Mystic Invest, the holding company that owns Douro Azul, had a first semester “better than the predicted misfortune”, now hoping to earn 90 million euros this year, but one-third of what was budgeted before the pandemic, says Mário Ferreira.
Five ocean-going ships are under construction at Viana do Castelo shipyards, as well as a hotel ship that will sail the Douro River.
The businessman, who spoke about the resumption of cruises in the Douro, explains that in the ‘holding’ that manages cruise tourism they were prepared for two situations: the ‘zero scenario’, which would represent zero revenue until the end of the year, and the ’15 de Julho ‘scenario, in which there were several variables, among which, resuming activity at this time, but with lower occupancy rates.
In this last scenario, Mystic would continue “to have losses, but already mitigated”, says Mário Ferreira. After the first semester of the year is over, the official says that this period “went better than the predicted misfortune”.
“The reality was that by the end of June” the company had “two million euros above the forecast”. In other words, “within the negative we still managed to have two million euros positive, since we had a turnover in June,” he says.
Thus, the businessman says that, last week, together with his American partners at Mystic Invest, they revised the billing forecast until the end of the year.
“The estimate we have, at the moment, is that we can turn over 90 million euros [em 2020], which is nothing compared to the 270 million we expected [no orçamento para este ano], but it’s still something. If we didn’t do anything – if it were the ‘zero scenario’, we would have 47 million euros of Ebitda [Lucros antes de juros, impostos, depreciações e amortizações] when we were expecting that positive value before. So, now, we expect around 25 million negative Ebitda, which is not so bad, given the situation and the global dimension of the company ”, explains Mário Ferreira.
The CEO of Douro Azul also points out that the group maintained the investment of 110 million euros, with five ocean ships still in Viana do Castelo under construction.
In Viana do Castelo, ready, waiting to be released, there is a hotel ship for the Douro, which will be “the most luxurious vessel in the Douro Azul for these cruises”, he added.
“We didn’t slow down. If we had stopped the investment, it would not have been pleasant for the Portuguese industry. We made an effort to maintain it, ”he said.
Invoicing “is, thus, one third of what we thought before and it is with a great effort from our teams that they are not afraid, contrary to what happens in other companies, to be working [nos navios] masks and gloves, otherwise we wouldn’t even make money ”, he says.
Mário Ferreira says that they still have “a lot of people in ‘lay-offs’”, but already much less than the 400 before, given that ships are now operating.
This week Douro Azul resumed its activity on the Douro River, with a program of four cruises aimed at the Portuguese market, on board the Douro Serenity.
“Over the years, we have had a hard time explaining to the Portuguese that a week-long cruise in the Douro has to be done. There is something to see, which is interesting. We have always had this difficulty and it is our mistake. The Portuguese are more likely to go on cruises on the Rhine, to the Danube, than to travel in Portugal. We are trying to strive to change that. Whoever makes the Douro is delighted and says wonders (…) In this context, we again believe that it would be good for us and for the Portuguese to be able to walk inside in things that are often of a higher quality than those enjoyed outside ”, he said.
Still, he says that the operations this year are for the company to “keep some activity, to keep staff”, because “the feeling is that every cruise until the end of the year is always losing money”.
However, in the “30 and such” ships that hold the rest of the world, the activity “is going much better”.
“Surprisingly, that is the good news, because we have already advanced within the 70, 75% of occupation, on the Danube, Rhine, Croatia. The company that targets river cruises in the German market [Nicko Cruises] is the one that is starting best ”, he said.
Given the restrictions at the ports, the company has not yet managed to move forward with sea cruises.
Mário Ferreira added that Mystic Invest is studying six cruise lines in the American market with a view to acquiring one. “These are companies that are in financial difficulties and the American market is very good for us to be. They are companies added to other mega-companies ”of tourism, he said without wanting to specify.
In May 2019, Mário Ferreira sold 40% of Mystic Invest Holding to Americans from the Certares fund for 250 million euros. At the time, Exame magazine realized that this operation would make it possible to strengthen the company’s capital and provisions and invest in other businesses, including the parent company, Mystic Invest SGPS.
Certares is a fund that invests in travel, tourism and hospitality companies, having held a minority position in the holding company, which includes companies such as Douro Azul, Nicko Cruises or Mystic Cruises.
However, on May 14 this year, Mário Ferreira bought 30.22% of Media Capital, which owns TVI, through Pluris Investments, but the businessman did not want to comment on the television station at this time.
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