Norwegian Cruise Line Holdings Ltd (NCLH), the world’s third largest cruise shipping group, has reported an increase in both second quarter and first half net income p[lus operating income on strong demand.
Net income in the second quarter rose to $240.2 million from $226.7 million in the same period last year, while operating income rose to $308.9 million from $292.1 million, Revenues reached $1.65 billion, an increase from $1.52 billion year on.
In the first six months of the year, NCLH’s net income rose to $358.3 million from $329.8 million and operating income rose to $466.9 million from $459.2 million. Revenues increased to $3.07 billion from $2.82 billion.
“The Company generated Adjusted Net Income of $282.1 million or Adjusted EPS of $1.30 compared to $271.9 million or $1.21 in the prior year,” NCLH said in a statement.
“Continued robust demand for our global brands along with our strong consumer focused value proposition, honed revenue management practices and best guest marketing strategy, enabled us to continue to drive ticket pricing higher which, when coupled with strong onboard revenue performance, resulted in record second quarter results,” said Frank Del Rio, president and chief executive officer of NCLH.
“The underlying fundamentals of our business remain strong across all core markets, and we continue to expect record financial results in 2019, despite the impact from the change in federal regulations which resulted in the cessation of premium-priced Cuba sailings, ” he added.
Increase in revenues in the second quarter was primarily attributed to an increase in capacity days as a result of the addition of Norwegian Bliss to the fleet in 2018 along with an increase in net yield driven by the repositioning of Norwegian Joy to North America, robust onboard spending along with strong growth in organic pricing across all core markets. Gross yield increased 7.5%. Net yield increased 5.8% on a constant currency basis and 5.0% on an as reported basis.
Total cruise operating expense increased 11.1% in 2019 compared to 2018, primarily due to an increase in capacity days as a result of the addition of Norwegian Bliss to the fleet in 2018 and the redeployment of Norwegian Joy to North America.
Gross cruise costs per capacity day increased 8.3%. Adjusted net cruise cost excluding fuel per capacity day increased 6.1% on a constant currency basis and 5.1% on an as reported basis. Fuel price per metric ton, net of hedges increased to $493 from $481 in 2018. The company reported fuel expense of $100.5 million in the period, NCLH said.
