Cruising 2016 Exhibits a Strong Bill of First Quarter Financial Health
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Norwegian Cruise Line Holdings Ltd. released its first quarter 2016 financial results today, and looking at them combined with those from Carnival Corporation and Royal Caribbean Cruises Ltd., the cruise industry is doing very well this year. The big three are broken down individually below.
As Carnival Cruise Line’s new Carnival Vista, Holland America Line’s new Koningsdam and AIDA Cruises’ new AIDAprima come online, Carnival Corporation also anticipates Seabourn Cruise Line’s new Seabourn Encore late this year. Among so many new cruise ships, the company reports adjusted net income of $301 million in the first quarter of 2016 compared to last year’s $159 million during the same period.
Carnival Corp. & plc President and Chief Executive Officer Arnold Donald said, "Our teams delivered another strong quarter of operational improvement by creating increased demand for our brands and leveraging our scale which resulted in revenue yield improvement approaching 6 percent and the near doubling of first quarter adjusted earnings. We thank our millions of loyal guests and valued travel professional partners around the globe for their patronage and support.”
Also of recent note, Carnival Corp. is now the first U.S.-based cruise company in over five decades to be given approval to sail to Cuba from the States with its Fathom brand and Adonia ship. Corporately, future reservations in 2016 are significantly above those from last year plus at increased fares. The company’s stock is currently trading at $49.66 versus $46.23 at this time in 2015.
Donald added, "Our ongoing guest experience innovations, coupled with our increasingly effective marketing and communication efforts have driven additional demand for our brands, resulting in a strong booked position. The lower levels of inventory remaining for sale for the balance of the year, particularly for our peak summer period, positions our brands well for continued revenue yield growth and builds confidence in our full year earnings forecast.”
Norwegian Cruise Line Holdings Ltd.
Norwegian Cruise Line Holdings Ltd. just introduced its latest Sirena to Oceania Cruises, has the new Seven Seas Explorer set to join Regent Seven Seas Cruises in July and plans to launch Norwegian Cruise Line’s newest Norwegian Joy in the Chinese market in summer 2017. Also, Norwegian will open its new Harvest Caye, Belize destination in November 2016 and continue its $400 million Norwegian Edge fleet enhancement program through 2017. And Regent has another Explorer-class ship scheduled for 2020.
Amid its achievements, Norwegian has corporately revealed first quarter 2016 adjusted net income of $86.7 million versus last year’s $62.6 million. The company currently cites strong demand in the Caribbean and onboard revenue and sees future bookings staying strong at higher prices. Norwegian says the Caribbean, Alaska, Hawaii and other North American markets are making up for lessening interest in Europe. Norwegian’s current stock is actually lower at $46.58 compared to $53.23 in 2015.
“We are pleased to report another quarter of solid financial performance and significant earnings growth driven primarily by strong pricing with robust demand in the Caribbean driving net yield growth above our expectations,” said Frank Del Rio, president and chief executive officer of Norwegian Cruise Line Holdings. “We are on track to reach our stated targets of $5.00 Adjusted EPS in 2017 and double-digit return on invested capital on an adjusted basis in 2016, growing to 14% by 2018.”
Royal Caribbean Cruises Ltd.
As Royal Caribbean International anticipates the launch of the largest cruise ship in the world, the Harmony of the Seas, Azamara Club Cruises completes its two-ship fleet transformation and Celebrity Cruises looks ahead to building a new class of ships, Royal Caribbean Cruises Ltd. reports an adjusted net income of $124 million in the first quarter of 2016, nearly tripling last year’s $45.2 million mark.
"What an exciting quarter in an exciting year," said Richard D. Fain, chairman and chief executive officer. "Our brands continue to excel and produce gratifying results. This year's performance further solidifies our base for the Double-Double.”
Like its competitors, Royal Caribbean corporately reports a strong booked position, comparable to record highs from 2015. "The first quarter has given our year momentum, which is more than offsetting some headwinds from the Mediterranean," said Jason T. Liberty, chief financial officer. "This performance is positioning us for the highest earnings in company history.”
Royal Caribbean stock is now at $74.56, up from $72.56 in 2015.
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