Durrant Pate/Contributor

Jamaica-listed visitor attraction company Margaritaville (Turks) is seeing record cruise passengers in the Turks and Caicos Islands.

For the February third quarter, cruise passenger totals are setting new benchmarks for the current fiscal year. During the quarter under review, a total of 390,443 passengers cruised into the Grand Turk Cruise Port, representing the highest passenger totals of any quarter ever. 

A total of 110 vessels visited the port for an average ship call of 3,549 passengers with revenue of US$2.54 million being realised, resulting in an average spend per passenger of US$6.50. This is up from the passenger totals for the similar quarter in 2024 of 256,224 and revenue total of US$1.90 million, for an average spend rate of US$7.43. 

The management is reporting that, “as passenger totals increase, as well as the size of the ships, the company expects that the average spend will fall but at a rate that will still equate to an increase in gross revenue.” 

Profitability improving

Net profit for the quarter closed on US$437,451, returning earnings per share (EPS) of 0.648 US cents. This almost doubled the US$222,174 earned for the same period last year, with an EPS of 0.329 US cents. 

For the combined three quarters, 1.03 million passengers visited the port with a total of 262 ships coming in for an average ship call of 3,941 passengers. Revenue realised amounted to US$6.98 million for an average spend per passenger rate of US$6.76. For the similar nine-month period in the prior year, 667,952 passengers visited the port with revenue closing on US$5.25 million, for a spend rate of US$7.28 per passenger.

Net profit earned amounted to US$986,589 for an EPS of 1.462 US cents.

Pressure of cost of sales

For the similar period in the prior year, net profit of US$521,909 was earned for EPS of 0.773 US cents. The cost of sales (COS) component of the overall cost structure experienced some pressure for both the review quarter and nine-month periods, increasing by just under one percentage point and just over one percentage point, respectively. 

At an average COS of just over 26 per cent for both periods. The management continues to strategise on other efficiencies that can contribute to a lowering of this cost component. 

The company is also paying keen attention to the global economic landscape and hopes that the current situation will not cause upward movement in this cost category. All other cost categories increased in nominal terms to meet the increase in revenue, which was over 36 per cent for the nine months. 

All, except the rent category, increased at a lower rate than the increase in revenue. The rent category increase was over 50 per cent and was in line with the increase in passenger totals, which was over 50 per cent for the nine months. 

There were no unusual movements in assets or liabilities during the period. The company has in place arrangements with suppliers and other creditors that are satisfactory, and these allow the business to flow seamlessly.