Norwegian Cruise Line Holdings Ltd (NCLH), the world’s third largest cruise shipping group, has reported a slight fall in third quarter net and operating income despite an increase in revenues as operating expenses increased.
In the third quarter, net income fell to $450.6 million from $470.4 million year on, while operating income also fell, to $511.7 million from $550.3 million. Revenues increased to $1.91 billion from $1.86 billion.
Cruise operating expenses increased to $990.7 million from $928.9 million and other operating expenses to $411.4 million from $379.1 million, year on.
For the first nine months of the year, NCLH reported a rise in net income to $808.9 million from $800.2 million but operating income fell to $978.1 million from $1.00 billion. Revenues rose to $4.91 billion from $4.67 billion.
GAAP equaled earnings per share (EPS) of $2.09 in the third quarter compared to $2.11 in the prior year. “The Company generated Adjusted Net Income of $481.5 million or Adjusted EPS of $2.23 compared to $506.4 million or $2.27 in the prior year. These results include a $0.06 per share adverse impact from voyage cancellations, itinerary modifications and relief efforts related to Hurricane Dorian,” NCLH said in a statement.
“Revenue increased 3.0% to $1.9 billion on a decrease in Capacity Days of 1.8% compared to slightly less than $1.9 billion in 2018. This increase was primarily due to 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 4.8%. Net Yield increased 3.9% on a Constant Currency basis and 3.3% on an as reported basis,” NCLH said.
Total cruise operating expense increased 6.7% in the third quarter of 2019 compared to 2018, primarily due to continuing effects from the redeployment of Norwegian Joy during the second quarter of 2019 and incremental direct costs related to air promotions. Gross Cruise Costs per Capacity Day increased 8.9%. Adjusted Net Cruise Cost Excluding Fuel per Capacity Day increased 11.0% on a Constant Currency basis and 10.2% on an as reported basis, the company stated.
