DFDS A/S, parent company of DFDS Seaways which operates cruise ferries out of Port of Tyne and Harwich, has announced it’s best ever annual results, with pre-tax profits up 31% to DKK 526m.
The group saw revenue increase 10% to DKK8.3bn and operating profit up 27% to DKK754m. The good results in 2007 were particularly due to the group’s freight based business areas of Ro-Ro shipping, Container Shipping and Terminal Services.
Whilst the group as a whole demonstrated strong growth, the successes for passenger shipping in DFDS Seaways were less strong. Whilst, passenger volume were up +1.2% and revenue +5% this was offset by rising operational costs and pressure on average yields.
John Crummie, UK Managing Director of DFDS Seaways commented “The financial highlights are positive and DFDS Seaways is a buoyant business but we are currently operating in a tough and very competitive marketplace.
“Year on year our passenger figures in and out of Port of Tyne have increased by 17% with vehicles up 5%, whilst out of Harwich these have increased by 9% and 10% respectively. However, with running costs increasing significantly this has impacted on your profit margin.
“Across the travel industry price competition has intensified, particularly against a back drop of escalating fuel prices which saw bunker prices up 40%, which clearly impacts heavily on our operating costs.
“2007 was our first year of operating the route to Norway. As with all new ventures we have experienced a few challenges. We are working on developing our already extensive range of holidays and short break offerings in Norway and the UK. We hope a tonnage change on the route to offer cruiselike onboard facilities to customers will have an encouraging impact on the route.
“Whilst UK based passengers travelling with us from Newcastle to Amsterdam and Norway were strong we are seeing fewer than expected Norwegian and Dutch tourists entering the North East. The North East of England has relatively low brand awareness as an attractive regional destination for overseas tourists and this is impacting on our inbound customer volumes.
“This is an issue that we are looking to address in 2008 and onwards. With a strengthening Euro and Norwegian Krone plus excellent attractions as a destination, North East England is well poised to capitalise on the market. We are looking to work closely with the various regional development and tourist agencies to market North East England more aggressively as a year round attractive tourist destination. A proposition that will only help businesses across the region.”
Issued on behalf of DFDS Seaways by Robson Brown PR
Media Contacts: For further press information please contact:
Sophie O’Mahony (0191 244 6669) sophieo@robson-brown.co.uk
