Saga Posts Higher-Than-Expected First-Half Cruise Bookings, Warns of Holiday Impact
Saga's Financial Performance and Outlook
June 30 (Reuters) - British over-50s holiday and insurance group Saga said on Tuesday first-half cruise bookings exceeded expectations and holidays revenue grew, though it warned full-year holidays passenger numbers could fall due to the Middle East conflict.
Key Highlights from Saga's Update
Here are some details:
Financial Guidance and Market Reaction
- The company said it remains on track to meet its full-year guidance.
- Shares in the company were down about 1%.
Cruise Revenue Breakdown
Ocean Cruise Performance
- Ocean cruise revenue for the first half is expected to be ahead of the prior year, driven by 13% growth in booked per diems.
River Cruise Performance
- River cruise revenue for the first half is also expected to grow compared with the prior year, with booked per diems 4% higher.
Insurance Operations
- Saga's restructured insurance operations also beat early targets under a new Ageas partnership, triggering a £10.5 million payment, the company said.
Holidays Revenue and Passenger Trends
- Full-year holidays revenue is expected to be marginally ahead of the prior year, though passenger numbers could be slightly behind, with more customers opting for shorter short-haul holidays rather than long-haul trips as a result of the Middle East conflict, Saga said.
Outlook and Risk Management
- "We have a high level of confidence when looking ahead to the full year and beyond, with customers typically booking well in advance, and commodity and foreign exchange risk now fully hedged to the end of 2027," Saga said.
(Reporting by Nithyashree R B in Bengaluru; Editing by Nivedita Bhattacharjee)
