Norwegian Cruise Line Holdings Ltd. today reported financial results for the second quarter ended June 30, 2018, as well as provided guidance for the third quarter and full year 2018.
The Company generated GAAP net income of $226.7 million or EPS of $1.01 compared to $198.5 million or $0.87 in the prior year. Adjusted Net Income was $271.9 million or Adjusted EPS of $1.21 compared to $232.7 million or $1.02 in the prior year. Adjusted EPS outperformed guidance by $0.19.
Total revenue increased 13.2% to $1.5 billion. Gross Yield increased 4.3%. Net Yield increased 4.0% on a Constant Currency basis, outperforming guidance by 200 basis points.
The Company expects to generate record earnings for full year 2018 and has increased its outlook above the high end of its previous guidance range, with Adjusted EPS now expected to be in the range of $4.70 to $4.80. This includes an expected $0.10 impact, split evenly between revenue and expense, as a result of the recently announced itinerary optimization initiatives which will benefit future periods. Excluding this impact, the midpoint of Adjusted EPS guidance would have increased to approximately $4.85.
2018 full year Net Yield growth guidance on a Constant Currency basis increased 75 basis points from prior guidance to approximately 3.25%, or 125 basis points from the Company’s initial full year outlook provided in February.
“The continuation of the robust booking environment from our core source markets, combined with the successful execution of demand creation strategies drove higher pricing across all three brands, resulting in second quarter revenue, yield and earnings growth well above expectations,” said Frank Del Rio, president and chief executive officer of Norwegian Cruise Line Holdings Ltd. “Global consumer cruise demand shows no signs of slowing as evidenced by solid organic growth and the hugely successful introduction of Norwegian Bliss, whose record-breaking performance surpassed our high expectations. The strong demand environment is expected to continue driving higher pricing in the back half of the year, leading to an increase of our full year 2018 Adjusted EPS outlook to a range of $4.70 to $4.80, well above the initial guidance range set at the beginning of the year.”