Norwegian Cruise Line overcomes Cuba hit to report increase in profits
Norwegian Cruise Line has seen revenue increase 9.3 per cent, to $1.66 billion, for the three months to June 30th.
The figure compares to that of $1.52 billion in 2018.
At the same time, profit reached $240 million, up from $227 million during the prior year.
Earnings per share were up to $1.11, from $1.01 the year prior.
“Continued robust demand for our global brands along with our strong consumer focused value proposition, honed revenue management practices and best guest marketing strategy, enabled us to continue to drive ticket pricing higher which, when coupled with strong onboard revenue performance, resulted in record second quarter results,” said Frank Del Rio, president and chief executive officer of Norwegian Cruise Line Holdings.
“The underlying fundamentals of our business remain strong across all core markets, and we continue to expect record financial results in 2019, despite the impact from the change in federal regulations which resulted in the cessation of premium-priced Cuba sailings.”
The increase in revenue was primarily attributed to an increase in capacity days as a result of the addition of Norwegian Bliss to the fleet in 2018 along with an increase 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.
Norwegian said full year adjusted earnings per share are now expected to be in the range of $5.00 to $5.10, inclusive of a $0.45 adverse impact from the abrupt change in federal regulations surrounding cruises to Cuba and a $0.07 impact from a technical issue on Norwegian Pearl in July.
“Without these headwinds, the company’s outlook would have exceeded its May guidance primarily as a result of revenue outperformance in the second quarter, coupled with a stronger revenue outlook for the back half of the year,” NCL said in a statement.