Updated January 26th, 2024 at 14:05 IST
UK’s Saga seeks partnership opportunity for cruise business
Saga is looking into ways to generate funds from its cruise operation. This could involve selling its two flagship vessels.
Saga to get lighter: British holiday group Saga announced on Friday that it is exploring potential options for its cruise division, including the possibility of a partnership arrangement. The London-listed firm is considering a capital-light business model for its Ocean Cruise, aligning with its strategic objectives.
According to reports on Thursday, Saga is looking into ways to generate funds from its cruise operation. This could involve selling its two flagship vessels or offloading the entire business through a licensing arrangement.
The move towards a capital-light model is intended to support further growth, decrease debt, and enhance long-term shareholder returns for Saga. As of July 31, 2023, the company reported a net debt of £657.4 million ($833.60 million).
Saga, which caters to individuals over 50, emphasized that this strategic shift comes in the context of their September forecast, predicting annual profits exceeding market expectations. The resilience of demand from retired and affluent Britons, less affected by the cost-of-living crisis, has contributed to Saga's positive outlook.
However, concerns persist in sectors tied to discretionary spending, given ongoing challenges in the broader economy. Saga is set to provide a trading update on Tuesday, offering further insights into its performance.
(With Reuters inputs)
Published January 26th, 2024 at 14:05 IST