Norwegian Cruise Line Reports 19.2 Percent Increase in Profits
By Theresa Norton Masek
October 31, 2012 4:45 PM
Norwegian Cruise Line reported net income of $128.2 million on revenue of $674.4 million for the third quarter 2012, a 19.2 percent increase over profits of $107.5 million on revenue of $666.6 million in the same period last year.
Operating income increased 8.8 percent to $174.1 million, compared to $160 million in 2011 with an improvement in operating margin to 25.8 percent from 24 percent. Adjusted EBITDA grew 7.2 percent to $223.6 million from $208.6 million.
“Posting these great results, despite the challenging economic environment in Europe where we had a record deployment, is a testament to the discipline and rigor instilled at Norwegian to continuously improve quarter after quarter,” said Norwegian President and CEO Kevin Sheehan. “Our results reflect strategic pricing programs, benefits from process improvements and other enhancement initiatives which resulted in a 9 percent improvement in operating income.”
During the quarter, the company announced upcoming enhancements to Pride of America, Norwegian’s U.S.-flagged ship which sails exclusive seven-day itineraries in Hawaii. Twenty-four new suites and four new studio staterooms will be added, bringing the ship’s capacity to approximately 2,200 berths. The new suites will include two 566-square-foot Owners Suites with the remainder designated as Family Suites ranging in size from 363 to 416 square feet. All suites include butler and concierge services and access to private dining for breakfast and lunch. During her 14-day dry-dock, Pride of America will also be outfitted with the Brazilian steakhouse Moderno Churrascaria. Other enhancements include shipwide Wi-Fi, flat-screen televisions in all staterooms and upgrades to the fitness center, gift shop, and photo and art galleries.
Progress on the company’s Breakaway-class vessels continues as scheduled. During the quarter, the ship’s hull art, designed by Peter Max, was revealed and it was announced that the Rockettes will serve as godmothers. “By naming the Rockettes as Norwegian Breakaway’s godmothers, we continue to strengthen her ties to New York City,” Sheehan said. “These ties also include partnerships with Peter Max and Chef Geoffrey Zakarian along with an entertainment lineup that includes three Broadway shows: “Rock of Ages,” “Burn the Floor” and “Cirque Dreams and Dinner: Jungle Fantasy.”
The company recently announced that the second ship of the Breakaway class, Norwegian Getaway, will be delivered ahead of schedule in January 2014. The ship will sail Eastern Caribbean voyages year-round from Miami. On Oct. 18, the company announced it placed an order with Meyer Werft in Germany for one Breakaway-Plus class ship and an option for a second sister ship. The 4,200-berth ship will incorporate many of the Breakaway-class vessels’ design elements and innovations. Delivery is scheduled for October 2015.