Pullmantur to abandon Latin America focus and revert to Spain
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 23 October 2015 23 October 2015
Pullmantur the Latin America and Spain focused brand in the Royal Caribbean Cruises, Ltd. (RCCL) group, will refocus on Spain again instead of Latin America due to challenges in the last named market, RCCL said in a statement.
“In past quarters, management has acknowledged the weakness in the economies of Latin America, and the impact of this weakness on Pullmantur. Unfortunately, the economic outlook in Latin America has deteriorated further in recent months and, as a result, the brand is re-focusing on its core market of Spain.
Pullmantur has a fleet of five ships that all built in the late 1980s to early 1990s. The company was originaly Spanish owned and it focused mainly on the Spanish market, until the outbreak of the financial crisis in that country earlier this decade encouraged the management look at the Latin American markets as the key. RCCl today unveiled a $399.3 million impairment charge against the Pullmantur brand and its ships.
RCCL raises 2015 EPS forecast to $4.80 per share
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 23 October 2015 23 October 2015
Royal Caribbean Cruises, Ltd. (RCCL), the world’s second largest cruise shipping company, says it has raised its 2015 earnings per share (EPS) forecast to $4.80 per share from an earlier forecast of $4.65 to $4.70.
"As we have reiterated throughout the year, we remain ahead on both pricing and volume versus same time last year," said Jason T. Liberty, chief financial officer. "While Latin America is stressing yields in the fourth quarter, strong year-over-year pricing in the Caribbean, and the addition of capacity in China, will solidify this fourth quarter as the best in our company's history."
Taking into account current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company expects 2015 Adjusted EPS to be approximately $4.80 per share.
The company is experiencing good early booking trends for 2016. Booked load factors and APDs are higher than same time last year and the booking window has extended.
Management is excited by the 2016 introduction of Harmony of the Seas starting in Europe next summer and adding Ovation of the Seas to its Chinese platform to take advantage of the strong reception this class of ships has received there.
While still early in the booking cycle, the view for 2016 is encouraging, and the company expects another year of solid yield and earnings growth.
"As we turn the corner into 2016 we have our sights firmly set on our 2017 Double-Double targets," said Richard D. Fain, chairman and chief executive officer. "Next year represents a positive step on that journey."
RCCL reports fall in third quarter, nine month profit on Pullmantur charge
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 23 October 2015 23 October 2015
Royal Caribbean Cruises, Ltd (RCCL), the world’s second largest cruise shipping group, has reported a fall in third quarter and nine months net result on a heavy impairment charge of its Pullmantur brand.
Group net profit fell to $228.8 million in third quarter to $490.2 million, while revenues rose to $2.52 billion from $2.38 billion. The company booked impairment charges of $399.3 million related to Pullmantur, its Spain and Latin America focused brand and its assets.
In the first nine months of the year, the profit fell to $458.9 million from $654.4 million, while revenues rose to $6.39 billion from $6.26 billion.
“Net Yields on a Constant-Currency basis increased 5.1% during the quarter, approximately 130 basis points better than the mid-point of previous guidance. Close-in Caribbean and European demand and strong performance in Asia more than off-set further weakness in Latin America,” the company said in a statement.
“Onboard Revenue Yield increased 10% mainly driven by strong retail and beverage sales and demand for VOOM, the fastest internet at sea,” RCCL said. Year-over-year, the company has made a number of structural changes which are driving a stronger fourth quarter. The growth of the Asia-Pacific region, including Quantum of the Seas sailing in China, boosts earnings in the typically lighter shoulder season.
The addition of new capacity, with Anthem of the Seas joining the fleet, efforts to drive incremental Onboard Revenue, and a continued focus on cost efficiencies also contribute to a stronger end of the year.
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