Costa Crociere returns to making profits (371 million) and closes the Chinese joint venture Adora Cruises

After the last few years of suffering (including financial) due to the almost total stop to on-board holidays imposed by the Covid-19 pandemic, the Italian Costa Crociere has returned to making a significant profit also thanks to a rationalization of its owned fleet . Also relevant is the choice to definitively close every joint venture and representative office in China, a market where the company has also returned to operating with a ship.

This was revealed in the 2023 financial statements (ending last November 30th) of the company led by CEO Mario Zanetti (freshly appointed to the new Confindustria team with responsibility for the maritime economy) which shows a turnover that has risen to 4.1 billion euros (of which 2.6 billion for cruise revenues, 525 million from cruise ancillary revenues, 884 million from on-board management revenues) compared to 2.2 billion in 2022. Last year the company therefore reached coming close to the record of 4.3 billion in revenues in 2019. The ebitda went from being negative for 2 billion to being positive for 487 million and the net result recorded a profit of 371 million (at a consolidated level of 385 million) compared to the red of just over 2 billion in the previous year, still deeply affected by the pandemic. Of the 371 million profits, 7.6 million were allocated to the equity revaluation reserve and 363 million to cover the losses carried forward.

Costa’s 2023 is back to running almost at full capacity because the number of passengers on board has risen to 2.9 million (of which 1.5 million on Costa ships and 1.4 million on Aida ships) with an employment trend average on board went from 63% in 2022 to 96% in 2023 with a peak of 109% recorded in the third quarter of last year. All 21 ships in the fleet (10 for Costa and 11 for Aida) are back in operation also considering the resumption of Costa Serena in Asia.

The fleet optimization program saw the sale of the AidaVita ship in March 2023 for approximately 10.3 million euros and of AidaAura in November last year for 28 million euros with capital gains (net of charges) amounting to 5 million respectively and 27 million euros. The sale of the Costa Venezia (with a capital gain of 7.5 million euros) and of the Costa Firenze ship which took place in February this year also took place in March last year.

Also during the last financial year, the Costa group acquired 99.98% of the capital of the company Italy Cruise Investment Srl in September following the dissolution of the partnership with the Chinese group Adora Cruises Ltd, it sold its shareholding to the majority shareholder (of 6.34%) in Eco-Spray Technologies Srl and divested the investment in the company Zena Cruise Terminal Srl (a liquidated company that was supposed to develop a new cruise terminal in Calata Gadda in Genoa).

Costa had contracts with Adora Cruises Limited concession agreement And ship management agreement with the Chinese partner which were closed, with consequent settlement of credits and chargebacks of costs incurred to start up the new Chinese company which from the beginning of January debuted on the Far Eastern market with the first cruise ship built in China by a shipyard in CSSC group (in joint venture with Fincantieri) for the local market. Still on the subject of China, Costa also concluded the liquidation process of the associated company Shanghai Coast Cruise Consulting Co. Ltd in January 2024.

For the 2024 financial year, the company expects an increasing trend in operations “allowing the achievement of pre-pandemic employment levels”. In addition to this, the Carnival Corporation subsidiary adds that, “despite unfavorable macroeconomic conditions including inflation and the increase in interest rates exacerbated by the geopolitical tensions that are characterizing the first months of the financial year, it is expected that the increase of cruise and on-board revenues will support levels of operational profitability and liquidity sufficient to generate self-financing to meet obligations”.

SUBSCRIBE TO THE FREE DAILY NEWSLETTER OF SHIPPING ITALY