Over 50s take to the waves once more as cruise and insurance giant Saga’s revenue boosted by 50 per cent
Over 50s specialist Saga boosted its revenue by more than 50 per cent on last year, as older and middle-aged Brits returned to cruises and holidays post pandemic.
Shares in the company were up almost three per cent this morning, as it announced 2023 earnings of £581m for the year ended January 31, up from £377m on 2022.
Saga also recouped its pandemic losses, making a £21.5m profit before tax, up from a £6.7m loss the previous year.
Sagas losses before tax were significant up on the previous year at £254.2m, compared to just £23m in 2022.
The company said it reported a loss before tax of £0.7m for its Ocean Cruise division, but there was a £6.2m profit in the second half of the year.
Its total revenue of almost £170m was 100 per cent ahead of 2021/22, with a load factor of 75 per cent, as many older and retired people decided to return to holidaying after covid.
Its River Cruise business, which is separate from its travel division, made £28.8m this year, up from £1.7m the previous year, but there was a £5.1m loss before tax. Despite this, bookings were 23 per cent up on last year.
Saga said its increased overall revenue was in part due to the growth of its travel business.
Its revenue ballooned to £108.4m, ten times that of last year, while it also launched new products including private jet tours and a tailor made option for holidaymakers.
Its insurance wing also had a strong performance with profit before tax of £67.7m, in line with £66.6m from last year.
With the increase in holidaying, Saga travel insurance policies sold went through he roof, at 104 per cent ahead of last year, with growth of more than 200 per cent. Its underwriting business also reported profit before tax of £19m
“Over the past year, through what continued to be a particularly challenging external backdrop, Saga made progress against its strategy while achieving significant revenue growth and returning to underlying profit”, said Euan Sutherland, Saga’s chief executive said.
“Our Insurance Underwriting business took pricing action to reflect the rise in claims inflation, while our Insurance Broking business navigated a challenging landscape, adjusting to significant regulatory changes and increased competitive pressure.
“We also took a number of key steps to reposition the business, consistent with the strategy we set out 12 months ago to create ‘The Superbrand’ for older people.
“Our top priorities for the next 12 months are to strengthen our financial position and continue to build Saga into the largest and fastest-growing business for older people in the UK, delivering long-term, sustainable growth for our stakeholders.”