Saga said the ‘exceptional growth’ of its ocean and river cruise businesses helped to more than treble its first-half underlying pre-tax profit to £27.2 million.
Its ocean cruise division more than doubled its underlying pre-tax profit to £28m for the six months to the end of July after filling 90% of its berths, compared with 83% in the first half of last year.
During the same period, its river cruise division made an underlying pre-tax profit of £2.9m, up 93% on the previous year.
Saga’s travel division, which includes group tours and tailor-made trips, made an underlying pre-tax profit of £300,000, compared to a loss in the first half of 2023 of £2.6m.
However, the over 50s specialist said market conditions for its insurance services remained challenging, and it reported an overall interim pre-tax loss of £104m, up 34% year on year.
On announcing the results, Saga confirmed it had entered into exclusive negotiations with Ageas for a 20-year affinity partnership for its motor and home insurance broking operations and the sale of its insurance underwriting business.
CEO Mike Hazell said: “The future for Saga is exciting, as we deliver our clear strategy, underpinned by the strength of our brand, our people and our data, and move towards a more capital-light model, reducing debt and delivering long-term sustainable value for our stakeholders.”
The current load factor for its 2024/25 ocean cruises is 90%, with passengers paying £28 per day more than this time last year, while river cruises have a load factor of 88%, with prices up 15%.
In its travel division, its booked revenue for the full year stands at £162.2m compared to £140.3m in 2023.
