Press release | fourth quarter results 2022
Hurtigruten Group continues to see improvement in revenue and normalized EBITDA compared to Q4 2021 with a significant increase in booking momentum going into 2023.
The Company had total revenues and other income in the fourth quarter of 2022 of EUR 135 million, an increase of 80% compared to the fourth quarter of 2021 with an average occupancy of 57% compared to 41% in fourth quarter 2021 this highlights significant organic growth potential for the Hurtigruten Group. Occupancy in Hurtigruten Expeditions was still influenced by the covid testing regimes at embarkation and travel disruptions in South America experienced in the quarter. The last elements of the covid-19 testing regimes in Hurtigruten Expeditions were removed in Q1 2023.
Q4 2022 average gross yield for Hurtigruten Norway of EUR 312 (excluding contract revenue) and Hurtigruten Expeditions of EUR 607 were 21% higher and 19% higher compared to fourth quarter 2021 respectively. The strong yield growth is in line with the strategy of the Company to drive long term yield growth, says Daniel Skjeldam, CEO of Hurtigruten Group.
The Group had a positive normalised adjusted EBITDA of EUR 0.5 million in the quarter which is an increase from normalized adjusted EBITDA of negative EUR 39.6 million in Q4 2021.
Cruise operating expenses were higher than expected in the fourth quarter driven by passenger costs related to flight disruption, continued high fuel costs and a strong USD vs. the EUR. We see this temporary increase in cost level coming down in Q1 and the reversal of the strong dollar vs. EUR rate, continues Skjeldam.
On the 21st of February Hurtigruten Group announced a refinancing of the short-term maturities and debt maturity extensions which provide significant additional capital, liquidity flexibility and capital structure runway to the Group when the transaction is completed. The proposed refinancing includes EUR 80 million of additional funding from our shareholders where EUR 25 million was made available with immediate effect and reinforces the confidence our owners and financial stakeholders have in us as a company and our strategic growth agenda, says Skjeldam.
Including the net proceeds from the transaction Hurtigruten Group has a proforma available liquidity of approx. EUR 100 million as of fourth quarter 2022.
We continue to see a positive booking momentum and as of 27th of February 2023, the Company has made a total of EUR 140 million in new sales YTD which is up 100% vs. the same period last year and the best booking period in the Company’s history.
As of 27th of February 2023, 1H bookings for Hurtigruten Group are at EUR 254 million which is 30% higher compared to the EUR 196 million same time last year for 1H 2022.
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