* Operating, staff costs down in Cyprus, revenues up *
Louis Plc continued to reduce staff and administration costs in the first nine months of 2013, which, combined with slightly improved revenues of 7.4 mln euros compared to the same period last year, resulted in a profit of 2.93 mln euros, a significant turnaround from a loss of 8.47 mln in January-September last year.
The pre-tax operational profit rose 40.3% to 51.2 mln euros in the first nine months of the year, despite the negative climate in the Cyprus economy, forcing the Group to consolidate further.
The company said that the rise in earnings was due to a 6% increase in business by Louis Cruises, arising from better charter deals and an increase in sales from Piraeus. However, with the record tourism that Greece has enjoyed this year, Louis Cruises was expected to report a bigger improvement as most of its packages embark from the port of Piraeus to the Greek islands and Turkey.
In the first quarter of the year, Louis sold the Calypso to Argo Systems Fze for 2.1 mln euros, representing equal value in the balance sheet and thus had no profit or loss from the deal.
Also, Louis Hotels improved its EBITDAR margin from 34.5% in 9M:2012 to 38.5 in 9M:2013, having reduced operating costs by a further 3.3% this year. Results could have been better had it not been for an increase in taxation in Greece that rose from 20% to 26%, while revenues rose only 3% due to the fact that four hotels remains closed during the first quarter for refurbishment.
Profits attributable to shareholders came in at 2,925,000 euros, or 0.63c a share, compared to a loss of 8,472,000 or -1.84c a share.
Third quarter results were in line with the general trend for the nine-month period, with earnings rising from 89.9 mln euros to 92.2 mln and profits rising from 18.2 mln euros to 23.5 mln, or from 3.9c a share to 5.08c.
Louis Plc said that the Eurogroup decisions in March had little impact on the group’s operations as most of the earnings are now generated from overseas and from foreign clients, adding that it is at an advanced stage of renegotiating its loans based on future earnings and cash flow prospects.
In conclusion, the Group said that the final quarter will have a negative impact on the full-year results which are expected to show a loss, but far improved from the losses recorded in 2012.
