— Higher 2Q earnings to boost 2006 profits
Louis plc, the biggest tourism group in Cyprus, reported higher second quarter gains, with profits attributable to shareholders making a significant turnaround from a loss of CYP 228,000 (EUR 401,000) during the same period last year to a profit of CYP 5,6 mln (EUR 9,8 mln) this year.
The gains are attributable to better results in the cruise business in Greece and western Europe, as well as higher occupancy levels in the group’s hotels in Greece.
The group witnessed a 23% increase in turnover in the second quarter, to CYP 53 mln (EUR 93 mln) from 43 mln (EUR 76 mln) in the same period last year.
Operational profits or earnings before interest, tax, depreciation and rent of hotels (EBITDAR) rose significantly from CYP 8,4 mln (EUR 14,7 mln) in the second quarter last year to CYP 13,3 mln (EUR 23.2 mln) in the same period this year.
Profit after tax for the period rose from a loss of CYP 23,000 (EUR 43,000) to a gain of CYP 6 mln (EUR 10.5 mln) this year, with earnings per share at 1.3 cents, compared to a loss of 0.05c last year.
Group Executive Chairman Costakis Loizou told a news briefing on board the newly-purchase Orient Queen that docked in Limassol last Thursday, that he was “very happy with the results, particularly the second quarter which is a period of greater activity compared to the first quarter.
“Our activities will reach their peak in the third quarter and if all proceed smoothly, our operational and other profits will show a significant increase for the year,” he added.
Loizou said that the purchase of two cruise ships this year and the signing of a franchise agreement with Stelios Haji-Ioannou’s easyCruise for the eastern Mediterranean from 2008, will further boost the group’s earnings.
He added that cruising was a sector that was enjoying rapid development, in particular in areas of smaller ships with frequent stops and visits to islands, as opposed to the grandiose liners operated by the Big Four cruise companies.
“We want to expand our activities outside of Cyprus where there is a potential for greater profits, but we want to remain within the Mediterranean area which we know best and within our capabilities.
“We are presently looking to develop new business in the Egyptian hotel sector,” Loizou said, adding that the company’s board is committed to reduce its high borrowing by turning to management of hotels, as opposed to ownership and management.
“We may consider selling some of these properties or businesses that do not contribute satisfactory profits to the group,” he added.
— 2H results better
As a result of the significant increase in second quarter profits, total losses for the first half were reduced from CYP 5,4 mln (EUR 9,5 mln) in the first half of 2005 to CYP 4,8 mln (EUR 7,7 mln) in the same period this year.
Earnings per share dropped from a loss of 1.29 cents in the first half last year to 1.05 cents this year.
Total turnover for the first half of this year is at CYP 65,4 mln (EUR 114 mln) compared to CYP 58,7 mln (EUR 103 mln) last year, with the operational profits (EBITDAR) improved by about CYP 1,8 mln (EUR 3 mln), from CYP 8,2 mln in the first half last year to CYP 10 mln (EUR 17,5 mln) this year.
