Star Cruises has reported net income of $2.5 million on revenues of $369.1 million for the second quarter ended June 30, 2000, compared to net income of $22.1 million on revenues of $85.1 million for the second quarter of 1999. The second quarter of 2000 included Norwegian Cruise Line (NCL) and expenses related to the acquisition.
For the six-month period, Star reported net income of $3.7 million on revenues of $562.7 million for Star and NCL, compared to net income of $39.8 million on revenues of $168.2 million for Star in the first six months of 1999.
Star said that the acquisition of NCL led to $49.1 million of additional interest expenses, amortization of goodwill, trade names and trademarks and what it called other fair value adjustments.
For the second quarter ended June 30, 2000, Star Cruises, excluding NCL, reported net income of $18.4 million on revenues of $127.1 million, compared to net income of $22.1 million on revenues of $85.1 million for the same period last year.
Star said the results were adversely affected by higher fuel costs, the expiration of the charter of the Superstar Aries (formerly the Europa), and lower than expected revenues in the new Japan and Middle East markets which contributed to a loss of approximately $7 million in those markets.
Star Cruises said it will continue to develop the contemporary cruise market in Japan, but pulled out of the Middle East market citing "the lower than expected response."
Star reported net income of $8.3 million on revenues of $242.0 million for NCL for the second quarter, compared to the $6.4 million in net income on revenues of $207.1 million that NCL reported for the same period last year.
According to Star, NCL increased its available capacity days by 30 percent quarter over quarter due to the introduction of the Norwegian Sky.
In related news, Star will issue up to 300 million new shares, which are expected to raise $1.8 billion, in conjunction with the company's new listing on the Hong Kong stock exchange.
Star has also signed a $600 million loan facility to help pay for its acquisition of NCL.
The new share offering will be used to refmance debt as well as for an accelerated newbuilding program.
To complete Star's global ambitions, an acquisition could also be in the cards. As a potential candidate, Festival Cruises would be a perfect strategic fit - Star could finance Festival's continued development as an independent European brand.