Royal Caribbean Cruises Ltd (RCCL) the world’s second largest cruise shipping group, has reported higer third quarter and nine month interim profits than last year on back of strong markets in the US and China, offsetting negative impact from Hurricane Dorian.
Group net profit rose to $890.3 million in the third quarter from $810.4 million a year earlier, while operating income rose to $890.8 million from $799.7 million. Revenues increased to $3.18 billion from $2.79 billion.
In the first nine months of the year, net profit increased to $1.63 billion from $1.49 billion and operating income to $1.78 billion from $1.53 billion. Revenues reached $8.43 billion compared to $7.16 billion year on.
"Our business continues to thrive and exceed our expectations," said Richard D. Fain, chairman and CEO in a statement. "While Hurricane Dorian had a negative impact, stronger demand for our brands and our key itineraries exceeded our expectations. Excluding the hurricane impact, we are not only able to maintain our yield and earnings guidance, but to raise both slightly as a result of particularly strong performance in the US and China."
The results include the negative impact of $27 million or $0.13 per share from itinerary disruptions and relief efforts related to Hurricane Dorian. and Adjusted Net Income was $836.3 million or $3.98 per share. Earnings per share rose to $4.21 from $3.88 in the third quarter.
Gross yields rose by 6.6% and net yields by 6.4% in constant currency, slightly better than guidance when considering the impact of the hurricane, which reduced revenue by $21 million and slightly reduced yields.
Gross cruise costs per available passenger capacity day (APCD) increased 7.5% in constant currency. Net cruise costs excluding fuel per APCD were up 11.0% in constant currency terms.
The reduction in capacity and relief efforts related to the hurricane negatively impacted this metric by 150 basis points. Absolute costs for the quarter were significantly better than expected, due to timing.
