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Minoan Lines Sales Increased By 12%


Minoan Lines increased sales by 12% in the first half of the year, said the company in a statement. 

The financial results for the first half of 2011 were affected to a great degree by the adverse macroeconomic environment, the weak fiscal figures of Greece and the consequent austerity measures that unavoidably led to the reduction of total market volumes on the routes that the company operates. Additionally, the increase of fuel cost by 17% in comparison with the respective period of 2010 and the intense competition in the sector have affected negatively the financial results of the first half of 2011.

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.

The company’s revenue for the first half of 2011 stood at € 79.3 million while the operating result (EBITDA) was shaped at € -11.9 million. The net results of Minoan Lines after taxes, which due to seasonality in traffic volumes are always negative,  stood at € -24.8 million.

The ferry sector presents high seasonality since the traffic volumes of passengers are weak in the first half of the year.

On the Group’s level, the revenue was shaped at € 79.3 million while the operating results (BITDA) and net results stood at the same level with that of the parent company.
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 6-month period of 2011 higher traffic volumes and market shares in all traffic categories in comparison with the respective period of 2010.  Moreover, the company’s market shares stood at 43.1%, 41.9% and 43.5% for passengers, private cars and trucks respectively with Minoan Lines accomplishing the 36.2% of trips in the North Adriatic market.

Moreover, during the first quarter of 2011, Minoan lines carried 213,000 passengers, 50,000 private cars and 46,000 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 half of 2011 the market share for passengers stood at 40.3% versus 32.3% in the first quarter of 2010, for private cars it stood at 36.7% versus 26.1% in the first half of 2010 and for freight units it stood at 46.1% versus 36.7% of the respective period of 2010.  

Domestic Market

On the route “Heraklion-Piraeus”, Minoan Lines maintained its leading position during the first half 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 377,000 passengers, 44,000 private cars and 26,000 freight units during the first half 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 37.9% of trips, reached 59.6% for passengers, 56.0% for private cars and 38.7% 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 aggravated the households income leading it to a reduction.

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.
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