Partnership agreement

RNS Number : 6155Q

Global Ports Holding PLC

07 June 2018

 

Global Ports Holding ("GPH")

Partnership agreement to grow ancillary revenues

Global Ports Holding ("GPH"), the world's largest independent cruise port operator, is pleased to announce that it has entered into an exclusive partnership with, and simultaneously made an investment into Dreamlines GmbH ("Dreamlines").

Dreamlines

Dreamlines is a fast-growing online travel agency dedicated to cruises. Founded in 2012, it operates in twelve countries around the world (Australia, Austria, Brazil, France, Germany, Italy, Netherlands, Russia, Singapore, Switzerland, UK and USA), and has tripled booking volumes over the last three years, delivering 40% YoY organic growth in 2017. The company is based in Hamburg, Germany, where the majority of its ca. 600 employees are based.

The business model of Dreamlines is built on the aggregation and presentation of a comprehensive cruise inventory to customers through its proprietary, inhouse-developed software solutions and custom-built content management systems. Based on this unique online platform and supported by more than 300 cruise sales experts Dreamlines sells cruise products online, via phone and email. In addition, the proprietary software is made available to offline travel agents granting them access to Dreamlines' content, helping to generate additional booking volume.

According to Cruise Industry News Annual Report, the total revenue from ticket sales was $37.8bn for 2017. The vast majority of this booking volume ($25bn+) is generated through third-party channels, not directly by the cruise lines. Offline travel agents remain the dominant sales channel, but the online share is rapidly growing. No dominant player has established itself yet in the online market for cruise booking, the market leader is estimated to generate booking volume in excess of $1bn p.a. focusing exclusively on the US market. Dreamlines is already the 2nd largest player in the online segment with a strong international footprint and an expected booking volume of €400 million this year. In addition, Dreamlines is targeting not only the online segment but the whole third-party booking volume - thanks to the aforementioned roll-out of its proprietary software to offline travel agents. 

Dreamlines focuses on delivering to its customers an enhanced cruise experience, creating unique products for each customer, complementing the cruise with ancillary products and services, such as transportation and accommodation.

Partnership

The exclusive partnership with Dreamlines will allow GPH to deepen our understanding of passengers' whole cruise experience as we continue to build our knowledge and expertise in B2C service and product offerings around cruise ports. The partnership will allow GPH to work with Dreamlines on ways to promote its cruise ports and destinations to cruise customers worldwide as well as explore the potential for the development of additional retail and service opportunities, particularly pre and post cruise, which in the medium term could enhance and broaden our ancillary revenues. We believe that this partnership has significant potential given GPH's international network of currently 14 cruise ports welcoming 7.3 million passengers p.a. 

Investment

GPH will invest up to €13 million in Dreamlines in the form of a convertible loan note with a conversion option into a mid single-digit equity stake in Dreamlines within 12 months. Simultaneously, Dreamlines raised €45 million in series E funding led by Princeville Global, well-known for successfully identifying and fuelling growth in technology companies. Proceeds from the series E equity funding and the GPH convertible note will be used by Dreamlines towards further international growth and to complete the acquisition of Cruise 1st, a UK headquartered online travel agent specialising in cruises.

Following this acquisition, Dreamlines will be the world's 2nd largest online travel agent for cruise bookings. It has firmly established itself as the market leader in Germany and Australia. With an organic growth rate of ca. 40% YoY, Dreamlines is growing significantly faster than any competitor and is targeting exceeding EUR 1bn in annual booking value in the medium-term. This will give Dreamlines a significant market share in the global cruise industry, creating an unmatched offering and convenience to global cruise customers, and a highly valuable platform for its shareholders.

Emre Sayin, Global Ports Holding CEO, said:

"Dreamlines is a global leader in its field; its attractive digital and sales force capabilities will strengthen our knowledge and expertise within the fast-growing global cruise market. Overtime we expect the partnership will allow us to further enhance our ancillary revenue streams through the development of new cruise passenger products and services, in line with one of our key strategic pillars. GPH and Dreamlines hold unique and complementary positions within the global cruise market; both companies stand out in their respective market due to their international footprint. We look forward to working together to develop ways to enhance each customer's experience."

Felix Schneider, Dreamlines Founder & CEO, said:

"Together with Global Ports Holding and our cruise line partners we will improve the experience for passengers around the globe even further. As the fastest growing cruise online travel agency and largest cruise port operator Dreamlines and Global Ports Holding are a perfect fit to meet the passenger's demand for unique cruises." 

- Ends -

CONTACT

For investor and analyst enquiries:

Global Ports Holding                                                                                       

Martin Brown, Investor Relations Director

Telephone: [phone]

Email: [e-mail]  

For media enquiries:

Brunswick Group LLP                                                                                                  

Nina Coad, Will Rowberry and Imran Jina

Telephone: [phone]

Email: [e-mail]

Dreamlines

Julia Pollak

Telephone: [phone]

Email: [e-mail]

 

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