Norwegian Reports 23.3 Percent Increase in Second Quarter Profits
By Theresa Norton Masek
July 30, 2012 4:21 PM
Norwegian Cruise Line on July 30 reported second-quarter profits of $36 million, compared to $29.2 million in 2011, a 23.3 percent increase. Revenue was $583.2 million, a 2.6 percent increase from $568.6 million in the same period last year.
The company said improved revenue performance in the quarter coupled with business improvement initiatives resulted in a 14.1 percent increase in operating income to $87 million along with an 8.6 percent increase in Adjusted EBITDA to $135.1 million.
“Our financial results for the quarter demonstrate healthy top line growth, albeit moderated by the impacts from pressures surrounding Europe,” said Kevin Sheehan, president and CEO of Norwegian Cruise Line. “As expected, our deployment, which includes a record four ships in Europe, benefited the top line through higher ticket revenue with a slight offset in onboard spend. And the benefits from business improvement initiatives not only contributed to our financial results, but also to our ongoing commitment in improving the experience of our guests.”
While Norwegian reports a profitable Europe season, that wasn’t the case for Royal Caribbean Cruises Ltd., which last week reported a net loss of $3.6 million for the second quarter, compared to a profit of $93.5 million in the same period last year. RCCL said larger-than-anticipated discounting was required in Europe, but wasn’t sure if it was primarily due to economic woes or the Costa Concordia disaster.
Progress on Norwegian Breakaway, the company’s newest ship currently under construction at Meyer Werft, continued to gain momentum throughout the quarter. In early May, the keel was laid, marking the start of the ship’s construction. Also during the quarter, the first steel-cutting for Norwegian Getaway was held in conjunction with Norwegian Breakaway’s keel laying. Also, the company recently exercised its option to purchase Norwegian Sky, which sails three- and four-night cruises from Miami to the Bahamas.