Star Cruises Group Reports Third-Quarter Net Loss

Star Cruises Group., which includes Star Cruises and NCL Corp., recorded a net loss of $21.3 million in the third quarter, compared with a net profit of $60.4 million in the third quarter of 2006.

Star said in the quarter it recorded a noncash euro-denominated debt translation loss of $41.7 million due to the revaluation of the euro-denominated debt to U.S. dollars. In third quarter 2006, the company had recorded a non-cash euro denominated debt translation gain of $3.5 million.

Star said that excluding the noncash foreign currency debt translation and other one-off items, it recorded a net profit of $20.4 million in third quarter 2007 compared with $32.9 million in third quarter 2006.

Revenue for the third quarter increased 6.6 percent, to $733.7 million. The company said it recorded a 9.8 percent increase in net revenue due to a 6.3 percent increase in capacity and a 3.3 percent increase in net revenue yield; the higher yield was primarily due to an increase in cruise ticket revenue, offset by lower onboard gaming revenue in the Star Asia fleet.

Ship operating costs increased 6.9 percent. Average fuel prices, including the impact of fuel hedges, increased 10.6 percent from third quarter 2006.