Norwegian Cruise Line Holdings Ltd (NCLH), the world’s third largest listed cruise shipping company, has significantly reduced third quarter loss as revenue per passenger cruise day (PCD) rose 14%, which exceeded the company’s forecast.
“Strong ticket pricing and onboard revenue generation resulted in better-than-expected total revenue per Passenger Cruise Day which was up approximately 14% in the third quarter of 2022 versus 2019, higher than guidance for a high-single digits increase and despite the impact of the Russia-Ukraine conflict on premium-priced Baltic itineraries,” the company said in a statement.
Net loss in the third quarter narrowed to $295 million from $845 million year-on, while operating loss was reduced to $185 million from $689 million. Revenues increased to $1.62 billion from $153 million, reflecting the resumption of services and higher prices and onboard spending. NCLH continued its phased ramp-up in the third quarter focusing on maximizing long-term pricing, which resulted in a 17-point improvement in Occupancy to approximately 82%, consistent with previously outlined expectations.
Net interest expense fell to $152.3 million 2022 compared to $161.2 million in 2021. Interest expense decreased primarily as a result of lower interest expense in connection with recent refinancings and higher interest income, partially offset by higher debt balances and higher rates.
“We are demonstrating continued positive momentum as we consistently reach key operational and financial milestones, including positive Adjusted EBITDA in the third quarter for the first time since the start of the pandemic, ‘said said Frank Del Rio, president and CEO.
“The underlying fundamentals of our business and our target upmarket consumer remain strong and our strategy of focusing on maximizing long-term, sustainable profitability is working as intended, evidenced by our 2023 booked position which is equal to 2019’s record levels and at record pricing,” he said in the statement.
