the dollar will increase the unrealised exchange losses, while a weakening will reduce these losses. However, if the exchange rate remains at present-day levels, then overall profits attributed to shareholders for the whole year will be lower in 2005.
