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Royal Caribbean reports second quarter earnings and increases full year guidance

Royal Caribbean Cruises Ltd. has reported US GAAP and Adjusted Earnings per Share ("EPS") of $1.71 for the second quarter. This represents EPS growth of nearly 60% over same time last year. Better than anticipated performance in the second quarter combined with favorable booking trends are driving an increase in the Company's full year Adjusted EPS guidance to a range of $7.35 to $7.45.

Key highlights – second quarter 2017 results

– US GAAP and Adjusted Net Income was $369.5 million or $1.71 per share. Last year, US GAAP Net Income was $229.9 million or $1.06 per share and Adjusted Net Income was $235.2 million, or $1.09 per share in 2016.
– Gross Yields were up 10.2% on a Constant-Currency basis (up 8.7% As-Reported). Net Yields were up 11.5% on a Constant-Currency basis (up 9.9% As-Reported).
– Gross Cruise Costs increased 1.2% on a Constant-Currency basis (0.6% As-Reported). Net Cruise Costs ("NCC") Excluding Fuel were down 0.9% on a Constant-Currency basis (down 1.4% As-Reported).

Full year 2017 forecast

– Adjusted EPS is expected to be in the range of $7.35 to $7.45 per share.
– Net Yields are expected to increase 5.5% to 6.0% on a Constant-Currency basis, up approximately 6.0% on an As-Reported basis.
– NCC Excluding Fuel are expected to be up approximately 1.0% on a Constant-Currency and As-Reported basis.

"Our brands are executing beautifully, keeping the business in an exceptionally strong position," said Richard D. Fain, chairman and CEO. "Strong close-in demand for cruise bolstered the quarter, and we see further uplift for the balance of the year, positioning us well for the Double-Double and beyond."

Second quarter results

US GAAP and Adjusted Net Income for the second quarter 2017 was $369.5 million or $1.71 per share, compared to US GAAP Net Income of $229.9 million or $1.06 per share and Adjusted Net Income of $235.2 million, or $1.09 per share in 2016.

Gross Yields were up 10.2% on a Constant-Currency basis. Net Yields on a Constant-Currency basis increased 11.5%, exceeding prior guidance due to strong close-in demand driving higher pricing and occupancy.

Gross Cruise Costs increased 1.2% on a Constant-Currency basis. Constant-Currency NCC Excluding Fuel decreased 0.9%.

Bunker pricing net of hedging for the second quarter was $527 per metric ton and consumption was 324,000 metric tons.

Full year 2017

The company updated full year Adjusted EPS guidance to a range of $7.35 to $7.45, a $0.30 increase at the midpoint versus previous guidance. Bookings continue to be very robust.

The company's booked position for the remainder of 2017 continues to set new records. Looking further ahead, the company's booked position for the next twelve months is also strong, up on both rate and volume, versus the same time last year. Net Yields for the year on a Constant-Currency basis are expected to increase 5.5% to 6.0%, up relative to prior guidance due to the better results in the second quarter as well as stronger trends for the balance of the year.

NCC Excluding Fuel are expected to be up approximately 1.0% on a Constant-Currency basis for the year.

"Demand has remained strong, and we have captured the related revenue opportunity," said Jason T. Liberty, executive vice president and CFO. "These demand trends and continued cost discipline have resulted in the highest second quarter earnings in company history and have put us in position for another record year and achieving our Double-Double targets."

Taking into account current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company expects 2017 EPS to be in the range of $7.35 to $7.45 per share.

Third quarter 2017

Constant-Currency Net Yields are expected to be up 4.0% to 4.5% in the third quarter of 2017. Strong demand trends for Europe and North America products are driving improvement over an already strong previous year. NCC Excluding Fuel are expected to be up approximately 4.0% on a Constant-Currency basis.

Based on current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company expects third quarter Adjusted EPS to be approximately $3.45 per share.

CBR 1/2017 CONTENTS

CBR 3/2016 CONTENTS

CBR 2/2016 CONTENTS