Royal Caribbean Cruises, Ltd (RCCL), the world’s second largest cruise shipping group, has reported a fall in third quarter and nine months net result on a heavy impairment charge of its Pullmantur brand.
Group net profit fell to $228.8 million in third quarter to $490.2 million, while revenues rose to $2.52 billion from $2.38 billion. The company booked impairment charges of $399.3 million related to Pullmantur, its Spain and Latin America focused brand and its assets.
In the first nine months of the year, the profit fell to $458.9 million from $654.4 million, while revenues rose to $6.39 billion from $6.26 billion.
“Net Yields on a Constant-Currency basis increased 5.1% during the quarter, approximately 130 basis points better than the mid-point of previous guidance. Close-in Caribbean and European demand and strong performance in Asia more than off-set further weakness in Latin America,” the company said in a statement.
“Onboard Revenue Yield increased 10% mainly driven by strong retail and beverage sales and demand for VOOM, the fastest internet at sea,” RCCL said. Year-over-year, the company has made a number of structural changes which are driving a stronger fourth quarter. The growth of the Asia-Pacific region, including Quantum of the Seas sailing in China, boosts earnings in the typically lighter shoulder season.
The addition of new capacity, with Anthem of the Seas joining the fleet, efforts to drive incremental Onboard Revenue, and a continued focus on cost efficiencies also contribute to a stronger end of the year.
