SEACONTAINERS has announced a 35% increase in operating income from passenger transport for the third quarter, despite experiencing a downturn following the abolition of duty free.
The company achieved an income of $37.2m during this period. However, it admitted there had been a drop in profitability on ferry services between the UK and France, Belgium and Ireland in July, when the European Commission axed duty-free.
A spokesman said: “Day trippers returned to the company’s ferries on the Anglo-French and Anglo-Belgium routes in August and September. The company has expanded its shoreside shops in Belgium and France and passenger fares were increased to cover the reduction in profits from on-board duty-free sales.”
Meanwhile, earnings from the SeaCo’s Great North Eastern Railway were flat in the third quarter due to a large reduction in government subsidy. SeaCo has promised to introduce 25 faster, tilting trains over the next eight years and applied for an extension to its rail franchise until 2020.
The leisure division increased operating income by 52% to $17.2m in the third quarter. SeaCo said profits from its luxury trains and cruising interests were down but hotels in Italy, North America, Portugal, Africa and South America had performed better than in 1998.
The company’s total revenue rose by 15% to $382m. Plans are afoot to create a new subsidiary company to operate all SeaCo’s transport and leisure businesses but its name is still under wraps.