Royal Caribbean Continues with Record Earnings
- Business & Finance
Miami-based cruise major Royal Caribbean Cruises (RCL) has reported record third-quarter earnings despite negative headwinds.
The cruise company’s US GAAP net income rose to USD 883.2 million in the quarter ended September 30, 2019, from USD 810.4 million seen in the corresponding period a year earlier.
Total revenues stood at USD 3.2 billion in Q3 2019, against USD 2.8 billion posted in the same period last year.
According to RCL, the net results include the negative impact of USD 27 million from itinerary disruptions and relief efforts related to Hurricane Dorian. As a precautionary measure, three main Florida embarkation ports closed during the hurricane, impacting the company’s sixteen sailings.
“Our business continues to thrive and exceed our expectations,” Richard D. Fain, chairman and CEO of RCL, commented.
“While Hurricane Dorian had a negative impact, stronger demand for our brands and our key itineraries exceeded our expectations. Excluding the hurricane impact, we are not only able to maintain our yield and earnings guidance, but to raise both slightly as a result of particularly strong performance in the US and China,” he added.
Due to the negative effect from itinerary disruptions and relief efforts related to the hurricane, adjusted earnings for the full year are expected to be in the range of USD 9.50 to USD 9.55 per share. Additionally, the company expects a net yield increase of approximately 8.0% in constant-currency and approximately 6.75% as-reported. RCL noted that the booking strength has completely offset the negative yield impact related to Hurricane Dorian.
“2019 is shaping up to be another year of solid yield growth and record earnings despite some unusual headwinds,”Jason T. Liberty, executive vice president and CFO, said.
“As we enter 2020, we are particularly enthusiastic about the new ship deliveries, the development of new destinations, our fleet modernization and technology initiatives,” Liberty further said, explaining that the investments would enable the company to generate higher yields and better returns.
Royal Caribbean Cruises controls and operates four global brands — Royal Caribbean International, Celebrity Cruises, Azamara and Silversea Cruises. It is also a 50% joint venture owner of the German brand TUI Cruises and a 49% shareholder in the Spanish brand Pullmantur Cruceros. Together these brands operate a combined total of 63 ships with an additional 15 on order as of September 30, 2019.