NCL Delivers Solid Quarter Despite Hurricane Dorian Impacts
Miami-based Norwegian Cruise Line Holdings noted that third quarter revenue outperformance pushed its earnings above expectations despite impacts from Hurricane Dorian.
For the period ended September 30, 2019, the company generated GAAP net income of USD 450.6 million compared to USD 470.4 million reported a year earlier. The result includes a USD 0.06 per share impact from voyage cancellations, itinerary modifications and relief efforts related to Hurricane Dorian.
Total revenue increased 3% to USD 1.9 billion on a decrease in capacity days of 1.8% compared to slightly less than USD 1.9 billion in 2018. This change was primarily due to a rise in net yield driven by the repositioning of Norwegian Joy to North America, robust onboard spending along with strong growth in organic pricing across all core markets. Gross yield was up 4.8%, while net yield increased 3.9% on a constant currency basis, outperforming August guidance by 215 basis points.
Full year adjusted EPS is in line with the midpoint of August guidance and is expected to be around USD 5.05, inclusive of a USD 0.15 per share adverse impact from Hurricane Dorian, NCL explained.
Without this headwind, the company’s full year outlook would have exceeded the high-end of its August guidance range, primarily as a result of revenue outperformance in the third quarter, coupled with a stronger revenue outlook for the fourth quarter driven primarily by outperformance in the core Caribbean.
“The underlying fundamentals of our business remain as strong as ever, allowing us to post another solid quarter of financial results despite the impacts from Hurricane Dorian. The top line exceeded expectations and we recorded the highest quarterly revenue in our history,” Frank Del Rio, president and chief executive officer of Norwegian Cruise Line Holdings Ltd, said.
“We are on track to deliver yet another record-breaking year in 2019, and the positive momentum for our global brands is carrying over into 2020, as demand, occupancy and pricing continue to outpace 2019 record levels, buoyed by the addition of Norwegian Encore and Seven Seas Splendor.”
Mark A. Kempa, executive vice president and chief financial officer of Norwegian Cruise Line Holdings Ltd, added that the combination of the continued robust demand environment, accompanies with these two ships “are setting up 2020 to be another milestone year.”