Strong quarterly results for Royal Caribbean as cruise demand booms

28th Oct 2011
Strong quarterly results for Royal Caribbean as cruise demand booms

Royal Caribbean reported a new profit of $399 million for the third quarter, up from $350.2 million for the same period of 2010.

Strength in Caribbean and Alaskan itineraries were the main drivers of growth, but high fuel costs and a strengthening dollar hit results.

Shares in Royal Caribbean rose $1.61, or 5.6 per cent, to $30.52 following the release of the results.

Revenue rose 13 per cent to $2.32 billion from $2.06 billion.

Net yields, which measures the amount a cruise company makes from its passengers after removing expenses, also climbed 5.3 per cent.

Passenger ticket revenues rose to $1.73 billion from $1.52 billion, while onboard and other revenue increased to $587.7 million from $540.1 million.

Royal Caribbean said its Eastern Mediterranean cruises – which were hit by political unrest in the Middle East - were less popular during the quarter.

“It was gratifying to beat both our revenue and cost forecasts in the third quarter despite the turmoil in the worldwide financial markets,” said Richard Fain, chairman and chief executive officer.

He added: “The strength of our brands, combined with the value of our product, provides us with a high degree of economic resilience, and both our 2011 results and our 2012 booking patterns validate this.”



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