- 19,4% Increase in Company?s Sales
- Increase of Market Shares in the North Adriatic Market in all Traffic Categories
Financial Results
The company's financial results have been significantly affected by the high fuel prices and the increased competition in the sector. The adverse economic conditions have affected, as expected, the traffic volumes in all categories in the markets that the company operates. Moreover, the company?s financial results include extraordinary vessels chartering at the North Africa region.
More precisely, the consolidated financial results of the first quarter of 2011 are improved compared to the respective period of 2010 with revenue presenting an increase of 19.3% while the operating results (EBITDA) and net results being improved by 47.6% and 14.9% respectively.
The company's revenue for the first 3-month period of 2011 stood at € 34.5 million while the operating result (EBITDA) was shaped at € -4.2 million. The net results of Minoan Lines after taxes, which due to seasonality in traffic volumes are always negative, stood at -10.5 million €.
On the Group's level, the revenue and operating profits (ΕBITDA) stood at the same level with that of the parent company while the net results were shaped at -10.5 million €.
Within this unfavorable economic environment, Minoan Lines, having followed over the past years a bank loan reduction approach as well as a reduction of operating expenses, has substantially strengthened its overall financial position. All this has allowed the company to surpass any difficulties arising from the current economic crisis.
Traffic Volumes - Market Shares
North Adriatic Routes
In the North Adriatic market (International routes / Ancona & Venice) Minoan Lines, having as a guiding principle the achievement of the most efficient economic operation of its fleet, succeeded in the first 3-month period of 2011 higher market shares in all traffic categories in comparison with the respective share of trips. More specifically, the company's market shares stood at 36.7%, 33.8% and 41.8% for passengers, private cars and trucks respectively with Minoan Lines accomplishing the 32.4% of trips in the North Adriatic market.
Moreover, during the first quarter of 2011, Minoan lines carried 55,000 passengers, 13,000 private cars and 21,000 freight units. Deployment of new vessels
In October 2009 the new building vessel Cruise Europa was deployed on the route Patra - Igoumenitsa - Ancona while last July the sister vessel Cruise Olympia was deployed on the same route.
With carrying capacity of 3,000 passengers and a 3,000 linear meters garage (each vessel can carry 180 international transport trucks and 250 cars or alternatively 1,000 private cars approximately) both Cruise Europa and Cruise Olympia are signalling a new era in the sea connection between Greece and Italy.
It should be noted that the said vessels, which operate together for the first time on the route this year, have already developed a successful commercial dynamic increasing Minoan Lines? market shares in all traffic categories on the subject route.
More precisely, during the first quarter of 2011 the market share for passengers stood at 37.6% versus 32.6% in the first quarter of 2010, for private cars it stood at 33.0% versus 24.8% in the first quarter of 2010 and for freight unit it stood at 46.0% versus 35.8% of the respective period of 2010.
Domestic Market
On the route ''Heraklion-Piraeus'', Minoan Lines maintained its leading position during the first quarter of 2011 while it improved its market share in both categories of passengers and private cars in comparison with the respective period of 2010.
Moreover, the company carried 148,000 passengers, 17,000 private cars and 12,000 freight units during the first quarter of 2011.
In addition, the company achieved higher market shares in all traffic categories in comparison with the respective share of trips. More specifically, the market shares on this specific route, with the company having realized the 35.3% of trips, reached 55.2% for passengers, 51.6% for private cars and 38.5% for freight units.
Prospects in 2011
The year 2011 is expected to be a difficult period for most of the Greek companies and the ferry sector as well. The continuing efforts by the government to reverse the long lasting fiscal imbalances have forced it to impose urgently austerity measures in order to address the unprecedented economic crisis. These austerity measures, as broadly expected, have a negative effect on households' income.
The aforementioned, in combination with the high fuel prices, the increased competition in the sector and the readjustment of the offered tonnage on the routes Heraklion - Piraeus and Patras - Igoumenitsa - Ancona are the main factors that will affect the company's economic performance.