PHOTO: High-end attractions on Harmony of The Seas. (Courtesy of Royal Caribbean)
Royal Caribbean Cruises Ltd. announced its first quarter earnings on Monday, revealing stronger-than-expected figures despite a slight dip in revenue.
The Miami-based cruise company revealed profits of $45.2 million for the quarter ending March 31, up significantly over the same period last year ($26.5 million). However, Royal Caribbean Cruises' revenue declined to $1.8 billion this past quarter, down slightly from $1.9 billion during the first quarter of 2014.
"It is gratifying to post another strong quarter with both revenues and expenses exceeding expectations," said Royal Caribbean Cruises chairman and CEO Richard D. Fain in a statement. "Despite ongoing volatility in the currency and fuel markets, our Double-Double program remains solidly on track."
The cruise company unveiled the Double-Double initiative last summer. The three-year program was designed in part to increase Royal Caribbean Cruises' return on invested capital to double digits by 2017.
In the short term, Fain explained during a recent conference call that the company plans to stand by its decision to not offer any discounted bookings for last-minute cruises.
"This may cost us some bookings in the short term," said Fain during the conference call via Hannah Sampson of the Miami Herald. "Over time, we think this will lead to happier guests, happier agents and better branding."
Royal Caribbean Cruises carried 1,335,518 passengers during the first quarter of this year, compared to 1,278,234 over the same quarter last year.
Along with first quarter earnings, Royal Caribbean Cruises updated its 2015 forecast as well.
The company updated full-year adjusted earnings per share guidance between $4.45 and $4.65, down from between $4.65 and $4.85 in January, citing the strength of the U.S. dollar and rising fuel costs.
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