Saga Group has reported a return to profitability across its ocean, river cruise, and tour operations, driven by strong customer demand.
- The company, targeting the over-50s demographic, saw a 13% rise in overall annual revenue, reaching £732.7 million.
- Pre-tax losses were significantly reduced by 53%, demonstrating financial improvements across Saga’s business sectors.
- Both the ocean cruise and tour operating divisions reported substantial pre-tax profits after previous losses, evidencing a robust recovery.
- Future growth is anticipated as Saga explores partnership opportunities in the cruise and insurance sectors to enhance long-term returns.
Saga Group has heralded a return to profitability in its ocean, river cruise, and tour operations, buoyed by a substantial uptick in customer demand. Targeting an over-50s audience, the group’s annual underlying revenue climbed by 13% to reach £732.7 million. This positive shift was mirrored in a notable reduction in pre-tax losses, which were slashed by 53% from £272.7 million to £129 million.
The ocean cruise division stood out with a remarkable turnaround, reporting a £35.5 million pre-tax profit for the fiscal year ending 31 January. This performance contrasts starkly with a £700,000 loss recorded in the preceding twelve months, propelled by a 28% increase in revenue, which brought the total to £215.9 million.
Similarly, the river cruise segment posted a £3 million pre-tax profit, rebounding from a £5.1 million loss in the prior year. This was largely attributed to a 52% surge in revenue reaching £43.8 million. Meanwhile, Saga’s tour operations also returned to profit, achieving an underlying pre-tax profit of £1.5 million, a gain of £5.6 million over the previous year’s £4.1 million loss.
The company has voiced optimism for continued growth through a promising pipeline of bookings. Saga’s ocean cruise bookings for 2024/25 have already secured a load factor of 78% while river cruise bookings are significantly ahead of the same period last year, holding a load factor of 72%. In the realm of travel, Saga boasts a booked revenue of £140.7 million from 45,300 passengers for 2024/25, representing a 12% increase in bookings compared to the prior year.
In line with its transition towards a capital-light model, Saga is aggressively pursuing a partnership strategy. This involves exploring collaborations in both its ocean cruise and insurance sectors that aim to bolster growth ambitions, crystallise value, and enhance long-term shareholder returns. Chief executive Mike Hazell has expressed enthusiasm about the potential these partnerships hold for the business.
Non-executive chairman Sir Roger Die Hahn has highlighted the eventual capacity constraints of current ocean cruise operations, emphasising the exploration of partnership options as a method to sustain business growth.
Saga’s strategic focus on growth through partnerships and continued strong customer demand positions the company well for future success.
