Norwegian Cruise Line Holdings, Ltd (NCLH), the third largest cruise shipping group in the world, has reported a strong increase in net profit for the final quarter and full year 2017.
Net profit for the last three months of 2017 increased to $98.7 million from $72.2 million in the same period a year earlier. Revenues increased to $1.25 billion from $1.13 billion.
For the full year 2017, NCLH reported a net profit of $759.9 million, an increase from $633.0 million in 2016. Revenues increased to 5.23 billion from 4.87 billion.
The company said beat its full year earnings expectations, surpassing the midpoint of its initial February 2017 Adjusted EPS guidance of $3.80 by $0.16.
“The strong, record performance we delivered in 2017 was the perfect end to a historic year as we celebrate the five year anniversary of our initial public offering. Over the last five years we have continued our track record of consistent financial performance with a more than sixfold increase in EPS, a doubling of revenue and the expansion of Adjusted ROIC to double-digit levels," said Frank Del Rio, president and chief executive officer of NCLH.
“It has been a remarkable journey for our Company with more major milestones to come and an amazing trajectory of profit growth for 2018 and beyond. Our solid revenue and earnings performance will continue in 2018, having entered the year in the best booked position in our Company’s history with pricing above prior year across all three of our brands."
In the final quarter, Gross Yield increased 2.5% and Adjusted Net Yield increased 3.4% on a Constant Currency basis and 3.9% on an as reported basis. “An increase in Capacity Days along with an increase in marketing, general and administrative expenses increased total cruise operating expense 8.4% in 2017 compared to 2016,” NCLH said.
Gross Cruise Costs per Capacity Day increased 1.2%. Adjusted Net Cruise Cost Excluding Fuel per Capacity Day increased 2.8% on a Constant Currency basis and 3.2% on an as reported basis.