Harmony of the Seas Departing Port Everglades. Captured by Greg Dragonetti 11/5/2016
Harmony of the Seas Departing Port Everglades

Royal Caribbean Cruises Ltd. today reported record second quarter results and updated its full year Adjusted EPS guidance to a range of $9.55 to $9.65 per share versus the company’s latest midpoint guidance of $9.45 per share (including the impact of the Cuban travel restrictions).  This is an improvement of approximately $0.15 per share due to better second quarter results and an improved revenue outlook for the second half of the year.

For the second quarter, the company reported US GAAP earnings of $2.25 per share and adjusted earnings of $2.54 per share.

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Azamara Club Cruises Logo and funnel off the Azamara Journey in Miami.

KEY HIGHLIGHTS

Second Quarter 2019 Results:

  • US GAAP Net Income was $472.8 million or $2.25 per share and Adjusted Net Income was $532.7 million or $2.54 per share. Last year, US GAAP Net Income was $466.3 million or $2.19 per share, and Adjusted Net Income was $482.2 million or $2.27 per share.
  • Gross Yields were up 9.4% in Constant-Currency (up 8.2% As-Reported). Net Yields were up 9.5% in Constant-Currency (up 8.1% As-Reported). These results include a 30 basis point negative impact related to the discontinuation of the high yielding Cuba sailings.
  • Gross Cruise Costs per Available Passenger Cruise Days (“APCD”) increased 8.2% in Constant-Currency (up 7.4% As-Reported). Net Cruise Costs (“NCC”) excluding Fuel per APCD were up 8.9% in Constant-Currency (up 8.2% As-Reported).

Full Year 2019 Outlook:

  • Adjusted earnings for the full year are expected to be in the range of $9.55 to $9.65 per share.
  • Net revenue yields are expected to increase 7.75% to 8.25% in Constant-Currency (up 6.5% to 7.0% As-Reported). This range includes approximately 70 basis points related to the discontinuation of the high yielding Cuba sailings.
  • NCC excluding Fuel per APCD are expected to be up 10.0% to 10.5% in Constant-Currency (up 9.5% to 10.0% As-Reported).

“We are elated to see our brands executing so effectively, keeping our business in an exceptionally strong position,” said Richard D. Fain, chairman and CEO.  “Our strategic focus on destinations, technology and people is clearly paying off.  And, our core products are doing exceptionally well, driven by a gratifyingly robust demand for the Caribbean.”

SECOND QUARTER 2019

US GAAP Net Income for the second quarter of 2019 was $472.8 million or $2.25 per share and Adjusted Net Income was $532.7 million or $2.54 per share.  Last year, US GAAP Net Income was $466.3 million or $2.19 per share and Adjusted Net Income was $482.2 million or $2.27 per share.  The improvement over last year was mainly driven by increased revenue from our global brands.

Gross Yields were up 9.4% and Net Yields were up 9.5% in Constant-Currency, within guidance.  Better demand for onboard experiences as well as strong close-in demand for our core products fully offset the impact from the travel restrictions to Cuba which equated to 30 basis points for the quarter.

Gross Cruise Costs per APCD increased 8.2% in Constant-Currency.  NCC excluding Fuel per APCD were up 8.9% in Constant-Currency, better than guidance, driven by timing.  The travel restrictions to Cuba were neutral to NCC excluding Fuel in the second quarter.

Additionally, lower interest expense contributed to the second quarter’s positive performance.

Bunker pricing net of hedging for the second quarter was $483.8 per metric ton and consumption was 374,600 metric tons.