28 October 2008
An underlining operational
profit of $13.6 million for TT-Line Company Pty Ltd has enabled the
company to deliver a $16.5 million profit for 2007/08.
Chief Executive Officer Charles Griplas said while passenger
numbers dropped slightly compared to the previous financial year,
the profit was the result of effective yield management and
continued growth of the freight business at a time when all
Tasmanian-based freight forwarders were enjoying growth.
"Fuel prices increased by more than 50 per cent in 2007/08
which, combined with increased wages and ship maintenance expenses,
forced the company to increase passenger fares, standard vehicles
tariffs and sea freight rates," he said.
"These were important decisions that will enable us to continue
to reduce our debt and further strengthen our financial position in
preparation for the replacement of Spirit of Tasmania I and II in
2017."
During the 2007/08 financial year, total revenue was a record
$166.9 million with terminal services checking in 385,028
passengers, 177,265 passenger vehicles and 85,594 units of
freight.
Mr Griplas said reporting on the 2007/08 financial year provided
the opportunity to reflect on a number of positive achievements,
including:
· TT-Line sponsored the Spirit of
Tasmania award as part of the Southern Cross Young Achiever Awards,
the Spirit of Tasmania post graduate prize at the Australian
Maritime College, two scholarships at the University of Tasmania
and the Tourism Industry Council of Tasmania.
· The company is a member of the
Federal Government's Greenhouse Challenge Plus program and invested
in extensive external cleaning and mechanical upgrades that will
save fuel and reduce greenhouse gas emissions on Spirit of Tasmania
I. Further investment is planned for Spirit of Tasmania II in
2009/10.
· Research undertaken in 2007/08 found
Spirit of Tasmania was the dominant brand for travel from Victoria
to Tasmania and enjoyed the highest advertising recall for travel
options between mainland Australia and Tasmania.
· The company successfully completed a
three-year EBA with the Maritime Union of Australia covering cooks,
stewards, integrated ratings, medical attendants, ship security
officers and in-port cleaners.
· The company's vessels continued to
meet world's best practice in performance, safety and
reliability.
Mr Griplas predicted that the 2008/09 financial year would be a
challenging year for the company.
"While the company has a robust balance sheet and is well
positioned in the highly competitive passenger and freight market,
competition from low-cost airlines will continue to be an issue for
the organisation," he said.
"In addition, costs are expected to increase further and there
is potential for the company's traditional customer base to be
affected by the current economy uncertainty.
"The company will need to continue to be innovative in
developing strategies to overcome these challenges."
ends
Released by:
Nicolas Turner
Tel: 6210 5206 or 0418 538 865
