Royal Caribbean beats Q2 forecast

New York-listed cruise line company Royal Caribbean Cruises reported its adjusted net income for the second quarter of 2016 at USD 235.2 million, or USD 1.09 per share, compared to USD 185 million seen in the same period in 2015, representing an increase of 25 percent.

US GAAP net income for the quarter was USD 229.9 million, or USD 1.06 per share, against USD 185 million, or USD 0.84 per share, reported in 2015.

The company said that the results exceeded previous guidance, mainly due to lower than expected fuel expense.

“Our business remains strong and we continue to improve our return profile,” said Richard Fain, chief executive officer.

RCL’s net yields increased by 1.1%, in-line with guidance, while the portfolio of global destinations performed as expected, the company added.

The company updated full year adjusted earnings per share guidance to a range of USD 6 to USD 6.10, representing a decrease of USD 0.20, while net yields are expected to increase in the range of 4.0% to 4.5%.

In terms of demand, RCL said that its booked position for the remainder of 2016 remains strong, similar to last year’s record levels.

RCL added that the company’s booked position for the next twelve months is also strong, up on both rate and volume.

“While there are always puts and takes in our key markets, our portfolio is performing as expected, our booked position remains strong, and our newbuilds are entering their markets to great fanfare,”Jason T. Liberty, chief financial officer, said, adding that “these factors are driving another year of record earnings.”

 



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