Royal Caribbean Cruises’ (RCL) shares moved up strongly following the company Q1 results and affirmation of its 2013 earnings forecast.
RCL reported net earnings of $76.2 million, or $0.35 per share, on revenues of $1.9 billion for the first quarter ended March 31, 2013, compared to net income of $47.0 million, or $0.21 per share, on revenues of $1.8 billion for the same period last year.
According to Chairman and CEO Richard Fain, the result was driven both by increased ticket prices and onboard revenue. “Our business is balanced globally, and we are looking forward to receiving higher prices,” he commend on the company’s Q1 earnings call, adding that the net yield for the quarter was the highest since 2000.
Brian Rice, executive vice president and CFO, said the quarter was driven by the Caribbean, Brazil and Asia, and that forward bookings at this time are higher than they were at this time last year. Overall, pricing is 3 percent higher than last year for sailings departing in the next 12 months.
RCL is also forecasting record yield for the Caribbean this year.
Adam Goldstein, CEO and president of the Royal Caribbean International brand, commented that the results were also due to cost control, while pointing out the brand’s global footprint and its ability to move capacity to most profitable markets.
This year, 44 percent of the capacity is in the Caribbean, 27 percent in Europe and approximately 30 percent elsewhere, he said. In addition, Royal Caribbean is benefitting from international passenger sourcing.
The company also affirmed its earnings forecast for the year in the range from $2.30 to $2.50 per share.
Source: Cruise Industry News
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