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RCCL raises 2017 guidance on back of strong first quarter

Royal Caribbean Cruises, Ltd (RCCL), the world’s second largest cruise shipping group, said it has updated full year adjusted earnings per share (EPS) guidance to a range of $7.00 to $7.20 from $6.90 to $7.10 after reporting strong rise in net profit in the first quarter of the present year.

The company expects a Net Yield increase in the range of 4.5% to 6.0% on a Constant-Currency basis and 4.0% to 5.5% on an As-Reported basis.

Net Cruise Costs excluding fuel are expected to be flat to up slightly on a Constant-Currency basis and flat on an As-Reported basis.

“Overall, the year has developed very much along the trajectory the company projected at the beginning of the year. Bookings started the year on a very strong note and continued to please. This strong demand for cruises generally has offset the recent headwinds from the disrupted Korean sailings mainly during the second and third quarters,” the company said in a statement.

"First quarter's results are evidence that demand for cruise has room to grow, especially considering a 7% yield improvement achieved in the first quarter of last year," said Jason T. Liberty, executive vice president and CFO, said in the statement. "With consumers making the choice to spend more on experiences, our innovative hardware and superb onboard delivery is thriving."