Royal Caribbean Cruises Ltd. (RCCL), the world’s second largest cruise shipping group, said it had hit its Double-Double performance targets as it reported 2017 net profit of $1.63 billion, a new record.
In the final quarter of last year, the profit rose to $288.0 million from $281.0 million a year earlier, while operating profit (EBIT) increased to $307.3 million from $296.8 million and revenues reached $2.00 billion from $1.90 billion.
In the full year 2017, net profit rose to $1.63 billion from $1.28 billion in the year before. Operating profit rose to $1.74 billion from 1.48 billion and revenues increased to $8.78 billion from $8.49 billion. Adjusted earnings per share for the full year came at $7.53 per share — beating the Double-Double EPS target and the mid-point of previous guidance by $0.75 and $0.16, respectively,’ the company said in a statement.
The Double-Double programme was announced in July 2014, with an aim double the company’s 2014 earnings per share by 2017 and increase return on invested capital to double digits.
"Our teams worked hard to achieve the Double-Double goals and now they have done it", said Richard D. Fain, chairman and CEO. "Each of the brands performed excellently during the past year raising their guest satisfaction and employee engagement scores to new heights. This augurs well as we focus on our previously announced 20/20 Vision," he added. A combination of strong demand for our North American and European products as well as our onboard offerings drove the growth rate, RCCL said.
Key metrics of the full year 2017 results:
Gross Yields were up 5.7% on a Constant-Currency basis (up 5.9% As-Reported).
Net Yields were up 6.4% on a Constant-Currency basis (up 6.5% As-Reported).
Gross Cruise Costs per APCD increased 1.9% on a Constant-Currency and As-Reported basis.
Net Cruise Costs ("NCC") excluding Fuel per APCD were up 2.0% on a Constant-Currency and As-Reported basis.