Color Group Q1 profit falls on lower passenger and freight volumes

Color Group has reported a challenging first half for 2025, with a dip in revenue and a widening of its operating loss compared to the same period last year.

The Norwegian ferry and cruise operator's performance was impacted by extended vessel dockings, a weak freight market, and macroeconomic uncertainty affecting travel demand.

For the six months ending June 30, the group’s operating revenues were close to NOK2.9 billion ($275 million), a decrease of NOK30 million from the same period in 2024. This resulted in earnings before interest, tax, depreciation, and amortisation (EBITDA) of NOK255 million, down from NOK389 million in the prior-year period. The company noted that the 2024 result had included a one-off gain of NOK45 million.

The company's outgoings were not detailed, but the lower profitability reflects a challenging operating environment. The first-half results were hit by environmental upgrades to its ships and a weak freight market. The company also noted a, "somewhat reduced travel appetite in the Norwegian market due to the weak krone," which meant overall activity was lower than in 2024. During the period, the company transported just under 1.6 million passengers and approximately 76,000 freight units.

Chief Executive Trond Kleivdal commented that the results show, "continued high demand for our routes and products among both passenger and freight customers." However, he acknowledged the impact of the vessel upgrades and market conditions on the half-year figures.

Looking ahead, the company expects a satisfactory annual result for 2025 and sees continued growth in foreign markets as Norway strengthens its appeal as a tourist destination. Kleivdal also highlighted the growing cost of climate-related regulations, such as the EU's emissions trading system, as a significant challenge for the industry.