Royal Caribbean Earns More, Sails into Double-Double Year
- Business & Finance
New York-listed cruise line company Royal Caribbean Cruises is heading into a DOUBLE-DOUBLE year as it reported more than a 25% increase in both US GAAP and adjusted earnings over 2015.
US GAAP net income for the full year 2016 was USD 1.28 billion, compared to USD 665.8 million reported in 2015. The 2015 figure includes a non-cash impairment charge related to the Pullmantur brand.
The company’s adjusted net income for the year was USD 1.31 billion, compared to USD 1.07 billion for the full year 2015, representing more than a 25% year-over-year increase in earnings per share.
“As we enter our DOUBLE-DOUBLE year, we have never been so well positioned,” said Richard D. Fain, chairman and chief executive officer.
“This program has done what it set out to do – bookings are at record levels, the preference our brands enjoy has never been stronger, we are on the cusp of investment grade ratings, our dividends are at an all-time high, costs have been well managed, and our guests’ satisfaction has never been better,” he added.
Fain also said that, while currency and fuel are both significant negatives at the moment, the cruise line’s “business continues to thrive.”
For the full year 2017, Royal Caribbean Cruises expects its net yields to increase 4% to 6% on a constant-currency basis, while the adjusted EPS for 2017 is expected to be in the range of USD 6.90 – USD 7.10 per share.
The company said that its booked position for 2017 is better than last year’s record high, and at higher rates. Strength from North American consumers is driving exceptionally positive trends for North American and European products. These trends, along with a positive outlook for Australia and a solid booked position in China for the first half of the year, are positioning the company for robust growth in 2017.