Royal Caribbean Announces Q3 2016 Earnings

Royal Caribbean also released this neat infographic for their quarterly earnings.

Here’s the full release: 

Royal Caribbean Cruises Ltd. reported GAAP and adjusted third quarter earnings of $3.21 and $3.20, respectively, up 13% from last year and better than expectations.  Full year adjusted earnings guidance is unchanged at $6.00 to $6.10 per share.

Looking ahead to 2017, the company’s booked position is better than same time last year on both volume and rate, supporting the company’s trajectory to the Double-Double.


Third Quarter 2016 results:

  • Net Yields were up 2.9% on a Constant-Currency basis (up 0.4%, As-Reported), better than guidance driven mainly by strong close-in demand for North American itineraries.
  • Net Cruise Costs (“NCC”) excluding fuel were down 1.6% on a Constant-Currency basis (down 2.0%, As-Reported), in line with guidance.
  • US GAAP Net Income was $693.3 million or $3.21 per share, versus $228.8 million, or $1.03 per share in 2015. Last year’s figure includes an impairment charge related to Pullmantur.
  • Adjusted Net Income was $690.9 million, or $3.20 per share, better than expectations driven by strong yields and positive movements in currency and fuel during the quarter, versus $628.1 million, or $2.84 per share, in 2015.

Full Year 2016 forecast:

  • Net Yields are expected to be up 4.0% or better on a Constant-Currency basis (up in the range of 1.7% to 2.0% As-Reported). Strong close-in demand for North American products in the third quarter is helping offset the impact from the delay in opening Empress of the Seas sailings in the fourth quarter.
  • NCC excluding fuel are expected to be up approximately 1.0% on a Constant-Currency basis (flat to up 1.0% As-Reported).
  • Adjusted EPS is expected to be in the range of $6.00 to $6.10 per share, unchanged from prior guidance.

“Our business continues to progress solidly to the Double-Double, and our recent dividend increase is evidence of our confidence in that trajectory,” said Richard D. Fain, chairman and chief executive officer. “It is gratifying to again be headed towards record earnings for the year, above our initial guidance.”


Net Yields on a Constant-Currency basis increased 2.9% during the quarter, better than previous guidance.  Continued strength in demand for North American products was a key driver of the outperformance while the balance of the portfolio performed in-line with expectations. Growth in onboard revenue continued to outpace overall net yield growth, despite an extraordinary outperformance last summer.  Favorable trends in both currency and fuel compared to expectations also provided a benefit to the quarter.

US GAAP Net Income for the third quarter 2016 was $693.3 million or $3.21 per share, compared to $228.8 million or $1.03 per share in 2015 – this includes $399.3 millionin non-cash impairment charges related to the Pullmantur brand that was taken last year.  Adjusted Net Income for the third quarter of 2016 was $690.9 million, or $3.20per share, which was $0.10 better than guidance and up 13% versus same quarter last year.  About half of the outperformance was driven by better than expected revenue performance, with the balance of the improvement being mainly driven by the benefits of a weaker dollar and lower fuel prices.

Constant-Currency NCC excluding fuel decreased 1.6%, in-line with expectations.  Bunker pricing net of hedging for the third quarter was $524 per metric ton and consumption was 341,000 metric tons.