Irish Ferries owner's profits hit by falling numbers, web sales up

Before-tax profits at ferries group Irish Continental were down €500,000, from €1.9m to €1.4m, in the first half of 2004, compared with the same period last year.

The Irish Ferries and Tara Travel owner said passenger numbers were affected by a decline in the foot passenger market, leading to an 8% drop in overall passengers to 691,000.

However, the company said car volumes were up 3.5% since July 1, compared with the same period in 2003.

Reflecting an increasingly web-savvy traveller, the company's internet sales were up more than 40% on the previous year. Internet bookings now account for 36% of passenger bookings.

Roll-on-roll-off freight market grew in the period, with volumes up 6% to 100,000 units.

Cost issues led to negotiations with staff on working conditions in the first half of the year. New roster arrangements with ferry staff will bear fruit in the second half of the year, the company said today.

Fuel surcharges were imposed in July in response to the rise in oil prices. "If fuel prices return to their lower historical levels these surcharges will be removed," the company pledged.

"Although the first half of the year has been more difficult than we had anticipated, based on summer trading we remain cautiously optimistic on the outlook for the year as a whole," said chairman John McGuckian.

Turnover for the first six months of 2004 was €135.8m, compared to €136.9m in the first half of 2003. An operating profit of €4.2m was reported for H1 2004, compared to €5.5 the same time last year.