Royal Caribbean Profits Take a Hit

Posted by Michelle Howard
Thursday, April 24, 2014
Navigator of the Seas (Courtesy Royal Caribbean)

Royal Caribbean Cruises Ltd reported a much lower-than-expected quarterly profit as costs rose and passengers spent less onboard.

Shares of the company, whose cruise lines include Royal Caribbean International, Celebrity Cruises and Azamara Club Cruise, fell as much as 3.2 percent in early trading.

The company shortened or canceled six cruises during the January-March quarter, typically the strongest for cruise operators.

Voyage disruptions hurt yields, which include ticket sales and spending on board, by about 0.5 percent, the company said.

Net cruise costs excluding fuel rose 1.3 percent on a constant-currency basis in a quarter in which cruise liners usually offer their best deals.

The company expects smoother sailing in coming quarters as it expects higher bookings and continuing strong demand for its Chinese and European cruises.

Royal Caribbean said booking volumes rose about 18 percent in the past three months. Bookings jumped 20 percent in the past eight weeks.

"The company experienced a record booking week at the end of February, which is an unusual time for so much activity," the company said in a statement

The industry has just started to recover from negative publicity arising from a series of headline-grabbing mishaps, including virus outbreaks and engine fires, over the last two years.

Carnival Corp, the world's No. 1 cruise operator, forecast a full-year profit below analysts' estimates in March as it cut prices. It also plans to spend more on advertising to attract customers after onboard mishaps hurt demand.

Royal Caribbean raised its full-year earnings forecast to $3.25-$3.45 per share from its previous forecast of $3.20-$3.40 per share. It expects net yields to increase 2 percent to 3 percent.

The company said it expects second-quarter earnings of 45 cents-55 cents per share, largely above the average analyst estimate of 46 cents per share.

The company's net income fell 65 percent to $26.5 million, or 12 cents per share, in the first quarter ended March 31.

Excluding items, earnings were 21 cents per share, well below the average estimate of 28 cents per share.

Revenue fell 1 percent to $1.89 billion, in line with analysts expectations, according to Thomson Reuters I/B/E/S.

Royal Caribbean's shares were down 2.8 percent at $51.13 in morning trading on Thursday on the New York Stock Exchange. Carnival shares were up less than a percent at $37.67.

(Reporting by Devika Krishna Kumar and Siddharth Cavale in Bangalore; Editing by Maju Samuel and Saumyadeb Chakrabarty)

Maritime Today

The Maritime Industry's original and most viewed E-News Service

Maritime Reporter November 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Crowley Opens Government Services Office

Crowley Maritime Corp. has opened a new government services office in downtown Norfolk, Va. to help the company better serve government agencies such as the Military Sealift Command (MSC) and the U.

Interview: Mike Petters - President & CEO, HII

Last month Mike Petters, president and CEO of Huntington Ingalls Industries (NYSE:HII), was honored by the Coast Guard Foundation at the 35th Annual Salute to the United States Coast Guard,

McAllister Towing – 150 Years of Family Business

“Early in 1864, a young man names James McAllister stood on board a sailing vessel where he served as a mate. The boat was about to set sail from the Red Bay of


When Conducting Investigations Consider 'Privileges'

Whether voluntarily or as required by the International Safety Management Code, the American Waterways Operators’ (AWO) Responsible Carrier Program, or some other rule or regulation,

Deepwater Downturn: Bump in the Road or Long-Term Slowing of Growth?

IMA/World Energy Reports has just completed a comprehensiveassessment of the five year outlook for the deepwater sector.  The new report – the 19th annual floater

North Group Increases Projected Free Reserve

Directors of the North P&I Club and Sunderland Marine Insurance Company (North Group) have revised their projection for the group’s year-end free reserve up to $380 million,

Passenger Vessels

Turbocharger Retrofits for Royal Caribbean

MAN PrimeServ informs it has won the contract from Royal Caribbean Cruises Ltd. (RCCL) to retrofit the turbochargers aboard four cruise liners from its fleet.   The

South Africa Ports Gear Up for Cruise Season

South Africa’s ports are ramping up for a bumper cruise season with at least eight luxury cruise lines and over ten passenger vessels of varying sizes set to ferry

Cadmatic Used for Alaska Ferry Design

The Alaska Marine Highway System (AMHS) has awarded the Alaska Class Ferry project to Vigor Alaska shipyard in Ketchikan, Alaska, where construction is currently underway.


Fincantieri Launches Nuclear Waste Vessel for Russia

New semisubmersible floating platform will be used to transport special material decommissioned by the Russian Navy    Itarus, the new semisubmersible floating

Port of Bronka Prepares for Opening

Technical plant and equipment installation for the first stage of Bronka’s port facilities is now complete with the Liebherr LHM 800 mobile port crane installed at the end of September,

Vesper Marine Debuts New AIS Transponder

Marine safety products manufacturer Vesper Marine has released a new Class B Automatic Identification System (AIS), the XB-6000. The black box transponder includes

Maritime Security Naval Architecture Navigation Offshore Oil Pod Propulsion Port Authority Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1662 sec (6 req/sec)