VICTORIA – British Columbia Ferry Services Inc. released its first quarter results August 21, and the results show BC Ferries earnings were higher than they were a year ago. Net earnings for the first three months ended June 30, 2015 (the first quarter of fiscal 2016) were $18.8 million, compared to net earnings of $13.9 million in the first quarter of the previous year. These positive earnings reflect the results of favorable traffic and increased retail sales, among other contributing factors.
Along with releasing BC Ferries’ first quarter results at the Annual General Meeting of B.C. Ferry Authority and the Annual Public Meeting of British Columbia Ferry Services Inc., President and CEO Mike Corrigan also announced plans for a series of pricing promotions, starting next month with a 50 percent discount on passenger fares during certain off-peak periods.
Across the system, passenger traffic increased 5.0 percent and vehicle traffic increased 4.7 percent, as compared to the first quarter last year. During the three months ended June 30, 2015, BC Ferries provided over 41,000 sailings, carrying over five million passengers and two million vehicles.
From September 8 to October 15, regular passenger fares will be discounted by 50 percent on off-peak days of the week and certain off-peak times of the day on the major and minor routes. From October 1 – 31, regular passenger fares will be discounted by 50 percent on all sailings on the northern routes.
“While we are uncertain how long this current growth in traffic will last, this promotion allows us an opportunity this fall to test variable pricing concepts in order to understand their impact on traffic trends, customer responses, and operations,” Corrigan said. “This will help us gather information as we prepare pricing strategies for our Fare Flexibility and Digital Experience Initiative in 2017, which will make variable pricing a permanent part of our service delivery model.”
“The fact that the positive trend in B.C. tourism and in our passenger traffic is going against the general trend in the Canadian economy makes it difficult to say exactly how long it will last, however we intend to leverage the resulting strong financial results to keep fare increases at approximately the rate of inflation, fund our $3 billion capital program to replace aging vessels, terminal and information technology infrastructure, as well as test variable pricing promotions for the remainder of this fiscal year,” he said.
In the first quarter of fiscal 2016, revenues increased by 2.2 percent to $217.7 million, while operating expenses increased by 1.2 percent to $184.6 million compared to the first quarter of the previous fiscal year. BC Ferries’ full financial statements, including notes and Management’s Discussion and Analysis, are filed on SEDAR and will be available at www.sedar.com. Under contract to the Province of British Columbia, BC Ferries is the service provider responsible for the delivery of safe, efficient and dependable ferry service along coastal British Columbia.
